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ORAC
29th Mar 2008, 14:05
About that stranglehold OPEC supposedly has on the oil market....

Massive Oil Deposit Could Increase US reserves by 10x (http://www.nextenergynews.com/news1/next-energy-news2.13s.html)

America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation* (http://en.wikipedia.org/wiki/Bakken_Formation) in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.

In the next 30 days the USGS (U.S. Geological Survey) will release a new report giving an accurate resource assessment of the Bakken Oil Formation that covers North Dakota and portions of South Dakota and Montana. With new horizontal drilling technology it is believed that from 175 to 500 billion barrels of recoverable oil are held in this 200,000 square mile reserve that was initially discovered in 1951. The USGS did an initial study back in 1999 that estimated 400 billion recoverable barrels were present but with prices bottoming out at $10 a barrel back then the report was dismissed because of the higher cost of horizontal drilling techniques that would be needed, estimated at $20-$40 a barrel.

It was not until 2007, when EOG Resources of Texas started a frenzy when they drilled a single well in Parshal N.D. that is expected to yield 700,000 barrels of oil that real excitement and money started to flow in North Dakota. Marathon Oil is investing $1.5 billion and drilling 300 new wells in what is expected to be one of the greatest booms in Oil discovery since Oil was discovered in Saudi Arabia in 1938.

The US imported about 14 million barrels of Oil per day in 2007 , which means US consumers sent about $340 Billion Dollars over seas building palaces in Dubai and propping up unfriendly regimes around the World, if 200 billion barrels of oil at $90 a barrel are recovered in the high plains the added wealth to the US economy would be $18 Trillion Dollars which would go a long way in stabilizing the US trade deficit and could cut the cost of oil in half in the long run.

brickhistory
29th Mar 2008, 14:17
Wait, wait, hold on a minute....

Such activity might upset the delicate Plains mosquito and its fragile breeding habitat of virtually any-friggin'-where.

I'm sorry, you'll have to look elsewhere for your dirty oil.

DAL208
29th Mar 2008, 14:22
Think Ive heard this story before...if it were accurate I would have thought Bush et al would have wanted to make a big song and dance over it to scare OPEC to reduce prices. Would be interesting if true, however.

ORAC
29th Mar 2008, 14:36
Bakken Formation Reserve Estimates (https://www.dmr.nd.gov/ndgs/bakken/newpostings/07272006_BakkenReserveEstimates.pdf)

Aaaaaaaaaaaaaaaargh!
29th Mar 2008, 15:11
So you mean we can just put off the time when we have to think about conservation or alternative energy sources?

Sweeet. I'll be ok. This can be the problem of the next generation. :ok:

niknak
29th Mar 2008, 15:44
Latest independant figures report that the USA consumes nearly 21 million barrels of oil a day, of which nearly 10.5 million barrels per day is imported.

Even given the most optomistic set up and running costs of the "proposal", I can't see any major oil company being interested in this unless major subsidies were available.

The USA has just over 100 nuclear power stations operational at the moment, surely it would be far better to develop and improve them than wasting billions of dollars on an exploration which may not return anything viable?

CottonEyeJoe
29th Mar 2008, 18:22
The US imported about 14 million barrels of Oil per day in 2007 , which means US consumers sent about $340 Billion Dollars over seas building palaces in Dubai and propping up unfriendly regimes around the World,
http://www.pprune.org/forums/images/statusicon/user_online.gif http://www.pprune.org/forums/images/buttons/report.gif (http://www.pprune.org/forums/report.php?p=4010997)

Such crap, Dubai is certainly not the enemy of the West, it is probably one of the most stable liberal places in the ME.

They don't build palaces but invest in the future with tourism the main feature, what a jerkoff.

Two's in
29th Mar 2008, 23:26
Nothing "new" being discovered here, just reinforcing a very old business principle from the Oil companies:

Oil prices at $14/barrel - If it doesn't come out of the ground easily we're not interested, please give generously at the pumps.

Oil prices at $105/barrel - Tell me more about this exciting new technology for drilling in shale, and keep shovelling those $20 bills on the fire. $4 gallon at the pumps is just killing us all here in Global Megacorp Inc.

Tigs2
30th Mar 2008, 00:53
$4 per gallon!! Try $10 per gallon in the UK!

pineridge
30th Mar 2008, 02:17
Tigs2 said.........
"$4 per gallon!! Try $10 per gallon in the U.K."

and in Norway.......it`s the taxes ,old chum.

Tigs2
30th Mar 2008, 02:23
Pineridge
Same in the UK!! The UK and Norway produce the highest grade of quality oil in the world and we both pay the most taxes!!

ZFT
30th Mar 2008, 02:40
You’ve got to pay to keep the politicians and civil servants in the lifestyles they’ve grown accustomed to. Gardening and air cond are expensive!!!!

Tigs2
30th Mar 2008, 02:51
You awake mate!!

