Comments on: Kuwaiti researchers predict peak oil production in 2014 http://www.q8nri.com/home/2010/03/10/kuwaiti-researchers-predict-peak-oil-production-in-2014/ The Ultimate Internet Home for Non-Resident Indians in Kuwait Tue, 07 Sep 2010 06:11:26 +0000 http://wordpress.org/?v=abc hourly 1 By: posconvex http://www.q8nri.com/home/2010/03/10/kuwaiti-researchers-predict-peak-oil-production-in-2014/comment-page-1/#comment-4252 posconvex Sun, 04 Jul 2010 22:26:07 +0000 http://www.q8nri.com/home/?p=6427#comment-4252 Any discussion about peak oil and oil prices over the next decade must include an attempt to quantify emerging economy demand as an important driver at the margin. Here is a simple thought experiment using Chinese demand to give some idea of the magnitude of the supply issues we face: - China moves from 3 bbls/person/year to the South Korean per capita consumption level of 17 bbls/person/year - Transition takes 30 years - No peak in global production In next 10 years we must find 44 million BOPD. If you superimpose peak production on top of this demand profile using the following parameters oil prices would increase approximately 250% in real terms over next 10 years: - Oil demand elasticity of -0.3 - Current production 84 million BOPD, current price US$ 80 - Peak production 100 million BOPD - Post peak decline rate of 3-4% If you want to try the model for yourself using your own assumptions it can be found at Petrocapita Income Trust: www.petrocapita.com/index.php?option=com_content&view=article&id=128&Itemid=86 Any discussion about peak oil and oil prices over the next decade must include an attempt to quantify emerging economy demand as an important driver at the margin. Here is a simple thought experiment using Chinese demand to give some idea of the magnitude of the supply issues we face:
- China moves from 3 bbls/person/year to the South Korean per capita consumption level of 17 bbls/person/year
- Transition takes 30 years
- No peak in global production

In next 10 years we must find 44 million BOPD. If you superimpose peak production on top of this demand profile using the following parameters oil prices would increase approximately 250% in real terms over next 10 years:
- Oil demand elasticity of -0.3
- Current production 84 million BOPD, current price US$ 80
- Peak production 100 million BOPD
- Post peak decline rate of 3-4%

If you want to try the model for yourself using your own assumptions it can be found at Petrocapita Income Trust:
http://www.petrocapita.com/index.php?option=com_content&view=article&id=128&Itemid=86

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