Joined: Nov 06, 2007 Posts: 625 Location: Illinois
Posted: Mon Apr 28, 2008 5:03 pm Post subject: Re: It’s a myth that the world’s oil is running out
Dreamtwister wrote:
kublikhan wrote:
If you have cheap energy inputs
That's a pretty big "if". Where exactly are you finding these cheap energy inputs?
Yeah, if I could pump 9 bpd of oil at a 98% water cut for and sell it at a 600% markup, I'd be laughing. The problem is that just does not happen in the real world. I would be surprised if these stripper wells were operating at a profit at all.
Indeed it is happening in the real world, at a profit. These wells were turned on again back in 2004 when oil was only $40:
Quote:
long-marginal ''stripper wells'' are pumping again.
It costs him roughly $20 to extract a barrel of oil from under the ground, he figures. So the price has to be enough above that to make it pay; $38 will do that, nicely, although he does not pocket the full amount.
Fast-rising prices have sharply heightened the appeal of such marginal wells, said Charles R. Matthews, one of the three members of the elected Texas Railroad Commission, which regulates mining and mineral rights. He said that stripper wells contribute $1 billion a year to the Texas economy and represent ''a particularly reliable source of energy for America.''
price increases also boost business in 29 states with smaller and older depleted wells, known as stripper wells.
Kansas, which ranks eighth among oil-producing states, got an extra $800,000 in oil-related taxes for 2004 and estimates the 2005 budget will have an additional $2.4 million if prices stay high.
Louisiana is banking on an additional $109 million in its coffers for fiscal 2005.
Oklahoma figures the Sooner State will have an additional $28 million for 2005.
Texas, the largest U.S. oil producer, has collected $32 million more in oil-production taxes than last year at this time.
These wells are turning back on again now, when oil is $110:
Quote:
grease-caked drilling crew scrambles to repair and expand one of the dozens of aging oil wells that dot the landscape of this small, hillside city about 30 miles south of Los Angeles.
With oil prices at $110 a barrel, producers nationwide are suddenly taking a second look at decades-old wells that were considered tapped out and unprofitable when oil sold for one-fifth the price or less. Independent producers and major conglomerates alike are reinvesting millions in these mature wells, using expensive new technology and drilling techniques to eke every last drop out of fields long past their prime.
Joined: Jul 21, 2004 Posts: 1248 Location: Suburban tar sands
Posted: Tue Apr 29, 2008 1:35 am Post subject: Re: It’s a myth that the world’s oil is running out
kublikhan wrote:
Indeed it is happening in the real world, at a profit. These wells were turned on again back in 2004 when oil was only $40:
Quote:
long-marginal ''stripper wells'' are pumping again.
It costs him roughly $20 to extract a barrel of oil from under the ground, he figures. So the price has to be enough above that to make it pay; $38 will do that, nicely, although he does not pocket the full amount.
Fast-rising prices have sharply heightened the appeal of such marginal wells, said Charles R. Matthews, one of the three members of the elected Texas Railroad Commission, which regulates mining and mineral rights. He said that stripper wells contribute $1 billion a year to the Texas economy and represent ''a particularly reliable source of energy for America.''
price increases also boost business in 29 states with smaller and older depleted wells, known as stripper wells.
Kansas, which ranks eighth among oil-producing states, got an extra $800,000 in oil-related taxes for 2004 and estimates the 2005 budget will have an additional $2.4 million if prices stay high.
Louisiana is banking on an additional $109 million in its coffers for fiscal 2005.
Oklahoma figures the Sooner State will have an additional $28 million for 2005.
Texas, the largest U.S. oil producer, has collected $32 million more in oil-production taxes than last year at this time.
These wells are turning back on again now, when oil is $110:
Quote:
grease-caked drilling crew scrambles to repair and expand one of the dozens of aging oil wells that dot the landscape of this small, hillside city about 30 miles south of Los Angeles.
With oil prices at $110 a barrel, producers nationwide are suddenly taking a second look at decades-old wells that were considered tapped out and unprofitable when oil sold for one-fifth the price or less. Independent producers and major conglomerates alike are reinvesting millions in these mature wells, using expensive new technology and drilling techniques to eke every last drop out of fields long past their prime.
Joined: Nov 06, 2007 Posts: 625 Location: Illinois
Posted: Tue Apr 29, 2008 3:34 am Post subject: Re: It’s a myth that the world’s oil is running out
Keith_McClary wrote:
What % of world production does this amount to? (I suspect miniscule)
If by miniscule, you mean equal to the amount of oil we import from Saudi Arabia every day, then yes, it is miniscule. _________________ The oil barrel is half-full.
Joined: Apr 28, 2005 Posts: 3451 Location: West shore Lake Eire, MI, USA
Posted: Tue Apr 29, 2008 5:45 am Post subject: Re: It’s a myth that the world’s oil is running out
kublikhan wrote:
These wells are turning back on again now, when oil is $110:
Quote:
grease-caked drilling crew scrambles to repair and expand one of the dozens of aging oil wells that dot the landscape of this small, hillside city about 30 miles south of Los Angeles.
