Massive Oil Deposit Could Increase US reserves by 10x

[tehmackdaddy]

[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.[/SIZE][/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]In the next 30 days the USGS (U.S. Geological Survey) will release a new report giving an accurate resource assessment of the Bakken Oil Formation that covers North Dakota and portions of South Dakota and Montana. With new horizontal drilling technology it is believed that from 175 to 500 billion barrels of recoverable oil are held in this 200,000 square mile reserve that was initially discovered in 1951. The USGS did an initial study back in 1999 that estimated 400 billion recoverable barrels were present but with prices bottoming out at $10 a barrel back then the report was dismissed because of the higher cost of horizontal drilling techniques that would be needed, estimated at $20-$40 a barrel. [/SIZE][/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]It was not until 2007, when EOG Resources of Texas started a frenzy when they drilled a single well in Parshal N.D. that is expected to yield 700,000 barrels of oil that real excitement and money started to flow in North Dakota. Marathon Oil is investing $1.5 billion and drilling 300 new wells in what is expected to be one of the greatest booms in Oil discovery since Oil was discovered in Saudi Arabia in 1938. [/SIZE][/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]The US imported about 14 million barrels of Oil per day in 2007 , which means US consumers sent about $340 Billion Dollars over seas building palaces in Dubai and propping up unfriendly regimes around the World, if 200 billion barrels of oil at $90 a barrel are recovered in the high plains the added wealth to the US economy would be $18 Trillion Dollars which would go a long way in stabilizing the US trade deficit and could cut the cost of oil in half in the long run.[/SIZE][/FONT]

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Now, I'm a little skeptical about falling gas prices (why would Big Oil drop prices very far?), but I'd rather buy gas refined from domestic oil than foreign oil, and I'd like to stop sending money to terrorist sponsoring states. It would also feel nice to tell the M.E. .

Looking at the low end of the spectrum (175 billion barrels), and considering that the U.S. imports 14 million barrels a day, this reserve is a 35 year supply, if recoverable estimates hold true.

 

[BY1401]

Now, I'm a little skeptical about falling gas prices (why would Big Oil drop prices very far?), but I'd rather buy gas refined from domestic oil than foreign oil, and I'd like to stop sending money to terrorist sponsoring states. It would also feel nice to tell the M.E. .

Food for thought:

If $40 is the high end to be economically justifiable, does O.P.E.C. have what it takes to increase supply enough to drive the ppb below the reservation price for these potential new operations?

Also, would the U.S. be better off over the long-run to sit on this reserve and wait for the Middle East to run dry? Of course, by the time that happens, what will alternative energy use in the U.S. look like?

Any idea how much of this oil field is on public property and how much is on private?

 

[Claremonster]

Forget it. The dirty smelly hippies will never let us actually drill for this oil, so it's a moot point.

 

[babalu87]

$3.00/gallon gasoline is here to stay

 

[tehmackdaddy]

My guess is that if the public becomes aware we have a 35 year supply of oil sitting underneath us, hippies won't be able to stop the public from getting what they want.

 

[tehmackdaddy]

Food for thought:

If $40 is the high end to be economically justifiable, does O.P.E.C. have what it takes to increase supply enough to drive the ppb below the reservation price for these potential new operations?

I don't think so. I believe the high prices we have begun to see over the last half decade are a realization by OPEC countries that the western world is determined to find an alternative energy source, and they want to make their money while they can.

Also, would the U.S. be better off over the long-run to sit on this reserve and wait for the Middle East to run dry? Of course, by the time that happens, what will alternative energy use in the U.S. look like?

Exactly. The proposed timeframe gives us 35 years to develop and implement that alternative fuel.

Any idea how much of this oil field is on public property and how much is on private?

I don't know.

 

[dchester]

My guess is that if the public becomes aware we have a 35 year supply of oil sitting underneath us, hippies won't be able to stop the public from getting what they want.

I wouldn't be so sure. There's plenty of untapped oil in Alaska, and they've stopped us from going after most of that.

 

[Claremonster]

My guess is that if the public becomes aware we have a 35 year supply of oil sitting underneath us, hippies won't be able to stop the public from getting what they want.

Never underestimate the power of dope-smoking, granola-crunching, tree-hugging, environmental terrorists who smell of Cheetos and Ass...

 

[mikiemo83]

Poor, Poor Drew Bledsoe, Drilling in his back yard begins soon

 

[Steve-o]

Well, it is good news for the reasons you mentioned. Of course, Israel belongs high up on the list of terrorist-supporting states that we support, IMO.

However, it doesn't eliminate the need for renewable fuel sources. It only delays the urgency a bit.

 

[Undertaker #59*]

I don't think so. I believe the high prices we have begun to see over the last half decade are a realization by OPEC countries that the western world is determined to find an alternative energy source, and they want to make their money while they can.

