“Shale was thought of as a swing producer, the Saudis and OPEC have waited this out. Now, really OPEC is back in the driver’s seat where they are the swing producer,” Hess Corp CEO, John Hess
The History of Oil Well Firefighting & Blowout Control
In 1976 Congress implemented the 1975 Energy Policy and Conservation Act banning all crude oil exports from the US. This was in response to the Arab Embargo, rising oil imports, that at the time were 5 MM BOPD, and fear of declining resources in the US. Please note the term, "Conservation" in the title of the law. This 1975 law created the SPR, by the way.
In 2015 that export law was turned over. HB 156 had no name other than the "Oil Export Act."
In 2022 the US now imports 3.7 MM BOPD more than it did in 1975 and we export between 3.7 and 4.2 MM BOPD of tight oil.
Over half of all US tight oil production is now exported to foreign countries.
What today is different than 1975?
OPEC controls the price of oil, all of our remaining resources in America lie pretty much in one basin that requires $14MM wells be drilled one at a time for 437 K BO EUR's, we're using more oil and gas than ever before and even the tight oil industry itself says we're running out. We're down to resource beds that have to be frac'ed to produce.
The truth is our nation is in a MUCH worse, much more precarious position regarding future oil resources than we were 45 years ago.
Stuff To Think About
US Tight Oil Analysis & Predictions
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The materials provided on this site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. I may make data related mistakes occasionally; if you use my opinions about oil reserves or shale well economics for financial purposes, to buy or sell stocks, your nuts. Don't do that. If I have used a photograph incorrectly it was for educational purposes and I have done my best of to give credit where credit is due. My stories are all true, slightly embellished, perhaps, but true; I don't change names to protect the guilty. I am as accurate as possible about history and historical facts; I work very hard at that.All rights are reserved, whatever that means. Don't blame me, I didn't do it.