Economists teach us that resources don’t just run out. As something becomes scarcer, its price rises, triggering a search for new supplies or the discovery of substitutes. We’ve seen it happen over the past two decades in the oil market, as dwindling reserves triggered the U.S. boom in oil derived from shale. Unexpectedly, the U.S. has surpassed even Russia and Saudi Arabia as the world leader in crude oil production.
Even so, the shale boom is already petering out, as we’ve nearly tapped most of the easily extracted oil, a comprehensive new study suggests. Huge investments and the drilling of nearly 10,000 new wells every year are now required to keep production at current levels. We’re putting in ever more energy for every barrel we get out.
That trend highlights a looming problem for our economy. It takes energy to find or produce energy, and, year by year, it requires ever more, as we turn to lower-quality energy sources, including oil from shale and tar sands. Read more
Latest posts by Financial Express (see all)
- Garib Rath trains are here to stay? Why Indian Railways had to clarify about these AC train services - July 20, 2019
- Oil climbs as Middle East tensions offset demand worries - July 20, 2019
- Focus Africa: President to visit three African countries, India’s energy security to be discussed - July 19, 2019