Oil Woes

[MOP]

This is 100% True most of you know about it! It is high time we raised our voices to drill our oil before the Islamic’s starve us out! If you read the foreign news it tells of Iran blowing up the largest refinery in Iraq, the fear in other nations is they want to and will cut fuel supplies as much as they can! It is of the utmost importance to build our own oil infrastructure, even if we start now it will be a race to save our nation! Ecology is a great thing but our nation is far more important, we need to silence these small groups that are controlling so much of our lives.


You decide!!!




Now that gas is over $3.00 a gallon this should really get you stirred
up.

You may have seen this before, but it's worth sending 'round again.


You "will" pay $5 a gallon + again you won't complain loud enough to make a
difference, RIGHT!


Here's an astonishing read. Important and verifiable information :


About 6 months ago, the writer was watching a news program on oil and one of
the Forbes Bros. was the guest. The host said to Forbes, "I am going to ask
you a direct question and I would like a direct answer; how much oil does
the U.S. have in the ground?" Forbes did not miss a beat, he said, "more
than all the Middle East put together." Please read below.


The U. S. Geological Service issued a report in April 2008 that only
scientists and oil men knew was coming, but man was it big. It was a
revised report (hadn't been updated since 1995) on how much oil was in this
area of the western 2/3 of North Dakota, western South Dakota, and extreme
eastern Montana ..... check THIS out:


The Bakken is the largest domestic oil discovery since Alaska 's Prudhoe Bay
, and has the potential to eliminate all American dependence on foreign oil.
The Energy Information Administration (EIA) estimates it at 503 billion
barrels. Even if just 10% of the oil is recoverable... at $107 a barrel,
we're looking at a resource base worth more than $5...3 trillion.


"When I first briefed legislators on this, you could practically see their
jaws hit the floor. They had no idea.." says Terry Johnson, the Montana
Legislature's financial analyst.

"This sizable find is now the highest-producing onshore oil field found in
the past 56 years," reportsThe Pittsburgh Post Gazette. It's a formation
known as the Williston Basin , but is more commonly referred to as the
'Bakken.' It stretches from Northern Montana , through North Dakota and
into Canada . For years, U. S. oil exploration has been considered a dead
end. Even the 'Big Oil' companies gave up searching for major oil wells
decades ago. However, a recent technological breakthrough has opened up the
Bakken's massive reserves..... and we now have access of up to 500 billion
barrels. And because this is light, sweet oil, those billions of barrels
will cost Americans just $16 PER BARREL!


That's enough crude to fully fuel the American economy for 2041 years
straight. And if THAT didn't throw you on the floor, then this next one
should - because it's from 2006!


U.. S. Oil Discovery- Largest Reserve in the World


Stansberry Report Online - 4/20/2006


Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the
largest untapped oil reserve in the world. It is more than 2 TRILLION
barrels. On August 8, 2005 President Bush mandated its extraction. In three
and a half years of high oil prices none has been extracted. With this
motherlode of oil why are we still fighting over off-shore drilling?


They reported this stunning news: We have more oil inside our borders, than
all the other proven reserves on earth.. Here are the official estimates:

- 8-times as much oil as Saudi Arabia


- 18-times as much oil as Iraq
-

21-times as much oil as Kuwait


- 22-times as much oil as Iran


- 500-times as much oil as Yemen


- and it's all right here in the Western United States .


HOW can this BE? HOW can we NOT BE extracting this? Because the
environmentalists and others have blocked all efforts to help America become
independent of foreign oil! Again, we are letting a small group of people
dictate our lives and our economy.....WHY?

James Bartis, lead researcher with the study says we've got more oil in this
very compact area than the entire Middle East -more than 2 TRILLION barrels
untapped. That's more than all the proven oil reserves of crude oil in the
world today, reports The Denver Post.

Don't think 'OPEC' will drop its price - even with this find? Think again!
It's all about the competitive marketplace, - it has to. Think OPEC just
might be funding the environmentalists?


Got your attention yet? Now, while you're thinking about it, do this:


Pass this along. If you don't take a little time to do this, then you
should stifle yourself the next time you complain about gas prices - by
doing NOTHING, you forfeit your right to complain.


Now I just wonder what would happen in this country if every one of you sent
this to every one in your address book.

By the way...this is all true. Check it out at the link below!!!
GOOGLE it, or follow this link. It will blow your mind.
http://www.usgs.gov/newsroom/article.asp?ID=1911

[BobinCovington]

Not to get into too much on oil politics but here is my thought...

I know the high prices sting and it seems strange they are not putting more into using our own oil. But wouldn't you think our strategic oil planning brain trust would do everything they could to use up the oil everywhere but on our domestic soil as long as we can? They can stall and blame it on the green supporters or whatever, but just hold off using our domestic supply. When the supply gets tight everywhere else, we have a reserve right here.
Couldn't go more according to a plan.

just a theory, (but it makes logical sense)

[Marlin275]

I think it is technology more than politics.

About time we start exporting surplus oil,
surplus trillion$ in reserves for generations . . .

We also have more natural gas than ever known.
A number of sources claim that we have hundreds of years worth of natural gas reserves remaining in the USA.

http://www.reuters.com/article/2010/11/30/us-energy-provedreserves-eia-idUSTRE6AT68Q20101130

[MOP]

For the ones that do not remember Gen. Dwight Eisenhower being our president 1953 to 1961, it was he that said use theirs then we will use ours. So yes maybe it is according to plan, but at this point in time I think we are pushing our luck. This is not political just a fact of what is going on with the world which can have profound on all.

[Just Say N20]

I was discussing this very thing a couple of weeks ago with someone who is very well connected.

