OP-ED: Don't worry — we'll never run out of oil

[herm]

Actually oil and coal breakdown into methane with pressure, heat and age, that is why you find so much methane in oil wells. You probably wont find oil at great depths due to this.

If oil prices keep going down Sasol and Shell will not build GTL plants in Louisiana.

[ItsNotAboutTheMoney]

Originally Posted by herm

Actually oil and coal breakdown into methane with pressure, heat and age, that is why you find so much methane in oil wells. You probably wont find oil at great depths due to this.

If oil prices keep going down Sasol and Shell will not build GTL plants in Louisiana.

The thing is though, if oil prices keep going down, people will have more money, economies will grow and then oil prices will rise again, Sasol and Shell will begin building GTL plants .....

[BWarchitect]

Another thing people need to remember is that it is not only dollars, but energy too, that is required to get oil out of the ground. At some point, when it takes as much energy to get it as it contains, then it's game over. Look up "EROI" or Energy Return on Investment. The ratio is much lower already than it was in the beginning of oil production and use

[herm]

EROI does not apply to extracting free fuel from out of the ground.. the only thing that matters is how much people are willing to pay for it..

Lets say you have to burn 2 barrels out of each 3 barrels that you extracted from 10k ft deep.. it only means your production is only 1/3 of what it could be. I believe mining tar in Canada consumes about 1/3 of the energy produced, mostly producer gas and methane to melt the tar out. Compare that to $2 a barrel oil that used to gush out of the ground in Saudi Arabia... no wonder people drove Chrysler Imperials

People use the EROI argument regarding solar panels, windmills and corn ethanol.. distilling corn ethanol consumes a lot of coal and NG, but the net return is still positive.

[ksstathead]

So, herm, is it your position that 2 barrels is the most energy needed to get 3 barrels out? Can you support that limit?

I think BWa's point is you reach a situation in which it takes 3+ barrels to extract 3 barrels. Then it is a little uglier.

[herm]

My example was 2 barrels burned to produce 1 barrel, no idea if it will ever come to pass.. too many asteroids and comets up in the heavens aiming at mother Earth