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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (60005)	1/16/2010 11:24:49 AM
From: dvdw©	Read Replies (1) \| Respond to of 218542

I'm no expert on the topic, that's for sure. And yet your posting history is ripe with peak oil myths. Whats going to happen when folks finally realize that oil was never a fossil fuel to begin with. However there is one certain aspect. The deeper we drill the more energy is expended both in the drilling and in the subsequent pumping out of the oil. You cant know this, there is nothing certain about what is happening in the material science / applied engineering business..now you may be right about the willingness of a culture to refuse advances to sustain monopoly pricing, but the variables are wide and thus, planning could be upended quite easily. At some point it doesn't pay to go deeper as the energy thus expended is greater than that of the removed oil. Nor do you know this. You must be right that Chevron wants government money so they do the fashionable thing. chevron is locked into the stream......for oligarchic largesse. They will take all they can, and always be in line for more. However they did begin before Obama was elected presumably on a much smaller scale. does not matter who is president......

To: Seeker of Truth who wrote (60005)	1/17/2010 2:37:55 AM
From: average joe	Read Replies (1) \| Respond to of 218542

"The deeper we drill the more energy is expended both in the drilling and in the subsequent pumping out of the oil. Some reservoirs are under pressure and don't need to be pumped at all. Not all oil is created equal - Saudi light crude is much different than Lloydminster heavy oil. Which means a huge savings in the processing department, i.e. some oil is profitable at $20bbl and some needs $100bbl to see a profit. "At some point it doesn't pay to go deeper as the energy thus expended is greater than that of the removed oil. Don't know that until a discovery is made and you know the type of oil you have found, i.e. what your transport and processing costs are. "I guess you are at least partially right in that it may take a long time before it won't pay to drill any deeper." Oil companies need to do with oil what De Beers did with diamonds and that is control price for their product by controlling supply, i.e. create an artificial scarcity. This allows them to protect future production to. Suppose a new upstart diamond company comes along and borrows $2 billion to open a new mine all De Beers has to do is throw open the vault and flood the market for a few years and drive the upstart out of business. This protects the market and avoids product chaos. Upstarts like Brazil and Angola could be thrown into economic turmoil for daring to even think they could compete. Once the young monkeys are out of the way it is tea time again. You don't need to be a Harvard educated atheist to figure this out.