Replacement cost of domestic crude oil
The United States has a rich base of petroleum resources, but replacing domestic oil reserves will be costly and will require advances in technology. In the mature onshore and offshore regions, the bulk of the future oil will be found in small fields. The promise of large discoveries lies in the costly and challenging deep offshore waters and the hostile Arctic. With significant investment in R and D, advanced tertiary recovery methods could also make a major contribution to lower-cost domestic supplies. The study of the replacement costs of domestic crude oil shows that adequate supplies of lower cost oil could be available through the middle of the 1990s. However, as these lower-cost sources are depleted, replacement costs will begin to escalate rapidly reaching very high levels after the turn of the century. Geology, policy choices, and investment decisions can significantly alter the future shape of the replacement cost curve. Lower than expected exploratory success in the Arctic and the deep offshore waters, or constraints on lease sales would dramatically increase reserves replacement cost. On the other hand, increased access to resources and advances in oil exploration and recovery technology would sharply lower the replacement cost curve and provide substantial benefits to the industry and the US economy. 16 references, 1 table.
- Research Organization:
- Lewin and Associates, Inc., Washington, DC (USA); USDOE, Washington, DC
- DOE Contract Number:
- AC01-75ET12536
- OSTI ID:
- 6004444
- Report Number(s):
- CONF-8405216-1; ON: DE85004508
- Resource Relation:
- Conference: AAPG annual convention, San Antonio, TX, USA, 20 May 1984; Other Information: Portions are illegible in microfiche products
- Country of Publication:
- United States
- Language:
- English
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