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O/T Reasons for Oil Shortage

Discussion in 'Uncategorized Threads' started by bigdogtx, Apr 13, 2008.

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  1. bigdogtx

    bigdogtx Well-Known Member

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    A lot of folks can't understand how we came To have an oil shortage here in our country. ~~~ Well, there's a very simple answer. ~~~ Nobody bothered to check the oil. ~~~ We just didn't know we were getting low. ~~~



    The reason for that is purely geographical. ~~~ Our OIL is located in ~~~ Alaska ~~~ California ~~~ Coastal Florida ~~~ Coastal Louisiana ~~~ Kansas ~~~ Oklahoma ~~~ Pennsylvania And Texas ~~~





    Our DIPSTICKS Are located in Washington, DC !!!

    Sadly, I think there is REALLY a LOT of truth to this. :(
     
  2. Bob Hawkes

    Bob Hawkes Well-Known Member

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    I can't believe how true that is. Talk about simple. Bob
     
  3. WesleyB

    WesleyB Well-Known Member

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    I agree!
     
  4. WarEagle2017

    WarEagle2017 Active Member

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    It is because Giacomo puts too much oil on the Perazzie's
     
  5. Big Jack

    Big Jack Well-Known Member

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    We have reached the time to release some of our oil reserve to help stem the inflated oil costs. The oil companies have held production down to control prices. Just look at their annual stocholder reports..profits are too large..CEO are getting too extreme wages..At the present rate of inflation we will be spending a basket of money to fill our gas tanks. Who is at fault???
    Auto companies producing monsterous SUV's..The driving habits of the American public? I'm not sure..I'd just like to see things change for the better.

    Big Jack
     
  6. jackmitch

    jackmitch TS Member

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    i haven't seen any stations with no gas signs. it's a manufactured shortage. jackmitch
     
  7. Ahab

    Ahab Well-Known Member

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    Both Jacks ... wake up and look! The shortage is because usage is up and refineries are running at full capacity!

    Than the Ecofreaks for that... they have prevented refinery expansion and /or development of new ones. The same goes for drilling! Off the California coast, the Santa Barbara channel has so much oil that it actually oozes crude periodically... but since all the residents of Santa Barbara area are 'beautiful people' they don't want to see ugly drilling platforms off their beaches.
     
  8. dbls_champ

    dbls_champ TS Member

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    Ahab,

    Actually the refineries aren't running at full capacity, only around 75% of capacity. This was one of the questions that was asked by congess to the oil execs.
     
  9. hoggy

    hoggy TS Member

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    I don't believe for a minute there's an oil shortage. I think the good old USA has plenty of oil but for some reason our government wants to keep it ALL in reserve FOR EVER. It's all about money and government control.
     
  10. Big Heap

    Big Heap TS Member

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    Article published Apr 11, 2008
    Bakken Formation oil field has up to 4.3 billion barrels
    By ERIC NEWHOUSE
    Tribune Projects Editor and The Associated Press

    A new federal study estimates the Bakken Formation in Montana and North Dakota contains from 3 billion to 4.3 billion barrels of recoverable oil, a figure 25 times greater than the 151 million barrels originally estimated in 1999.

    The original estimate was based on traditional drilling techniques, but a new technique used by Billings wildcatter Dick Findley in 2000 has changed that. He drilled horizontally — fracturing the porous dolomite rock that holds the oil — to make the Elm Coulee field in northeastern Montana the biggest discovery in the continental United States and Canada.

    "So this new estimate compensates for the change in technology that opened up the Elm Coulee field," petroleum geologist Jim Halvorson of the Montana Board of Oil and Gas Conservation said Thursday.

    The Bakken Formation encompasses some 25,000 square miles in North Dakota, Montana, Saskatchewan and Manitoba. The U.S. Geological Survey calls it the largest continuous oil accumulation it has ever assessed.

    However, even the new estimate pales beside Alaska's Prudhoe Bay, which Columbia University geologists estimate has 25 billion barrels of oil, with 10 billion barrels already produced and 13 billion barrels classified as recoverable.

    For the past seven years, Richland County has been the hottest thing going, in terms of oil development, for Montana — and possibly for the continental United States. America's largest inland oil field discovery in the past half century has made many Montanans millionaires.

    The county has about 550 wells, which produce more oil than the entire state did five years ago, Halvorson said.

    "For the second year in a row, Montana had the largest annual oil production increase of any state (6 million barrels, a 20 percent increase) owing to continued development of the Bakken Formation Elm Coulee field," the U.S. Department of Energy stated in a report last year. "This relatively new and important oil field is difficult to produce and requires cutting-edge technology for economic production."

    The field — and the oil it contains — means tens of millions of dollars for Richland County government and the state of Montana.

    "I think the bulk of Montana's budget surplus comes from the oil fields of Richland and Fallon counties," said Richland County Commissioner Mark Rehbein, an assessment with which the Montana Petroleum Association agrees.

    However, the red-hot boom is cooling down in Montana.

    "All oil fields decline over time, and it looks as though this peaked in November 2006," said Findley of Prospector Oil Inc. of Billings. "So people need to be aware this is a field in decline. However, there's a long production time remaining."

    Now, much of the excitement is moving into North Dakota's Williston Basin.

