Admin

Oil and gas occur in basement reservoirs in many parts of the world. The reserves range from as small as one or two million barrels of oil or gas equivalent to as much as almost two billion barrels of oil, as in Libya’s Augila-Naafora field. Exploration has been remarkably successful in the past decade, with important discoveries in China, Indonesia, the United Kingdom, Norway, Chad, and Argentina.

Relative strength in oil prices, and sentiment that future supplies may be limited, have led some operating companies to explore in frontier areas that have proven, historically, to be highly productive. Some of these areas have seen little exploration activity for several decades for varied reasons, such as difficulty of access or governmental restrictions.

In this, the second part of a three-part article, we will discuss renewables (wind turbines and solar). We will look at price and Energy Returned on Investment (EROI) to compare sources of energy. We will also look at OPEC, at the lack of investment (which is causing the overall supply of energy to decrease), and at what is happening in oil and gas, including inflation and the possibility of a super cycle due to the lack of investment.