Thursday, June 11, 2009

Khurais Oilfield Opens - And Helps Us Comprehend Energy Instability

Khurais Oil Field - Ghawar's little brother - began production recently. Here is an article from the NY Times from a year ago that details the field and the development of the facility. It has been a remarkable undertaking, the scale of which should not be underestimated.

Khurais will produce 1.2 million barrels a day, which is about 1.5% of world demand (per the IEA). The IEA also conservatively estimates in the most recent World Energy Outlook that demand will grow at 1.2% per year worldwide.

Basically, we need the equivalent of 1+ Khurais each year, just to keep up with world oil demand growth. Sound like a challenge?

Alternatively, see what Forbes wrote about the Haynesville Shale...enough natural gas to last a decade...

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