Important words about the background to our oil situation by Alice Friedemann
"Preface. Unconventional US (and some Canadian) fracked tight oil was over 90% of how oil production increased after conventional oil peaked in 2008, but US fracked oil peaked in 2018 (and consequently all world oil, both conventional and unconventional also peaked then). Only the Permian shale basin is not in decline yet.
Shale oil and gas might not exist in the US if there hadn’t been super low interest rates making it easy to borrow billions of dollars and dumb money streaming into pension and 401k mutual funds keeping this industry alive, as Bethany McLean wrote in “Saudi America”. At one point companies were $300 billion in debt, but the money kept rolling in, so drilling continued. In 2023, all shale basins but the Permian are in decline, the best sweet spots drilled, so even in the US the end of the shale oil boom is in sight."
Did I read correctly? "The best sweet spots (are) drilled". This is incredible, and almost impossible to fathom.
Now we know that also the Permian basin is in decline, see this blogpost of mine. How Alice could miss this fact I don't understand. But the news of that are quite new. Remember that the peak of US shale was as late as in July 2023.
Otherwise the text above by Alice gives us important background information to the oil situation.
Here is a link to the book "Saudi America" on Amazon. It was published in 2018.