With oil prices at $110 a barrel, producers nationwide are suddenly taking a second look at decades-old wells that were considered tapped out and unprofitable when oil sold for one-fifth the price or less. Independent producers and major conglomerates alike are reinvesting millions in these mature wells, using expensive new technology and drilling techniques to eke every last drop out of fields long past their prime.
The last quote in the article cracks me up, a woman with a 2 million dollar home pines for a free lunch!
Quote:
Ten years later, he has added bigger tanks because of the growing profit. An oil rig shows up outside her door at least once a month to do maintenance on the well and once a small fire started on the site. She also worries about fumes that come out of a tall, rust-colored smokestack.
"It's a big eyesore and it devalues our home. I hate it," she said. "I just wish I had a pipeline to it to my car."
_________________ Oxygen: - An intensely habit-forming accumulative toxic substance. As little
as one breath is known to produce a life-long addiction to the gas, which addiction invariably ends in death.--Isaac Asimov
The last quote in the article cracks me up, a woman with a 2 million dollar home pines for a free lunch!
Quote:
Ten years later, he has added bigger tanks because of the growing profit. An oil rig shows up outside her door at least once a month to do maintenance on the well and once a small fire started on the site. She also worries about fumes that come out of a tall, rust-colored smokestack.
"It's a big eyesore and it devalues our home. I hate it," she said. "I just wish I had a pipeline to it to my car."
Don't we all, honey! Bet the neighborhood's really going down the drain like she says though.
Pipeline to your car...maybe we could have a thread on homebrew refining, or is that just patently absurd?
CA's production ain't showing any overall increase yet. Loses a few hundred BO a year.
Quote:
In central Wyoming, companies are using carbon dioxide injections to coax more black stuff out of declining oil fields and in Oklahoma, state lawmakers agreed to ban the practice of plugging lower-producing wells, so producers could drain every last drop.
"They are now producing one, two, five barrels a day," said Steven Agee, chairman of the state's Energy Resources Board. "Five a day doesn't seem like a lot, but ... that's 150 barrels a month times $100 and you're looking at $15,000 a month for a well."
5 bpd vs. how much energy to create that CO2, transport it, inject it? _________________ Cogito, ergo non satis bibivi
I'm just gonna find a cash machine.
Posted: Tue Apr 29, 2008 6:06 pm Post subject: Re: It’s a myth that the world’s oil is running out
shortonoil wrote:
Ever heard of thermodynamics!
YES!! But no one around here seems to know how to apply the rules correctly ( thermodynamic rules applied into economics anyone? ) so those of us who know something about it stopped talking about them.
shortonoil wrote:
Get real, these wells aren’t going to be producing after peak, nor are a lot of other stripper wells in the world!
You mean, except for hundreds of thousands which actually ARE being produced, after the 1979 peak....after the 2005 peak...and are still producing even during the NEWEST peak, right?
You guys and your absolute statements..... _________________ Freddy RULZ!
www.TrendLines.ca/scenarios.htm Home of the Real Peak Date ... set by geologists (not pundits) (or bankers) (or web "experts")
Joined: Nov 06, 2007 Posts: 625 Location: Illinois
Posted: Wed Apr 30, 2008 12:44 am Post subject: Re: It’s a myth that the world’s oil is running out
Keith_McClary wrote:
Would you mind quoting a percentage of world production or #barrels production number?
Sure. The US produces about 1.2 million barrels of oil a day from stripper wells. That is about 20% of US domestic oil production. That is up from around 860,000 barrels a day in 2006(a 40% increase in 2 years).
Stripper Wells DOE _________________ The oil barrel is half-full.
Joined: Jul 21, 2004 Posts: 1248 Location: Suburban tar sands
Posted: Wed Apr 30, 2008 1:36 am Post subject: Re: It’s a myth that the world’s oil is running out
kublikhan wrote:
Keith_McClary wrote:
Would you mind quoting a percentage of world production or #barrels production number?
Sure. The US produces about 1.2 million barrels of oil a day from stripper wells. That is about 20% of US domestic oil production. That is up from around 860,000 barrels a day in 2006(a 40% increase in 2 years).
Stripper Wells DOE
So, perhaps 4% of world consumption? Not bad - why do you need to conquer Iraq and Iran then?
Joined: Dec 07, 2005 Posts: 1741 Location: Australia
Posted: Wed Apr 30, 2008 1:58 am Post subject: Re: It’s a myth that the world’s oil is running out
Isn't it more like 1.5%??? _________________ Lets take a ride, and run with the dogs tonight
In suburbia
You cant hide, run with the dogs tonight
In suburbia
- Pet Shop Boys
Joined: Nov 06, 2007 Posts: 625 Location: Illinois
Posted: Wed Apr 30, 2008 2:48 am Post subject: Re: It’s a myth that the world’s oil is running out
Keith_McClary wrote:
So, perhaps 4% of world consumption? Not bad - why do you need to conquer Iraq and Iran then?
My entire point was as the price of oil goes up, the incentive to find more oil goes up. I think I have demonstrated that to be true. I really don't want to get side tracked into discussing the Iraq/Iran war. _________________ The oil barrel is half-full.
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