US have increased their oil output by at least 900,000 barrels a day and done it in just a year.

Originally posted by Res Ipsa
OMG



So far this thread reflects all that ATS is suppose to be against......Ignorance.

No doubt that the Bakken is rock en that's for sure, But since you know so much about it,, and I'm not being sarcastic.. what quality of oil comes out of this place,, and how do they get it to market, ya you know the reason there flaring gas to right,, and the huge question and this is the big question is what is the average depletion rate of these wells... and you know even if they hit there target of 800,000 barrels a day, of the tight oil they get from there, whats that really add to global supply, we need 2 million barrels a day just to keep up with the depletion take place world wide right now,,, No doubt this is great for our country short term, But these wells will be stripper status in 10 years,,, here is a link for you

www.resilience.org...

Presently the estimated breakeven price for the “average” well in the Bakken formation in North Dakota is $80 - $90/Bbl In plain language this means that presently the commercial profitability for new wells is barely positive.
The “average” well now yields around 85 000 Bbls during the first 12 months of production and then experiences a year over year decline of 40% (+/-) 2%
The recent trend for newer “average” wells is one of a perceptible decline in well productivity (lower yields)
As from 2007 and also as of recently the total production of shale oil from Bakken has shown exceptional growth and the (relatively high) specific average productivity (expressed as Bbls/day/well) has been sustained by starting up flow from an accelerating number of new wells

So blind.. so blind. We gain energy dominance, or close to it, actually see a self-sufficient horizon in our lifetime and the reaction is, "But why are gas prices still so high? What's Obama doing?"

What's he doing? He's slowly proving his point.

Why are gas prices high?
It's not lack of drilling here (we've got plenty of American oil)
It's not Saudi Arabia bullying us (we've got plenty of American oil)
It's not Obama's focus on green energy (we've got plenty of American oil)

The supply has gone up and the prices have remained the same. Only one culprit... It's the oil companies fleecing the American people, but try and regulate that and their lobbyists will whip up Tea-Party dittoheads to scream about "small businesses" until Congress runs scared. You can't blame Obama for getting rid of all the excuses. He's done everything he can about gas prices, and all that's left is governement regulation. That's what he's proven. It's as clear as water that the oil industry needs heavy regulation but it will never happen because people are so blind... so blind.

reply to post by SKMDC1


I share most of what you say,, The subsidies these guys get is what 60 billion a year,,, But you better tell me where do you think were going to get this OIL...... where already going miles under the sea to drill ever wonder why we have to do that,,, where is there another Saudi Arabia,, tell me right now there is over 400 permits approved to drill,, yet no takers,,

People think you just drill a hole and oil comes out,, its not that way,, Its a huge risk to drill,, then how do you get the oil to market where do you store it. and the big question where do you get the water to drill with... if you get a 1000 barrels a day in oil, you need 3000 barrels of water a day,,, where does that come from,,,

see what I mean there is a lot more to it...

reply to post by SKMDC1


I am no apologist for the oil companies....but you are wrong.

For years oil prices were kept low domestically for two reasons: the oil companies were regulated into keeping it low, and then Uncle Sam gave them subsidies to keep prices low. Our government bought into fuel pricing as a tactic to promote trade and travel (while keeping the middle class satisfied with their ablity to drive in from the suburbs to get to work).

Our nations government now sees fit to subsidize banking instead of energy. And energy isn't the only one taking a hit, either. The process of getting an SBA loan has become to ludicrously difficult that most have removed that element from their capital stack plans altogether. Instead, programs like EB-5 are being leveraged...which is putting more American capital into foreign nationals hands and changing our national business culture in very fundamental ways.

Be happy you still pay less than $4. Its your tax money at work. In the EU you could be paying upwards of (an equivalent of) $15/gallon.

