Oil Problems comin' round the mountain

[Augustine2004]

[This post is not for continuing the argument with Glenn. It's just to present some data that may interest some of you.]


Shale gas resources (USA = 1)


China 2.6

Argentina 1.6

Mexico 1.4

South Africa ~1

---------source: Andrew Snyder

Russia is the leading gas producer, but Putin seems worried, see this http://www.upi.com/Business_News/Ene...5291334230567/

[Augustine2004]

If some of y'all are concerned with India, is she bereft of any shale gas? No, today I read about a company who is going to start drilling there. Also Romania, Morocco, and the Middle East. Good grief, the way things are going, someday we are going to get excessive gas [running & ducking for cover].

[Augustine2004]

I'm curious how Glenn would respond to this report
http://www.hardassetsinvestor.com/we...-producer.html

[Augustine2004]

I'm afraid I made it appear as though I thought oil supply is "loose" as opposed to tight. Despite recent inventory increases, in reality, supply is struggling to keep up, if I understand a report today. A black swan event can make oil prices blast off into the stratosphere.

[Augustine2004]

Advances in frakking technology is going to zoom up not only gas production but oil as well. New York has banned frakking, and other places are stringently regulating it or considering doing so. But the new technology promises to be much cleaner and safer as well as cheaper and more productive.

Right now we're looking at ~500 trillion cu ft of gas in the USA, but 2,500 t cu ft may come into view in a few years.

[Augustine2004]

Glenn seems disinclined to mention the Cline oil shale play (Devon Energy). " . . . like having 10 or 11 Eagle Ford shales stacked on top of each other" http://www.resourceinvestor.com/2012...leashed?ref=hp

I have yet to confirm that the Cline play alone potentially doubles the entire US proven oil reserve (15B b), so don't quote this post yet.

[Augustine2004]

There is about 1.7B barrels in northern Alberta and nearby areas, eight times Saudi resources; roughly 55 years at current consumption rates. However, that is a bitumen-sand compound, very expensive to exploit. But now SAGD to the rescue! Steam Assisted Gravity Drainage is explained here. Two factors make the Alberta oil sand fields commercial. First, natural gas, which is usually used to heat the steam, is extraordinarily cheap now; second, crude oil prices are high.

[Augustine2004]

Today I read about 70mph+ cars in Europe. I don't quite understand all the details of why we don't have them available here, but I'm sure we can blame big government.

[Roy]

Today I read about 70mph+ cars in Europe. I don't quite understand all the details of why we don't have them available here, but I'm sure we can blame big government.

Definitely big government. They set the speed limits. In Germany there is no speed limit, and in France they don't enforce the speed limit, so cars go faster.

Uh... wait... did you mean 70mph+ electric cars?

Roy

[Augustine2004]

Definitely big government. They set the speed limits. In Germany there is no speed limit, and in France they don't enforce the speed limit, so cars go faster.

Uh... wait... did you mean 70mph+ electric cars?

Roy

OOPS! miles per GALLON. Sorry.

[Augustine2004]

Trying to figure out what's happening in the oil sector is driving me ditzy.



* US inventories at 22-year high. That's a wee bit before Glenn started this thread.

* US crude production highest since 1998. Again, just a smidgen before the thread.

[Augustine2004]

Someone said International Energy Agency statistics and calculations suggest the world has natural gas resources enough to meet demand for 250 years.

[Augustine2004]

Just read about a company that is supposed to dramatically reduce the cost of real-time seismic monitoring of hydrofracking wells. "Open up vast [underground energy resources]" . . . "Catapult hydrocarbon production at very low marginal costs."

[Augustine2004]

more data
http://mjperry.blogspot.com/2012/05/...ld-shifts.html

[Augustine2004]

According to a just-seen report, natural-gas filling stations are popping up all over the USA.

Demand for natural-gas engines are going through the roof. Why not, fuel prices can be as much as 50% less.

Even if demand for natural gas triples last year's, we'd still have maybe 50-100 years of supply.