Article by Frezel Enriquez
Future of Oil
Existing oil production capacity inevitably shrinks over time due to falling reservoir pressures and water breakthrough. Estimates of the annual global decline rate range between 4% and 5%, or a decline of 2.9 mb/d to 3.7 mb/d production capacity. This is what the industry has to add each year just to stand still.
2. The depletion rate is the percentage of the remaining oil that is produced each year. It should not be confused with the decline rate (above), although in some circumstances the numbers are identical.
Recently, oil futures have been down on the New York Stock Exchange, as analysts from several different countries are predicting a surge in biofuel availability which would offset the value of oil, dropping crude oil prices on the international market to $ 40 per barrel or thereabouts.
The Chicago Stock Exchange has a grain futures market which is starting to steal