According to recent reports, oil researchers only discovered about a tenth as much oil as they have annually on average since 1960. This year, they’ll probably find even less, spurring new fears about their ability to meet future demand. That’s a concern for the industry at a time when the U.S. Energy Information Administration estimates that global oil demand will grow from 94.8 million barrels a day this year to 105.3 million barrels in 2026. While the U.S. shale boom could potentially make up the difference, prices locked in below $50 a barrel have undercut any substantial growth there. Exxon Mobil said in February that it failed to replace at least 100 percent of its production by adding resources with new finds or acquisitions for the first time in 22 years.
The oil industry has been so severely hampered by anti-industry policies recently, this doesn’t come as much of a surprise.
Adm. Robert Papp, the State Department’s U.S. Arctic representative, said in a speech to the World Affairs Council of Alaska that he hopes the Obama emphasis on Arctic and Alaska issues – like the push for more Arctic science and faster construction of icebreakers that the president announced after his Alaska visit — will continue into the next administration. Within the U.S. government and internationally, in the Arctic Council and other bodies, Arctic shipping safety is a big concern and cause for action, Papp said. He cited the ongoing Coast Guard project to designate shipping lanes in the narrow Bering Strait as one example of such action. Headlamp couldn’t agree more. Arctic issues need to increase in importance over the coming years.
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Oil discoveries at 70-year low signal supply shortfall ahead
Alaska Dispatch News, Mike Holter, August 30, 2016
Oil & Gas Stock Roundup: Exxon Scraps Alaska Project, Shell Offloads Some GoM Assets
Yahoo, August 30, 2016
Papp hopes next president will carry on U.S. Arctic policies
Alaska Dispatch News, Yereth Rosen, August 26, 2016