THE DEATH OF THE BAKKEN FIELD HAS BEGUN: Big Trouble For The U.S.
An interesting, and sobering, review of how and what is going on in the energy market, and how it will play out in the next few years. As usual, all the politicos are late to the party (wanting to build pipelines, etc) and will blow billions on something whose need is past.
I'm sure they will pay off quite well the next time Saudi or Iran decides to embargo us.
In a free market wouldn't it be sensible to reduce production when prices drop precipitously as oil and gas prices have in recent years?
Besides that free market fact, the discoveries of other such fields (possibly even larger) that are as yet untapped are ignored by the author and adds to the irrationality of the author's conclusions.
I think there may be reason to doubt the entire hypothesis that oil and gas are the result of fossil decay, and hydrocarbon fuels may have a different, possibly renewable, source. I am open minded on the topic.
Production HAS gone down as prices are reduced and demand has fallen. The free market has taken these steps.
My comment on renewable energy was based on the possibility of hydrocarbon fuels comming only from decay of fossils being wrong, and the possibility of hydrocarbon fuels being created (renewed) by natural forces within the earth instead of or in addition to fossil decay.
For example:
http://principia-scientific.org/russi...
http://www.wnd.com/2008/02/45838/
I defend neither of these theories of the source of hydrocarbon fuels, but I think either or both could have validity.
The recent decline in oil prices was caused by the Saudi's flooding the market to try to preserve their market share. This action is the result of the tremendous success of fracing. Saudi actions have slashed cap ex for exploration and production co.s in the US and giving time for the Global Warming crowd to build momentum against our countries vast resources and energy industry.
I have often wondered how so many fossils and plants could have died and been deposited 4 miles under the sea floor that is 2 -3 miles under the surface of the ocean!
Regards,
DOB
Ingenuity will win out if left unmeddled by looters.
Personal note: Those of us who have worked in the gas/oil extraction business long enough, know the boom/bust cycle exists. And how to work it. From 1981 to Feb 1983, I was a company driver outside of Lysite, Wyoming, and made (and saved) enough to pay for my Doctorate at the U of Wyoming.
When hauling tankers in the Pinedale Anticline from 2006-2010, my best year as an owner/operator was a gross of $246,000. A coworker, went to the Bakken, started a hauling business and at his peak, had 117 trucks running for his company, grossing $3,000,000+ per month. The key factor is to KNOW that the bust is coming and plan accordingly.
I would liken this article to the stories in the 70's that said at present growth rate of consumption extrapolated forward we would run out of oil by the end of the century. The price shock of a drop from $125 to $30 now $45 is what has caused the cap ex cuts and the decline in production not the lack of oil.
With Regards,
DOB
I just hope the feds are prevented from buying up Bakken land so that some future Democrat or Green administration can decide that its oil will never see the light of day.
Since the price collapse the cost of mineral rights the cost of drilling rigs and improvements in fracing is already bringing the expense of exploration down significantly. See what the E&P co Pioneer Natural Resources has done. The industry is experiencing bankruptcies for the over levered. Those assets purchased 4 to 5 years are liquidated and sold based on current market conditions i.e.: price of oil and estimated or provable reserves.
With regards,
DOB
I'm sure glad that some folks in the Gulch know what's going on.I would have taken the article at face value until I had a chance to check on it, you guys have done it for me. Three Huzzahs!
If we could get the transportation industry change fuel to natural gas instead of gasoline that would slow the depletion of US oil fields.
I also feel that corn, aside from a few ears during summer, should die a slow death. It's NOT cost effective, uses up a ton of natural resources in the ground and is not particularly healthful for humans nor animals...it's for the birds, perhaps.
Here is a web site with peakoil as its name.
The usual carbon climate alarmist content, Noam Chomsky is interviewed on global warming. .
The third comment down says it all-
" These are just lies propagated to try to pump up the price of oil, which is way down and suffering from a glut on the market "
Hark! To say, drill, baby, drill, or not to say, drill, baby, drill, that is my question.
haven't you heard; believe nothing of what your read (ayn rand is the exception) and only half of what you see!
Use pre-selected points from new advanced technology to inject super cooled butane at the most optimum "pay zones " franc the rock to free the Texas tea.
Those of you who don't get what I'm saying watch the end of the original Poltergeist when it turns out that the house sets upon a graveyard concealed by the real estate developer.
Me dino did not see the remake because they almost always stink.
The remake for The Night of the Living Dead is a wonderful exception.
The Village of the Damned remake is fair to middlin'..