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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (25234)	7/26/2006 10:55:29 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 541755

No. More an analogy to explain the drilling technology, the differences between light and heavy, sweet and sour, technicalities and costs of extracting and processing it, decreasing EROEI as we use heavy sour. (There is actually one field off SA which is so heavy and sour, chock full of sulfur and vanadium, that nobody can refine it. I think the Saudis are gonna build their own) I don't buy oil stocks. I don't buy coal. You might look at the drillers; there is a big rig shortage now; the Saudis leased most of the available rigs in the Gulf of Mexico. But, despite the number of rigs, the output is falling. More straws, less coming up. Dearth of offshore rigs pumps up oil prices By Tim Webb Published: 16 July 2006 Oil companies have run out of offshore exploration rigs for the first time in almost 20 years. Projects are having to be delayed or shelved because of the shortage of rigs, while hire costs have soared up to fivefold in two years. Message 22628752 "Commercial oil fields are still being found in Texas--33 years after we peaked. Have we have been able to reverse the decline? No. The biggest drilling boom in state history in the Seventies resulted in 14% more producing oil wells by 1982 (versus 1972), but production fell by about 30% from 1972 to 1982. The problem? The declines in the large, old fields like East Texas overwhelmed the smaller new field discoveries." theoildrum.com Average Saudi Arabian daily oil + condensate production, by month, from EIA and JODI, together with Baker-Hughes oil rig count. January 2000-April 2006. Inset graph shows annual oil consumption and exports according to BP (including NGL). Click to enlarge. Source: EIA International Petroleum Monthly Table 1.1a, Baker-Hughes, and BP. Last green point is from press reports. theoildrum.com