Posted on 09/06/2008 2:12:31 AM PDT by TigerLikesRooster
>> Oil shale and oil (tar) sands have been in production for decades, just not in this country. They all do not require $70/bbl.
I’ll bet there’s a “critical mass” (or, if you prefer, “virtuous circle”) thing to be considered, also.
That is, does sustained production (at whatever price) drive down costs as the technology is improved, which in turn sustains production (at a lower breakeven cost)?
I’m not an oil man but I would guess the answer is “yes”.
If the price truly plummets, we'll have a repeat of the 80's oil bust, which will completely squelch any new domestic efforts. That's how we got to where we are. Deliberate strategy.
Iran imports about 200,000 barrels per day of products and exports about 2,500,000 barrels per day of crude.
South Dakota Voters Approve What Could Be First New U.S. Oil Refinery in Decades
http://www.foxnews.com/story/0,2933,363121,00.html
Producers such as Shell, which has run a pilot oil shale project for decades in Colorado, has put their profitable range at $30~40 per barrel.
Oil sands in Canada have been in production for 4 decades. It is a less expensive production cost than oil shale.
This is the main benefit of drilling in the US. If oil prices drop the economic situation in Iran, and the rest of the middle east, will get far worse. Nothing will bring change faster in Iran than economic chaos in Iran.
>>the leftist environmentalists
Most folks would be very surprised at who actually funds the environmentalists:
http://www.freerepublic.com/focus/f-news/999451/posts?page=67#67
Supply and Demand.
>>There is a new proposed refinery in South Dakota
Excellent! - so long as that refinery is owned and run By Americans, For Americans - and not by a bunch of foreign carpetbaggers.
What a world class link thanks for that!!
You’re welcome, but the credit goes to FReeper Carry_Okie.
At the present time, there has been no crude oil production or exploration in the ANWR coastal plain region. This analysis assumes that enactment of the legislation in 2008 would result in first production from the ANWR area in 10 years.
The primary constraints to a rapid development of ANWR oil resources are the limited weather windows for collecting seismic data and drilling wells (a 3-to-4 month winter window) and for ocean barging of heavy infrastructure equipment to the well site (a 2-to-3 month summer window).
The assumption that ANWR oil production would begin 10 years after legislation approves the Federal oil and natural gas leasing in the 1002 Area is based on the following 8-to-12 year timeline:
* 2 to 3 years to obtain leases, including the development of a U.S. Bureau of Land Management (BLM) leasing program, which includes approval of an Environmental Impact Statement, the collection and analysis of seismic data, and the auction and award of leases.
* 2 to 3 years to drill a single exploratory well. Exploratory wells are slower to drill because geophysical data are collected during drilling, e.g., rock cores and well logs. Typically, Alaska North Slope exploration wells take two full winter seasons to reach the desired depth.
* 1 to 2 years to develop a production development plan and obtain BLM approval for that plan, if a commercial oil reservoir is discovered. Considerably more time could be required if the discovered oil reservoir is very deep, is filled with heavy oil, or is highly faulted. The petroleum company might have to collect more seismic data or drill delineation wells to confirm that the deposit is commercial.
* 3 to 4 years to construct the feeder pipelines; to fabricate oil separation and treatment plants, and transport them up from the lower-48 States to the North Slope by ocean barge; construct drilling pads; drill to depth; and complete the wells.
The 10-year timeline for developing ANWR petroleum resources assumes that there is no protracted legal battle in approving the BLMs draft Environmental Impact Statement, the BLMs approval to collect seismic data, or the BLMs approval of a specific lease-development proposal.
Analysis of Crude Oil Production in the Arctic National Wildlife Refuge
http://www.eia.doe.gov/oiaf/servicerpt/anwr/methodology.html
How long until the existing pipeline gets to 300,000 barrels per day? I understand it's about 750,000 now is that correct?
The pipeline currently averages 707,259 BPD.
Trans Alaska Pipeline System
http://www.alyeska-pipe.com
It will take a very long time to get below 300k barrels per day (109.5 million barrels per year), even without ANWR, NPRA and the Beaufort & Chukchi seas. Projected production rates are as follows:
State of Alaska > Natural Resources > Oil & Gas
2007 Annual Report
Section Three, Historic and Forecast Production
http://www.dog.dnr.state.ak.us/oil/products/publications/annual/2007_annual_report/3_HistProj_2007.pdf
Look, I realize that friends come and go but if you are serious in not counting on the British as allies then I suppose it is best to just drill, drill, drill and develop our resources to the fullest degree so we don’t have to import even one barrel of oil. Of course once we run out then we will be at the mercy of these people for ALL our needs in this area instead of some of it.
Besides, nations don’t have any friends, they only have common interests and as long as we’re the huge importers we are there will be others lined up to sell it to us, “it” being whatever we need or want.
I have thought of this but the development costs are enormous and if the oil is not pumped and refined or at least sold to someone, the oil companies cannot recover their costs much less make a profit. As publically held companies they (The Board of Directors and the Company officers) have fiduciary responsibilities to their shareholders and would probably be locked up rather quickly if they committed an enormous sum of money in a project with no reasonable R.O.E in sight.
"Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry. "
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