$1.2 Trillion Value Oil found in West Texas..

[Trump]

Originally Posted by jpd80

Patience grasshopper,
You're reading way too much into that decline, the price of crude has almost doubled
since the start of the year going from $27/barrel to $44/barrel with OPEC wanting the
price to go higher (about $65-70/barrel) and at that price those producers become viable.

I failed to mention in my earlier post, US demand will fall off a cliff. The "recovery" of the US economy has been nothing but smoke and mirrors. They are still riding high on the QE horse but with nothing to show for it. OPEC will only need to nudge the taps just a wee bit to keep the prices at shale-crippling levels and wait for the US economy to implode.

Like you said, patience

[stazza]

[mik]

Originally Posted by .:4:.

That won't help us though, the government will just sell it to someone overseas then buy it back at a premium.

Fair trade policy ????

[.:4:.]

Originally Posted by mik

Fair trade policy ????

No comment...

[Blue Roo]

Originally Posted by csv8

"An estimated 20 billion barrels of oil valued at up to $US900 billion ($1.2 trillion) has been discovered in a West Texan shale formation, the US Geological Survey announced this week. Three times the size of the Bakken oilfields in North Dakota, it could be the largest such deposit ever assessed in the United States.
The USGS has released a new assessment of oil reserves located in the Wolfcamp shale in West Texas' Permian Basin, one of the most productive areas for oil and gas extraction in the United States. In addition to a whopping 20 billion barrels of oil, the shale is steeped in an estimated 453 billion cubic metres of natural gas and another 1.6 billion barrels of natural gas liquids.
The estimate consists of "undiscovered and technically recoverable" resources of "continuous" oil and gas. Understanding all of this jargon is key. Undiscovered resources are estimated based on existing geologic knowledge and theory, meaning the exact amount of oil and gas in the Wolfcamp shale could be larger or smaller. Technically recoverable resources are those that can in theory be produced using current technology and industry standard practices. Finally, continuous resources are dispersed in small amounts throughout a basin rather than large, discrete deposits. "Because of that, continuous resources commonly require special technical drilling and recovery methods, such as hydraulic fracturing," the USGS writes. (According to The Guardian, fracking is already common practice at the more than 3000 horizontal oil wells located in the Wolfcamp region.)
Importantly, the USGS has not determined whether it is profitable to exploit all or even most of this vast new oil reserve. But given the numbers and dollar signs attached to its discovery, it is difficult to imagine that America's incoming, oil-friendly administration will not try. In the disturbingly prescient words Sarah Palin, get ready to drill, baby, drill."
http://www.msn.com/en-au/money/marke...cid=spartandhp

It's like the beginning of an episode of the Beverly Hill Billy's.

[Trump]

Originally Posted by Blue Roo

It's like the beginning of an episode of the Beverly Hill Billy's.

Come and listen to a story 'bout a man named Jed...

[aussie muscle]

Originally Posted by FGX-351

I'm pretty sure we have a large shale supply in South Australia but the problem being is the cost to recover it.

reserves that used to be prohibitively expensive are now seen as marginal. in a few decades, they'll be prime.

[Trump]

Originally Posted by aussie muscle

reserves that used to be prohibitively expensive are now seen as marginal. in a few decades, they'll be prime.

Doesn't mean a thing if the demand isn't there.

[FPV6]

All those crazy people saying America was hiding oil reserves wow they weren't all crazy after all