Originally posted by sk8ter
reply to post by SKMDC1

 

I share most of what you say,, The subsidies these guys get is what 60 billion a year,,, But you better tell me where do you think were going to get this OIL...... where already going miles under the sea to drill ever wonder why we have to do that,,, where is there another Saudi Arabia,, tell me right now there is over 400 permits approved to drill,, yet no takers,,

People think you just drill a hole and oil comes out,, its not that way,, Its a huge risk to drill,, then how do you get the oil to market where do you store it. and the big question where do you get the water to drill with... if you get a 1000 barrels a day in oil, you need 3000 barrels of water a day,,, where does that come from,,,

see what I mean there is a lot more to it...

In my county alone there are 50,000 proposed NEW well sites. We are in the heart of the Cline Shale, though. But from Odessa to Abilene....about 8 counties. Each with about the same well capacity.

And then you add in the wind energy we are producing. Roscoe, TX, up the road from me, has had more new millionaires as a percentage base than any other city in the United States over the last 20 years. All a bunch of farmers that can place 1 turbine per 2 acres, still produce on some of that acreage, and pull in 25k apiece plus 5% royalties. Each turbine can be worth about 1.25 mil/year for those old farmers. if the wind cooperates, anyway. They are phasing out of cotton farming, and into wind farming.

reply to post by bigfatfurrytexan


That is pretty damn impressive...I could use a million per turbine, I could put up two of 'em!
Where do I sign up? LOL

Originally posted by Gazrok
reply to post by bigfatfurrytexan

 

That is pretty damn impressive...I could use a million per turbine, I could put up two of 'em!

Where do I sign up? LOL

There are myriad companies that are doing it. But your area will need to have surveys done on wind speed, sustainability, etc, etc. They don't want blaring gales. They want steady and consistent.

One thing is for sure: there is always a strong wind in West Texas. And plenty of dirt. LOL

reply to post by bigfatfurrytexan



In your country there going to need a lot more rigs.. that's interesting about the wind farms,, sounds like a great way to go... The world is producing less oil. Not oil equivalent but real oil that you can make gas for your car. and many country's are going from net exporters to net importers just like the USA did.. right now we import oil then refine into gas then count that as are oil production,,, LOL only in the USA would you see this craziness

reply to post by sk8ter


GTL conversion will likely be the next "big thing". The shale deposits that are technologically being opened to us have TONS of natural gas associated with them. In the past this was typically gassed off or burned off (depending on if regulations were followed, etc). Now it will become a major component of energy.

In Dubai they recently piloted a gas to liquid plant that takes natural gas, "cracks" it (catalytic cracking), and converts it to a low sulphur diesel. and it does it for $0.30 less per gallon than current production.

Diesel is not typically the cleanest fuel...but the GTL diesel has lots of promise for a lower emissions fuel than we typically see today. And with the greater ability to generate horsepower that diesel provides.

The GTL is what the entire business platform of our town is being built around. We are hot in the middle of the Cline Shale, and expect to become a major producer of natural gas right when gas to liquid conversion roars onto the market.

Look for a big processing plant to be built in Houston very soon. The Ports to Plains corridor project is in full swing, and will be a major pipeline for the resource chain in the project, connecting the Cline shale in West Texas (as well as the bountiful shale deposits up into Canada) to the Gulf processing engine.

Originally posted by sk8ter

Originally posted by Res Ipsa
OMG



So far this thread reflects all that ATS is suppose to be against......Ignorance.

No doubt that the Bakken is rock en that's for sure, But since you know so much about it,, and I'm not being sarcastic.. what quality of oil comes out of this place,, and how do they get it to market, ya you know the reason there flaring gas to right,, and the huge question and this is the big question is what is the average depletion rate of these wells... and you know even if they hit there target of 800,000 barrels a day, of the tight oil they get from there, whats that really add to global supply, we need 2 million barrels a day just to keep up with the depletion take place world wide right now,,, No doubt this is great for our country short term, But these wells will be stripper status in 10 years,,, here is a link for you

1) sweet crude...not the heavy stuff out of Canada. 2) now a days big time rail and increasing pipelines as well as pipeline reversals. 3) they are flaring gas as a by product, it is like exhaust, tragic when they flare for a year, but like I said they are getting it hooked up faster. EOG does a great job and they are getting near Brent prices for their oil which is fantastic.. 4) They really haven't even gotten into phase 2 in the Bakken. Phase one is to hold by production....phase 2 will be infilling and really the production phase... 5) There isn't an expert out there that really has a clue about EURs at this point (Estimated Ultimate Recovery) It use to be near 2% of OIP (oil in place) now they are bragging about it possibly getting to 20%...there isn't a consensus regarding communication between wells.......without getting too into it, there are still too many unknowns for anyone to have a crystal ball.

