ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for or by this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Friday, October 23, 2015

Why Does America’s Oil Output Refuse to Collapse?

by Rod Martin, Contributing Author: U.S. oil output isn’t dropping. And that is…more than a little interesting.

Given the collapse in oil prices — very recently we were told that $250 oil would be the new normal — many predicted that U.S. frackers would be run out of business. That was certainly Saudi Arabia’s intent when it opened oil’s floodgates last year. The operative theory was that the frackers’ higher production costs would bankrupt them at $50 a barrel.

But it didn’t, even as prices dropped 50 percent, 25 percent of that just in the last quarter. And then we began to hear that the number might be $40. And then $30. Some are now saying $20.

U.S. rig count is indeed down by more than half. To that degree, the Saudi’s bet payed off. And yet, U.S. oil output is within 3 percent of its 40-year high, and a report out two weeks ago shows that U.S. production actually rose 1 percent in July to an incredible 9.4 million barrels a day. A more pessimistic writer frets that that OPEC is “crushing the U.S. oil boom,” and that production could drop as low as 8.86 million barrels per day next year, purely due to price, not supply.
As low as 8.86 million. It was 5 million in 2008. And everyone thought the oil was running out.

How is this happening? Innovation. Just as the fracking boom itself is a result of a technological breakthrough that left “peak oil” theory in shambles, America’s oil output stubbornly refuses to decline because its producers are getting twice as much out of each well.

This is principally due to a new technique: using more sand to increase production and profitability. Sand has always been part of fracking. Drillers pump water into the well, fracturing the shale. Those fractures are kept open with sand, allowing the oil to be extracted.

It turns out that upping the amount of sand produces fracking on steroids. According to one study, the injection of additional sand can increase output by as much as 300%. It’s no wonder, then, that sand usage has increased from less than 1,000 pounds per foot in 2012 to more than 1,500 pounds now.
After the selloff of crude oil, prices for sand plummeted by 30 percent. This left a lot of the early boom’s sand investors gasping, but it also made it that much easier to use more sand.

In an interview with Bloomberg Business, one oil man was candid about his limitations and goals: “I can’t control the price of the commodity… The only thing we can do is get better and faster and cheaper. There’s a general correlation that more sand equates to a better well.”

Hydraulic fracturing continues to revolutionize the oil industry, increase output, maximize profits, and make the United States the leader in energy exploration and extraction. Technology and innovation — not reduction in living standards and leftist lectures on “limits to growth” — continue to reduce our dependence on foreign oil and, more to the point, make life better for all of us.

This is a disaster for all the right people. OPEC in particular is broken: never again will it be able to arbitrarily raise global energy prices, not when American producers can flood the market just as easily (and with the Saudi government’s budget keyed to oil above $100, far more profitably). If the Saudi situation is difficult — its budget deficit is now 20% of GDP — even worse are the outlooks for Russia and Venezuela. And with Iran’s production coming back online, their trend lines only get worse.

Yes, individual U.S. producers and investors are hurting. They hurt in 1985 too. America as a whole did not: it was just beginning its longest-ever peacetime expansion, in no small part because of those same low oil prices. Energy is just one part of America’s highly diversified economy. A handful of majors with relatively few wells can keep Russia on the ropes for years to come.

The real point is, as I’ve said for many years, there is no long term shortage of oil. Since the 19th century, government estimates have consistently prophesied the imminent depletion of the planet’s second most abundant liquid. As far back as 1874, Pennsylvania’s state geologist fretted that America had only four years of oil remaining. 1878. He wasn’t the first to say it. He was far from the last.

When demand increases and prices rise, companies explore for more. As they do, they innovate: they find new ways to do more with what they find. But just as Malthus predicted imminent global starvation in 1798, and just as 230 years later Paul Erlich promised global famine by 1980 — words he wrote at the height of the Green Revolution — the left forever underestimates the power of human ingenuity to devise new technologies and expand supply.

They were wrong in 1798, they were wrong in 1968. And the Peak Oil crowd which was so very loud in 2008 is suddenly very, very quiet.
Rod D. Martin, writes at, and is founder and CEO of The Martin Organization, a technology entrepreneur, venture capitalist, author and conservative activist from Destin, Florida. He serves and has been an advisor to numerous organizations and is Past President of the National Federation Republican Assemblies and contributing author to the ARRA News Service.

Tags: Rod Martin,, America, oil output, Peak Oil,  To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 5:35 PM - Post Link


Post a Comment

<< Home

National Debt
Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You will receive a verification email
& must validate you subscribed!

You Then Receive One Email Each AM
With Prior Days Articles / Toons / More

Also, Join us at:

Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru - @arra
#Christian Conservative; Retired USAF & Grad Professor. Constitution NRA ProLife schoolchoice fairtax - Editor ARRA NEWS SERVICE. THANKS FOR FOLLOWING!

Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
Sunshine Review

Facebook Accts - Dr. Bill Smith
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire 4 Life
Republican Liberty Caucus of Arkansas
The Gold Standard
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Let's Mine AR Lignite NOW!
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.


Request Via
Article Comment

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Freedom For US Now
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Sultan Knish
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
The War on Guns
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
Accuracy in Media (AIM)
American Committment
American Culture & Faith Institute
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Declaration of Am. Renewal
Eagle Forum
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Freedom Works
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
Heritage Action for America
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Intercollegiate Studies Institute
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts

Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer

Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel - Stand with Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to The Free Dictionary

Powered by Blogger

  • How To Exchange Links!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting the beliefs associated with the ARRA, this blog/site is not controlled by nor funded by the ARRA. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2017 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.