$100 A Barrel Oil is on the Way

#1,357
#1,357
droski said:
people told me the exact same thing in march of 2000.
Click to expand...

On the other hand, I don't remember many brokers warning of the crash in 2007/2008. Most were saying the market was going to 15,000. Fortunately, for me, I got out of the market at 12,000 and re-entered at 7,000 :)
 
#1,358
#1,358
Apparently the Saudi's were supposed to increase production to pick up the slack for Lybia but now that inventory data is out, it shows they did nothing and actually produced less
Posted via VolNation Mobile
 
#1,359
#1,359
VolsNSkinsFan said:
Apparently the Saudi's were supposed to increase production to pick up the slack for Lybia but now that inventory data is out, it shows they did nothing and actually produced less
Posted via VolNation Mobile
Click to expand...

They didthe same thing last time. Some wonder if they actually have the ability to increase production.
Posted via VolNation Mobile
 
#1,361
#1,361
Three thousand new oil wells to be drilled in Texas within the year



Share Print
By: Sarah Leitner 05/31/11 5:21 PM

Oil prices could soon fall with the discovery of 20 new onshore oil fields in West Texas, which not only will boost the U.S. economy but also will line up with Saudi Prince Al-Waleed bin Talal’s hope for lower oil prices -- just not quite in a way he likes.
Talal told CNN on Sunday that he wants oil prices to drop from about $100 a gallon, where they are currently, to $70-80 a gallon. The lower prices will keep U.S. and Europe dependent on oil rather than rushing to find other energy sources, he said.
“We don’t want the West to go and find alternatives, because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives,” he told CNN on Sunday.
Talal might get his wish if Texans continue with plans to drill 3,000 wells in the next year. This could increase the country’s oil output by 25 percent within 10 years, although unfortunately for Talal, that would decrease U.S. dependence on foreign fuel.
Oil drilling in Texas experienced a resurgence beginning five years ago with increased use of a technique called hydraulic fracturing, or "fracking." The method has been used in Texas and Oklahoma for 60 years, especially in natural gas drilling. But it was recently found to work in tapping large quantities of oil by penetrating shale formations that were previously unreachable. Fracking requires injecting large quantities of water and selected chemicals into shale formations thousands of feet below the earth's surface.
A few obstacles could stand in the way of the Texas drilling expansion because environmentalists claim fracking pollutes drinking water. But U.S. Environmental Protection Agency administrator Lisa Jackson recently told Congress she knows of no proven examples of such water pollution. And industry experts say it is unlikely to happen because fracking is done thousands of feet below the water table.
Environmentalists also question the kinds of chemicals used in fracking. A bill has been introduced in the Texas legislature
requiring drillers to disclose the contents of their fracking solutions.
There is another wrinkle here. The 3-inch dunes sagebrush lizard could hinder drilling in West Texas, as it could be named a new endangered species. If put on the list in December, drillers fear the lizard’s new status would slow down or halt drilling in the area.
Click to expand...


 
#1,362
#1,362
Eagle Ford Shale is hot

Marathon Oil Buys KKR-Backed Hilcorp for $3.5 Billion - Businessweek

Marathon Oil Corp. agreed to buy KKR & Co.-backed Hilcorp Resources Holdings LP’s assets for $3.5 billion, expanding output and reserves in the Eagle Ford oil and natural-gas field in south Texas.

Marathon will acquire leases on 141,000 net acres in southern Texas with production equivalent to 7,000 barrels of oil a day and may be able to claim reserves equivalent to 100 million barrels by year-end, the Houston-based producer said today in a statement.

The Eagle Ford shale-rock formation holds oil, petroleum liquids and gas. Producers use hydraulic fracturing to release the fuel, injecting a mixture of water, sand and chemicals. Marathon is paying the equivalent of $21,000 an acre, an analyst said.
Click to expand...

141,000 Acres at $21K per acre thats only currently producing 7000 Bpd! Wow! In a few years Marathon expects to claim reserves of 500 Million barrels from there
 
#1,364
#1,364
Not going to bother with reading all the other pages...but there are alot of nice little finds in southern ca that are getting a lot of local attention. Reporters and activists are showing up everyday. Land owners for/against drilling are battling back and forth. And the whole directional drilling is the loop hole for off shore drilling that hopefully is going to pay for my boat!
Posted via VolNation Mobile
 
#1,365
#1,365
#1,369
#1,369
droski said:
if china blows up (50/50 IMO) all commodities will drop like a rock. if they don't i can't see it below $100 for a long period of time.
Click to expand...

It certaintly is an interesting paradigm. On one hand there is a stagnating global economy with the risk of falling back into recession. On the other, a very weak dollar is driving up all commodity prices particularly oil. Thus far, the weak dollar has won out.
 
#1,371
#1,371
#1,372
#1,372
I was going to post that. It was a huge find, but they said it would only satisfy the world's oil demand for about 10 days. WTF, 750 million.
 
New posts
You must log in or register to reply here.
Advertisement





Back
Top