    About two-thirds of the Bakken Formation's acreage is in western North Dakota, where the oil is trapped in a thin layer of porous dolomite rock wedged between two layers of hard shale nearly two miles beneath the surface. The dolomite ranges between 8 and 14 feet thick throughout most of northeastern Montana. Oil companies drill down to this thin layer, then drill horizontal legs several thousand feet long to recover oil from the porous rock. They also use pressurized fluid and sand to break pores in the rock and hold them open while the oil is recovered.

    The report released Thursday by the USGS was completed over the past 18 months at the request of Sen. Byron Dorgan, D-N.D.

    "This is great news," Dorgan said. "This is 25 times the amount of the previous assessment."

    Oilmen have known for more than 50 years that the Bakken holds vast oil reserves, Findley said. But the price has never pushed demand high enough to develop technology to capture it, he said.

    The USGS said about 105 million barrels of oil were produced from the Bakken through last year. The Elm Coulee oil field in eastern Montana, near the North Dakota border, has produced about 65 million barrels of that, said Rich Pollastro, a USGS geologist.

    The study released Thursday does not estimate how much oil may be in the Bakken — only what the agency believes can be recovered using current technology.

    Jim Ehrets, a Denver-based geologist with Headington Oil Co. of Dallas, said it costs about $5 million to drill a well tapping the middle of the Bakken, meaning companies need crude prices of at least $50 a barrel to make it economical. Even with crude prices double that, as they are now, "there still is a ton of risk," he said.

    Headington has about 150 wells producing in the Bakken Formation — two-thirds of them in Montana — and plans to drill at least 100 more, Ehrets said.

    Thursday's report did not cover the Canadian portion of the Bakken. Rich Pollastro, a USGS geologist, said a 2000 assessment found about 15 million barrels of recoverable oil, using traditional vertical drilling techniques, in that area.

    Ron Ness, president of the North Dakota Petroleum Council, said the number of wells in the North Dakota portion of the Bakken Formation increased from about 300 in 2006 to 457 at the end of last year.

    Continental Resources Inc., which has 126 wells producing in the Bakken Formation of Richland County, is now concentrating on developing properties in North Dakota, said Russ Atkins, area supervisor for the company.

    "We have three (drilling) rigs in Richland County," he said. "We're adding another two, and we should have five more by June. They're all going to North Dakota, which will give us three in Montana and seven in North Dakota."

    --------------------------------------------------------------------------------
     
  11. shot410ga

    shot410ga Well-Known Member

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    One word, PROFIT.............
     
  12. otnot

    otnot Active Member

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    And the fields in Montana and N.Dakota are only half the size of ANWR here in Alaska. Then there is Gull Island off the coast of Prudoe Bay that may just be the largest oil find ever. Why do you think that Russia planted a flag on the ocean floor via submarine this year under the North Pole. There is more oil out there than they are letting on.
     
  13. Tripod

    Tripod Well-Known Member

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    Iowa man!!
    Its all Bush and Cheneys fault. They are still making all of their oil buddies rich. At least I think thats what all the democrats are saying.
     
  14. 22hornet

    22hornet Well-Known Member

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    I work in the oil patch, and believe me, no one is holding back on any production. We are going gangbusters, drilling new wells, exploiting aging reserves, and getting while the getting is good. With the global oil price approaching $114.00 per barrel, nobody is holding anything back. The stockholders (and if you are in a 401K retirement plan, have an IRA, or are involved in a mutual fund, you are a stockholder) would not be pleased if we "held production down".
     
  15. shannon391

    shannon391 Active Member

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    The is no shortage for $113 oil, just short on $80 oil.
     
  16. Dove Commander

    Dove Commander TS Member

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    My 401K administrator said he was at a broker's seminar. They told him the average barrel of oil was bought and sold 12 times before it reached the US.
    22 hornet hit it on the head if thats the case. WE are creating our own demize.
    That, our EPA requirements, and multiple state required blends make processing really tough. If it's Bush and the VP, why hasn't the new Congress passed laws to stop it??? Oh, thats right, they can't, won't, or don't want to.
     
  17. comp 1

    comp 1 Well-Known Member

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    Shannon 391 Amen,brother,I can't leave the house without almost getting run over by gas tankers on the road,getting it while the getting is not just good ,but SPECTACULAR. Let oil drop back down to 80 dollars a barrel and listen to the screams of SHORTAGE--I don't thimk I will ever again see the amount of thievery and pure unadulterated GREED as I am seeing now.
     
  18. jackmitch

    jackmitch TS Member

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    i call it the raping of america. we are getting screwed every time we turn around.jackmitch
     
  19. 22hornet

    22hornet Well-Known Member

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    Sigh.....listen. The government has nothing to do with the price of oil. Oil is a commodidity traded on the global market. Our government has a strategic petroleum reserve of oil purchased at the market price. Releasing this oil will have little impact on the market. We just don't have enough to shake things up on the international level.

    One thing governments can do is ease the taxes that they charge for gasoline, diesel, and heating oil. Good luck convincing our Democrat controlled congress of that.
     
  20. fritzi93

    fritzi93 TS Member

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    Flincher100 has it partly right. Although actually I'd say it's the direct result of the FED's monetary policy. Now, if they've bowed to pressure by the Administration, then yes, they come in for a share of blame. A fiat currency can only stand so much devaluation before inflationary pressure gets out of hand. Remember the stagflation of the Carter years?
     
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