[q_an_a]

I would like to believe this report but it does not stand up to even minor seach engine and government reports. Domestic oil production for this week, in the lower 48, is 2% higher than one year ago when the gulf was in full steam. Take a look at the oil inventory report for this week - in almost every category we have more than a year ago and more oil in stock than when gasoline was 1.09 a gallon.

http://www.eia.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/current/pdf/table1.pdf

[doc11355]

I would like to believe this report but it does not stand up to even minor seach engine and government reports. ...

If that is the case, to what should we attribute the almost tripling of gas prices since the $1.09 gallon price you cite?

[PSYCHO-FREEP]

Off Shore production is down 39% and Land Rig production is up 36%. Which is a net loss of 3% among the industry as a whole.

It is also directly related to the fact that Oil prices are at $92. Most domestic producers take advantage of this trend because the extra revenues they earn, allows them to reinvest in the very expensive cost of exploration.

The reason Domestic supplies are up is because there is a very low demand in this country. The surpluses are being sold to other markets and countries. Especially the lower grade crudes that cannot meet the Government’s standards for Sulfur content.(These are sold to foreign markets.)

[LibLieSlayer]

“does not stand up to even minor seach engine and government reports.”

Yep... google and the government both are completely trustworthy. Bwahahahahahahahahaha!

LLS

[DakotaNative]

I heartily agree. This report is bogus and was written by someone who has no idea what they are taking about. In North Dakota they have three large fields of oil: Bakken, Three Forks and Spearfish to go along with other small ones. Only in the last 4-6 years has oil production taken off as new horizontal drilling methods opened up all three fields. The Bakken is the largest with estimated reserves that range from 169B to 300B with recoverable between 2b - 5b (government estimate private estimates are over 20 times higher). Three Forks is 20b barrels with and estimated 10% recoverable (government numbers) and Spearfish is a relatively new field with rumored potential to be as large as Bakken. The beauty of the Spearfish field (according to my brother who works the field) is that it is a shallow field -about 4,000 feet to drill to reach the oil. He says it takes two days to drill the hole and three days to go horizontal. In 5-6 days you are pumping oil. We are not talking 100 barrels a day per well, but rather thousands of barrels a day per well. The overall potential of those fields is huge and there is a boom taking place in towns like Minot, ND which is expected to double in size from 35k to 70k in the next five years. I have college friends who farm and are now making enough royalties from oil where they no longer have to farm. Given what is taking place the lower production from the Gulf will be more than made up from increased production from North Dakota. The press continues to talk up the line about declining production and growing foreign dependence for oil and natural gas. However, there is a natural gas boom taking place in states like Pennsylvania. The discoveries of natural gas is such that even Ombama cool-aid drinkers like the New York Times are posting opinion pieces advocating a greater role for natural gas in meeting our nation's energy needs. Apparently we have enough natural gas to run this country for sixty years and the number keeps growing. When taken as a whole, oil, Natural Gas, Nuclear Power, green initiatives, etc. we are on the edge of being energy self sufficient in the next 10-15 years and a major exporter of energy shortly thereafter. We need the media and the government to begin talking this up and for action to be taken to speed this up. Nice thing is this can all be done in a green way so the tree huggers can be happy.

[TLI]

in almost every category we have more than a year ago and more oil in stock than when gasoline was 1.09 a gallon.

How about the other shoe?

"Ok. So what the heck is pushing up the price of crude?"

.

[UCANSEE2]

Take a look at the oil inventory report for this week - in almost every category we have more than a year ago and more oil in stock than when gasoline was 1.09 a gallon.

Isn't that more likely due to the FACT that people can't afford to buy much gasoline?????