RE:Non-Opec Supply Muddles Bull Case for OilInteresting article Migraine.
I can't help but wonder why these articles focusing on additional supply vs. demand never speak meaningfully about resevoir depletion rates. Just seems like they are only giving part of the story.
Conventional wells depletion rates are in the neighborhood of 6% (or more)
Unconventional oil wells are worse, double or triple that.
Just using round numbers, being conservative, the world needs to add 5 millions barrels a year just to break even. A quick scan of this article does not yield enough new production to cover standard depletion rates. Maybe the depletion rates are baked in to the numbers? If so, why not mention this?
My $0.02 FWIW :-)
Cheers,
Nukester