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Feb17-12, 08:13 PM
Because the use of newer technology has increased production 500% in the last three years, and that geology exists in many other places.
Citigroup made a similar argument:
The belief that global oilproduction has peaked, or is on the cusp of doing so, has underpinned much of crudeoil’s decade-long rally (setting aside the 2008 sell-off).
That pattern looks set to change mainly because of the new shale oil plays in the US.
But they are quite optimistic, and the WSJ noted that:
Despite this optimism, it’s a fair bet that not everyone will be convinced. Indeed, there is good reason to be skeptical that the world’s oil production can be forever buoyed by new technology. This is the fact that, year in year out, oil production from existing areas like the North Sea or Alaska declines steadily, meaning the industry must run just to stand still.
Obviously, the market is still betting on peak.