American Oil Production Peaked in 1970 & America has only 3% of the World's Oil Reserves Left!
Well, okay, if the global oil peak is a myth, we're still stuck with the American oil peak, which is a fact of history. US crude oil production peaked in 1970, at more than 10 million barrels a day and our production has been going down by a few percentage points every year until it is just over 5 million barrels a day now -- and still going down. We get an additional two million barrels a day in natural gas condensates and other liquids. Since Americans consume 20 million barrels of oil a day that means we have to import more than half the oil we use. Every year, we'll have to import more as our own production goes down.
It is estimated that the America kicked off the oil age in the mid-nineteenth century with about 210 billion barrels of oil underground. According to United States Energy Information Administration (EIA), we now have about 28 billion barrels left. America definitely doesn't have is enough oil to run its economy as it currently exists. American Oil Company's have control of only 3% of the world's supply and are running out of places to invest. Of the 80 million barrels a day the world burns, America burns 25% of that, or 20 million barrels a day. Every year America burns seven billion barrels. America has 28 billion barrels of oil left. If we lost access to foreign imports, our oil would last four more years.
The national oil companies of Saudi Arabia, Russia, Iraq, Iran and Venezuela have no real incentive to invest in new production capacity (it puts downwards pressure on oil prices, thus reducing the value of their current production). The reserves of what we call the oil majors are actually tiny compared to those held by national oil companies of a number of countries, and are actually behind the reserves of the semi-private Russian oil companies. So the American oil majors are turning to buying rivals to boost their reserves.
American Big Oil's existing assets in Alaska and the Gulf of Mexico are "entering periods of rapid decline", and they are now facing the challenge of having to go seek more difficult and more expensive reserves in places like ultra-deep offshore in the Gulf of Guinea or the landlocked Caspian basin. Worse, 90% of the remaining world oil reserves are in countries that are totally closed off to them.
I guess we're just going to have to depend other oil-producing nations. It's a good thing that friendly nations like Saudi Arabia, Russia, Iraq, Iran and Venezuela are willing to sell us oil. Incidentally, about two-thirds of the remaining oil in the world belongs to the people in and around the Persian Gulf.