$100 A Barrel Oil is on the Way

#479
#479
wylievol said:
why wont they start drilling closer to home myrobbins
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They are drilling in N Dakota/Montana.

Some other areas have seen expanded drilling.

Some is prevented due to various concerns (environmental etc.)

To drill closer to home, there needs to be sufficient oil reserves to make it worth it.
 
#480
#480
Oil reach $119.90 today before closing @ $119.37. We need to tap into somewhere to help boost supply.
 
#484
#484
Can we just say $118 a barrell for the price of oil today? I haven't read through the thread, so maybe someone's already pointed that out, but just knowing this thread was started at $86 a barrell and today, only 6 months later, we sit at $118 (and $3.65 for unleaded here in Michigan) shows how out of control the oil crisis is heading.
 
#487
#487
droski said:
they took the risk (which is considerable), put up the capital, why shouldn't they get the rewards? if oil was $20 a barrell these guys would be going bancrupt. as said previously maybe people should be taking a closer look at farm subsidies which are inflating grain and milk prices like crazy rather than the oil industry. the us govt is artificially inflating these prices, yet no one really complains.
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You can also throw in ballooning education costs. The way liberals whine and moan, you would think education is a right like air, water, and cheap gasoline. Yet, they don't do anything to stop the rising cost of an education...
 
#488
#488
droski said:
they took the risk (which is considerable), put up the capital, why shouldn't they get the rewards? if oil was $20 a barrell these guys would be going bancrupt. as said previously maybe people should be taking a closer look at farm subsidies which are inflating grain and milk prices like crazy rather than the oil industry. the us govt is artificially inflating these prices, yet no one really complains.
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I think the problem with your analysis is "they took the risk." That's a very small risk. When have the produced gasoline that there was not a market for? The demand is constant.

What little risk they have, drilling for oil, is minimized. They are very conservative where they drill. There are other theories of oil, such as the abiogenic theory of oil formation, that they don't use, because there is higher risk. I'm not sure the increasing cost of oil, and their increasing profits, worry them much.
 
#489
#489
oklavol said:
I think the problem with your analysis is "they took the risk." That's a very small risk. When have the produced gasoline that there was not a market for? The demand is constant.

What little risk they have, drilling for oil, is minimized. They are very conservative where they drill. There are other theories of oil, such as the abiogenic theory of oil formation, that they don't use, because there is higher risk. I'm not sure the increasing cost of oil, and their increasing profits, worry them much.
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And with that statement, you have proven to me that you know absolutely nothing about this subject, go back to football. It's a much safer topic for you....:thumbsup:
 
#491
#491
overseasorange2 said:
And with that statement, you have proven to me that you know absolutely nothing about this subject, go back to football. It's a much safer topic for you....:thumbsup:
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Exploratory oil wells aren't that expensive relative to the return. Super deep oil wells aren't that common yet. IMO the truth is, the major oil companies have more cash then they know where to invest with.

On the subject of oil, working in the oil industry hasn't made you inherently biased has it?
 
#492
#492
What is sad to me, is this country is awash in oil reserves. There are estimated 4.3 billion barrels oil in the Bakken oil formation in North Dakota alone.

The Bakken Oil Formation


Here it is estimated at 270 million:

Bakken Formation - Wikipedia, the free encyclopedia

Not to mention the huge reserves in oil shale in Utah. Instead of investing to develop our own reserves, we invest in Iraq's instead. Asinine.
 
#493
#493
I agree oklavol, we do have alot of oil within the US. I just wish we could somehow get it and put it to use.
 
#494
#494
The Bakken Formation in North Dakota could boost America’s oil reserves by an incredible 10 times, according to a report Wednesday.
The Bakken Oil Formation, which covers North Dakota and portions of Montana and South Dakota, is believed to have 175 to 500 billion barrels of recoverable oil. The 200,000 square mile reserve that was initially discovered in 1951.
In 2007, EOG Resources of Texas drilled a single well in Parshal N.D. that is expected to have yielded 700,000 barrels of oil. Marathon Oil is investing $1.5 billion and drilling 300 new wells.
[FONT=Verdana,Arial,Helvetica,sans-serif]In the next 30 days, the U.S. Geological Survey (USGS) will release a new report giving an accurate assessment of the Bakken Oil Formation.[/FONT]
[FONT=Verdana,Arial,Helvetica,sans-serif][FONT=Verdana,Arial,Helvetica,sans-serif]The United States imported about 14 million barrels of oil per day in 2007, which meant U.S. consumers have spent $340 billion dollars in exported oil.[/FONT][/FONT]
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Bakken Oil Formation Holds Billions of Barrels in N.D.
 
