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A U.S. Oil Resource Reality Check

A U.S. Oil Resource Reality Check. Jude Clemente, MS, MBA January 2012 JTC Energy Research Associates, LLC. Oil Resource vs. Oil Reserve. A reserve is what can be extracted today, given price and technological realities

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A U.S. Oil Resource Reality Check

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  1. A U.S. Oil Resource Reality Check Jude Clemente, MS, MBA January 2012 JTC Energy Research Associates, LLC

  2. Oil Resource vs. Oil Reserve A reserve is what can be extracted today, given price and technological realities A recoverable resource is what can potentially be extracted given future changes in price and technology Because future prices and technologies are unknowable, the amount of oil we can ultimately extract is thus unknowable The U.S. has a recoverable resource of 1,442 billion barrels and proven reserves of 30 billion barrels

  3. Oil Price and Technology Changes Reserves are always in flux due to price and technology changes U.S. proven reserves have hovered around 30 billion barrels since 1980, despite the extraction of 80 billion barrels Over the past 30 years, we produced nearly 170% of the oil that we thought we had in 1980

  4. Source: Institute for Energy Research, December 2011

  5. Source: Institute for Energy Research, December 2011

  6. Source: Institute for Energy Research, December 2011

  7. Source: Institute for Energy Research, December 2011

  8. North Dakota Oil: Example of the Effects of Price and Technology Changes Advancing hydraulic fracturing and horizontal drilling technologies applied to shale oil formations Bakken shale play: companies taking advantage of historic prices ND now produces 113 million barrels; produced just 31 million in 2004 ND the 4th highest producer in the U.S; compared to 9th in 2004 In 1995, USGS estimated ND had 151 million barrels of recoverable oil; now, USGS estimates it has 3,700 million ND has the lowest unemployment rate in the country

  9. Source: Institute for Energy Research, December 2011

  10. Source: U.S. Energy Information Administration, 2011

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