Friday, September 16, 2011

New Report Finds That Oil and Gas in the United States Are More Abundant Than Previously Thought

HOUSTON CHRONICLE -- "A new report that predictably found huge potential natural gas supplies in the U.S. also contained news its own writers found surprising - that oil is more abundant than they thought. 

The study released Thursday by the National Petroleum Council, a collection of industry, academic, government and other officials convened by the secretary of energy, touted how advanced technology has unlocked vast formations of natural gas previously deemed uneconomic to tap."


1. "The potential supply of North American natural gas is far bigger than was thought even a few years ago. As late as 2007, it was thought that the United States would have to become increasingly dependent on imported liquefied natural gas, owing to what appeared to be a constrained domestic supply. That is no longer the case. It is now understood that the natural gas resource base is enormous and that its development – if carried out in acceptable ways – is potentially transformative for the American economy, energy security, and the environment, including reduction of air emissions. These resources have the potential to meet even the highest projections of demand reviewed by this study.

Thanks to the advances in the application of technology pioneered in the United States and Canada, North America has a large, economically accessible natural gas resource base that includes significant sources of unconventional gas such as shale gas. This resource base could supply over 100 years of demand at today’s consumption rates.

2. Surprising to many, North America’s oil resources are also much larger than previously thought. These oil resources offer substantial supply for decades and could help the United States reduce, though not eliminate, its reliance on imported oil. The United States and Canada together produce 4% more oil than Russia, the world’s largest producer. Realizing the potential of oil, like natural gas, in the future will depend on putting in place appropriate access regimes that can allow sustained exploration and development activity to take place in resource-rich areas.

3. Natural gas and oil resources will be needed even as energy efficiency reduces demand and lower carbon alternatives become more economically available on a large scale. Moreover, the natural gas and oil industry is vital to the U.S. economy, generating millions of jobs, widely stimulating economic activity, and providing significant revenues to governments.

4. Realizing the benefits of natural gas and oil depends on environmentally responsible development. The nation can realize the benefits of these larger resources by ensuring they are developed and delivered in a safe, responsible, and environmentally acceptable manner in all circumstances."

HT: Fred Dent

3 Comments:

At 9/16/2011 2:47 PM, Blogger Che is dead said...

It's not just the U.S. and Canada:

According to a 1980 study by the Geological Survey of Israel, the land may contain one of the world's largest deposits of kerogen-rich oil shale. Had the same rock been buried thousands of feet deeper, where temperatures range between 158 and 338 degrees Fahrenheit, it would have converted over millions of years into liquid crude. But no matter: In the past century, scientists discovered that by heating such rock to extremely high temperatures, they can transform the kerogen into oil--in effect, speeding up geological time. ... According to Bartov and other IEI geologists, oil-shale deposits in Israel could produce as much as 250 billion barrels of crude. That's roughly equal to the total reserves of Saudi Arabia. -- FastCompany

A preliminary geological survey has indicated that there might be about 26 million barrels of recoverable oil a mile under the sand near two kibbutzim in the northern Negev. That would amount to about $2 billion at current prices. There might be 12 million additional barrels further down. This news comes a day after drilling began on the Leviathan, a record-setting exploratory well in a massive natural gas field off the coast of Haifa. The area is thought to contain 16 trillion cubic feet of gas, and it might also contain oil. -- Ricochet

The Saudis have taken notice:

An OPEC billionaire has publicly said what everyone long suspected, but just hadn’t heard out loud before: Saudi Arabia doesn’t want the world to develop unconventional sources of oil, like Canada’s oilsands. Saudi Prince Al-Waleed bin Talal, the world’s 26th richest man, worth more than $19 billion, told CNN he’s worried if oil prices stay around $100 a barrel, the West will look for other sources of oil and Saudi Arabia would lose its dominant position. “We don’t want the West to go and find alternatives,” he said, “because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives.” Give the sheik full marks for honesty. -- TorontoSun

Apparently, the only thing "peaking" is alarmist bullshit.

 
At 9/16/2011 3:17 PM, Blogger Benjamin said...

Well, it had to happen. I actually agree with Che is Dead.

The world would be glutted with oil if it were not for the roll-call of thug states that control crude. Russia, Venezuela, Mexico, Nigeria, Saudi Arabia, Iran, Iraq, Libya, etc etc etc. In thug-land, a contract is not a contract, a deal is not a deal, and corruption is the rule of law.

Even so, we are going to get glutted at $100 a barrel, thanks to the ingenuity of the free-world oil industry, and the price signal.

OPEC is shrinking as a percentage of global energy supplies.

Let's see, the OPEC business plan: Treat your customers to price spikes, erratic supplies, threats of cut-offs.

Sooner or later, that business plan will fail. We are getting closer and closer to OPEC collapse, thank to venture capital, entrepreneurs, oil industry guys and the price signal causing conservation, substitution.

 
At 9/17/2011 9:48 PM, Blogger VangelV said...

Have any of you guys ever looked at the financials of the shale gas and oil producers? If their business was so profitable why is everyone drowning in red ink?

 

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