Is There Plenty Of Oil?

Business Week ^ | July 14, 2005 | By Christopher Palmeri, with Peter Coy in New York

[Lazamataz]

First came Holstein, then Mad Dog, and soon, Thunder Horse. Atlantis will join them next year. The four giant oil fields, operated by BP PLC (BP ) and located under thousands of feet of water off the coast of Louisiana, are just beginning to pump their first barrels. At their peak rates later in the decade, they'll produce some 500,000 bbl. per day, an amount akin to floating a small Middle Eastern country such as Syria or Yemen into the Gulf of Mexico. "Add them together, and it's a massive step change," says David Eyton, BP's vice-president for deepwater in the Gulf. "The investment we're making will more than offset declines we're seeing in Alaska and the Continental Shelf."

It may seem today as if the world is running out of oil. The price of crude has hovered around $57 a barrel, in part on fears of a supply crunch in the fourth quarter. Chevron (CVX ) and China National Offshore Oil are battling for control of Unocal (UCL ). The Senate on June 28 passed the latest version of an energy bill stuffed with $18 billion in tax incentives to encourage energy production. Even legendary oilman T. Boone Pickens is predicting $3-a-gallon gasoline within a year. The national average now: a pricey $2.22.

No doubt, the energy industry is in a precarious position. Two decades of falling prices in the 1980s and '90s discouraged investment. With many of the easy-to-find fields already on the map, big oil producers have been forced to look for new sources in ever-more-hostile environments: not just under thousands of feet of water but also across frozen tundra and in countries rocked by political unrest. As a result, production has risen sluggishly in recent years, while energy demand, particularly from the booming China and

[Don@VB]

Is There Plenty Of Oil?
I read that at $60 /Bbl Coal Gasification is economically viable. The Germans produced Gasoline from coal during WWII and South Africa has used this process as well.