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Aug. 15th, 2004 @ 07:11 pm I was lazy
Manic or depressive-o-meter: hungryhungry
Sounds: Star Wars
The entire article is here.

This section is from way at the bottom. Slowly the media picks up on what industry insiders have known for a while.........


Big oil reservoirs are becoming harder to find and more expensive to develop. Many of the oil provinces outside OPEC are mature, which means that finds are now smaller, need more costly technology to develop and fall faster from peak production.

Oil companies have also been cautious on spending since the '97-'98 price crash slashed their share prices and triggered a spate of mergers. They have focused on large-scale projects, which will give them good margins.

Many new ventures are in remote areas, which demand expensive equipment and are more susceptible to delays.

Non-OPEC supply growth outside Russia before the price crash averaged more than 1 million bpd. Since then it has been negligible.

Forecasts of non-OPEC supply growth, especially when the rebound in Russian production is stripped out, have consistently been overstated.

The increased cost of finding and developing non-OPEC oil has fueled speculators' convictions that oil markets are a good long-term bet. Royal Dutch/Shell 's reserves troubles have reinforced the view that oil is becoming harder to find.

In OPEC, which holds around two-thirds of the world's oil reserves, many of the bigger nations either do not allow foreign investment in oil, or have unattractive investment and legal terms.

This has slowed growth in production capacity in OPEC nations, meaning that most are already producing flat out to meet demand.
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