Friday, November 02, 2007

Texas tea cooling down

When you think of Texas oil fields, you think busy, big and big money. But when you've been pumping oil out of the ground for a 100 years, oil production declines as the oil starts to run out. Then you scramble for the scraps that are left.

The hike in prices over the last ten years from $8 to $80 helps, but even those economics can't overcome the inevitabilities of petrogeology.

This story from the New York Times tells that story:
But for all the new wealth and activity, the best the industry can hope to accomplish is to slow the decline of American oil production. The good times here are not nearly as good as they were in the last big oil boom in the 1970s and 1980s — and nobody expects they will get that way, how ever high prices rise.
A similar pattern is emerging in the North Sea too.

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