Domestic Energy Development, Inc.
Oil and Gas Exploration & Production |
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OIL &
GAS BRIEF |
Oil BRIEF
The United States represents just 5 percent of the world's population
yet consumes a quarter of the world's oil supply.
U.S. oil production is near a 50 year low, the vast majority
of America's 500,000 producing wells are considered "marginal"
with output of only a few barrels a day.
OPEC's present production level stands at just 1 to 1.5 million
barrels per day. That is a drop in the bucket versus current
global demand of 82 million barrels per day. Over one half of
all of Saudi oil production is from a single field "the Ghawar
field" which is in serious decline.
Adjusting for inflation, todays near record oil prices are still
more than $30 below levels reached in 1981.
Many experts believe world oil production will soon peak and
then available will decline. Analysts agree that the world's
oil reserves will be unable to sustain present production levels
of 74 million barrels per day beyond 2022.
Projecting a two percent growth rate in oil demand will trigger
a world oil production peak of 87 million barrels per day by
2011. Similarly, a 3 percent growth rate will push forward the
peak to as early as 2006.
GAS BRIEF
The U.S. consumes approximately 23 TCFG (Trillion Cubic Feet
of natural Gas) per year and is increasing at a rate of over
2 percent annually.
The current domestic production is currently at approximately
19 TCF per year resulting in an annual shortfall of about 4TCFG.
The U.S. Department of Energy (DOE) projects that 900 out of
the next 1000 electric generating power plants built in the
U.S. will run on clean burning natural gas.
According to the U.S. Census Bureau, 70% of all new homes constructed
in the U.S. are designed for natural gas.
Imported Liquefied Natural Gas (LNG) is projected to represent
just 1% of current consumption in the U.S. The infrastructure
required is capital intensive costing several million to over
one billion dollars per LNG terminal depending on capacity.
Offshore reserves are trapped well outside of current technological
and economical risk boundaries.
Current demand exceeds dwindling domestic supplies. Global growth
stretches world reserves even further.
SO WHERE IS ALL OF THIS OIL AND GAS GOING TO COME FROM?
Domestic Energy Development Inc. has used the combined industry
experience of our officers and associates to accumulate over
200,000 proven and highly probable hydrocarbon productive acres
in South Texas.
Reserves from our combined acreage is estimated to be 200 BCFG
and 1 MMBO assuming that the price of hydrocarbon do not increase
the combined reserve value would be 14B$ for gas and 50MM$ for
oil.
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