Are Reports of Oil’s Demise Greatly Exaggerated?
In Indonesia, Chevron has applied the same technology to the giant Duri oil field, discovered in 1941, boosting production there to more than 200,000 barrels a day, up from 65,000 barrels in the mid-1980s.
And in Texas, Exxon Mobil expects to double the amount of oil it extracts from its Means field, which dates back to the 1930s. Exxon, like Chevron, will use three-dimensional imaging of the underground field and the injection of a gas â€” in this case, carbon dioxide â€” to flush out the oil.
Within the last decade, technology advances have made it possible to unlock more oil from old fields, and, at the same time, higher oil prices have made it economical for companies to go after reserves that are harder to reach. With plenty of oil still left in familiar locations, forecasts that the worldâ€™s reserves are drying out have given way to predictions that more oil can be found than ever before.
â€œItâ€™s the fifth time to my count that weâ€™ve gone through a period when it seemed the end of oil was near and people were talking about the exhaustion of resources,â€ said Daniel Yergin, the chairman of Cambridge Energy and author of a Pulitzer Prize-winning history of oil, who cited similar concerns in the 1880s, after both world wars and in the 1970s. â€œBack then we were going to fly off the oil mountain. Instead we had a boom and oil went to $10 instead of $100.â€
There is still a minority view, held largely by a small band of retired petroleum geologists and some members of Congress, that oil production has peaked, but the theory has been fading. Equally contentious for the oil companies is the growing voice of environmentalists, who do not think that pumping and consuming an ever-increasing amount of fossil fuel is in any way desirable…