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Asia Is Now Draining the West’s Oil Fields

Written by Gary North on January 31, 2012

The Establishment media insist that peak oil theory is a myth. This is why the following chart is not mentioned in the Establishment media. It tracks oil production. It is flat. This is global annual crude oil production in millions of barrels per day.

Here is the problem the West faces. We know that Asia has increased oil consumption. India and China are becoming major consumers of oil. Yet oil output has remained flat. Conclusion: the West’s consumption has fallen to offset Asia’s increased consumption.

Where is the increased oil that has been promised by the Establishment media? If there is greater consumption by Asia, and the West is at least maintaining its rate of consumption, the chart would reveal an increase in oil production. There has been no such increase.

The future is clear. As Asia increases its consumption of oil as its manufacturing sectors increase, Westerners will have to cut back on their consumption of oil. This is not theory. This is already happening.

Western voters are not ready for this. They have not budgeted for this.

I have. I hope you have.

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7 thoughts on “Asia Is Now Draining the West’s Oil Fields

  1. MontanaMEL says:

    BALDERDASH… Being a proud member of the OIL FIELD TRASH group of real hands-on oilmen…there is only ECONOMIC reasons for such flatness of daily production…i.e, IF OPEC, or anyone else capable of "increased production" by just the "turn of a valve, were to increase such supplies of "spot cargos" by say 1 to 2 MBOPD, the PRICE OF OIL FALL OR MODERATE! Of course…the actions of IRAN also have a direct effect upon this price too…or, even their "possible actions"…i.e, "buy the roomer, sell the fact"…

    The "energy market", which includes oil and gas, is truely WORLDWIDE in it's scope… IF we in the USA were to just STOP buying OPEC oil, about 7 MBOPD would become availabe on the world market that same day…AND, the price would fall…for awhile. The "market" would try and figure out just what we were doing and why we were doing it then…ALL THESE "REASONS" get factored into the daily "price" too…

  2. MontanaMEL says:

    IF it were "found" that we had "another/new source" replacing these bbls, then the price would stay low UNTIL DEMAND FROM THE WORLD INCREASED back up to the "original level" of daily production..

    Saudi at one time pumped/lifted almost 14 MBOPD…for a few months…I think it was 13.xx bbls or so…today, it only pumps like 10.2 to 10.7 MBOPD and appears to be "topped out" at that much lower figure… I also know, that "back in the day"…IF they drilled a well that DIDN'T PRODUCE a MINIMUM of 50,000 bbl per day – they would plug it and drill another…These were "free flowing" wells, they "self-lifted"…no pump needed to get it to the surface tanks/lines…they did need pumps to move it around above ground, until it was placed into a ULCC tanker.. Perhaps some of this initial, "flush", production has "stopped flowing" and must now be lifted/pumped??..

  3. MontanaMEL says:

    That takes a lot more equipment and "cost per bbl" delivered into that tanker… At one time, their actual lifting costs were under 50-cents USD per bbl… Here in the USA, our's now AVERAGE something like $15 to $20 per bb… Some of this new Shale oil can hit $45 to $50 per bbl…it all gets averaged, but it's still there to be paid!..

    FACT: We in the USA are sitting on top of over 200 MORE YEARS of OIL PRODUCTION CAPACITY (proven/doc reserves!).. AND, that is BEFORE WE EVEN FACTOR IN OUR COAL RESERVES – WHICH CAN BE MADE INTO LIQUID GAS, like the German's did during WW-II. Google: GREEN RIVER SHALE FORMATION and DOE OIL RESERVE ESTIMATES!

  4. MontanaMEL says:

    To hold and finish a cohearent thought – with supporting facts or figures noted – is 3 or 4 REAL PARAGRAPHS too much to ask these days??…

    Afterall, it's not the cost of "ink" or "paper", is it??

  5. Where is this guy coming from? His very first line is a lie! "The Establishment media insist that peak oil theory is a myth" Watch any video from CNN, CBS, NBC, ABC about this subject and they all confirm Peak Oil as fact. I could tell just from that one sentence that this person is from the left. The last sentence confirmed it.

  6. Browsin'_Thru says:

    I agree with Trini with the exception of "…this person is from the left." The "left" are the strongest defenders of Hubbert's theory of peak oil. When I read "The Establishment media…" I interpreted that to be a reference to the more conservative elements amongst us.

  7. Browsin'_Thru says:

    Good posts, MontanaMEL. Economist Jeff Rubin provides a similar perspective in his book "Why Your World is About to Get a Whole Lot Smaller" &lt ;http://www.randomhouse.ca/catalog/display.pperl?isbn=9780307357519&view=print> and predicts the re-emergence of the American industrial base as the cost of shipping (among other things) drives up the cost of globalization.