Oil and Gas production supposedly peaked out and in rapid decline, and not finding much new anymore the fields of the world have been in a decline for the last 15 years.
Meanwhile, demand was doubling every five years in huge populations like China and India. Driving up world prices with demand getting higher then the declining output.
Therefore, to keep our economies going if we were smart we supposedly had to find new alternatives to oil and gas. Besides, oil and gas were polluting and we can not have that....
Politicians made grave predictions on our predicament and started throwing taxpayer money at non fossil fuel ideas that might help the coming crisis.....no matter how far out..
Then it Happened.......Good old
American Inventive ingenuity put together a method of extracting oil from our vast deposits of shale, second largest in the world. We have known about our shale deposits for years.
The Game Changer........ Almost overnight, this New Fracking invention or technology combining two inventions fracking and horizontal drilling that just became referred to as "Fracking". Took over....the oil industry.... made harvesting our vast shale deposits work.
Developed and Perfected for Gas..... Importing Gas and $15.00 price was turned in five years of gas well fracking from a shortage, and building more special import ports for the increasing shortage, to a surplus and $2.20 gas and rebuilding the ports now to export gas.
Just as The Price of Gas Dropped....and oil on world markets continued to rise....... These same U.S. Drillers figured out a way to use Fracking to recover huge amounts of oil using a modification of gas fracking. They are now doing over 10,000 new fracked wells annually, and NONE are dry holes. ALL produce...
- Searching for Oil is Over.
- They know where there is a hundred year supply, 5% of the land in the U.S. has oil and gas producing shale under it.
- The break thru is we now know how to harvest it. It is called "Fracking".
- Each "fracked" well produces typically 50 to 1,000 barrels of oil per day. You can do 24 fracking farm wells from one wellhead. See Graphic.
- Figure out how much oil or gas you need and figure out how many wells you need to get it and start drilling, fracking and keep repeating. *over simplification but you get the idea.
- You can do it in 34 States,
- Radical activist environmentalists have gotten "Fracking" banned with "Scaremongering" in one state. but never the less, trying to get the federal government to Stop it nationally.
- Despite over 60 years and over 800,000 wells have been fracked with out one documented environmental problem with Water etc.
That's it..... The running out of energy Myth is over........for 100 years.
Here is What Editor in Chief of Business Spectator and Eureka Report, as well as host of Inside Business and finance presenter on ABC News, Alan Kohler has to say about it.....
Forget declining oil,
.......there is a new global oil rush. The US has an estimated 2 trillion barrels of shale oil reserves - about 70 per cent of the world's total and eight times the oil reserves of Saudi Arabia. The gas reserves, in the US, Australia and elsewhere, are vast.
In fact, shale energy could be responsible for the resurgence of the United States as an economic superpower, with cheap local energy underpinning the second coming of its manufacturing industry as well as helping to balance its twin deficits - current account and federal budget.
"One thing is for sure: the world isn't running out of oil and gas any more."
Alan Kohler is Editor in Chief of Business Spectator and Eureka Report, as well as host of Inside Business and finance presenter on ABC News.