Just Paid $4/g for Petrol Today

[mikec]

actually 2% of reserves is correct so he is right although misleading.

Post 62.


"Most people think that when Obama says we have 2% of the world oil reserves, that that means of all the oil in the world, we have 2% of it.

That's not what that means. Folks, with new technology, we have more oil in the ground that we can get than they have in Saudi Arabia. That "2% of the world's reserves" means 2% of what has been brought up, 2% of what has been produced, not 2% of the supply. This has been an out-and-out lie, and I don't know how else to categorize it. He is purposely misstating this. This is a left-wing catcall for as long as I have been alive, and in this statistic is the implied guilt. "Look at us! We've got 2% of the world's oil, and we use 20%, and it's not fair. We are raping the other nations on this resource!"

[Captain Crawfish]

while we are crunching numbers. how many wells were there operating in the Bakken in January 2012? 6617 producing 546,000 b/d which on avg is about 82b/d per site. wheeeew!!! a typical offshore well produces somewhere in the range of 50,000b/d. also factor in that it takes about 1 barrel of oil to produce 6 out of shale formations all while fracking the shit out of relatively good land at what point is it not worth messing with? even if we can get 24 Billion barrels out of shale in the US thats about 9 months of global consumption. you also have to factor in depletion rates for shale wells which tend to deplete by 65 percent the first year; 35 percent the second; and another 15 percent the third. drilling down 11k ft then horizontal another 10K isnt done without using energy and alot of steel! shale oil is good and all but if prices fall expect drillers to shut down sites as it isnt profitable unless the prices can support the cost to extract the oil. IMO its gonna take different forms of energy to keep this world going not just oil.

[CJ]

while we are crunching numbers. how many wells were there operating in the Bakken in January 2012? 6617 producing 546,000 b/d which on avg is about 82b/d per site. wheeeew!!! a typical offshore well produces somewhere in the range of 50,000b/d. also factor in that it takes about 1 barrel of oil to produce 6 out of shale formations all while fracking the shit out of relatively good land at what point is it not worth messing with? even if we can get 24 Billion barrels out of shale in the US thats about 9 months of global consumption. you also have to factor in depletion rates for shale wells which tend to deplete by 65 percent the first year; 35 percent the second; and another 15 percent the third. drilling down 11k ft then horizontal another 10K isnt done without using energy and alot of steel! shale oil is good and all but if prices fall expect drillers to shut down sites as it isnt profitable unless the prices can support the cost to extract the oil. IMO its gonna take different forms of energy to keep this world going not just oil.

I'm glad you've done some research. Now we can have a discussion. The unimpressive numbers you just quoted are completely correct. however, you need to understand that those numbers are there to PROVE it's capability to the keystone conglomerate for production. And they proved they can produce a SHITLOAD of product for our market. Of course it isn't producing a billion barrels - they need a customer first - us. If you were a producer of widgets, and a customer approached you and asked if you could deliver 50 million widgets a day - but had no way to transport it for sale - would you start producing today? Of course you wouldn't, you prove to the customer than you can handle the order, and then they make the purchase. Right now Canada is waiting on the pipeline before full production. Does that make sense?

One last thing I want everyone here to understand. These are private companies putting their money on the table to do this. Government funding has no part in this, they are building this pipeline, they are taking the risk. Companies do not take risks if they expect it to fail. The reason they are spending billions of their own dollars is because there is a demand for oil, and they can offer a cheaper product to us. Just keep that in mind.

Your opinion seems to be that it's a waste of time and money. Who's time and money is wasted? If this is everything you seem to think it is, why is China trying to bribe and sending government officials to Canada to steal this away from us?

As far as the liberal talking point for "other sources of energy" there isn't any. If there was a better source of energy, every damn oil company in the WORLD would be ALL over it. They spend billions of dollars a year trying to find these "other sources." Solar power is a joke - the cost is too high for the benefit. Hydrogen power is promising but 10 years away. Electric is completely unrealistic, and ass backwards considering you're burning coal at the power plant instead of gas in the tank. Finding alternative fuels is absolutely essential to our future. But bankrupting our economy to do it is absolutely asinine. While we stare glassy eyed into the future for a magical answer China and other countries are burying our asses with oil acquisitions. I could argue this point all day, you're opinions are valid and important, but the truth is they are very unrealistic and dangerous.

[Captain Crawfish]

I'm glad you've done some research. Now we can have a discussion. The unimpressive numbers you just quoted are completely correct. however, you need to understand that those numbers are there to PROVE it's capability to the keystone conglomerate for production. And they proved they can produce a SHITLOAD of product for our market. Of course it isn't producing a billion barrels - they need a customer first - us. If you were a producer of widgets, and a customer approached you and asked if you could deliver 50 million widgets a day - but had no way to transport it for sale - would you start producing today? Of course you wouldn't, you prove to the customer than you can handle the order, and then they make the purchase. Right now Canada is waiting on the pipeline before full production. Does that make sense?
As far as the liberal talking point for "other sources of energy" there isn't any. If there was a better source of energy, every damn oil company in the WORLD would be ALL over it.

