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Page added on September 8, 2013
Core Labs CEO thinks we may have arrived at peak oil
Every year in August there is a weeklong event — “The Oil & Gas Conference” in Denver, and it draws an international audience. By most accounts, EnerCom is the best on the schedule.
This year 107 companies made presentations. If I were only allowed to hear one presentation and attend one breakout session, it would be Core Labs — hands down.
“The maximum yearly oil production of the planet is taking place now!” That came from the CEO of a Netherlands-based company that has 70 offices in 50 countries worldwide. Their business is analyzing drilling results for all major, and 100s of smaller companies in the global energy finding industry. Annual revenues are $1 billion.
The company, Core Labs (CLB $155), has a unique view of the big picture few could envision. As a byproduct of their normal business activities, CLB scientists accumulate data about the current production of all major oil and gas basins on the planet.
While an exploration company is drilling, CLB analyzes “down hole” rock samples and estimates the probability of finding oil and gas below. After a field is producing, CLB helps the well operators to extract the maximum amount of hydrocarbons from the reservoir. Information that extensive about all the major energy basins in 50 countries is a unique collection of data.
Never very bashful in the breakout session, CEO Dave Demshur readily offered his thoughts about the big energy picture. When queried about predictions of increased oil production he took the under in most cases.
Demshur is a “peak oil” proponent — translated it means that at some point the oil production of the planet will maximize, flatten, and then diminish. For the first time I can recall, he said we have reached the peak area.
He estimates planetary oil production in 2014, 2015, and maybe 2016 to be at the peak level we shall ever be able to generate. When asked about future oil independence here in the US, he just smiled — and added “no chance”.
7 Comments on "Core Labs CEO thinks we may have arrived at peak oil"
Repent on Sun, 8th Sep 2013 1:18 pm
I think that’s the date range that the US military thought peak oil would occur in as well.
rollin on Sun, 8th Sep 2013 1:36 pm
It’s time to get really serious about reducing demand for crude oil products. We want to stay ahead of the curve, never behind it.
The US will become independent of crude oil when it is forced down that path.
sandu635 on Sun, 8th Sep 2013 1:36 pm
He is referring to all liquids production, right ?
bobinget on Sun, 8th Sep 2013 4:32 pm
Core Labs is, as the article infers, is uniquely qualified to make this call from strictly scientific data.
Of course, we need to understand, Mr Demshur’s
prediction is also self-serving. More as a warning then threat, he is saying ‘you oil companies, share holders, will be needing our services more then ever’.
Wheeldog on Sun, 8th Sep 2013 9:34 pm
Trying to determine the exact peak of oil production is like counting the number of angels that can dance on the head of a pin. It is a ridiculous exercise with no real meaning. As oil production slows (not necessarily peaks) costs increase significantly. Businesses must plan accordingly and likely reduce their exposure to increasingly expensive energy. The same holds true for political and military interests. Eventually, the impacts trickle down causing social changes. Housing/settlement arrangements must be modified. Far flung suburban lifestyles become less tenable. Over time these adjustments take on more mass and the process becomes self sustaining. Attempts to “fill the gap” with unconventional substitutes for oil is reflective of a last ditch effort to hang on to a past reality that has evolved into a fantasy.
mike on Mon, 9th Sep 2013 7:13 am
I presume he is referring to all liquids production because as we all know peak oil occurred in 2006.
GregT on Tue, 10th Sep 2013 5:15 am
“The US will become independent of crude oil when it is forced down that path.”
Yes it will, and when the transition is complete, it will look slightly better than Mexico. Hopefully.