The Future of Oil Supply and Demand

so where will future oil supply come from offshore is the fastest growing production area so I decided to go see perdido the deepest water platform in the world you Perdido is a very long flight for a helicopter so everyone going out first has to do she would helicopter underwater escape training they reassured me if my helicopter crashed I wouldn't need any of this because I probably wouldn't survive but if you do an emergency landing on the water and then sink Hewitt teaches you how to get out ready yeah ready you it was a reminder we're headed into a remote dangerous environment the perdido platform is more than two hours from shore by helicopter and could power 1.7 million people per year the Chris where are we so right now we're 200 miles south of Galvez we're on what's called as far and as far as basically a can a floating can if you want to think about it for the can boiled down by a fire babe wait okay and it just it's like a buoy it's just floating there this is the deepest water platform deeper water we're in a thousand feet of water eaten up and we're producing and we have the rig on board so we can work on the wealth thus far rig which is straight above us has access to 22 well directly to eat thus far how long did it take to get this facility in place I mean from the first time you guys decided hey some geologists like me he said we're in a drill here first of all we have to decide you're right it benefitted from that from the fire we purchased these time we got first production at large 14 years 14 years with this buff you're sterile billion-dollar it will kill you yeah so this is the brains of it this is the control room this is where we'd control the movement of this bar got you so we actually have one of our engineers in New Orleans that we're connected to so if we have a problem we can actually use people from onshore to help support us that seems like a pretty critical and important function as the platform's we're getting two or more and more remote I think it's more critical it's tough to get help out here if you needed it I mean fresh on the minds of people of course is the Deepwater Horizon accident um describe for us how how you how you see that incident and what shell has been doing and make sure that those kinds of things don't happen I think it taught us all a lesson and what we see now is a group of companies basically create the tools needed so we have the subsea equipment ready to respond to a blowout of them okay other than than that I think we can use remote monitoring if we identify issues or problems in a week and we can help respond to those quickly shell has never had an instant in any other deepwater fields not good but yeah but not just not going to work we take a lot of steps to do that you know a very good very good safety record but it only takes one you know the human element still there we've got lots of really good equipment that protects us but if things line up just right you know terrible things can happen so you do your best to make sure that those things don't happen it's true that in 60 years of offshore drilling accidents like horizon have been extremely rare but as we push into more challenging environments here and around the world the risk will increase future oil supply will be hard but supply is just half the equation what about demand I want to see the Richmond refinery which powers three million people per year gasoline is the about 50% of what we make and there's many different grades of gasoline dependent on the season and where they're being sold jet fuel is the second largest product we have it's about 20% of our our products late and then diesel fuel so mostly fuels and certain kinds of lubricants and things like them yep these ships products over to a marketing terminal and the trucks that will deliver right to gas stations will pick up from the marketing terminal will also ship product by pipeline it goes through the airports around here locally or it goes throughout the states like pipeline Richmond makes 25 percent of the gasoline and nearly 70 percent of the jet fuel for the Bay Area it's something like a power plant for transportation taking the energy and oil and distributing it through gasoline it's not often recognized the incredible energy that you can put into a volume with gasoline it has four times the energy density of liquid hydrogen the stuff that we put into Rockets this food fuel has such enormous technical advantages that displacing it we've seen is not easy Tamara yeah think about it you can go between and 50 miles on a tank of gasoline treated 50 miles a whole family in a two ton automobile based on a tank that's just this big and then it's not even any residue yeah it is there's no ash it's just it's all gone you fill it up again you can fill it up in three or four minutes it's truly a miracle very hard to replace the maximum size ship here at the Richmond Long Wharf at 750 thousand barrels a day of product 750 thousand barrels correct the u.s. consumes about 20 plus million barrels of oil a day that's correct so if you're looking at about a 30th of the daily consumption of crude oil and gasoline on one tanker maybe 45 minutes of what we consume in this country on that big boat that's all listed in a perspective doesn't it that's a lot of consumption but it's amazing how much demand there is and that's just for the US the world uses a tanker every 13 minutes and as population and development increase so will demand combine that with difficult supply and future oil will be expensive"