I will tell you what I see......in a 1280 acre spacing they will have 6 to 14 wells, each well with "current" technology should be able to produce 700,000 to 2 million barrels in it's 25 to 40 year life span. Useful well data, for future prediction purposes should start in 2009......I am just talking about middle Bakken and upper Three Forks formations by the way....the oil is found in layers....they are fracking better, the tech is improving quickly, and we haven't even touched on re-fracking and CO2 secondary recovery plans.

Every year there are people that think the height of the Boom is near...every year they are wrong....and don't get me started on the Eagle Ford......might be bigger than the Bakken.......Right now it cost 8 to 12 million dollars to build one well.

The decline rate you were talking about. You have to use old wells, and old data and for wells. It is like talking about miles per gallon the average car gets by using a V12 vehicle from 1962. The new wells, as they are now, will probably get 50% of all their oil in the first 5 years...and that is if not a single improvement happens in the next 5 years.........

So no.......this thing won't be close to being on the slow road down in 10 years....

reply to post by bigfatfurrytexan


We, the United States will be exporting natural gas in the not so distant future...mark my words.
We have sooooo much of it.

reply to post by Res Ipsa


Absolutely we will. Most likely as low sulphur diesel.

The Cline Shale is a game changer. A HUGE game changer.

reply to post by Res Ipsa


Outstandingly well put.

we are living in an odd era. traditional oil exporters are after lessening export and countries like USA is after boosting exports !
www.presstv.ir...

reply to post by maes2


I don't believe this is odd of Amedinijad to say in front of people at one of their gas refineries.

Oil to Iran is currency......they don't have any issue with being energy independent......they don't want to use their oil, they want to sell it........why do you think they want nuke power? ( I mean the reason they say they want it)

Did I misunderstanding u?

reply to post by Res Ipsa

because of sanctions Iran export has lessened from 4 million to 1 and so they have no choice but expanding refineries and selling oil products instead. however they have plans for exporting natural gas from Pakistan to China in east and from Iraq to Syria and maybe EU in west.
Saudi arabia has reached from 6 million to 10. it can not tolerate so much pressures anymore and it is unstable because of arab spring and ....
so we should expect odd events in energy markets very soon. especially oil.

reply to post by Res Ipsa



Bro thanks for the heads up, it seems like you know what's going on,, That infrastructure alone must be huge we need every drop of oil we can get,,, I really hope you prosper from this... I think it takes 5 big rig trucks for every well so the road work alone can make somebody rich,,,,

I'm an oil trader so I keep up with what's happening as much as i can,,, right now we have more buyers for oil they keep bidding the price up.(China India) when we come out of this recession were going to need a lot more oil, must people don't realize we been fracking for 30 years,, Keep us updated when you find anything Bro,, If your ever in Colorado stop by for a Buttermilk..... !!!

In Prince Edward Island, Canada, they have a regulation for the gas prices that they can only fluctuate twice a month and the population is told a little ahead of time in the news. So there at least they plan ahead if there is to be a big hike, they can stock up a bit....or wait to do so if it would go down.

I know this can my mother lived there close to 10 years. I think that this concept is quite good for the people.

The US spent more that a decade pumping oil from Iraq, sending it home and pumping it into the ground. They didn't pay for it!

Suddenly they have found oil. Yea, right.

Join the dots!

P

Originally posted by pheonix358
The US spent more that a decade pumping oil from Iraq, sending it home and pumping it into the ground. They didn't pay for it!

Suddenly they have found oil. Yea, right.

Join the dots!

P

So, you are suggesting that oil has been pumped in Iraq, then placed in US soil for us to extract? Again?

Are the dots you are connecting called "microdot" by any chance?