[Peakoil] 80.000 new wells needed to keep oil production constant. [feedly]

[Antony Broughton Barry]

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80.000 new wells needed to keep oil production constant.
// Aleklett's Energy Mix

Douglas-Westwood is a London-based company performing market research and energy-related tasks for the energy industry worldwide. In a report released today on the internet they discuss the price of oil and compare it to a rollercoaster. Their take on the currently declining price is that OPEC does not want to lose market share. They note also that the lower price will, presumably, caused decreased drilling for oil and that production will then fall causing the oil price to rise again. An interesting aspect of the report is the statement that, this year, 80,000 new wells will be required to hold oil production constant and presumably it will require a greater number next year. The current beneficiaries of this are the oil service companies.

Riding the Oil Price Roller Coaster, Douglas-Westwood:

Recent history suggests that oil price downturns tend to be short and measured in months, not years. There is plenty to suggest that, this time, it could be even shorter: rapid supply erosion is likely along with a healthy boost to GDP for net importers. Both high and low oil prices present opportunities for well-managed, well-financed companies that have a long-term view, as the oil & gas industry is not a short-term game. But the window of opportunity may well be very short before the next cycle begins.