A Lot Can Happen In An Hour

In One Hour The US Consumes 770,833 barrels of oil.

There is an oil “boom” taking place in North Dakota right now. Investors are spending between $6 and $10 million to drill each tight oil well.

It is this boom that has many people claiming that the US is on the path to energy independence. There are even claims that the US will be producing more oil than Saudi Arabia.

The people claiming this are mistaken for the following reasons.

In a single well’s 29 year lifetime, it will produce around 550,000 barrels of oil. Less than an hour’s worth.

Taken as a whole, the world consumes more oil than that in 10 minutes.

Please take a peek at the following map of North Dakota’s shale resource.

http://shalebubble.org/the-map/

The red spots are places that have already been drilled. They represent the producing wells.

The red spot covering North Dakota is growing at an average rate of 3.77% per month. (2010 - 2012 Data).

At that rate, the red spot will double its size every 18 and a half months.

It already appears to be covering 1/3 of the state so it can double only one and a half more times.

If the red spot maintains that rate of growth it will consume the rest of North Dakota’s shale oil patch within 27.75 months. Less than three years.

The “boom” is going to “bust” much sooner than that, however.

Increasing the number of producing wells by 3.77% every month was once an easy task. It has become much more difficult.

So, we can conclude that that rate will fall. So instead of seeing ever increasing amounts of oil coming out of North Dakota we will start seeing less and less.

That is called a peak in production. It happens to all resources including gold, coal and natural gas.

At first more oil is produced every day but at some point the amount per day stops going up and begins going down.

That point is generally reached when half the resource has been drilled.

North Dakota is very close to half way tapped out.

When oil production peaks in North Dakota the “bust” will have very significant effects on their economy and the US economy as a whole. 

Argentina collapsed in 1999 after their oil production peaked in 1998 and began to decline. This is no coincidence.

The Former Soviet Union collapsed in 1991 after their oil production saw a peak in 1987 and began to decline. This is no coincidence.

World War I broke out in 1914 after coal production in Britain peaked in 1913 and began to decline. This is no coincidence.

The global economy nearly collapsed in 2009 after global crude oil production hit its peak in 2005.

Since then global oil production has flat lined and will likely decline within a few years. The peak in global oil production has very likely been reached.

In truth, the global economy is already collapsing. The only thing keeping it somewhat afloat is the fact that…

In One Hour The Fed Prints $116,438,356.00

That’s over $32,000.00 every second.

They printed more money in January of this year than existed in 1980.

Let that sink in…

Plan Ahead - Plant a Garden