Joined: Mar 04, 2005 Posts: 2255 Location: New Zealand
Posted: Fri Apr 25, 2008 4:33 pm Post subject: Questions surround price, availability of oil in NZ
Questions surround price, availability of oil in NZ
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New Zealanders should not feel too gloomy about rising demand and prices for oil.
We may not exactly be the Saudi Arabia of the South Pacific yet, but we are getting closer to being a Norway.
The Tui oil field, which started producing for New Zealand Oil and Gas and partners last year, is expected to hold close to 42 million barrels of oil, and has already pumped out more than 10 million of that.
The Maari field off the Taranaki coast is expected to hold about 50 million barrels of oil worth about $NZ6 billion at present prices.
It will produce about 35,000 barrels a day at the peak and run for a decade or more.
The offshore Kupe field should start producing next year too, and although that is mainly gas, it is understood to contain many millions of barrels of oil too.
The irony is that the oil from Tui and Maari is all being shipped straight to Australia for refining, rather than to the Marsden Point refinery.
New Zealand's refinery could handle the oil, but it is more valuable in Australia.
And while many oil explorers are overseas-owned, the Government and taxpayers pick up a healthy return from oil wells - 5 per cent of revenues or 20 per cent of profits as a royalty, even before company tax.
The big elephant hunters are back from their seismic testing in the Great South Basin off the bottom of South Island this summer. All going well, an exploration well could be drilled in 2010.
The potential there could be up to 15 billion barrels.
It is possible that seismic testing in the Deepwater Taranaki Basin by Global Resource Holdings and new partner Hyundai could also lead to an exploration well in 2010.
Deepwater Taranaki could hold perhaps 5 billion barrels in total, but 1 billion barrels would be a bonanza.
Both areas are long shots, but if they come in they could transform the economy.
Just don't expect our price of petrol to sink to Saudi Arabia's at just 13c a litre.
stuff _________________ Human history becomes more and more a race between education and catastrophe. H. G. Wells.
The Tui oil field, which started producing for New Zealand Oil and Gas and partners last year, is expected to hold close to 42 million barrels of oil, and has already pumped out more than 10 million of that.
The Maari field off the Taranaki coast is expected to hold about 50 million barrels of oil worth about $NZ6 billion at present prices.
Assuming the assessments are correct, we have an expected (not realised yet) un-extracted amount of 32+50 = 82 million barrels of oil.
82,000,000 div (2006 figures of consumption @) 156,000 = 525 days of consumption.
1.48 years assuming it's 1:1 refined and consumed all within NZ and NOT exported at all.
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It will produce about 35,000 barrels a day at the peak and run for a decade or more.
Not very truthful there eh? Not telling what the average pump out is? Not telling what the refinery translation is?
1.48 years of consuming all we have versus the pitch of 10 years of production. Sounds like demand destruction to me.
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The offshore Kupe field should start producing next year too, and although that is mainly gas, it is understood to contain many millions of barrels of oil too.
Buying on hope here. Ptui.
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The irony is that the oil from Tui and Maari is all being shipped straight to Australia for refining, rather than to the Marsden Point refinery.
And what happens AFTER the oil gets refined in Australia? Comes back here?
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New Zealand's refinery could handle the oil, but it is more valuable in Australia.
Thought so. They can afford it but we can't. Follow the money.
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And while many oil explorers are overseas-owned, the Government and taxpayers pick up a healthy return from oil wells - 5 per cent of revenues or 20 per cent of profits as a royalty, even before company tax.
The big elephant hunters are back from their seismic testing in the Great South Basin off the bottom of South Island this summer. All going well, an exploration well could be drilled in 2010.
The potential there could be up to 15 billion barrels.
It is possible that seismic testing in the Deepwater Taranaki Basin by Global Resource Holdings and new partner Hyundai could also lead to an exploration well in 2010.
Deepwater Taranaki could hold perhaps 5 billion barrels in total, but 1 billion barrels would be a bonanza.
Trading in commodities a lot teaches you that unless otherwise proven, untapped or unmined or non-production specs like these mean NOTHING in the meantime. Back to BAU for demand destruction economically.
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Both areas are long shots, but if they come in they could transform the economy.
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Just don't expect our price of petrol to sink to Saudi Arabia's at just 13c a litre.
Still standing by thesis that NZ government is broke enough to need tariffs on all its services without having much assets to offer for its bonds.
Petrol tax will stay or increase. This article is a farce as usual from the clueless media of NZ. _________________ regards,
Rostov
"Some {} are more equal than others"
Joined: Oct 17, 2007 Posts: 112 Location: New of Zealand
Posted: Mon Apr 28, 2008 4:48 am Post subject: Re: Questions surround price, availability of oil in NZ
Haha, I love these media articles. Well actually, no I hate them. Its all about clutching at straws. NZer's will just have to get used to $2 gasoline. And I would not be surprised to see $2.50 years end.
High gasoline prices in the past have almost always been "fuelled" by political and environmental problems. War, hurricanes, fires, etc... The current prices seem to be the "standard". I'd hate to see it after another Katrina.
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