I too was baffled at the complete lack of drilling we are doing when we have ENORMOUS reserves here at home.

I was told that politicians in Washington don't even consider drilling for our oil as a possibility. Perhaps it is a use theirs first plan playing out.

It crushed our family the last time gas prices went over $4/gallon. It added $800+/month to our family car gas expense. That is simply too much of a swing to be swallowed for very long.

[Marlin275]

Record U.S. Natural-Gas Output Likely To Continue In 2011

NEW YORK—The U.S. is inundated in natural gas, and the glut may not ease any time soon.

Domestic production last year hit its highest level in almost 40 years, and 2011 will likely see another year of strong production. That means another year of subdued electricity prices and pressure on drillers' bottom lines as well as a powerful incentive for companies and other consumers to switch to the heating fuel.

Production of natural gas in the U.S. grew for a fifth consecutive year in 2010, and was the highest since 1973, the Energy Information Administration said Monday. Rising output from newly profitable shale-rock formations across the U.S. has surpassed many industry observers' expectations, and the U.S. produced 21.57 trillion cubic feet of consumer-grade natural gas during the year, just short of the 1973 record of 21.73 tcf.

With no way to export large quantities of gas and a drilling boom fueled by easy availability of credit and widespread international interest in U.S. gas assets, the glut is seen continuing through 2011.

"Rising production will once again overwhelm demand, leading to yet another year of low prices," Credit Suisse analyst Stefan Revielle said in a research note.

In its latest outlook, the EIA saw U.S. production increasing by 0.8% this year, while deliveries to consumers are expected to rise by 0.3%.

For consumers, that means cheaper electricity prices and inexpensive gas for heating and cooking in homes and businesses.

"There's a double benefit on the consumer side, both in their gas rates and their electric bills," said Branko Terzic, executive director of the Deloitte Center for Energy Solutions, a consultancy.

But for wholesale power producers and gas drillers, whose profits can be closely tied to commodity prices, a gas glut that stretches well into 2011 could pressure their margins.

While cheap prices for commodities such as crude oil or wheat might lead to immediate increased demand as consumers become more likely to take long trips to vacation spots or increase purchases of food staples, drillers can't count on a similarly quick response to consume the excess gas.

Residential demand for the fuel has been stagnant for years with increasing efficiency of gas-heating systems, while demand from energy-intensive industries such as chemicals and metals manufacturing was hit by the recession and declines in the U.S. manufacturing base.

Dow Chemical Co. Chief Executive Andrew Liveris said last month that cheap natural gas could make the U.S. chemicals industry more competitive compared with foreign companies that pay more for gas.

"The cost curve is going to change with time and the U.S. producers will continue to be advantaged as the second lowest cost on the planet after the Middle East," Mr. Liveris said on a conference call to discus Dow's fourth-quarter results.

But any potential renaissance among gas-heavy manufacturers is a longer-term story, analysts say. Industrial growth in the U.S. has outpaced the broader economic recovery, but its pace should slow in 2011, analysts with Barclays Capital said in a research note.

Instead, meaningful increases in U.S. demand this year would likely be led by increased gas use by power companies, and market participants are closely watching the relationship between gas and coal prices. Called fuel-switching in the industry, the substitution of gas for coal-fired generation is likely to persist in 2011 as companies favor the cheaper, cleaner-burning fuel.

Gas-fired electricity makes up about a quarter of U.S. power generation, a percentage likely to rise as power companies are expected to build more plants that burn gas instead of coal because of the threat of federal regulation of greenhouse-gas emissions.

Low U.S. gas prices compared with global rates have also spurred a move toward exporting the fuel. Freeport LNG Development LP along with Macquarie Group Ltd. and Cheniere Energy Inc. in the last year announced plans to construct facilities along the Gulf of Mexico to export cargoes of liquefied natural gas. If the plans receive approval from the U.S. government, the facilities could enter service as early as 2015.

As for 2011, "shrinking demand and growing supply send a clear message to forecasters," Barclays analyst Michael Zenker wrote in a research note. "Lower prices."

http://online.wsj.com/article/SB10001424052748704506004576174600947333970.html?m od=googlenews_wsj

[Eplebnista]

There is already drilling in the Bakken formation. However, the oil can only be taken out of the rock if the rock is fractured or you drill through it horizontally. Conventional drilling techniques will produce dry holes.

Lots of BS about this floating around the web:

http://www.snopes.com/politics/gasoline/bakken.asp

Just how much recoverable oil exists is open to debate. If conventional drilling would get the oil out at an economical price, the oil rigs would be as thick as pine trees....

[zelatore]

There is already drilling in the Bakken formation. However, the oil can only be taken out of the rock if the rock is fractured or you drill through it horizontally. Conventional drilling techniques will produce dry holes.

Lots of BS about this floating around the web:

http://www.snopes.com/politics/gasoline/bakken.asp

Just how much recoverable oil exists is open to debate. If conventional drilling would get the oil out at an economical price, the oil rigs would be as thick as pine trees....


^^^^^^^^^^^
that

[Ghost]

... If conventional drilling would get the oil out at an economical price, the oil rigs would be as thick as pine trees....

I will largely stay out of the discussion, but I must disagree in part with this one statement.

But first, I would agree entirely with this statement IF there were no such thing as an artificial legal barrier to market forces. But such artificial barriers are real (take the gulf drilling moratorium for example). So, the lack of current exploitation is ITSELF not proof that the oil could not be removed at a competitive price. It is entirely conceivable that there are legal barriers rather than purely economic ones.

(And BTW, for clarity, I don't claim to know to what extent the the lack of exploitation of the Bakken oil is a result of the drilling costs, legal barriers, or what.)