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

To: Wharf Rat who wrote (3761)	3/30/2006 2:41:37 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 24210

From Wed.'s Open Forum on Oil Drum... Last week, average daily oil imports into the US rebounded slightly to 10.1 mbpd, but the average for March, 2006 (9.9 mbpd) was down about 4% from the average for March, 2005 (10.3 mbpd). There is always the possibility of statistical variations, but the concerns that Khebab and I have about net export capacity are based on the Hubbert Linearization (HL) method--which accurately predicted 99% of the post-1970 cumulative Lower 48 oil production. Therefore, if the HL method is screaming problems ahead for net export capacity, and if average daily imports into the US for March are down about 4%, year over year, I think that we need to sit up and take notice. I predict explosive increases in oil prices. The "Export Land" Model: A critical point to keep in mind is that an exporter can only export what is left after domestic consumption is satisfied. Consider a simple example, a country producing 2.0 mbpd, consuming 1.0 mbpd and therefore exporting 1.0 mbpd. Let's assume a 25% drop in production over a six year period (which we have seen in the North Sea, which by the way peaked at 52% of Qt) and let's assume a 10% increase in domestic consumption. Production would be 1.5 mbpd. Consumption would be 1.1 mbpd. Net exports would be production (1.5 mbpd) less consumption (1.1 mbpd) = 0.4 mbpd. Therefore, because of a 25% drop in production and because of a 10% increase in domestic consumption, net oil exports from our hypothetical net exporter dropped by 60%, from 1.0 mbpd to 0.4 mbpd, over a six year period. Note that car sales in Russia are up 15% year over year. theoildrum.com