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The Shale Oil Bubble Accounted For 99% Of U.S. Oil Production Growth Since 2007

Without the unprofitable and unconventional shale oil supply, U.S. oil production would still be below 5 million barrels per day.  While we can applaud the shale industry for allowing the American Leech & Spend Surban Economy to continue for another decade, I wouldn’t count on it lasting another ten years.  If we are lucky, we may get another 1-2 years before the entire U.S. Shale Oil Ponzi Scheme comes crashing down.

In my recent video, The Coming Exponential Silver Price Movement, many comments were suggesting the entire “Peak Oil Theory” was complete BOLLOCKS. Unfortunately for the Alt-Media Community, several individuals have done a great deal of damage by spreading information suggesting the entire Peak Oil Movement is just another “Elite Conspiracy” to destroy the little man.

One such individual was Lindsey Williams.  Williams wrote a book titled The Energy Non-Crisis.  If you are in desperate need of a good laugh, I highly recommend the book.  However, if you are looking for real facts or the truth about the Falling EROI or Thermodynamics of Oil Depletion, William’s paperback is nothing more than the typical “Lousy Conspiracies” that have infiltrated the Alternative Media.

Several years ago, Williams made the rounds on several talk-shows and precious metals websites.  He was interviewed on GoldSeek Radio frequently to share with the listeners just how much oil was in Alaska and that it was being held off the market by the “Corrupt Elite.”  Williams claimed there was more oil in Alaska than in Saudia Arabia.

Gosh, I thought most people had changed their minds as more evidence has come out that Peak Oil is a real threat. But, it seems as if the same IGNORANCE and STUPIDITY are alive and well today as they were 5-10 years ago when Williams was making the talk-show circuit.  I even listened to Lindsey Williams on the late-night talk show, Coast-To-Coast-Am.

So, it seems as if a good percentage of people still believe in the notion of INFINITE GROWTH on a finite planet.  Or, even funnier than that is the notion that oil is made deep in the earth abiotically, so we will never run out.  Maybe one of these PRO-ABIOTIC OIL believers should tell that to the U.S. Shale Industry that is experiencing a 50% first-year decline in thousands of wells drilled.

I can assure you, the only way these horizontal shale oil wells see a spike in oil production is due to Refracking, not abiotic oil refilling the shale deposits.  But, again… that doesn’t stop people believing in the ENERGY TOOTH FAIRY:

Take notice of the amount of THUMBS UP  for the comment stating, “Don’t forget that oil’s reported and perceived scarcity is intentionally false.” So, we can plainly see that the damage done by the Lindsey Williams of the world continues to this day.  I also get the same type of response from analysts in the Alt-media community and the precious metals industry.

Interestingly, the irony of the comment above is that there isn’t any scarcity of oil.  However, much that is left in the ground is not economical to produce.  Regrettably, the individual who published that comment doesn’t understand the EROI – Energy Returned On Investment of oil.  Thus, they believe the lousy conspiracy theory that ELITE are controlling everything to destroy the little man eventually.

What the misinformed Alt-Media Afficinados don’t realize is that the LITTLE MAN is the one consuming 99% of the oil, not the ELITE.

Regardless, the world will head over the ENERGY CLIFF with a lot of people still believing it was some Grand Conspiracy rather than just good-old fashion oil depletion.

U.S. Oil Production Virtually Flat Since 2007… Without Shale Oil

I have also received emails and comments suggesting that U.S. oil production growth over the past decade wasn’t due to just shale oil.  They claim that the United States also enjoyed significant production growth in the offshore Gulf of Mexico.  While this may have been true, to a certain extent, most of the gains in the Gulf of Mexico were offset by losses in other areas in the United States.

But, before I get into that, let’s look at the chart that SAYS IT ALL… no conspiracies theorists needed:

In December 2007, the Rest of the U.S. reported 4.6 million barrels per day (mbd) of oil production while shale oil (tight oil) accounted for 0.5 mbd.  Now fast-forward to December 2019.  What do we see?  Shale oil production reached 8.3 mbd while the Rest of the U.S. was 4.7 mbd. In 12 years, shale oil production increased 7.8 mbd while the Rest of the U.S. surged by a whopping 0.1 mbd (approximately 100,000 barrels per day).

This information comes directly from the EIA, the U.S. Energy Information Agency.  So, without the Great U.S. Shale Oil Ponzi Scheme, the country’s domestic oil supply would have still remained virtually flat, even though production increased in the Gulf of Mexico.  Why?  Well, due to old fashion depletion, combined oil production from California and Alaska declined more than 0.4 mbd or 400,000 barrels per day since 2007.

From December 2007 to December 2019, while the Gulf of Mexico’s oil production increased a net 700,000 (bd) barrels per day, the combined losses from California and Alaska (400,000 bd) generated only a net increase of 300,000 bd.

The total net change in oil production from California, Alaska, and the Gulf of Mexico was approximately 0.3 mbd or 300,000 bd. However, the first chart above showed that the Rest of the U.S. only increased by 0.1 mbd in the 12-year period.  So, conventional oil production from other states must have also declined by 0.2 mbd.

Here’s the BIG QUESTION.  Why aren’t the oil wells (fields) in California or Alaska refilling if the abiotic oil theory were true?  Of course, the response from the Abiotic Oil Afficianados would be that the wells aren’t deep enough.  The Abiotic Oil Zealots say, “The Russians are the leaders of getting down deep to this rich abiotic oil.”  If that were the case, then why is the Russian Oil Industry now drilling ONE HELL of a lot of Horizontal wells, just like in the United States??

The average depth of a typical horizontal Russian oil well in 2017 was about 10,600 feet.  This isn’t much deeper than the typical Shale gas well in the United States Marcellus of 10,000 feet.  I will be explaining this in more detail in a follow-up article.

Folks, the Russian’s aren’t trying to tap into Ultra-Deep Rich Abiotic Oil fields, rather they are following right behind the United States in drilling a lot more horizontal fracked oil wells.

Lastly, the U.S. Shale Oil Bubble has pushed crude production in the states up to 13 mbd.  However, all bubbles must pop.  And, when the Great U.S. Shale Oil Ponzi Scheme finally comes to an end… the death of the U.S. Dollar won’t be far behind.

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