AOL Energy: Former Big Oil Executive Expects Importance of Oil to Decline

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AOL Energy: Former Big Oil Executive Expects Importance of Oil to Decline

The article discusses the ideas of former Shell Oil President John Hofmeister:

Hofmeister has a bleak medium to long term outlook for global oil market fundamentals: Given the world's existing oil reservoir decline rates and growing oil demand, there will be no way for supply to keep pace with consumption. In the next five to six years, China will satisfy its oil demand and leave the rest of the world short. And the supply/demand disconnect will only be compounded if global economic growth rates and energy demand growth return to pre-recession levels.

Hofmeister sees a world in which the US can completely sever OPEC oil dependence, cutting over 10 million barrels per day of oil imports, and replacing most of it with domestic supply. A major cornerstone of this plan involves a massive shift toward natural gas as a transportation fuel and transport fuel feedstock. The US consumed over 19 million barrels/day of oil in 2010 and imported 9.2 million barrels/day - 49% of which was supplied by OPEC.

He estimates 5 million barrels/day of imports could be displaced by using CNG/LNG for trucking, an additional 3 million barrels/day could be displaced by using methanol (produced from natural gas, coal and biomass) as a transport fuel, and a further 2 million barrels/day could be cut by efficiency improvements.

Over the medium to longer term, natural gas could give oil a "run for its money" in the transportation fuel market.

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http://www.lngglobal.com/lng-global-...ue-wealth.html


By John Plesnicar Managing Director of LNG Global
Published: May 6th, 2012
The opening keynote address at the World LNG Americas series in San Antonio Texas was given by Mr. Davis Thames President of Cheniere Marketing.* A portion of his presentation discussed the jobs that would be created by the Cheniere LNG export project.* Mr. Thames pointed out that in addition to the construction and operation jobs at the Sabine Pass liquefaction site there would also be up to 50,000 jobs involved with supplying the feed gas needed for the plant.* This feed gas will not just be coming from Texas and Louisiana but from 33 gas producing states...

The Sabine Pass LNG export facility and others if approved will generate true wealth for the United States...The U.S. can't continue on its current path of borrowing money or raising taxes to try and create employment.* The only way to fund schools, roads and hospitals are with jobs which produce true wealth creation.** The entire LNG export value chain can create those types of jobs...
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