PrintPeak oil production is still decades away, according to Lukoil's top executive. According to Vagit Alekperov, the president of Russia's Lukoil petroleum company, the production peak "is unlikely to take place in the next few decades."
The peak oil production theory suggest that at some time the maximum global petroleum production rate is reached - or has been already reached, according to some supporters of the theory. "The only reliable way to identify the timing of peak oil will be in retrospect. M. King Hubbert, who devised the peak theory, predicted in 1974 that peak oil would occur in 1995 at 12 gigabarrels per year 'if current trends continue'. However, in the late 1970s and early 1980s, global oil consumption actually dropped (due to the shift to energy-efficient cars, the shift to electricity and natural gas for heating, etc.), then rebounded to a lower level of growth in the mid 1980s. The shift to reduced consumption in these areas meant that the projection assumptions were not realized and, hence, oil production did not peak in 1995, and has climbed to more than double the rate initially projected," according to Wikipedia.
Alekperov's comments come ahead of a three-day conference in Houston the issue of peak oil theory, which is supported by many economists and industry experts.
At the same time, Alekperov said the share of the so-called costly crude oil (offshore, high-viscosity and oil produced from gas and coal) will be on the rise.
Alekperov said that only continental shelf fields can ensure a tangible production increment, adding that this is the reason why Russia is involved in the Arctic shelf border alignment and is establishing international consortia for its development.
Alekperov said that Lukoil intends to take an active part in the development of Russia’s Arctic and Far Eastern shelf, now that the company has experience in similar operations in the Baltic and the Caspian regions.
Lukoil's strategic plan targets considerable growth of key performance and financial indicators, with the share of gas in in the company's overall production to rise from 10 percent to 30 percent in the next decade.
Lukoil's foreign subsidiaries will account for one fifth of the production and half of the refining.
Besides Russia, key roles in production activities of Lukoil will be in the Caspian region, the Middle East, Africa and Latin America. The company also intends to strengthen its positions on the mainstream markets of Europe, Asia-Pacific region and North America.
The next step in the company's plan is to organize direct supplies of Russian oil to the US. At present, Lukoil is completing construction of a unique transportation system in the north of Russia, which will allow to supply up to 240 thousand barrels of oil to the United States daily.
Lukoil can also deliver oil to the US from its Latin America fields. A trial oil consignment (from Condor Field in Columbia) was exported to the US earlier this year.The company continues to appraise the heavy-oil fields in Venezuela.
Alekperov made the comments while speaking before students at Colombia University.
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