#495
#495
Bakken and Torquay Formations - A Saudi Arabia of oil under Saskatchewan, North Dakota, South Dakota, Montana and Manitoba


BREAKING NEWS
Well my guess was far to optimistic. The USGS 2008 figure was 3.65 billion barrels of oil for the US part of the Bakken formation.

UPDATE: Bakken in the context of the world's oil megaprojects. About 7 million barrels per day being added in 2008 and 2009 from about 50 projects per year.

The Bakken oil formation is possibly the largest conventional oil discovery in Canada since 1957. If this oil formation plays out toward the higher end of size and recoverability then it will change the geopolitics of oil and the economies of the United States and Canada. If a lot of the oil proves difficult to recover now, new technologies could still drastically improve the percent recoverable. The motivation to pull out another 100 billion barrels would be $9 trillion at todays prices. UPDATE:Here is my article on multi-stage fracturing (Stackfrac) horizontal drilling.

Next Big Future: Bakken and Torquay Formations - A Saudi Arabia of oil under Saskatchewan, North Dakota, South Dakota, Montana and Manitoba
 
#497
#497
Rasputin_Vol said:
What does it all mean? :dunno:
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In a nutshell, we have an oilfield the size of Saudi Arabia's in North Dakota.

Instead of developing the technology the access this oil, which would solve all of this country's supply problems for the next 100 years, we are bankrupting the treasury for our lifelong friends the Iraqi's. Who will probably end up hating us, and being one of Israel's biggest enemies. Again, the leadership from Washington on the energy crisis.....
 
#498
#498
oklavol said:
Exploratory oil wells aren't that expensive relative to the return. Super deep oil wells aren't that common yet. IMO the truth is, the major oil companies have more cash then they know where to invest with.

On the subject of oil, working in the oil industry hasn't made you inherently biased has it?
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Biased by twenty seven years of experience. It is my job to sell these projects to upper management. I have not seen one yet that I would risk my savings on..:no::no:
 
#499
#499
oklavol said:
In a nutshell, we have an oilfield the size of Saudi Arabia's in North Dakota.

Instead of developing the technology the access this oil, which would solve all of this country's supply problems for the next 100 years, we are bankrupting the treasury for our lifelong friends the Iraqi's. Who will probably end up hating us, and being one of Israel's biggest enemies. Again, the leadership from Washington on the energy crisis.....
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I guess the thrust of my question about "what does it all mean" was that I was wondering if these oil fields could actually be harvested within the next 5 years or so near peak capacity...
 
#500
#500
oklavol said:
In a nutshell, we have an oilfield the size of Saudi Arabia's in North Dakota.

Instead of developing the technology the access this oil, which would solve all of this country's supply problems for the next 100 years, we are bankrupting the treasury for our lifelong friends the Iraqi's. Who will probably end up hating us, and being one of Israel's biggest enemies. Again, the leadership from Washington on the energy crisis.....
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I'm not sure this makes sense. For this train of thought to work it must be assumed that the oil industry itself has no financial interest in developing the technology to exploit this resource. Frankly, I find that idea dubious at best. Not to mention the fact that there is, in fact, some recovery already underway since there are at least 450 wells in the Bakken already. Look, it's not like we stumbled across across some big fat lake of sweet crude here, which makes the Saudi analogy pretty weak. And while we're discussing weak the snipe at the current administration fits that as well. The USGS has known about the Bakken oil since at least Clinton's first term.

Oh, and before we get any real work done there you better start clubbing tree huggers. They have done and will do nothing but keep this country's oil dependency abroad as much as they can.
 
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