As someone with some financial background, how much do you think the weakening dollar has to do with the price of oil? In one of the presidential debates I saw, Ron Paul made some kind of point about returning to the gold standard and that the price of oil hasn't gone up by all that much if you compared its price to that of gold.

 

[Baron Samedi]

As someone with some financial background, how much do you think the weakening dollar has to do with the price of oil? In one of the presidential debates I saw, Ron Paul made some kind of point about returning to the gold standard and that the price of oil hasn't gone up by all that much if you compared its price to that of gold.

The US Dollar has been plummeting for at least 5 years. That has a LOT to do with the price of oil. It is not the sole reason, but It is the main reason for the oil going from $70 a barrel to $100 a barrel. Most of that increase is the result of a failing Dollar.

Oil is still overpriced..the geo-political situation is probably accountable for about 10% of the total price of oil, IMO.

 

[O.Z.O.]

Now, I'm a little skeptical about falling gas prices (why would Big Oil drop prices very far?), but I'd rather buy gas refined from domestic oil than foreign oil, and I'd like to stop sending money to terrorist sponsoring states. It would also feel nice to tell the M.E. .

Looking at the low end of the spectrum (175 billion barrels), and considering that the U.S. imports 14 million barrels a day, this reserve is a 35 year supply, if recoverable estimates hold true.

'Big Oil' has very little to do with the price of gas. It's largely dependent on the amount of taxes appiled to it.

I also believe that OPEC doesn't have the level of price control over oil that many believe. Much of that is driven by a combination of speculation and the falling value of the dollar.

 

[Flagg the Wanderer]

Forget it. The dirty smelly hippies will never let us actually drill for this oil, so it's a moot point.

Even environmentalists don't care about North Dakota...do they?

 

[tehmackdaddy]

I wouldn't be so sure. There's plenty of untapped oil in Alaska, and they've stopped us from going after most of that.

Never underestimate the power of dope-smoking, granola-crunching, tree-hugging, environmental terrorists who smell of Cheetos and Ass...

Agreed, but we're talking 400 billion barrels vs. 4.3 billion barrels...100x more! Tell the average American that we can drill and consume only our own oil for the next four decades, and you'll see how many fewer "environmentalists" we have.

 

[tehmackdaddy]

'Big Oil' has very little to do with the price of gas.

They do if the own a major stake of or are in partnership with whomever owns this ginormous oil reserve.

I also believe that OPEC doesn't have the level of price control over oil that many believe. Much of that is driven by a combination of speculation and the falling value of the dollar.

Being completely independent of foreign sources of oil would end (sort of) U.S. speculation. Add to that the enormous boost our economy would get from producing, refining, and selling this oil, and voila, our dollar strengthens. Never underestimate the power OPEC has over the price of gas/crude, though. If OPEC was subject to U.S. law, every member country would be in jail for collusion.

 

[tehmackdaddy]

As someone with some financial background, how much do you think the weakening dollar has to do with the price of oil?

The U.S. dollar has historically influenced many commodities, including crude oil. I'm in the camp that believes the weakening dollar is helping (note: "helping" not "causing" or "completely responsible for") spike current oil prices. It's also a catch 22 type situation. The weakening dollar is assisting the current spike in oil prices, then the profit from oil (called "petrodollars") that traditionally would be reinvested into U.S. dollar denominated investments are instead being invested elsewhere in the world (the most dramatic increase recently has been the Euro), causing the dollar to weaken more.

In one of the presidential debates I saw, Ron Paul made some kind of point about returning to the gold standard and that the price of oil hasn't gone up by all that much if you compared its price to that of gold.

While personally I agree with the idea of returning to the gold standard, I very highly doubt we'll ever see that happen.

Edit: gold is another commodity that is influenced by the U.S. dollar. Notice how it has magically seen record prices (without adjusting for inflation) recently? It isn't magic, it's the meers.

 

[BY1401]

If OPEC was subject to U.S. law, every member country would be in jail for collusion.

Isn't that what the "C" stands for?

 

[tehmackdaddy]

However, it doesn't eliminate the need for renewable fuel sources. It only delays the urgency a bit.

Not at all, though I do fear that if this reserve pans out with even a fraction of what it could be, Americans will get lazy again and put off developing alternative, clean fuel. The powers that be can't let that happen. It doesn't change the fact that our economy would take a huge shot of steroids in the arm if we bought our own oil, and likewise the M.E. wouldn't profit from our "addiction" to oil. That's a big hit for them.

 

[Patriots44]

While I tend to lean toward the environmental side of things, I'd be all for this as long as we do not - as Tmack said - get lazy and delay development of alternative energy sources.