US oil reserves could grow by 50%.

[dinaros]

U.S. Oil Reserves Could Grow by 50 Pct.: Financial News - Yahoo! Finance (http://biz.yahoo.com/ap/060905/major_oil_discovery.html?.v=16)

[pearse1916]

U.S. Oil Reserves Could Grow by 50 Pct.: Financial News - Yahoo! Finance (http://biz.yahoo.com/ap/060905/major_oil_discovery.html?.v=16)

if im not wrong i heard on the news that they have found a huge un tapped reserve this week

[Count Dinar]

if im not wrong i heard on the news that they have found a huge un tapped reserve this week

Yes Chevron and Devon Energy Corp. have hit it big. In a "lower teritiary" well they estimate between 3-15 Billion barrels of oil. And just out today they say that the 3 billion barrels is really low balling it. We might very well see $2.00 gallon gas again. Very good news....stocks are booming. DVN is up 7 points today

[Pimpmaximus]

Count Dinar wrote:

Yes Chevron and Devon Energy Corp. have hit it big. In a "lower teritiary" well they estimate between 3-15 Billion barrels of oil. And just out today they say that the 3 billion barrels is really low balling it. We might very well see $2.00 gallon gas again. Very good news....stocks are booming. DVN is up 7 points today


Not a chance of seeing 2 dollar gas again. This pocket is in the middle of the Gulf of Mexico under 7000 feet of water. Oh, they also had to drill through another 20000 feet of rock to get to it. This is not the sort of find which will lend itself to barrels of oil which cost less than $10 each.

Yes they did find a lot (5-15 billion barrels is the early estimate....), problem is getting it out in large enough quantities so as to make it cost efficient. This definitely doesn't point towards $2.00 gas........

[peakoil]

U.S. Oil Reserves Could Grow by 50 Pct.: Financial News - Yahoo! Finance (http://biz.yahoo.com/ap/060905/major_oil_discovery.html?.v=16)

Do not party too fast!
1. 5-Miles under water and another 5-below ground.
2. Extremely expensive to bring to market
3. Won't be ready till 2010
4. Hurricane Alley.
5. Only 15 billion barrels a mere 2 years supply at best.

iRAQ IS STILL PRIME OIL COUNTRY!:happy64:

[RogerL]

Do not party too fast!
1. 5-Miles under water and another 5-below ground.
2. Extremely expensive to bring to market
3. Won't be ready till 2010
4. Hurricane Alley.
5. Only 15 billion barrels a mere 2 years supply at best.

iRAQ IS STILL PRIME OIL COUNTRY!:happy64:

I disagree with point #5. Saying it's only a two year supply is extremely misleading. It's the same argument made against drilling in ANWAR, which contains estimates of over 10 billion barrels. If we were to cut off all drilling from every other source in the US and refused to buy a single barrel from anyone else in the world including our two biggest foreign suppliers, Canada and Mexico, you can make a claim that those reserves may only run the US for two years.

It's misleading since you can also make the claim that we shouldn't drill anywhere in the US or its territories because 100% of our current reserves (excluding this new find) would only run the US for four years. Anyone think we're going to be out of oil in four years? No, because we're not dependent on just a single source of oil.

We're now almost 60% dependent on foreign oil. Just getting a few million barrels out of ANWAR and the newly discovered reserves a day would significantly reduce our daily dependence and could significantly reduce the price of oil in the markets as worldwide demand continues to rise while new oil production cannot keep up.

Our current consumption is about 20 million barrels a day while we produce about 9 million barrels a day. Imagine if we could squeeze out just 3 million barrels a day from both ANWAR and this new discovery. We could cut our dependence on foreign oil significantly. I'm not going to claim how much since I don't know what our oil consumption will be in 2010 nor what our production nationwide will be at that time either, but every few million barrels per day helps a lot.

If we don't drill in ANWAR or in this new area of discovery or in any other new area, just imagine what our oil dependence will be. That almost 60% isn't going to go down if we refuse to access our own oil. And if we don't use it, someone else may. Cuba's already drilling sideways into OUR oil reserves in the Gulf because we refuse to.

As for point #2, sure it could be expensive. But with oil sitting at $68/barrel, it's worth it. Companies are looking into tapping into very expensive to produce oil shale in the midwest because the current price of oil is making it profitable to do so. We probably wouldn't do it at $15/barrel, but we may never see that amount again.