How much did it cost when you last filled up at the pump? In leaving the Board of Supervisors meeting in Santa Ana on Tuesday I “Shell”d out over $50 for 14 gallons on regular unleaded. In the future I may participate via video conference into the meetings and keep my car off the freeway.
Bakken Basin. “Largest domestic oil discovery since Alaska’s Prudhoe Bay.”
Is this story of massive reserves in Montana and North Dakota’s Bakken Basin a hoax? Did we really find this huge light sweet crude oil reserve, 1,000 to 9,000 feet below the soil, right here in the USA and no one is talking about it?
We read that for the past 20-50 years we knew it existed but the cost of extraction and associated risk was too high. I read that “according to Jim Ehrets, a Denver-based geologist with Headington Oil Co., of Dallas, it costs about $5 million (euro3.15 million) to drill a well tapping the middle Bakken, and companies need crude prices of at least $50 a barrel to make it economical.”
Another report states that “Oil companies began sharing technology about two years ago on how to recover the oil. The technology involves drilling vertically to about 10,000 feet (3,048 meters), then “kicking out” for as many feet horizontally, while fracturing the rock to release the oil trapped in microscopic pores in the area known as the “middle” Bakken.”
Even with crude prices now double the $50 threshold, “there still is a ton of risk,” he said.” Well, that dialogue occurred when crude was perhaps $50 dollars per barrel not the current price of around $110 and rising as the OPEC cartel realizes our increasing dependence along with the demand from China and India for this limited resource.
No, I am not a broker on behalf of any start up exploration firm. While it may have been a challenge to extract this crude in the past we read that newer technology exists that might result in cost as low as $16 per barrel. I am not sure what that figure would be when we pull up to the pump but it surely would be lower than $4.00 per gallon.
One report says that there are over 4 billion barrels that can be recovered now using current technology. That figure increases 25 fold if we institute new drilling technology.
Another report says that the Bakken needs pipelines and refinery capacity to reach it’s full potential. They quote a projection of extracting 2 million barrels per day by 2015. They also claim that “It’s the largest domestic oil discovery since Alaska’s Prudhoe Bay and has the potential to eliminate all American dependence on foreign oil.”
Recovery involves “both horizontal drilling and fracturing had been done before, but never together. This was (petroleum geologist Dick) Findley’s revolutionary idea. These combined technologies made drilling the Bakken Basin possible and extremely profitable.”
What are we waiting for? Haven’t the major oil players earned enough profits this past year to invest in US supply?
Click here to access one of my source references.
Yup, and just north of that there are 175 billion barrels of proven “oil sand” reserves in Alberta, Canada according to a “60 Minutes” segment that aired in January of 2005. You can read about it and even watch the video here.
*North Dakota?? Are you kidding?
They have very sophisticated oil
finding equipment that can be used
either by Electronic Planes or by
Government Satellites! The rumor
is that Mexico has more Off Shore
Oil than all the oil in the Middle
East! Guess we will find out very
soon!
Shhhuuuu!!! I don’t want anyone to mess with my profits. There is no oil up there and nothing off the coast of Mexico just salt water. Shut up–I am making more money than ever.
Oil Company Shareholder’s unite!!!
Folks. As you can see poster #3 is living proof that except for vulgarity and personal attacks on family members we allow all types of “characters” to post on our blog. We work hard to raise the bar while people like this anonymous poster never see the bar.
Just because the earth has lots of room does not mean you need to pave it; Just because there is a lot of water does not mean you need to drink it all; Just because there are fish in the sea does not mean you eat until they are gone. Here is an idea. Let’s consider the act of glutony to truly be one of the 7 deadly sins and the possible mechanism of our demise. Climate change is real and bleeding our oil dry is an act of suicide. We are seeing food sources dwindle and the Exxon spill is still not cleaned up. Go find another planet to trash… we need this one. We can power homes, cars and more with other sources; For the moment, only oil can propel our military… Plastics require oil… there are some things that demand oil; Lets not leave ourselves high and dry and unable to do the things we actually NEED it for. Maybe… just maybe… the risk that I am right is enough to make you think for a change. Maybe we don’t need to strip the planet bare just so you can drive a hummer. YOU DO NOT HAVE TO EAT LIKE A PIG JUST BECAUSE YOU CAN; if we can must destroy our planet, lets at least not be in a hurry.
This internet hoax is explained at FactCheck.Org:
http://www.factcheck.org/askfactcheck/are_anti-drilling_forces_blocking_access_to_the.html
IF THE GOV. IN1930 TOOK THE TIME TO PUT A SQUASH ON ANY OIL RECOVERY FROM THAT EXACT PLACE . CHINA HAS BEEN RECOVERING THIS KIND OF OIL SINCE THE 30S AS WELL! I WOULD CHECK YOUR OWN MOTIVES IN THIS. THE GOV. HAS EVERY REASON TO KEEP THIS QUIET UNTIL SOMEONE DRILLS THEIR WAY INTO CONGRESS! AND LETS THE CAT OUT OF THE BAG ALL INVESTMENTS GO TO THE MOON THE LESS THAT KNOW THE BETTER FOR THE RELATIVE SMALL COMPANIES! SHELL MUST BE IN KNOTS! JEFF