<< Chapter < Page Chapter >> Page >

But as shown in Figure 15-1 , world oil production began rising again thereafter, from 65 million bbls/d to 90 million in 2013. The pessimistic forecasts for energy production did not materialize for two main reasons. First, the forecasts did not take into account the potential effects of higher oil prices or incentives to explore and develop new deposits. But world oil prices did rise sharply from less than $3 barrel in 1973 to over $100 in 2013. Second the forecasts ignored advances in technology in oil and gas exploration, and development. Chief among these innovations were (a) advances in seismic imaging, which vastly improved ability of oil companies to locate deposits, especially very deep ones (b) horizontal drilling, which made possible the introduction of “steerable” drilling systems in 1984 thereby increasing recovery of oil from any given deposit, and (c) the combining of hydraulic fracturing (first introduced in the sixties) with directional drilling. These technological innovations are discussed in detail in subsequent sections of this Chapter.

As a result of technological innovation in the 20th century the first two decades of the 21st century have featured very significant changes in resource availability and technology in the industry; most of these changes have been were unforeseen.

The most important unforeseen change has been the emergence of an abundance of natural gas, and to an extent, oil from deep shale formations, especially in the U.S. Other nations, including Colombia, Argentina, China and Russia also have ample but yet unexploited shale deposits, as we shall see. Note that the presence of abundant endowments of oil and gas in shale is no guarantee that they will all be exploited. Chinese shale reserves are located in isolated areas of the country, and the Chinese lack sufficient available water to capitalize on the endowments. Russia and China lack the technological expertise to do so. Activity in Argentina’s shale regions have been delayed for years by political issues. Finally, institutions will hinder or delay exploration of oil shale in China, Russia, Europe, Africa and Latin America. Institutions governing property rights to subsurface hydrocarbons are favorable to exploration and development in the U.S. because the rights to oil on private lands reside in private hands, and are clear and easily transferable . This is not the case in most of the rest of the world.

Consider for example the Chinese dilemma on property rights in hydrocarbons mineral rights in China (as well as most Asian and African nations and some European nations) belong not to private landowners, but to the State: This stands in sharp contrast to the U.S., where rights to minerals (including huydrocarbons) are, except on government-owned lands, vested in private hands. Private ownership of these rights is conducive to fracking in the U.S. But public ownership of these rights in China has created excessive regulatory confusion and conflict between regulatory bodies.

Questions & Answers

I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
how nano science is used for hydrophobicity
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
what is differents between GO and RGO?
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
How can I make nanorobot?
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get the best Algebra and trigonometry course in your pocket!

Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Economic development for the 21st century' conversation and receive update notifications?