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The AAPG/Datapages Combined Publications Database

AAPG Bulletin

Abstract


Volume: 58 (1974)

Issue: 10. (October)

First Page: 2212

Last Page: 2213

Title: Analysis of Energy Crunch: ABSTRACT

Author(s): P. H. Stark

Article Type: Meeting abstract

Abstract:

The peaking of domestic oil production in 1970 coincided with the first increase in the GNP unit cost of energy. Thus began the energy crunch that was well documented but unrecognized until the moratorium of Arab oil imports in 1973. Domestic drilling activity declined by more than 50 percent from 1956 to 1971. Corresponding average annual reserve additions declined by more than 30 percent. Restrictions on development of large reserves such as Prudhoe Bay resulted in loss of almost 2.5 million BOPD in 1974.

Industry is charged with irresponsibility but the record shows tremendous response to the crisis. Is there monopoly when the 30 largest companies account for less than 20 percent of U.S. drilling? About 600 operators drilled in the Rockies during 1973. Industry responded to increased prices with 30 percent more gas completions in 1973. In two provinces, first quarter 1974 stripper well recompletions increased by 100 percent. A study of Wind River basin indicates that even more incentives may be required to increase gas development in similar provinces.

It is uncertain that adequate incentives will be provided to meet the goal of energy self-sufficiency. Analysis of a recent U.S. energy model requires annual drilling of 53,000 wells to meet 1985 forecasts without depleting reserve/production ratios. Computer well-data files are available to assist the massive information analysis required for this task. Computer maps such as trend residuals assist in focusing exploration on the most favorable

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targets. If governmental restraints are minimized the widespread use of computerized industry data can assist attainment of adequate energy supply.

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