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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Heretic who wrote (47872)	7/13/1999 12:59:00 PM
From: Roebear	Respond to of 95453

Thought this might be of interest, this is from the Daily Iberian, a letter to the Editor from UFAB CEO Dailey J Berard: Editor: The world is now consuming 26 billion barrels of conventional oil annually but only finding 6 billion barrels to replace them. The United States produces about 52 BCF a day of natural gas and that production would decline by 4 to 6 BCF a day each year without new gas production. Gas production will have to increase 50 percent within the next decade. Within this time frame, oil production will have to increase an additional 42 million barrels a day, in addition to the 75 million currently used, to satisfy the needs of the world's ever growing population. This will require expenditures in the range of $2.5 trillion to increase oil production within the next decade. Within the next decade, a minimum of 450 new offshore drilling rigs will have to be built at a cost of $123 billion. Moreover, $25 billion will have to be spent for supply vessels and production equipment. About 80 percent of the oil produced today flows from fields that were found before 1973, and the great majority is declining. In the 1990's, oil companies discovered an average of 7 billion barrel fields a year, last year they drained more than three times as much. Global discovery peaked in the early 1960's and has been falling steadily ever since. Overall, worldwide demand for oil will increase 60 percent to about 40 billion barrels a year by 2020. Let's face facts. Demand for oil and gas isn't going away for the next 40 years. It's going to grow in a big way as more and more countries transition into upgraded lifestyles. Despite near-term uncertainty and bearish stock market sentiment, the long-term fundamentals for the offshore drilling business do remain positive. The Industry's development of, and use of, technology has spurred an increase in global proven oil reserves, from 75 billion bbl in 1950 to more than 1 trillion barrels currently. In deepwater environnments that demand the most sophisticated technology, oil and gas companies have only begun to explore half of these basins. Yet, already they have found more than 40 billion boe. Dailey J. Berard New Iberia