?North Americans have been “flying blind” for the past few decades and need to take into account domestic energy shortcomings, according to Simmons & Co. International chairman Matt Simmons.
It has long been believed that when it comes to energy, Alaska is the lifeblood of the West Coast, as Alberta is to the Midwest, he told World Affairs Council of Houston members recently.
The three “energy amigos”—the U.S., Canada and Mexico—have long been content with their respective production levels and fully expected that new sources could be found when existing ones were tapped. The presumption that these energy sources would be the backbone of a continuing energy industry is leaving these countries with an unrealistic understanding of energy demands, Simmons said.
Of the 50 U.S. states, only Wyoming is a net energy exporter. All other states consume more energy than they produce, and many are “energy parasites,” contributing little or none of their own energy supply.
To make matters worse, North American production is losing ground. Both U.S. and Canadian output remains in decline, and Mexico is effectively in collapse. Mexico’s fall has been less devastating until now, since Mexico uses an average of about seven barrels of oil per resident per year, while U.S. and Canada each use 25 to 30 barrels per resident per year.n
Recommended Reading
Exclusive: ChampionX Innovation Needed to Drill the Incremental Barrel
2024-05-14 - Soma Somasundaram, president and CEO of ChampionX, emphasized the need to innovate when drilling for the incremental barrel, as well as the oilfield services sector’s role in the path to net zero.
Tech Trends, OTC Edition: Drills & Bits
2024-05-14 - In this month’s Tech Trends, which takes place at the 2024 Offshore Technology Conference, new drilling technologies are on display as well as other bits that ensure efficient operations.
Time is Money: Shell Prioritizes Speed with Brownfield Strategy
2024-05-09 - Shell’s replicant strategy trades customization of the production unit for a sped-up cycle time for Whale, Sparta developments in the deepwater Gulf of Mexico.
Petrobras' Pioneering Tech Powers Decades-long, 2.9 Bboe Production
2024-05-08 - From discovery to revitalization, the deepwater Marlim Field offshore Brazil has driven development of technology while delivering more than 2.9 Bboe.
High Pressure, Temps, No Problem: BP Dives Deeper in GoM
2024-05-07 - BP is preparing for a 2024 FID on Kaskida and 2025 FID on Tiber projects in the Gulf of Mexico, a BP executive said during an OTC keynote.