From the Energy Front 090809
Hey folks,
You hear it all the time. We are going to run out of Oil. No new drilling will do much of anything to bring down prices. There just isn't enough to worry about Drilling. So on, so forth.
Then you have the reality. We have more Oil and Natural Gas here, than in the whole middle East combined. Truth is, we have more in the Gulf than we even know. According to Reuters - BP Makes "Giant" Oil Find in Gulf of Mexico by Tom Bergin
LONDON (Reuters) - Oil major BP Plc said it has made an oil discovery in the Gulf of Mexico, which analysts believe could contain over 1 billion barrels of recoverable reserves, reaffirming the Gulf's strategic importance to the industry.
BP said in a statement on Wednesday that it had made the "giant" find at its Tiber Prospect in the Keathley Canyon block 102, by drilling one of the deepest wells ever sunk by the industry.
Further appraisal will be required to ascertain the size of volumes of oil present, but a spokesman said the find should be bigger than its Kaskida discovery which has over 3 billion barrels of oil in place.
Estimates of recoverable reserves range from around 20 percent of oil in place.
"Assuming reserves in place of 4 billion barrels and a 35 percent recovery rate, BP's proven reserves .. would rise by 868 million barrels -- equivalent to 4.8 percent of the group's 18.14 billion barrels of proven reserves," Aymeric De-Villaret, oil analyst at Societe Generale said in a research note.
BP, the biggest oil producer in the U.S. and biggest leaseholder in the Gulf of Mexico, has a 62 percent working interest in the block, while Brazilian state-controlled Petrobras owns 20 percent and U.S. oil major ConocoPhillips owns 18 percent.
Iain Armstrong, analyst at Brewin Dolphin, said the discovery may have implications for long-term oil prices.
"It will ease concerns about peak oil because it shows there is life left in these mature areas," he said, adding that it could be the second half of the next decade before the find is producing.
The discovery also bodes well for other exploration in that part of the Gulf of Mexico, including at Royal Dutch Shell's nearby Great White field, Jason Kenny, oil analyst at ING in Edinburgh, said.
BP shares, which had been trading slightly down ahead of the statement, closed up 4.3 percent at 541 pence, outperforming a 1.75 percent rise in the DJ Stoxx European oil and gas sector index.
The Gulf of Mexico has become increasingly important to Western oil majors as oil rich-countries such as Saudi Arabia, Venezuela and Russia reserve their richest fields to be developed by their state-owned oil companies.
The Gulf is especially attractive because it offers high profit margins, due to relatively low taxation compared to countries such as Russia and Nigeria, and because of the low political risk.
As nearer-shore discoveries dry up, companies have pushed further out to sea, which has forced them to develop new technologies to detect and extract the oil.
The prospects for massive discoveries in the deep water of the Gulf of Mexico is also good news for U.S. politicians' ambitions to reduce the country's reliance on imported oil, although oil executives doubt the U.S. is capable of becoming self sufficient in oil.
That's because some US Politicians will not just get out of the way and let the REAL EXPERTS in this field do their thing. That is because some Politicians that remain beholden to the Evionuts keep BLOCKING the process that continues to be proven safe and productive, to favor a unrealized Dream of Alternative Energy. That's because SOME US Politicians WANT to be reliant on Foreign Oil, for various reasons. One includes MONEY.
This is also further proof that REALITY does not meet the Rhetoric that we will run out of oil soon and we await catastrophe if we do nothing. By NOT Drilling, this will be true. We WILL meet with Catastrophe if we abandon that of which we know WORKS for a DREAM that is decades aways from the infant stages, that even THEN, is unproven to work. WE have the answer. We just need to let those that understand it, go get it. It really is just that simple.
