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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (3577)	1/21/2006 1:59:40 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 24213

What would we have predicted for Kuwait? Posted by Stuart Staniford on Fri Jan 20 at 8:06 PM EST For me, the reports that Kuwaiti reserves are much less than claimed are not news because they allege the Kuwaitis have been lying about their reserves. What is news is the new reported numbers for reserves. So would Hubbert linearization have given us the right answer? Linearization of Kuwaiti oil production. Data source: American Petroleum Institute (via Jean Laherrere) and BP Statistical Review of World Energy. Click to enlarge. According to Reuters, the Petroleum Intelligence Weekly story (itself behind a paywall) has these facts. "PIW learns from sources that Kuwait's actual oil reserves, which are officially stated at around 99 billion barrels, or close to 10 percent of the global total, are a good deal lower, according to internal Kuwaiti records," the weekly PIW reported on Friday. It said that according to data circulated in Kuwait Oil Co (KOC), the upstream arm of state Kuwait Petroleum Corp, Kuwait's remaining proven and non-proven oil reserves are about 48 billion barrels. Officials from KOC were not immediately available for comment to Reuters. PIW said the official public Kuwaiti figures do not distinguish between proven, probable and possible reserves. But it said the data it had seen show that of the current remaining 48 billion barrels of proven and non-proven reserves, only about 24 billion barrels are so far fully proven -- 15 billion in its biggest oilfield Burgan. I have personally never believed the publicly claimed numbers since the whole issue came to my attention. This graph just reeks: History of OPEC claimed proved reserves. Source: BP Statistical Review of World Energy. Click to enlarge. So, presumably the amount of oil left to pump, if PIW has the story straight, is somewhere north of 24gb, and perhaps south of 48gb. So what would our linearization have told us? I can't find that anyone did the exercise before, but I have production data from BP, and Jean Laherrere recently very kindly supplied me with a bunch of early data from an American Petroleum Institute study in 1958 (centennial year of US oil production). The production graphs looks like this: History of Kuwaiti oil production. Data source: American Petroleum Institute (via Jean Laherrere) and BP Statistical Review of World Energy. Missing years have been linearly interpolated. Click to enlarge. I have had to interpolate between 1958 and 1965, but it looks like that won't be too much in error. Note that the mathematical form of this data is a little more complex than either a logistic or a Gaussian :-). However, if we press boldly ahead on the theory that the linearization procedure is a robust if rough estimator even when the data sucks, we get: Linearization of Kuwaiti oil production. Data source: American Petroleum Institute (via Jean Laherrere) and BP Statistical Review of World Energy. Line is fitted to data in purple only. Click to enlarge. The straight line is fit to the purple data only, which is the nearest thing to a linear regime in this mess. Amazingly, the intercept is at 76gb. Given that current cumulative production is 36gb, this suggest there is 40gb to go. So this is in decent general agreement with the (24gb,48gb) range from the internally leaked information that Petroleum Intelligence Weekly has gotten hold of. That suggests Kuwait is at 47% of their ultimate recovery - so close to the half-way point. Future declines are projected to be modest based on the K of just over 4%. Finally, just to remind you of the implications for Saudi Arabia: Hubbert Linearization of Saudi Oil Production. Credit Jean Laherrere. Click to enlarge. If the same procedure works, they have produced 105gb out of 180gb or so, and are at around 55%-60% of their ultimate recovery. Note however that the K is higher at around 7%, suggesting significant declines ahead. Graphs @ theoildrum.com