Largest continuous oil and gas resource potential ever

Status
Not open for further replies.
Originally Posted by Throt
Very cool. It's nearly impossible to imagine those kinds of amounts in the ground. Here's to $.99/gallon!




Indeed. I was trying to find out the square miles of that area but was unable to do so. It's definitely bigger than some east coast states.
 
Originally Posted by Throt
Very cool. It's nearly impossible to imagine those kinds of amounts in the ground. Here's to $.99/gallon!

I would love to see .99 per gallon gas but the cost to drill and refine etc. and the actual sales price would depend upon the highest bidders price.
 
https://www.forbes.com/sites/timwor...w-resource-economics-works/#563c3d90118f

Nov 18, 2016, 02:43am
The Midland Basin Wolfcamp Shale Is Not Worth $900 Billion - That's Not How Resource Economics Works
Tim Worstall

There is much excitement at the USGS announcement of their discovery of vast shale oil resources in the Wolfcamp area of the Midland Basin in Texas. At 20 billion barrels it's said to be the largest continuous field ever discovered. It most certainly has a value and we are all of us richer as a result of the discovery of this most useful material. However, this isn't worth $900 billion, that's just not how resource economics works.

But that is the insistence at The Guardian:
"A huge deposit of untapped oil, possibly the largest ever discovered in the US, has been identified by the US Geological Survey (USGS) in west Texas.
The USGS estimated that 20bn barrels of oil was contained within layers of shale in the Permian Basin, a vast geological formation that stretches across western Texas and an area of New Mexico. The discovery is three times larger than the Bakken oilfields of North Dakota and is worth around $900bn.
The enormous deposit, in the Midland Basin Wolfcamp shale area that includes the cities of Lubbock and Midland in Texas, is the largest continuous oilfield ever discovered by the USGS. The area also includes 16tn cubic feet of natural gas and 1.6bn barrel of natural gas liquids."

Everything except that valuation there is just fine. But that valuation is horribly wrong. Because what they've done is just look at the market price of oil, multiply by the volume and say that's the worth of it, the value.
 
What % is this compared to what we currently refine? I mean why would it drop the price of gasoline?
 
281 trillion cubic feet of natural gas !? I hope they don't waste it with flaring, like they do in the Permian Basin

https://www.greencarcongress.com/2018/12/20181105-rystad.html

Quote
Gas flaring in the Permian Basin reached an all-time high in the third quarter of 2018, as the persistent rise in production collided with severe takeaway capacity challenges in the world's most prolific shale play.

Independent energy research and business intelligence company Rystad Energy estimates that gas flaring in the Permian averaged 407 million cubic feet per day in 3Q 2018.

Rystad Energy expects flaring to grow well into 2019, reaching a level of at least 600 MMcfd by mid-2019 assuming WTI Nymex oil prices recover to $60 per barrel to support existing activity levels.

Rystad said that in Texas, it observes an increased tendency whereby gas is flared on new wells for extended periods—often between four and six months—far beyond the 45-day period covered by the initial flaring permit.
 
You heard it here. Buy sand stocks.
smile.gif


What they didn't mention is the huge cost of drilling and fracking horizontal wells. I wouldn't expect oil to become cheaper but as refineries are reconfigured for more light oil it will provide jobs and opportunities like you won't believe. A good example is North Dakota where almost all the production revolves around the Bakken and Three Forks. There are 65 drilling rigs running 24/7 and they are just able to grow production a bit. The rest of the new wells just replace the production from the huge decline rate. Drill, baby, drill.
 
Originally Posted by SubieRubyRoo
Originally Posted by SubLGT
281 trillion cubic feet of natural gas !?


That's just a little bit less than what Taco Bell generated last year...


That's the funniest post I've read in a long time.
 
Originally Posted by marine65
Originally Posted by SubieRubyRoo
Originally Posted by SubLGT
281 trillion cubic feet of natural gas !?


That's just a little bit less than what Taco Bell generated last year...


That's the funniest post I've read in a long time.



crackmeup2.gif
 
Originally Posted by SubLGT
281 trillion cubic feet of natural gas !? I hope they don't waste it with flaring, like they do in the Permian Basin

https://www.greencarcongress.com/2018/12/20181105-rystad.html

Quote
Gas flaring in the Permian Basin reached an all-time high in the third quarter of 2018, as the persistent rise in production collided with severe takeaway capacity challenges in the world's most prolific shale play.

Independent energy research and business intelligence company Rystad Energy estimates that gas flaring in the Permian averaged 407 million cubic feet per day in 3Q 2018.

Rystad Energy expects flaring to grow well into 2019, reaching a level of at least 600 MMcfd by mid-2019 assuming WTI Nymex oil prices recover to $60 per barrel to support existing activity levels.

Rystad said that in Texas, it observes an increased tendency whereby gas is flared on new wells for extended periods—often between four and six months—far beyond the 45-day period covered by the initial flaring permit.
It isn't like they want to waste it. It can't be used because there is no way to move it to where we need it. We wouldn't need near as much oil if we could utilize all the natural gas that is out there.
 
Originally Posted by Donald
Just what we don't need. More fossil fuel to pump out of the ground. I guess its better than finding more coal.




What should we do with it? It's a resource like everything else on this planet.
 
Long ways to go on replacing oil & gas - but progress is being made. Even use of CNG vehicles have been limited ... I see more of them in my small town setting and only buses in the big cites ...
 
Originally Posted by Donald
Just what we don't need. More fossil fuel to pump out of the ground. I guess its better than finding more coal.


Interested in what your SOLUTIONS are to providing people and industries with reliable low cost power...

Any hints that you'd like to share with us ?
 
Originally Posted by Throt
Very cool. It's nearly impossible to imagine those kinds of amounts in the ground. Here's to $.99/gallon!


Small drop in the bucket actually, will have minimal affect on price

"The U.S. Energy Information Administration (EIA) includes biofuels in consumption of petroleum products. In 2017, the United States consumed a total of 7.28 billion barrels of petroleum products, an average of about 19.96 million barrels per day"


So they found another 7 ish years of oil

Big whup, we need hundreds of years to lay back and relax and $0.99 gas is unlikely ever again so that oil won't pop out of the ground over 8 years and be depleted
 
Last edited:
Status
Not open for further replies.
Back
Top