[Peakoil] extracting every last drop of oil...

[Jenny Goldie]

The following (in italics) is part of a letter sent to me by a friend who has been living in Malaysia. I'm passing on to you all for the insight on oil extraction once oil passes the $70/barrel  mark. Jenny

As a non-fundamentalist muslim state, Malaysia has been an interesting place to live. By Asian standards it's a tolerant society, with the three main ethnic groups, Malays, Chinese and Indians reasonably at peace with each other. I have been working up here part time for a friend of mine in Melbourne who runs a business supplying packaged plants to oil rigs and the like. A lot of action up here, as in most places in the world, developing smaller oil fields that were uneconomic when oil was a third of the price it is now. This oil is a lot harder to extract, takes more equipment to extract it, but is worth doing at $70 per barrel. With the quest to wring the last drop of hard to get oil out of the ground, equipment supply for hydrocarbons extraction is a boom industry right now. Oil rig builders are booked out for years ahead. As well as general depletion of oil fields, one of the restrictions on the supply of oil and gas in the next few years will be lack of infrastructure to get at the oil out of the ground. Since the demand for oil is still rising at about 2% pa and with China and India poised to experience the joys of motoring on a massive scale, you'd have to think the rise in oil prices will continue for a while yet.
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