BISMARCK, N.D. (AP) — "A new study says North Dakota's oil production
could jump more than threefold by 2025 to more than 2 million barrels a
day.
The study released Wednesday by Bentek Energy LLC of
Colorado also says natural gas production could more than quintuple by
2025 in the Williston Basin. The basin includes the Dakotas and Montana."
MP: If oil production in North Dakota increases to 2 million barrels per day from current daily production of 639,000 barrels, that would be more than enough domestic oil to completely offset current daily U.S. imports of 1.86 million barrels from all of the Persian Gulf countries combined (for 2011, EIA data here)!
Peak what?
Peak what?
Now, it's starting to sound like a scam.....like other "bubbles".
ReplyDeletebeware.
Actually, the word is that California oil shale with easily dwarf Bakken and Eagle Ford, and all the rest.
ReplyDeleteThis presumes oil prices can stay above $65 a barrel.
Occidental Petroleum has leased nearly a million acres in CA.
how many days you figure they'll be able to maintain that 2 million barrels per day rate?
ReplyDeleteActually, the word is that California oil shale with easily dwarf Bakken and Eagle Ford, and all the rest.
ReplyDeleteIt can only dwarf Baaken if California allows it to be drilled.
Second energy fact of the day - N. Dakota, and Alaska taken together are barely treading water:
ReplyDeleteJanuary, 2012: 1.15 mbpd
April, 2012: 1.16 mbpd
And, this during a time when N.D. production is exagerrated due to the fact that they are catching up on their fracking.
If N.D. ever does a million bbl/day I'll eat every pair of work boots in Bismark.
rufus, where are you sourcing your numbers from?
ReplyDeleteThe reason I ask is that the blog site Outrun Change has a dozen postings showing much better numbers...
Is it BS? In all honesty I don't know...
"Peak what?" is disingenuous. Eagle Ford and Bakken production estimated at 1.4 million barrels a day right now is off the charts. But old world conventional production continues to struggle. Expect world oil production going forward to be an undulating plateau, the shape of which will be determined by price.
ReplyDeleteIt can only dwarf Baaken if California allows it to be drilled.
ReplyDeleteIndeed, and the greenies are not a small factor.
study released Wednesday by Bentek Energy LLC...
How shocking, another positive study released by a vested interest... probably looking for financing.
Bentek Energy is not a vested interest. Bentek sells data, not oil.
ReplyDeleteBentek Energy is not a vested interest. Bentek sells data, not oil.
ReplyDeleteReality check. If they don't drill Bentek does not sell its data.
Bentek sells plenty of data that have nothing to do with oil drilling.
ReplyDeleteThey do not have a vested interest in North Dakota oil.
Bentek Energy is not a vested interest. Bentek sells data, not oil.
ReplyDeleteYou don't see the rather large irony in that I see.
Bentek sells plenty of data that have nothing to do with oil drilling.
ReplyDeleteThey do not have a vested interest in North Dakota oil.
They are consultants in the energy sector. Hyping up ND shale energy helps them sell their expertise to ND producers looking to unload assets, sell themselves off to majors looking to use the 6:1 boe energy ratio as a way of hiding reserve depletion issues, etc.
The problem is not the availability of oil, but the price. It takes 1 barrel of oil energy to get 3 barrels of oil from these wells. That 1 barrel is currently cheap imported oil. As the cheap oil is used up to get the expressive oil, the price of oil will rise sharply affecting agriculture and transportation. Extreme inflation will be the likely result.
ReplyDeleteNorth Dakota is dealing with labor shortages caused by the rapid development of the Bakken Shale. Thousands of new fracking wells in this state have increased the population to record-breaking figures and reduced the unemployment rate to nearly 3 percent – the lowest in the nation.
ReplyDeleteOhio has also experienced growth in a variety of industries because of the state’s oil and natural gas boom. Such industries benefiting from surging production in the Marcellus and Utica Shale range from technology to manufacturing companies. State and local officials have been forced to prepare for “man camps,” or temporary dwellings, to house the predicted increase of industry workers necessary to match anticipated growth.
Researches from the Shale Coalition predict drilling will boost Ohio’s economy by nearly $5 billion by 2014 and add $433.5 million in state and local taxes. Production is expected to reach a value of $9.6 billion during the same time frame. The study that included these findings did not account for any gains in industries that use oil and gas, such as the state’s chemical and polymer businesses, oil refining and fertilizer production.
Oil and natural gas production in the United States currently supports roughly 9.2 million jobs and contributed $476 billion to the economy in 2010. Moreover, the industry has created over half a million new jobs in the past decade.
The shale boom is causing an unprecedented level of expansion in the United States, and is providing economic benefits to state and local communities. Various regions now have producing assets in the nation’s largest shale reservoirs. Domestic oil production has grown by 10 percent since 2008, and the import share of U.S. oil has lowered to 45 percent from 65 percent in 2005. Furthermore, an article in USA Today reported that the economic growth of the industry is approaching $1 billion a day, and is preventing the U.S. from another possible recession.
Because this trend is expected to continue, a study by Wood MacKenzie claims that oil and natural gas production could create an additional one million new jobs by 2018. TAP Management and similar companies are determined to add to continued economic growth by increasing the number of drilling projects in the United States.
TAP Management complaints surrounding the need for a long-term energy solution which utilizes our nation’s natural resources stem from our desire to help improve the quality of life for Americans.
www.tapmanagement.co/2012/07/24/oil-and-gas-boom-is-saving-our-economy/
The shale boom is causing an unprecedented level of expansion in the United States, and is providing economic benefits to state and local communities. Various regions now have producing assets in the nation’s largest shale reservoirs. Domestic oil production has grown by 10 percent since 2008, and the import share of U.S. oil has lowered to 45 percent from 65 percent in 2005. Furthermore, an article in USA Today reported that the economic growth of the industry is approaching $1 billion a day, and is preventing the U.S. from another possible recession.
ReplyDeleteThis type of nonsense could have been written about the tech and housing industry during their bubbles. But in the end reality prevailed and companies that could not make a real profit ran out of money. The same is true of the shale industry. All those companies that are running negative cash flows after years in the Bakken cannot keep borrowing forever, even when interest rates are near zero and the Fed is flooding the system with money. We have already seen the carnage in the shale gas sector. It is only a matter of time before the consequences of reality force the shale oil companies to respond appropriately.
They are consultants in the energy sector. Hyping up ND shale energy helps them sell their expertise to ND producers looking to unload assets, sell themselves off to majors looking to use the 6:1 boe energy ratio as a way of hiding reserve depletion issues, etc.
ReplyDeleteSo when they turn out to be wrong it won't effect there ability to sell data in the future? If a company gets suckered by buying based on their data won't companies in the future disregard their data? It wouldn't do the seller any good to buy data no one believes.
So when they turn out to be wrong it won't effect there ability to sell data in the future? If a company gets suckered by buying based on their data won't companies in the future disregard their data? It wouldn't do the seller any good to buy data no one believes.
ReplyDeleteIt is clear that when the state pays for a particular report they will get what they are looking for. I doubt that their corporate clients will get the same type of story.
While I havent been around oil as long as many, I can say that I have never come across a prediction that was remotely close to accurate. However, as technology advances the ability to get at these hard to reach places for oil gets easier. Ofcourse the break even and profit points of getting the oil is the biggest factor.
ReplyDelete