Nox, about that peak oil
Same science that tells us man made global warming and Bruce Jenner is a girl.
In a troubled oil world, the Permian Basin is the gift that keeps on giving.
One portion of the giant field, known as the Wolfcamp formation, was found to hold 20 billion barrels of oil trapped in four layers of shale beneath West Texas. That’s almost three times larger than North Dakota’s Bakken play and the single largest U.S. unconventional crude accumulation ever assessed, according to the U.S. Geological Survey. At current prices, that oil is worth almost $900 billion.
The estimate lends credence to the assertion from Pioneer Natural Resources CEO Scott Sheffield that the Permian’s shale could hold as much as 75 billion barrels, making it second only to Saudi Arabia’s Ghawar field. Irving-based Pioneer has been increasing its production targets all year as drilling in the Wolfcamp produced bigger gushers than the company’s engineers and geologists forecast.
“The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” Walter Guidroz, coordinator for the geological survey’s energy resources program, said in the statement.
Re: Nox, about that peak oil
I was aware of that announcement when involved in the conversation.
BTW, the conversation was about Chanos' short position on the sector and specifically he mentioned Pioneer which this is virtually a press release for.
This is tight oil which means it is going to have to be fracked. That means that a few trillion gallons of water will be permanently removed from the hydrological cycle if economics ever permit it to ever be even partially exploited. And I guess we can send the wastewater to Gov. Fallon in OK to be injected. Now that is sort of a funny thought.
Similar claims have been made for the Bakken. But even with a decent run with higher prices, it has been a net financial loser. Whatever the ultimate economically extractable resource is-no doubt less than those gushing claims of the past-now the drillers are down to just hitting around the sweet spots where there has been some known success nd trying to at least meet interest payments.
Similar resource claims were also made about Brazil deepwater and like and were also generally recieved as wonderful news, and I guess only communists would point out that lifting oil through 5000 feet of water takes a lot of energy (trust me, it is a physics thing) and getting net energy is sort of the point. Woohoo, party on!
This sort of fits somewhere between Joe the Plumber and Fake News, but good news for those who need to think that the world will accomodate their priveleges indefinitely.
Re: Nox, about that peak oil
It is nice to think that with the application of some intellgence the world might actually accomodate our priveleges for uite some time.
But engaging in passionate self deception won't help.