Company Touts Central Utah Oil Discovery(BILLION BARRELS!)

The Spokesman-Review.com ^ | May 4, 2005 | Paul Foy

[kellynla]

SALT LAKE CITY (AP) — A tiny oil company has snapped up leasing rights to a half-million acres in central Utah that it says could yield a billion barrels or more of oil.

Geologists are calling it a spectacular find — the largest onshore discovery in at least 30 years, located in a region of complex geology long abandoned for exploration by major oil companies. It’s turning out to contain high-quality oil already commanding a premium at Salt Lake refineries.

With the secret out, industry players expect a bidding war to break out at the next Utah leasing auction, set for May 17 in Salt Lake City.

At today’s prices the oil reserve could bring Utah $5.6 billion in royalties, state auditors conservatively estimate. Although the discovery is still playing out, the oil will take years to recover and some skeptics question the company’s projections for a region yet to be fully surveyed.

“It’s just very highly unlikely because the U.S. onshore has been picked clean, if you will,” said Fadel Gheit, senior oil analyst at Oppenheimer & Co. in New York.

[kellynla]

You're welcome
I usually just google every a.m. on subjects I'm interested in. Unfortunately, I have to pass on some of the newspapers because you get inundated to death with popups when you go to their sites! LOL

[JCEccles]

Unfortunately, 1 billion barrels will last the US less than 50 days at current consumption rates.

Utah has about 1 trillion barrels sitting in oil shale. That's what, 50,000 days (125 years) at current consumption levels?

As crude becomes scarcer, oil shale becomes more economically viable.

[Bossy Gillis]

I know what you mean, right now I am in a battle with the NYPost and trying to access that website, been registered there for years, they just changed the entire thing and it's been a nightmare.

[GGpaX4DumpedTea]

"Oil Prices will drop fast if this ends up being true..."

My understanding is that the high prices are more because of a shortage of refining capacity that of oil. The refining capacity is low because the greenies have blocked new refining capacity. It is time we found the balls to put these greenies and the liberal left where they belong...

[Rudder]

A well-kept secret is that the mid-west (fly-over) has always been a good source of oil. Here in Ohio, one of the earliest producers of oil, there's a renewed increase in drilling and my neighbors have all put in wells...I'm next, drilling this summer.

[Barset]

This reminds me of the cold fusion buzz that came out of Utah a few years ago. The late Wayne Owens, D-Utah, considered it worthy of an infusion of tax-payer funds.

Energy drives our reality, but we refuse to stand up to the lies of the Left and drill in the gulf and in the wilderness, and build more refineries. We seem to prefer "miraculous discoveries" that won't offend the eco-frauds, and there are always people peddling "magic" to drive our unreality.

[kellynla]

so what's your opinion of these articles lately of oil reserves "renewing"...is that hogwash or what?

[hermgem]

Here's Utah, with Dems willing, add Alaska and our balance of payments deficit as well as gasoline and natural gas prices will look quite acceptable.
A billion barrels here a billion there and we have real numbers in domestic oil and natural gas.
But greens and their dependents the dems have different ideas.
You need to be against in order to find support by the Sorose's, move on.org, and oh yes, MSN including Public Broadcasting.
Voters: go on high alert it's your money, your resources these people are grabbing.

[Barset]

This reminds me of the cold fusion buzz that came out of Utah a few years ago. The late Congressman Wayne Owens, D-Utah, considered it worthy of an infusion of tax-payer funds.

Energy drives our reality, but we refuse to stand up to the lies of the Left and drill in the gulf and in the wilderness, and build more refineries. We seem to prefer "miraculous discoveries" that won't offend the eco-frauds, and there are always people peddling "magic" to drive our unreality.

[hunter112]

I hope you're wrong, too, and the money Utah gets from this oil is going to lower my taxes!

[hinckley buzzard]

Unfortunately, 1 billion barrels will last the US less than 50 days at current consumption rates.

Unfortunately, you need a new screen name.

[stylin19a]

since refineries are at capacity, can this oil be processed ? or would it be sold for export ?

[kellynla]

according to the article the oil is being delivered to refineries in Utah...

Update: A refinery has gotten the ok to build in AZ.

[PAR35]

This story isn't passing the smell test. Claims aren't proven reserves. They've got 2 wells that are producing so little that they can truck it to the refinery.

[Gondring]

Ah yes...the sight of a little horse-head rocker behind a McDonalds in NW Pennsylvania as a reminder of the history of petroleum resource exploitation.

[bitt]

pop-ups?

download the google toolbar. blocks most.

then use spybot search and destroy (free) and immunize. Only Drudge's pop-ups have a chance of getting thru....lol

[Mind-numbed Robot]

... the money Utah gets from this oil is going to lower my taxes!

I hope I am wrong and you are right.

[expatpat]

I got the same scent -- might be a great short play at the right time.

[stylin19a]

thanx....I still don't see that in the article. It only talks about Utah refineries paying premium prices for sweet crude and what Wolverine is already sending to refineries.

I hope the refinery is built by the time the oil is pulled out of the ground.

[kellynla]

"In 1999, Wolverine bought Chevron’s leasing rights and seismic data and started poking around itself, bouncing seismic waves more than 5,000 feet deep. With just two wells operating at full capacity now, Wolverine is pumping 1,500 barrels of oil a day from the ground and trucking it to Salt Lake refineries."