266 PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
For example, in past years, disputes leading to withdrawal of
labor by workers in Venezuela have caused reductions in the crude
oil of approximately 1,500,000 barrels per day imported from that
country. Similarly, conflicts in Nigeria between ethnic groups can
disrupt the amount of crude oil of approximately 570,000 barrels
per day imported from that country. Thus, in a short time and by
events out of its control, the United States can suffer an oil shortage
of imported oil to the tune of 2,000,000 barrels per day that leaves
a large gap in the required 18,000,000 barrels per day currently
refined in the United States.
Furthermore, the oil industry itself has been a story of vast
swings between periods of overproduction, when low prices and
profits led oil producers to devise ways to restrict output and raise
prices, and periods when oil supplies appeared to be on the brink
of exhaustion, stimulating a global search for new supplies. This
cycle may now be approaching an end. It appears that world oil
supplies may truly be reaching their natural limits. With proven
world oil reserves anticipated to last less than 40 years, the age of
oil that began near Titusville may be coming to an end. In the years
to come, the search for new sources of oil will be transformed into
a quest for entirely new sources of energy.
Political and investment risk factors continue to affect future oil
exploration and production and, ultimately, the timing of peak oil
production. These factors include changing political conditions and
investment climates in many countries that have large proven oil
reserves, which are important in affecting future oil exploration
and production.
Even in the United States, political considerations may affect
the rate of exploration and production. For example, restrictions
imposed to protect environmental assets mean that some oil may
not be produced. The Minerals Management Service of the United
States Department of the Interior estimates that approximately
76 billion barrels of oil lie in undiscovered fields offshore in the
outer continental shelf of the United States, which is necessary for a
measure of energy security. Nevertheless, Congress enacted moratoriums on drilling and exploration in this area to protect coastlines
from unintended oil spills. In addition, policies on federal land use
need to take into account multiple uses of the land including environmental protection. Environmental restrictions may affect a peak
in oil production by barring oil exploration and production in environmentally sensitive areas. The government must adopt policies
For example, in past years, disputes leading to withdrawal of
labor by workers in Venezuela have caused reductions in the crude
oil of approximately 1,500,000 barrels per day imported from that
country. Similarly, conflicts in Nigeria between ethnic groups can
disrupt the amount of crude oil of approximately 570,000 barrels
per day imported from that country. Thus, in a short time and by
events out of its control, the United States can suffer an oil shortage
of imported oil to the tune of 2,000,000 barrels per day that leaves
a large gap in the required 18,000,000 barrels per day currently
refined in the United States.
Furthermore, the oil industry itself has been a story of vast
swings between periods of overproduction, when low prices and
profits led oil producers to devise ways to restrict output and raise
prices, and periods when oil supplies appeared to be on the brink
of exhaustion, stimulating a global search for new supplies. This
cycle may now be approaching an end. It appears that world oil
supplies may truly be reaching their natural limits. With proven
world oil reserves anticipated to last less than 40 years, the age of
oil that began near Titusville may be coming to an end. In the years
to come, the search for new sources of oil will be transformed into
a quest for entirely new sources of energy.
Political and investment risk factors continue to affect future oil
exploration and production and, ultimately, the timing of peak oil
production. These factors include changing political conditions and
investment climates in many countries that have large proven oil
reserves, which are important in affecting future oil exploration
and production.
Even in the United States, political considerations may affect
the rate of exploration and production. For example, restrictions
imposed to protect environmental assets mean that some oil may
not be produced. The Minerals Management Service of the United
States Department of the Interior estimates that approximately
76 billion barrels of oil lie in undiscovered fields offshore in the
outer continental shelf of the United States, which is necessary for a
measure of energy security. Nevertheless, Congress enacted moratoriums on drilling and exploration in this area to protect coastlines
from unintended oil spills. In addition, policies on federal land use
need to take into account multiple uses of the land including environmental protection. Environmental restrictions may affect a peak
in oil production by barring oil exploration and production in environmentally sensitive areas. The government must adopt policies