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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (9257)	4/10/2008 10:25:40 PM
From: nspolar	Read Replies (1) \| Respond to of 33421

Depends on how you view it. The estimate represents a huge increase over the previous estimate. The oil patch is demonstrating that new technology is working, and can get this oil out. If that trend continues future estimates will continue to go up. Oil reservoirs vary in make-up, and quite a bit. The best kind are those where the oil is in a large pool, in a structure that has both porosity (to hold the oil) and permeability (to allow it to flow nicely within the formation). On these the initial estimates of recoverable reserves can be quite accurate, and change very little over the years. On reservoirs like The Bakken the amount taken out is largely dependent on how much expense is put in, along with the effects of new technological developments applied. Additionally the total amount there, initially, might be hard to determine. So the initial estimates of volume present along with the recoverability factors continually change, as the reservoir is developed and produced. I think the news was decent, and I would expect the trend to continue. I do not expect the area to ever produce 8 MMBPD of oil however. Just a bit hard to imagine from a reservoir of this nature. The other news of interest is that COP/BP are joining forces to build a gas line from AK. So a lot new hydrocarbon sources are being added here. The gas line will be a project of almost unbelievable proportion. I may try to get involved ... iffin I don't retire.