Some good news for US afterall. If the reported find is able to ease the oil pressure by even 20% for the next 20 years, it will bring a big relief to the free global economies and even help thwart/negate the 'depression talks' going around in media circles at increasing rates. http://articles.moneycentral.msn.com/Investing/SuperModels/DakotaOilPersiaOnThePlains.aspx Excerpt: Western North Dakota and western Pennsylvania, by which I mean the middle of nowhere, are on track to become the center of the universe for energy companies over the next few years as geologists, speculators and attorneys battle for control of two of the most important and unusual oil and gas finds of the past three decades.
Quote from toc: If the reported find is able to ease the oil pressure by even 20% for the next 20 years, Dream on. Without reading the article, I call bullshit. This would be all over the news if it was true... Not to mention oil would be selling 10$ lower... Excerpt: Western North Dakota and western Pennsylvania, Interesting, I live here and I heard nothing. Must be my fault. I promise to take a look at the link and show you the problems with it...
I promised so here it is: About North Dakota: "Experts figure it will yield 270 million to 500 billion barrels of oil over its lifetime, " Mind you it is such a fucking big range like me saying: You are going to make between 1 dollar and 2000 dollars per day. Slight difference, shall we say??? Now let's put it in perspective, so everybody understands this. The US is using 7.5 billion barrels per year, so even if this field yields 10 billion barrels (highly speculative), it would be used up in 15 months, if we get the oil just from that source... Depending on how long I calculate its useful lifespan let's say 30 years, I get 30 x 12 / 15 = 4% The point is, it will help, but it won't help that much without knowing the actual reserve and drillable quantity...
"show us the problems?" Anything that does not square with your mantra that we are at Peak Oil, will draw your disagreements, whether you are right or wrong. And that is your basic problem. You are wrong on both counts about the Oil Finds. Try to read the news, and not use your own posts as your primary information source. You are basically a Peak Oil Whack A Mole... New Technologies WHACK WHACK!! NEVER!! New Finds WHACK WHACK!! NEVER!! Alternative Energy WHACK WHACK!! NEVER!! Oil Sands/Oil Shale WHACK WHACK!! NEVER!! Better Usage of Existing Fields WHACK WHACK!! NEVER!! Increased use of Existing technologies (Coal, Nuclear, etc.) WHACK WHACK!! NEVER!! Pekelo is wrong about Peak Oil WHACK WHACK!! NEVER!!
These aren't new finds. These are well explored, well known formations that are extremely difficult and expensive to develop. Investors in these plays clearly believe that $80+ oil is here to stay, certainly they don't expect "relief" for oil shortages.
This find is not bad either... the field increases TOTAL US reserves by ~50%. Anyway, I like horses. http://www.washingtonpost.com/wp-dyn/content/article/2006/09/05/AR2006090500275.html
The problem with US is the cost of labor for extraction of these new finds. If the costs are brought down the oil will be available and reduce the reliance on foreign sources. Just like Airline industry, at one point it was declared that costs cannot be brought down but then new models and employee contracts always found ways to make themselves viable. Same for any other industry. There is also huge amount of Coal in Montana, so if US finds cheaper labor, the Peak Oil will become a NO POSSIBILTY as these new sources will carry the day for next 20 years and by then new and alternative technologies will be invented and put to work.
Unless the machinery already in place and authorization and permits are given I would expect then years to reach full production. Smaller oil companies are notorious for overstating production of wells. Worst that can happen to them is the well didn't produce as expected. Sorry investors maybe next time.