POWER PLAYS: THE WORLD ENERGY WATCH FOR APRIL 9, 2008

The World Energy Watch presents excerpts of analysis and recent news reports highlighting the activities of the players involved in the power struggle for the world’s remaining energy resources and energy sustainability.

1//A sobering look at our future oil situation from Energy and Oil by Byron King tops the news in this week’s edition. Looks like both domestic and imported oil supplies will be drying up by 2025. Then what?

The U.S. Oil Supply — A Look At Our Future Oil Needs

New discoveries and new wells just cannot keep up with depletion of older oil fields. By 2025, U.S. daily oil output will be a fraction of its current level (probably down to about 2-3 million barrels per day), even with an aggressive program of drilling offshore and in Alaska — which is not happening, in any case. … . Also by 2025, U.S. imports will almost certainly decline. The oil will not be available to buy and import from world markets. Not everyone agrees with this. In one fanciful projection from 2005, the U.S. DOE forecast that “Total U.S. gross petroleum imports are projected to increase in the reference case from 12.3 million barrels per day in 2003 to 20.2 million in 2025.” Maybe in somebody’s dreams, but my view is that this is one projection that will never come true. … . Really, by 2025, the rest of the oil-producing world will simply lack the product to export. This will be due to reasons of depletion on a global scale, and fast-growing internal demand in oil-producing nations. Gasoline consumption in places as diverse as Russia, Iran, Venezuela and Saudi Arabia is just soaring, so there is less net oil available for export. … . So what will happen in 2025? Will the U.S. pump its own oil? No, it’s not there. Will the U.S. continue to import large volumes? No, it won’t be available. The bottom line is that conventional oil sources for the U.S. — domestic output and imports — are simply drying up.