You are here:

Oil/Gas/Future of Oil

Advertisement


Question
Hello,


There have been numerous predictions in recent decades about the decline of oil production, with many claiming that there will be a vast rise in oil-prices until, eventually, civilisation goes bust due to lack of oil.  Are these predictions honest or will oil-supplies never end because rising technology always allows ever more ways to provide more oil?

Secondly, is the reason why no alternative technology to oil(such as hydrogen-cells) has been effectively produced, is mainly because of lack of funding?

Thanks, Geoff.

Answer
When oil and gas production began just over 100 years ago, all the associated technology was in its infancy stage.  As we progress in our use, our technology has kept up in many ways.  To that end, the old oil wells from the 1930-1950's only produced about 30% of the known oil reserve found in the produced formation. That left 70% of the oil in place.  This means that we know where an additional 70% of the oil is located and as technology catches up then we are able to not only find new deposits of oil but also go back and remove the known oil deposits.

Oil is used in making so many different products that the extraction of oil will continue.  We could reduce our use of oil by substantially increasing our use of clean-burning natural gas.  We could also increase our use of solar and wind. The problem is that the amount of oil and other natural elements required to make the components, install the components, maintain the components makes the alternative sources of fuel non-economic when compared to oil and gas extraction.

You are right that the issue is basically an economic issue -- though not a "funding issue".  There is adequate "funding" for anything in America that makes money.  What there is not is funding for a process that will not return that investment.  If there was the "return" on the investment you would see the champions of the liberal cause such as George Soros and all the "Hollywood money" rush to invest in these "green" energy alternatives.  The problem is that there is no investment return in alternative energy.

I was driving through west Texas just yesterday and I'm going to insert a picture here for you (This website didn't approve the size).  This picture shows a farmer that owns and works a cotton field that has oil and gas wells on it AND has wind turbines for generating clean wind energy.  If there is money in it then it will be built and tried.

Oil/Gas

All Answers


Answers by Expert:


Ask Experts

Volunteer


Cliff Williams

Expertise

I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.

Experience

I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

Organizations
State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

Publications
Multiple oil and gas topical columns on ezine.com.

Education/Credentials
I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

Awards and Honors
Husband and father of 26 years

©2016 About.com. All rights reserved.