Peak oil.....this play is tight

[macker]

http://www.forbes.com/sites/christop...nov-shale-oil/

[Daradon]

Nice article, not sure what you are trying to say though.

[HPLovecraft]

I came in here expecting this to be a funny play with people dressed up in peak oil costumes, but I left disappointed.

[Locke]

Yes.

[macker]

Originally Posted by Daradon

Nice article, not sure what you are trying to say though.

That we have enough oil

[flamesfever]

Oil cannot be considered part of reserves until it can be produced economically. These tyes of plays have been known for long periods of time. There is a huge list of factors that have to come together to make oil economic, like price for oil, markets, depth of burial, drilling and production costs, ability to produce by fracing, weather, access, pipelines, refining, government royalties, etc.

Part of the problem for the oil industry has been, because the oil business is so complex, it is next to impossible to explain how the industry works to the average person.

[Daradon]

Now your getting closer, but it's still not very specific? Is this an anti-oilsand statement? We have enough so we don't need to mine that?

Still not sure where you're going.

I was actually told a few years back by a high ranking Exxon Mobil official that there is probably more oil left to discover, than has actually been drilled and mined so far in human history. A lot more. It's not even close. That there is no real shortage. Modern surveying techniques have yielded more wells and sites than can be drilled right now. Where before a lot of luck was involved, it's not so much anymore, and that there is lots left. A lot of the demand is because of speculators, politics, and just the cost of drilling itself (and I have to assume the oil companies themselves, though of course this person never went that far.) Yes we use more right now, but there is no real shortage as far as potential supply goes. (Shortages can obviously exist based on availability and how much we can drill for at any given time.)

So I can't really disagree with your last comment, I have to wonder why you brought it up.

[macker]

I guess it is relevant to the area that we live....with the price rolling over a bite here you have to ask yourself. We have more oil than we know what to do with. Saudi America will be exporting more oil than Iran by 2020 and you can see where things are going with deals being signed :
http://www.ft.com/intl/cms/s/0/9331b...#axzz1yA4Rzptt

The US is going to be the low cost country for energy production and are quickly moving towards energy independence. This is the result of perfecting horizontal completion. Things change quickly obviously as there was so much talk about peak oil just 5 years ago. These books are worthless http://www.amazon.ca/Top-quot-Peak-O.../R7LZT4SXXGVII

[Daradon]

So this is really just a B**** about gas prices?

Really?

Bah, I don't mind them being high. It's gets people to make smarter choices at the very least.

Let me put your mind at ease, gas prices will always seem way too high.

[Daradon]

Well that's all I'm asking.

What are you saying macker?

[macker]

Originally Posted by Daradon

So this is really just a B**** about gas prices?

Really?

Bah, I don't mind them being high. It's gets people to make smarter choices at the very least.

Let me put your mind at ease, gas prices will always seem way too high.

Not sure what you are trying to guess that I am getting at but about gas prices......they have peaked for the year imo. Doesn't hurt that the passive investor has been knocked out of the market so that you don't have trading banks like JP Morgan doing what they were doing in 2009 playing with Contango and sitting on 30-40 million barrels of oil. Takes two to Contango....

[Daradon]

Originally Posted by macker

Not sure what you are trying to guess that I am getting at but about gas prices......they have peaked for the year imo. Doesn't hurt that the passive investor has been knocked out of the market so that you don't have trading banks like JP Morgan doing what they were doing in 2009 playing with Contango and sitting on 30-40 million barrels of oil. Takes two to Contango....

I can only guess because you are being so obtuse. Do you want to make a point, or are you just stirring a pot (that you are creating)? Your first post doesn't even have text and your thread title is confusing.

The funny thing is I don't even know if I agree or disagree, cause I don't know what you are saying. I do know the term 'peak oil' was probably wrong, but I didn't need you or that article to tell me that.

[bizaro86]

Originally Posted by macker

Saudi America will be exporting more oil than Iran by 2020 and you can see where things are going with deals being signed :
http://www.ft.com/intl/cms/s/0/9331b...#axzz1yA4Rzptt

I got redirected to FT home when I clicked that link, and I'm not sure where this sentence is going. Are you talking about Saudi Aramco, or South America, or what? Because I'm pretty sure Saudi Arabia (and their national oil company Saudi Aramco) already export more oil than Iran.

[Bill Bumface]

I don't think we'll ever "run out of oil". Just the alternatives will become cheaper and it will slowly tail off.

[macker]

Originally Posted by bizaro86

I got redirected to FT home when I clicked that link, and I'm not sure where this sentence is going. Are you talking about Saudi Aramco, or South America, or what? Because I'm pretty sure Saudi Arabia (and their national oil company Saudi Aramco) already export more oil than Iran.

Saudi America is a term I lifted from Phillip Verleger......http://www.pkverlegerllc.com/ So yep......I meant what I said. With America having all this new oil it will impact things globally and locally......http://business.financialpost.com/20...ojects-report/ Add the Russian fields and horizontal completion and the term Peak Oil is laughable.

[Thor]

If I ever hear people in the US or Canada complain about gas prices, I want to cry.

$2.20 a liter in Iceland bitches.

[Daradon]

Originally Posted by Thor

If I ever hear people in the US or Canada complain about gas prices, I want to cry.

$2.20 a liter in Iceland bitches.

Yeah but how far are you driving?

It's like 45 minutes from one coast to the other...

Not to mention significantly less people to visit!

[Thor]

lol true, but for my truck its $200 to fill it, and I go through that in 2-3 weeks.

[HPLovecraft]

Originally Posted by macker

Not sure what you are trying to guess that I am getting at but about gas prices......they have peaked for the year imo. Doesn't hurt that the passive investor has been knocked out of the market so that you don't have trading banks like JP Morgan doing what they were doing in 2009 playing with Contango and sitting on 30-40 million barrels of oil. Takes two to Contango....

Are you saying we've reached . . . peak gas?!

[Daradon]

Originally Posted by Thor

lol true, but for my truck its $200 to fill it, and I go through that in 2-3 weeks.

Haha, actually I may have more of a point than I thought.

When I last drove regularly I would go through a tank in 5-6 days. Easily 5 times a month. And that's really just city driving. Mind you I lived in the S of Cowtown and worked in the N, but you get my point. I also worked in outside sales, I'm not sure how much you used your truck for work.

Now it only cost about $50, but that was in the 90 cent region, and it's closer to 1.15 now. So in today's prices it would be closer to $70.

So all in, we are looking at basically the same cost between us.

Calgary is so sprawling it's gross. And I know, that's our problem. I've spoken against it before. But it is what it is. I'm just saying, when you are comparing a city of 1.1 mill and the second biggest country in the world, to a city of 200,000 and one of the smallest countries in the world, you can't look at just price.

I'm sure there are others that use it more than you though, so price is still an indicator of value.

Hah, I guess I don't know what I'm saying other than, it's not as simple as it seems. Obviously a trucker in Iceland doesn't have to worry the same way a trucker in Canada would have to, even after the difference in price.

Well I guess miles driven would factor into the equation, still it's a huge cost.

I probably don't know enough about either situation to properly compare. Only what mine was.