Peter
Hey folks,
You hear it all the time. We are going to run out of Oil. No new drilling will do much of anything to bring down prices. There just isn't enough to worry about Drilling. So on, so forth.Then you have the reality. We have more Oil and Natural Gas here, than in the whole middle East combined. Truth is, we have more in the Gulf than we even know. According to Reuters - BP Makes "Giant" Oil Find in Gulf of Mexico by Tom Bergin
LONDON (Reuters) - Oil major BP Plc said it has made an oil discovery in the Gulf of Mexico, which analysts believe could contain over 1 billion barrels of recoverable reserves, reaffirming the Gulf's strategic importance to the industry.
BP said in a statement on Wednesday that it had made the "giant" find at its Tiber Prospect in the Keathley Canyon block 102, by drilling one of the deepest wells ever sunk by the industry.Further appraisal will be required to ascertain the size of volumes of oil present, but a spokesman said the find should be bigger than its Kaskida discovery which has over 3 billion barrels of oil in place.
Estimates of recoverable reserves range from around 20 percent of oil in place.
"Assuming reserves in place of 4 billion barrels and a 35 percent recovery rate, BP's proven reserves .. would rise by 868 million barrels -- equivalent to 4.8 percent of the group's 18.14 billion barrels of proven reserves," Aymeric De-Villaret, oil analyst at Societe Generale said in a research note.
BP, the biggest oil producer in the U.S. and biggest leaseholder in the Gulf of Mexico, has a 62 percent working interest in the block, while Brazilian state-controlled Petrobras owns 20 percent and U.S. oil major ConocoPhillips owns 18 percent.
Iain Armstrong, analyst at Brewin Dolphin, said the discovery may have implications for long-term oil prices.
"It will ease concerns about peak oil because it shows there is life left in these mature areas," he said, adding that it could be the second half of the next decade before the find is producing.
The discovery also bodes well for other exploration in that part of the Gulf of Mexico, including at Royal Dutch Shell's nearby Great White field, Jason Kenny, oil analyst at ING in Edinburgh, said.
BP shares, which had been trading slightly down ahead of the statement, closed up 4.3 percent at 541 pence, outperforming a 1.75 percent rise in the DJ Stoxx European oil and gas sector index.
The Gulf of Mexico has become increasingly important to Western oil majors as oil rich-countries such as Saudi Arabia, Venezuela and Russia reserve their richest fields to be developed by their state-owned oil companies.
The Gulf is especially attractive because it offers high profit margins, due to relatively low taxation compared to countries such as Russia and Nigeria, and because of the low political risk.
As nearer-shore discoveries dry up, companies have pushed further out to sea, which has forced them to develop new technologies to detect and extract the oil.
The prospects for massive discoveries in the deep water of the Gulf of Mexico is also good news for U.S. politicians' ambitions to reduce the country's reliance on imported oil, although oil executives doubt the U.S. is capable of becoming self sufficient in oil.
That's because some US Politicians will not just get out of the way and let the REAL EXPERTS in this field do their thing. That is because some Politicians that remain beholden to the Evionuts keep BLOCKING the process that continues to be proven safe and productive, to favor a unrealized Dream of Alternative Energy. That's because SOME US Politicians WANT to be reliant on Foreign Oil, for various reasons. One includes MONEY.
This is also further proof that REALITY does not meet the Rhetoric that we will run out of oil soon and we await catastrophe if we do nothing. By NOT Drilling, this will be true. We WILL meet with Catastrophe if we abandon that of which we know WORKS for a DREAM that is decades aways from the infant stages, that even THEN, is unproven to work. WE have the answer. We just need to let those that understand it, go get it. It really is just that simple.
Peter
Sources:
2 comments:
Alternative energy is years away.
If we don't drill for more oil we may run out of oil.
It's as simple as that.
As long as our president does not want to drill here but wants to pay other countries to drill we are not going to see any relief soon.
Obama's cap and trade is so unpopular and all analyse of it has shown it would drive up costs to Americans and afford no relief by using alternative fuels.
As for global warming you and others have pointed out that they are trying to repackage it and tell us that even though temperatures have fallen the past ten years that we are experiencing a heat wave.
It is about money and nothing but money.
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