Its now only 6 hours ahead! We have changed time zones by 1 hour

galaxy flyer
30th Mar 2008, 02:58
$10 per gallon! So much for energy "independence" equaling "cheap" gasoline.

GF

rotornut
30th Mar 2008, 05:56
And for the record: http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbblpd_m.htm

BlueWolf
30th Mar 2008, 08:59
ORAC, you naughty stirrer-type person, you of all people know very well that the relationship between America, Oil, and Money, has nothing whatsoever to do with the supply of oil, which you further well know, is not, and has never been, short.

Rather, it has everything to do with the supply of new money, which is also not in short or threatened supply, so long as there remains oil - or something similar - on which it may be spent.

Don't tease the natives. := They know nothing of the realities of the creation of money or the importance of the petrodollar.

Jet_A_Knight
30th Mar 2008, 11:54
Technology-Based Oil and Natural Gas Plays:
Shale Shock! Could There Be Billions in the Bakken?

Go to the last paragraph on page 5 of this document and see who one of the companies who is involved with the technologies that are to be used to exploit the Bakken Formation

This new horizontal fracturing technology is now being very effectively used to fracture stimulate horizontal laterals in the Bakken Formation’s Middle Member. Lyco Energy Corporation and Halliburton have published a paper on fracture stimulation projects in the Bakken Formation8.

Their technique calls for aligning the wellbore suchthat induced fractures have longitudinal orientatio to the wellbore. The formation is fractured and produces back through an uncemented pre-perforated liner (Figures 10 and 11).

My bolding.

The article is located here: http://tonto.eia.doe.gov/ftproot/features/ngshock.pdf


And in this Wall Street Journal article:

"Halliburton retains a stake in this venture"

http://www.palisadespetroleum.com/news/Montana_Oil_Boom.pdf

brickhistory
30th Mar 2008, 12:25
So Mr. Knight, let me understand your premise: an oil services company is interested in developing technology that lets it continue in the oil business.

Shocking, I tell you, shocking!


Or is your underlying premise that because the current VP used to be a corporate officer in that company and therefore said company has the reins of power via that connection?

Wow! So despite it being a publicly traded company answerable to its shareholders and all the negative publicity about that former relationship would have had the shareholders throw anyone under the bus to escape the media spotlight and that the VP had to sell his financial interests in said company upon taking his current post, Halliburton is the root of all evil and to blame for oil prices? Have I got that right?

Since you've solved this one, perhaps you can re-look the "Grassy Knoll" theory as well.........

Jet_A_Knight
30th Mar 2008, 12:49
No you did not get it right, Brickhistory.

All I presented was articles in which the name Halliburton, a company that is heavily involved and profiting in the US occupation of Iraq also has interests in the United States' largest oil reserve, which, conveniently enough at US$100+/barrel, is financially viable for exploitation.

You are free to draw your own conclusions.

I made no mention of grassy knolls or conspiracies - it's all in the public domain.

That's why I asked: " Coincidence??"

brickhistory
30th Mar 2008, 13:56
I see.

So your words,

All I presented was articles in which the name Halliburton, a company that is heavily involved and profiting in the US occupation of Iraq also has interests in the United States' largest oil reserve, which, conveniently enough at US$100+/barrel, is financially viable for exploitation.

is substantially different than my restatment:

let me understand your premise: an oil services company is interested in developing technology that lets it continue in the oil business.

how?

And, your questioning

I made no mention of grassy knolls or conspiracies - it's all in the public domain.
That's why I asked: " Coincidence??"

is not a backdoor conspiracy theory postulation?

Then why ask if it is a coincidence? It certainly seems to be your insinuation. If so, why not come out and say so? If not, then say that as well.

The basic premise of the article is that cheap oil made extracting the stuff uneconomical, just as it was in the North Sea, the deep Gulf, et al. If the price of the end product is high enough, then these methods then become worth it to the oil companies and their stockholders.

I'm not a fan of the price of oil, but if that's what the market bears, then so be it. I would hope/think that the alternative solutions and technologies will benefit to make oil a thing of the past in the next 20 years.

Until then, I really, really love my V-8!

con-pilot
30th Mar 2008, 17:32
Okay a question for all of you that are questioning the relationship between the high cost of oil and natural gas and todays drilling costs.

How much does it cost to drill a well past 10,000 feet and/or drill a well with the new technology required for horizontal drilling?

No matter what company it is.

Bonus question, what is the percentage of dry and poor producing wells, a well that will never return a profit, to economical successful wells?

rotornut
30th Mar 2008, 20:52
Drilling and completion costs are approximately $1.7 million per well: http://www.petrobank.com/can-bakken.html

However, that's only in one reservoir. From what I've read costs are escalating all over the world and oil is getting very expensive to find and produce even in Saudi Arabia: http://www.simmonsco-intl.com/files/Twilight%20in%20the%20Desert%20Presentation.pdf