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Saturday, December 22, 2007

It's Getting Harder and Harder to Find Oil ...

From the Energy Information Administration ...

As the figure below shows, expenditures to find and develop oil and natural gas reserves in 2006 by the major U.S. oil and gas producers that report to EIA’s Financial Reporting System (FRS) were more than 60 percent higher than in 2004, even after adjusting for general price inflation.
However, to date, the big increase in spending has not resulted in significant increases in reserves. In fact, reserve additions (measured in barrels of oil equivalent) for the FRS companies in 2006 exceeded only two of the previous 17 years.

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