Business Trends

Posts Tagged ‘gas extraction’

Peak Oil Reality: Industry Experts Warn About Looming World Oil Supply Constraints

In Uncategorized on November 24, 2009 at 9:48 pm

Groups and individuals speaking out about forthcoming world oil supply challenges are frequently stereotyped as a fringe element with little knowledge about the oil industry. But their warnings are increasingly supported by some surprising allies: senior petroleum industry officials, consultants and analysts. Call these serious-minded critics the Harsh Realists.

Most prominent are CEO’s from several large oil companies. Christophe de Margerie, CEO of France’s Total SA, said earlier this year, “world oil production may plateau below 90 million barrels a day (mb/day)” — marginally more supply than today’s 85 mb/day rate. Last month, CEO’s James Mulva (ConocoPhillips) and John Hess (Hess Corp.), sounded similar warnings, though with less specificity about the numbers, at the Oil & Money Conference in London. At ASPO-USA’s October conference in Denver, Ray Leonard, CEO of Hyperdynamics Corp., said, “world oil was nearing peak oil at 90 mb/day, and that isn’t changed by recent events.”

During September, ASPO-USA representatives interviewed numerous oil industry experts from the UK, Ireland and the Middle East. Links to those online videos are below. Featured is Sadad al Husseini, former exploration and production VP with Saudi Aramco and currently a consultant. Said Husseini, “There is not enough new capacity coming on line, within say the next five to six years, to make up for global declines. And that’s assuming a very moderate level of declines.” For groups that remain in fundamental denial about upcoming world oil supply constraints, Husseini said, ” these centers of information or knowledge that try to pacify people — telling them there is no challenge, with good intentions — are probably compromising the solutions. They’re not helping.”

Talisman Energy’s former CEO James Buckee wonders why major oil companies “aren’t more forthcoming on the peak oil issue.” He then opines, “if Exxon were to come out [about peak oil], it would be world-shaking, and political, and maybe they don’t want to go there.”

Jeremy Gilbert, former Chief Petroleum Engineer with BP and now a consultant, stated “I find it hard to believe that the [oil] companies cannot see that the exploration record suggests that there’s a real problem with new discoveries.”

Jeremy Leggett, former petroleum geologist and lead author of the UK’s Industry Task Force on Peak Oil and Energy Security, worries that “we’re dealing with dysfunctional culture in the energy industry in the same way the world had to deal with the really dysfunctional culture in the investment banking community. It’s different [from the financial crisis] in that this time, there are many people warning. Many people in and around the oil industry…But most governments are not listening.”

Related links

IBISWorld industry reports:

Oil Drilling & Gas Extraction in the U.S.
Global Oil and Gas Exploration and Production
Mining, Oil & Gas Machinery Manufacturing
World Production – Oil
World Price – Energy – Crude Oil

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Worldwide demand for products produced in Alaska increasing industrial employment in the state

In Uncategorized on May 28, 2009 at 6:00 pm

Petroleum refineryIndustrial employment in Alaska increased 3.1% over the past twelve months according to the 2009 Alaska Manufacturers Directory. MNI reports Alaska gained 1,016 industrial jobs from March 2008 to March 2009 — contrary to the steep industrial employment losses experienced by the rest of the U.S.

“Steady worldwide demand for products produced in Alaska, particularly petroleum and coal products, is helping Alaska weather the recession,” says Tom Dubin, President of the Evanston, IL-based publisher, which has been surveying industry since 1912.

The industrial directory reports Alaska is home to 944 manufacturers employing 33,968 workers. MNI profiles manufacturers of all sizes including small, start up companies.

According to MNI, food manufacturing accounts for 31% of the state’s industrial jobs or 10,529 jobs, down 1.2% over the past twelve months. Fish processing/canning accounts for 92% of the state’s food manufacturing jobs, down 163 jobs or 1.7% over the year.

Another 19% of Alaska’s industrial jobs are in oil & gas extraction, with the sector accounting for the majority of the state’s employment gain, up 15.8% over the year. Employment in petroleum and coal products processing represents 3,781 of the state’s industrial jobs, with no significant change reported over the year. The industrial machinery and
equipment sector accounts for 4,762 of Alaska’s manufacturing jobs, up 1.7% since March 2008.

Other sectors gaining jobs include transportation equipment, up 82 jobs or 12% and fabricated metals, up 51 jobs or 4.4%. Losses were seen in lumber/wood products, down 3.4% and printing/publishing, down 1.2%. Employment remained stable in most other sectors, according to MNI.

The Directory reports over half of the state’s industrial jobs are located in South Central Alaska. Jobs in Anchorage, the Kenai Peninsula and Kodiak Island represent 19,666 jobs, up 402 jobs or 2.1% in the past 12 months.

The Aleutian Islands represent 4,193 of the state’s industrial jobs, down 2.5% since March 2008 while Fairbanks North Star is home to 1,904 jobs, up 1.4% over the year. The oil-rich North Slope region is home to 1,483 jobs, up 45% over the year.