A well-site geologist from the U.S. has some interesting comments on peak oil and technological advancement in North America relative to extraction.
If you look at the rotary rig count – rigs around the world actively drilling for oil and gas, there are about 1100 rigs drilling in North America (US and Canada) and another 1000 rigs drilling in the rest of the world. Doesn’t this seem surprising?
Surprising yes, but let’s check those rotary rig count numbers a year from now once the impact of $50 oil fully processes through the NA oil industyr. The very innovations he notes are costly, especially for Canadian oil/tar sands extraction, and the conventional wisdom is that extractors require something north of $60 a barrel to really make the oil/tar sands profitable.