What the Future Holds for Saudi Arabia's Oil
Saudi
Aramco has stated that it designs the well layouts and extraction
patterns from its oil fields so that they effectively decline at a rate
of 2% per year.* If one divides 100 by 2 it yields 50. If one subtracts
50 from 2012, one gets the year 1962. Even to those with poor math
skills, these are not difficult operations, and they lead to the
conclusion that those fields that came into production in the early
1960’s and earlier are now reaching the end of their productive lives.
They are not there yet, since production took time to ramp…Read more...
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