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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (138515)	8/1/2010 10:46:30 PM
From: Dennis Roth	1 Recommendation Read Replies (1) \| Respond to of 206328

>>That was five years ago. Mitchell was just starting to prove the effectiveness of fracking in the Barnett Shale. << George P. Mitchell sold his independent oil and gas company, Mitchell Energy and Development Corporation, nine years ago to Devon Energy in 2001 for $3.5 billion. Five years ago he was 85 and mostly retired. Mitchell had invested in more than 30 wells to test different processes of hydraulic fracturing over a period of 17 years. His work was known, just ignored by investment banker 'experts.' The problem with Matt is less his old statements, the most important of which were about the true state of Saudi Arabia's reserves and their ability to produce, which no one could prove or disprove given Saudi state secrecy. Saudi Aramco said they were BS, but who believes them? The problem lies with his more recent statements that could be more quickly and easily disproved. >> I'm going to wait a while before I join the "Simmons is a kook" celebration. << You're going to wait on his idea that “real, untold story” is another leak 5-7 miles away spewing 120,000 bbls/day that could gush for 24 years and require a small nuke to seal? Wait until we have an answer to his "We're going to have to evacuate the gulf states" because of the killer methane gas bubble? His "lake" of oil, 500 feet thick, and covering 40% of the bottom of the gulf of Mexico? Ok, fine. Suit yourself. But think of the damage Simmons has done to the Peak Oil arguement. Here we have one of the High Priests and a key proponent of Peak Oil making outlandish, hyperbolic claims about the Macondo Blowout. A few years from now, when we have our next Oil Crisis and the Peak Oil theory is raised again, the opposition will trot out these interviews of Simmons, and say, look, why should we believe in this guy's ideas on Peak Oil or anyone else's? Matt hasn't just damaged his own reputation but that of the whole Peak Oil movement. >> But the cheap gas sure does make the tar sands look better and better. Incidentally, the gas is not just used to make steam; it chemically converts the longer chain parafins to something with the viscosity of crude. << Careful, you know what Matt had to say about tar sands and heavy oil. . And any time you start commingling light sweet oil that can come out of a pressurized well bore – one well bore – at the rate of 40,000 barrels a day, or 10,000 barrels a day with heavy oil from Canada [where] it costs you $10 billion per 100,000 barrel a day production, you’re really commingling Maseratis with jalopies, and some are saying, “I have a thousand vehicles.” It’s used all the time by the optimists and they don’t have any idea what they’re talking about. What’s really also interesting is how little data we have of any quality about how much we have left of high quality sweet oil. And the answer is most of the key crude grades are basically now very tiny in their volumes. What we’ve made it up with is basically a lesser rating quality of crude that has a higher degree of sour properties in them, and poisonous gases and is also heavier. And what we’re doing in the heavy oil is chewing through natural gas primarily as a heat source and potable water too often to create steam to melt it into basically low quality crude. And that’s where I say, “Gentlemen, we have just turned gold into lead.” [25:07] Message 22411018 Sources: George P. Mitchell en.wikipedia.org George P. Mitchell Receives Lifetime Achievement Award From Gas Technology Institute prnewswire.com