Letter Re: Oilfield Production Decline Rates are Worse than Expected
Dear Jim and Family, I wish I could say Happy New Year, but i just learned some terrible news in the oil business. The big fields where most of the USA and world get their oil are declining at much faster rates than expected, and the companies are willing to admit to high numbers. In summary: Burgan field in Kuwait dropping at 11% per year. Ghawar field in Saudi Arabia (biggest in the world) dropping at 8%, which is 5.5% higher than expected. Cantarell field in Mexico (source of most US oil) is dropping at 14% rather than the 6% …