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Politics : Actual left/right wing discussion -- Ignore unavailable to you. Want to Upgrade?

To: one_less who wrote (2366)	10/5/2006 4:54:45 PM
From: TimF	Read Replies (1) \| Respond to of 10087

If its so secret how do the people who wrote "The Oil Story No One's Telling" know about it?

To: one_less who wrote (2366)	10/5/2006 9:16:49 PM
From: Keith Feral	Read Replies (1) \| Respond to of 10087

I subscribed to a group like the one you are describing. Without naming the research group, the one you are looking at sounds the same as the one I have been reading which is a petro trading think tank. The big oil reserves they are talking about on US soil is part of the oil shale reserves out west. The problem is that oil companies have to heat the oil shale to 450 deg cels to turn the shale into oil. It would be a huge reserve of syncrude, much like the canadian oil sands in theory. In fact, chevron was spewing something about oil shale in recent press releases. However, the energy requirements and environmental issues make the entire project seem like a pipe dream. If we were down to the last 10 years of oil reserves, it would be a great idea. With opec cutting production, it looks like another idea that will be cast aside. Yes, there is probably some deep water oil reserves in the gom that would give us more domestic reserves like the jackfish oil reserve the cvx and dvn just announced for 15 billion barrels. Peak oil arguments are being replaced with deep oil discoveries right now. However, the cost of these projects is huge, with dayrates exceeding $500,000 per day for the deep water rigs from companies like transocean and diamond offshore. They are the only 2 companies that go that deep. There are other offshore developments closer to florida that have interesting potential. New state regulations are letting the oil rigs move within 100 miles of the coastline of florida. Again, peak oil is being replaced with deep oil. All low hanging commodities are tougher to recover. We have to dig deeper for commodiities like copper and oil, as the cost for the new equipment goes through the friggin roof. In the short run, the returns for the existing mines and oil wells are much better as the spot price has increased. In the longer term, the higher cost of production will keep pressure on the commodity prices.