Im no expert but the oil they pump through the keystone isnt gonna be for us bro. It will be exported where it can fetch a global premium price. If anything reducing the glut of oil in storage hubs will actually raise prices. Global spare oil production capacity is running at less than 2% of demand (amount of production that can be brought onstream within 30 days) so with the markets this tight if anything goes wrong this could send prices up even more because there isnt any room for disruption. Someone is gonna give on oil usage and it will be the USA to make room for other countries such as china india etc. We may have oil but oil co's are gonna sell it on the global markets.

[mikec]

Im no expert but the oil they pump through the keystone isnt gonna be for us bro. It will be exported where it can fetch a global premium price. If anything reducing the glut of oil in storage hubs will actually raise prices. Global spare oil production capacity is running at less than 2% of demand (amount of production that can be brought onstream within 30 days) so with the markets this tight if anything goes wrong this could send prices up even more because there isnt any room for disruption. Someone is gonna give on oil usage and it will be the USA to make room for other countries such as china india etc. We may have oil but oil co's are gonna sell it on the global markets.

They are already selling our "excess" oil on the global markets.

[CJ]

Im no expert but the oil they pump through the keystone isnt gonna be for us bro. It will be exported where it can fetch a global premium price. If anything reducing the glut of oil in storage hubs will actually raise prices. Global spare oil production capacity is running at less than 2% of demand (amount of production that can be brought onstream within 30 days) so with the markets this tight if anything goes wrong this could send prices up even more because there isnt any room for disruption. Someone is gonna give on oil usage and it will be the USA to make room for other countries such as china india etc. We may have oil but oil co's are gonna sell it on the global markets.

You literally just ignored everything I just said and continued on your left talking points. Keystone was created for us. It is a US project. Why the hell would they take a lower price with absorbed transportation costs to ship it to the other side of the world? You point makes no damn sense. And then you're making the case that increasing supply is going to somehow increase prices? wtf world do you live in?

[Forever_frost]

Not to mention if you add more oil on the global markets at a 'global premium', you're adding supply to supply and demand and prices drop. Economics as a natural entity is very simple.

I agree electric cars are an ass backwards idea. Basically reverting to a steam engine that takes 8-12 hours to recharge to go 40 miles.

[black50]

Not to mention if you add more oil on the global markets at a 'global premium', you're adding supply to supply and demand and prices drop. Economics as a natural entity is very simple.

I agree electric cars are an ass backwards idea. Basically reverting to a steam engine that takes 8-12 hours to recharge to go 40 miles.

everyone thinks that Electirc is the future..Not me..I believe that electric will only make the transition from fossil fuel to fuel cell/hydrogen easier on the world

Who was the guy that died in the restaurant while eating and started screaming right before he died that he had been poisoned?? I think he had developed some sort of fuel cell that he was developing for use in cars, iirc he drove a car from the east coast to the west coast on just a few gallons of water..We have the technology to mass produce fuel cell cars but the govenment doesnt want us too have it just yet

Edit: stanley meyers

[CJ]

everyone thinks that Electirc is the future..Not me..I believe that electric will only make the transition from fossil fuel to fuel cell/hydrogen easier on the world

Who was the guy that died in the restaurant while eating and started screaming right before he died that he had been poisoned?? I think he had developed some sort of fuel cell that he was developing for use in cars, iirc he drove a car from the east coast to the west coast on just a few gallons of water..We have the technology to mass produce fuel cell cars but the govenment doesnt want us too have it just yet

Edit: stanley meyers

Ridiculous conspiracy theory.

[Captain Crawfish]

You literally just ignored everything I just said and continued on your left talking points. Keystone was created for us. It is a US project. Why the hell would they take a lower price with absorbed transportation costs to ship it to the other side of the world? You point makes no damn sense. And then you're making the case that increasing supply is going to somehow increase prices? wtf world do you live in?

You win!! Have a good day

[CJ]

QIK, I can read your deleted posts, and that made no damn sense either. I'm assuming that's why you deleted it. I'm glad this little class on economics and supply and demand benefited you.

[Forever_frost]

everyone thinks that Electirc is the future..Not me..I believe that electric will only make the transition from fossil fuel to fuel cell/hydrogen easier on the world

Who was the guy that died in the restaurant while eating and started screaming right before he died that he had been poisoned?? I think he had developed some sort of fuel cell that he was developing for use in cars, iirc he drove a car from the east coast to the west coast on just a few gallons of water..We have the technology to mass produce fuel cell cars but the govenment doesnt want us too have it just yet

Edit: stanley meyers

Problem with using water for fuel....we need water to survive. Currently, we have people dying of dehydration, lakes and streams going dry during the summer and having cars that use water would tax that even more.

[bcoop]

Problem with using water for fuel....we need water to survive. Currently, we have people dying of dehydration, lakes and streams going dry during the summer and having cars that use water would tax that even more.

There is no less water on earth today than there has ever been.

[Forever_frost]

There is no less water on earth today than there has ever been.

True, but water available for use and where it's located has changed.

[bcoop]

Ridiculous conspiracy theory.

But you say everything is a conspiracy theory. I'll just say its not the only questionable death involving alternative energy sources.

EDIT: I have no opinion one way or the other. I just think its interesting.