Helping America Navigate a New Energy Reality

MIT report on EIA’s assumptions and models regarding US oil production as reported by Bloomberg

By on 4 Dec 2017 in quotes with 0 Comments

“The EIA’s [assumes] that better technology has been behind nearly all the recent output gains, and will continue to boost production for the foreseeable future. That’s not quite right. Instead, the MIT research suggests increases have been largely due to something more mundane: low energy prices, which led drillers to focus on sweet spots where oil and gas are easiest to extract. ‘The EIA is assuming that productivity of individual wells will continue to rise as a result of improvements in technology,’ said Justin B. Montgomery, a researcher at the Massachusetts Institute of Technology and one of the study’s authors. ‘This compounds year after year, like interest, so the further out in the future the wells are drilled, the more that they are being overestimated.’ The problem with the EIA’s numbers, the researchers say, is that they give drillers too much credit for coming up with ways to improve fracking.”

From a Bloomberg News story (12/2)

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