Is There Plenty Of Oil?

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

[Lazamataz]

Gist of the article is that oil will remain relatively plentiful and prices won't go crazy forever, although in the immediate future, increases are likely.

But a Max Max / Road Warrior scenario is not in our future.

We're not all gonna die!!!!

[Lazamataz]

Ping to the Free Republic strategists. More info for analysis.

[Brett66]

We'll have enough oil for awhile, but refineries are becoming scarce. Until we put a cap on enviro-regs, we'll have ever-higher gas prices.

[SierraWasp]

How 'boutchew oil patch dudes... ya got a copy???

[Squantos]

LIAR !

Sorry that's all I got.....who gets all this oil we're a pumpin ?

[Southack]

The offshore Louisianna fields are big and will help. Keep in mind that next door to those LA fields, drilling has been held up by some corrupt Mississippi state officials. Further over offshore Alabama, some drilling has been successful...but disputes between Alabama and major drillers over royalties has likewise caused new drilling there to be slower than expected.

Offshore Florida is still off limits...although one of the world's largest natural gas fields *may* be drilled by Florida itself if one bill passes the Assembly there (the gas revenues would be so large as to eliminate the state's need for property taxes).

So there is still a lot of recoverable oil and gas to be had...to help offset the declines in production elsewhere.

We can also switch over large parts of our economy to our reserve fuel, coal oil, should an oil shortage become too acute. We have no shortage of coal.

[PAR35]

I'm still saying $28 a barrel for oil when the speculators start to bail. They can only hold the price artificially high for so long.

[planekT]

What's in the Empty Quarter of Saudi Arabia? How about the other side of Iraq?

Questions....Questions...

Deep Gulf reserves? Who'd a thunk it?

You don't know what's under the ground for sure until you drill.

[Ann Archy]

Flame away but I believe that oil comes from sand under pressure and not from dead animals.

[RayChuang88]

I wouldn't be surprised that oil prices will drop to US$37 to US$39 per barrel within a year because Federal regulators will have nabbed a couple of Americans trying to illegally speculate on oil (read: George Soros).

[vpintheak]

I knew it all along. It's the wing-nuts that get in a tizzy ove rthis stuff. Is there cause for concern? Sure. As you siad, we are not going to die!!! There isn't going to be a peak oil shortage and massive starvation and death of the human race, as a lefty I used to know siad there would be starting the end of this decade.

[Southack]

"Flame away but I believe that oil comes from sand under pressure and not from dead animals."

Oil is a hydrocarbon...something not obtained from silicon (i.e. sand).

It may or may not (odds are: not) have come from dead animals. It could be supplied from beneath the Earth's crust, or from a variety of sources.

Other hydrocarbons *have* been detected on at least one Moon of Saturn.

[CounterCounterCulture]

Is There Plenty Of Oil?

Not after Laz greases up all his girlfriends. Stop dat!

[Republican Wildcat]

Now if we could just get some new, or at least upgraded, refineries in this country we'd be in much better shape.

[prisoner6]

But a Max Max / Road Warrior scenario is not in our future...

Awwww....Dang! I was SO looking forward to Auntie and Thunderdome...sigh.

prisoner6

[Doe Eyes]

but refineries are becoming scarce.

I don't understand this fixation with building new refineries.

It makes more sense to expand capacity at our existing facilities.

They are located at ports to receive crude oil and are connected to our existing pipeline network.

[Smokin' Joe]

I don't think the question is worded correctly.

Part of the equation concerns the ability to refine crude oil, the rest mainly concerns where we get it.

Oil will balance on a supply/demand basis, at whatever price it reaches, and I anticipate a modest continued increase if there is no panic inciting incident, say $65.00/bbl.

Enough of the MSM whining about "BIG Oil".

Current prices are sufficient to let the average schmuck realize that we had better drill for our own oil, refine our own, and look for some alternative sources of energy. If that means relaxing some of the environmental demands of special interest groups, the average person will say "So be it."

Those prices are also sufficient to stimulate domestic oil drilling activity and we may see an increase in the number of available onshore (and offshore) drilling rigs in the near future.

We will probably not see a 'boom' the likes of that in the late '70s/early '80s because bankers remember the bottom can fall out, and they got stuck last time (which is why nearly half of the drilling rigs in the world were sold for pennies on the dollar (and many cut up for scrap) in the late '80s).

We may all ask ourselves " Is this trip really necessary?", and may change our driving habits somewhat, and there may be a shift back to city living as neighborhoods are retaken by middle class ex-suburbanites looking to save money on commuting. Political pressure, tax breaks, renaissance zone incentives, urban homesteading and the recent SCOTUS decision may factor in on any urban renewall there.

So, there will be 'enough' oil, we just might not like the price.

[Larry Lucido]

I figure the earth's core is one bubbling cauldron of oil. Or chewy caramel and nougat. Either way, we win.

[M203M4]

OH NOOS. How are we supposed to decide which "crisis" to be less scared of? Overpopulation, global warming, or oil?

It all makes me want to use a gas-powered flame thrower to start a fire with garbage, trees, and tires to use for rotisserie-cooking a herd of endangered buffalo to go with the baby seal kabobs and pan-fried flock of rare (and tasty) exotic birds with which I will feed my 35 children.

WITH the SUV idling a few feet away, my feet inside enjoying the full blast A/C. *dreams*

[SierraWasp]

"By George! I think you've got it!!!"