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Topic: U.S. OIL SUPPLY-INCREDIBLE!
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ukcatfannfl
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Member # 1425
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posted 07-04-2022 02:13 PM
If this doesn't piss everyone who reads this - even the left and/or democrats, then nothing will!
U.S. OIL SUPPLY
About 6 months ago, there was a news program on oil and one of The Forbes Bros. was the guest. The host said to Forbes, "I am going to ask you a direct question and I would like a direct answer; how much oil does the U.S. Have in the ground?" Forbes did not miss a beat, he said, "More than all the Middle East put Together."
The U.S. Geological Service issued a report in April 2008 that only Scientists and oil men knew was coming, but man was it big. It was a revised report (hadn't been updated since 1995) on how much oil was in this area of the western 2/3 of North Dakota, western South Dakota, and Extreme eastern Montana
Check THIS out:
The Bakken is the largest domestic oil discovery since Alaska's Prudhoe Bay and has the potential to eliminate all American dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable (5 Billion barrels), at $107 a barrel, we're looking at a resource base worth more than $5.3 trillion. "When I first briefed legislators on this, you could practically see their Jaws hit the floor.
They had no idea." says Terry Johnson, the Montana Legislature's financial analyzer. "This sizable find is now the highest-producing onshore oil field found in the past 56 years," reports The Pittsburgh Post-Gazette.
It's a formation known as the Williston Basin but is more commonly referred to as the 'Bakken.' It stretches from Northern Montana, through North Dakota and into Canada. For years, U.S. Oil exploration has been considered a dead end. Even the 'Big Oil' companies gave up searching for major oil wells decades ago.
However, a recent technological breakthrough has opened up the Bakken's Massive reserves, And, we now have access of up to 500 billion barrels. And because this is Light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!!!!! That's enough crude to fully fuel the American economy for 2041 years Straight. And if THAT didn't throw you on the floor, then this next one should - Because it's from 2006 !!!!!!
U.S. Oil Discovery - Largest Reserve in the World Stansberry Report Online - 4/20/2006. Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the Largest untapped oil reserve in the world. It is more than 2 TRILLION barrels. On August 8, 2005 President Bush Mandated its extraction. In many recent years of high oil prices none has been extracted. With this mother lode of oil why are we still fighting over off-shore Drilling?
They reported this stunning news: We have more oil inside our borders, than all the other proven reserves on Earth.
Here are the official estimates:
8 times as much oil as Saudi Arabia
18 times as much oil as Iraq
21 times as much oil as Kuwait
22 times as much oil as Ira
500 times as much oil as Yemen
And it's all right here in the Western United States !!!!!!
HOW can this BE? HOW can we NOT BE extracting this? Because the Environmentalists and others have blocked all efforts to help America become Independent of foreign oil! Again, we are letting a small group of people Dictate our lives and our economy. WHY?
James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East, more than 2 TRILLION barrels Untapped. That's more than all the proven oil reserves of crude oil in the World today, reports The Denver Post.
Don't think 'OPEC' will drop its price even with this find? Think again! It's all about the competitive marketplace, it has to. Think OPEC just might be funding the environmentalists?
Got your attention yet?
verified
https://www.usgs.gov/news/national-news-release/usgs-releases-oil-and-gas-assessment-bakken-and-three-forks-formations
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ukcatfannfl
Posts: 8771 | From: Inverness, FL | Registered: Jun 2001
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Tiptree
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Member # 844
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posted 07-05-2022 05:13 AM
I follow the energy field very closely (my wife does her research in collaboration with an oil services company), and it is important to read this article for exactly what it is saying. The key terms are in this section:
quote:
Technically recoverable resources are those that can be produced using today’s standard industry practices and technology. These are different than economic reserves, which are those quantities of oil and gas that can be produced profitably.
Undiscovered resources are those that are estimated to exist based on geologic, geophysical and geochemical information for the assessed rock layers.
Undiscovered resources are contrasted with proven reserves, which are those quantities of oil and gas that have been confirmed to exist via drilling and production.
So, we have four terms tossed about in this article, and in the USGS publication. The only one that matters is economic reserves.
It is nice to know that oil does exist (proven reserves), and mildly comforting to know that even more might exist (undiscovered resources), but unless the oil can be extracted for a profit, it will remain underground forever.
The undiscovered and proven reserves will be useful only if they are both technically extractable and economically extractable. That is a much, much smaller quantity. But, with oil over about $80 a barrel, a whole lot of our proven reserves could be extracted via fracking. However, it is clear that the administration in power is doing everything it can to discourage that.
Bottom line is if we DID turn on the spigots and allow full-scale exploitation of our proven reserves, the price of oil would drop substantially. BUT, that would then have a perverse effect of rendering some of the oil economically unavailable... in other words, successfully driving down the price of oil would render a LOT of our oil unprofitable, so there is a limit of how much we could actually sustainably produce.
The advantage the Saudis and Kuwaitis have is that their oil is profitable to extract even when the price of oil drops under $20 a barrel. We have a lot of oil, but it just isn't economical to get it out of the ground UNLESS the price of oil is high.
[ 07-05-2022, 05:14 AM: Message edited by: Tiptree ]
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Tiptree
“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” Thomas Jefferson
Posts: 13628 | From: Terre Haute, IN | Registered: Sep 2000
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PaulCat
Player
Member # 513
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posted 07-05-2022 08:24 PM
quote:
Originally posted by Tiptree:
We have a lot of oil, but it just isn't economical to get it out of the ground UNLESS the price of oil is high.
Tip, is this because of technology or just greed?
Posts: 10347 | From: Erlanger, Ky. USA | Registered: Mar 2000
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Tiptree
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Member # 844
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posted 07-06-2022 05:16 AM
Call it greed if you want, but no oil company will pump a drop of oil out of the ground that it cannot sell for more than it cost to extract it. That would be economic suicide.
Technology has made a lot of the oil in the United States "technologically available", but that technology has a higher price than just drilling a hole and letting the oil gush out of a pipe. For most "horizontal drilling" combined with fracking, that price has been around $40 per barrel. So, when the spot price of oil is over that price, then the oil companies can profitably extract it. Note that the price for fracking oil can be as high as $80 per barrel, depending on where it is located. Above $80, then our available oil resources are indeed vast.
But, economics is a funny thing. Once you start up new wellls and flood the market with excess supply, the price drops. So, it is tricky for the oil companies. The demand for oil has to be great enough that the marginal increase in supply for a new well won't immediately make that well unprofitable.
In the US, we have a VERY unfriendly regulatory environment, with an idiot president and administration who simply have no idea how economics work. First he cut off the Keystone pipeline, royally pissing off our Canadian allies and removing a cheap source of oil. Then he prohibited new drilling on federal land. He also strongly hinted that his goal is to put the oil companies out of business. As such, you see almost no investment in drilling or refining capacity. Now that his actions have caused the price of oil to soar, he has told the oil companies to pump more oil (without removing the restrictions he placed on them) while calling them greedy, and demanded gas retailers cut their prices, also insinuating that they are greedy... all the acts of a juvenile leftist playing president.
Don't expect gas prices to come down under his administration. This is EXACTLY what he wants.
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Tiptree
“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” Thomas Jefferson
Posts: 13628 | From: Terre Haute, IN | Registered: Sep 2000
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