Article about Oil in the US

**RaginCajun** · 12-19-2012, 07:31 PM

http://mobile.bloomberg.com/news/201...ependence.html

**Times Roman** · 12-19-2012, 07:34 PM

cool. now sell me gas at $2/gallon and I'll be impressed.

**wmaousley** · 12-20-2012, 02:36 AM

If I may, I was in Dubai back in November for ADIPEC and the US Energy Secretary announced the US would be the largest producer of oil by 2015 and be self sufficient by 2035 in oil & gas. US oil imports have decreased 11% this year alone and are expected to fall about the same or less rate annually over the next decade.

Does this mean lower fuel prices for Americans? Hell no, Fuel prices will remain the same for now and will likely rise due to production increase. Now some of you will ask "why will gas prices rise if we are increasing production"..... Well the costs of Exploration/Production/Refining are very expensive and the technologies used to extract heavy oil are extremly expensive. As production is increased, IOC's will also have to increase Exploration & refining.

Exploration:

Seismic aquisition and surveying of land is very expensive and required millions in investments

Drilling: Average 1500hp drilling rig costs an estimated $28 million. There are currently 1799 working rotary rigs in the US with 77% drilling for oil and 23% drilling shale gas, ranging from 1000hp up to 3000hp for deep wells.

Associated Services; Wireline, cementing, slickline, well testing, wellhead maintenance, coiled tubing, fracking, n2 pumping etc require millions of dollars investment and the services are very expensive and required to meet production standards and to maintain well life.

This is just a breif summary of some of the upstream work thats involved, The mid-stream and downstream side are also very expensive which include EPF, GC's, Pipelines, Refineries etc.

Also all this need qualified manpower to run it.

Do you see where I am going with this? Bottom line.......PPB of oil will remain the same with a slow rise over the coming years. On the upside, millions of well paying jobs will be created.

**Flagg** · 12-20-2012, 05:38 AM

There are so many fragmented "scoops" out there.

Only two days ago did I read that in 10 years time, coal will take over from oil. I've also been led to believe that China had the worlds greatest coal reserves (100 years worth). Now im reading that the US has the worlds largest coal reserves. Then I read that the US will be the worlds leading oil producer in a few times. Im also reading that the UK is going to start fracking methods to get to our own fossil fuel reserves (of which I thought we had none). Then I read that Germany had these massive coal supplies somewhere.

It really is hard to gauge who to believe in all of this.

**Shol'va** · 12-20-2012, 08:30 AM

Originally Posted by Times Roman

cool. now sell me gas at $2/gallon and I'll be impressed.

TR I just filled up here in KC at 2.92 a gallon. And got a 5 cent discount using cash! So it's getting better on it's own. My only Q is why can't it stay this price year round or even cheaper. They claim since we are centrally located it's cheaper for us. I say bS.

**wmaousley** · 12-20-2012, 11:46 AM

Originally Posted by Flagg

There are so many fragmented "scoops" out there.

Only two days ago did I read that in 10 years time, coal will take over from oil. I've also been led to believe that China had the worlds greatest coal reserves (100 years worth). Now im reading that the US has the worlds largest coal reserves. Then I read that the US will be the worlds leading oil producer in a few times. Im also reading that the UK is going to start fracking methods to get to our own fossil fuel reserves (of which I thought we had none). Then I read that Germany had these massive coal supplies somewhere.

It really is hard to gauge who to believe in all of this.

Well i stood less than 5ft away from Steven Chu when it was announced. This really explains why all the IOC's pulling much of their best international resources from Asia, Middle East & South America back to the United States.

Brightsource Energy has built the largest CSP plant in the world in Bakersfield with only one purpose, to extract heavy oil. Glasspoint Solar is doing the same. Then you have Chevron, Conoco Phillips, Marathon acquiring offshore permits for GoM exploration/production.

Several other EPC/PMC companies have started the FEED stages the largest steam plant ever to be built in the states to extract Heavy Oil from the oil sands that cant be mined.

There is really so much activity now focused on the US oil market we are having difficulty finding resources here in the middle east.

GUYS MAJOR oil boom means a hell of a lot of jobs that pay 6 figures a year. 28/28 rotation, paid time off.