OIL RESERVES

What makes the  people of the US so stupid with all the College and university professors  students etc. etc,  oh i forgot to mention

all the fools in the government that run the country, for all of these men and women who are either lawyers or equivalent, you would think for a minute that they have  a bit  of

common sense,  not a lot because that would be  to taxing on their brains, and they could hurt themselves if they think too much

The US has approx 200 billion,  not  million, thats billion barrels of oil in reserve in the  USA,  why would these idiots want to buy oil from 

countries that their people want to KILL US,  IF THE US GOVERNMENT WOULD USE THE OIL THAT IS HERE CAN YOU IMAGINE

THAT THEY WOULD HAVE SO MUCH MONEY, NO ONE WOULD HAVE TO EVER PAY TAXES, but that would be too easy,

DID YOU KNOW that at 10 million barrels a day the US reserve is good for 55 years,  but IN 25 TO 40  YEARS  OIL WILL BE OBSOLETE  TO THE DEGREE IT IS BEING USED 

TODAY ,  WHAT THEY DO NOT TELL ANYONE IS THAT OIL IS A CONTINUOUS RESOURCE, WHICH WILL NEVER STOP REPRODUCING

How can Saudi Arabia pull out 10 to 20 million barrels of oil  a DAY,  NOT A WEEK OR A MONTH, BUT A DAY,  This is the greatest con game going like most of the commodities

SHORT AND SWEET   OIL IS WORTH $15 TO $20 A BARREL OR LESS  CASE CLOSED. !!! 

 

 

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Name  Normy Burns

  • Glasgow Scotland
  • retired
  • retired
  • 50
  • Commodity

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Ummm.....ok

  • Haha 1

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2 hours ago, Normy said:

SHORT AND SWEET   OIL IS WORTH $15 TO $20 A BARREL OR LESS  CASE CLOSED. !!! 

Welcome Normy:

I am not sure about all of the various numbers you have presented.

As more knowledgeable members review your post,  they will point out any incorrect numbers if any.

As for your conclusion,  $15 to $20 per barrel,  i believe that translates out to about $ .95 cents to $1.10 per gallon of gasoline at the pump.

When i first started driving long ago,  the price of gasoline was about $ .17 cents per gallon.

I believe we will be lucky at the current cost of "crude production, crude transportation, crude refining, and gasoline transportation to retail stores" to keep the cost per barrel down to the current $45 that it is today,  which translates to $1.92 per gallon.

It is possible that technology upgrades may help keep things low in the future,  but we are not there yet.

Then there is the "cost of the money",  the "cost of financing" all of these rigs, shale, and wells, etc.

It all adds up.

As for why we export so much,   that is a recent development:

(1)  we export to take away market share from OPEC,  so as to weaken OPEC,  and strip it of its monopoly over oil,  which gives us a seat at the table as far as controlling our own cost of production,  and cost at the pump.

(2)  we export because we have various crude blends that are wanted around the world.

(3)  there are many blends of crude from around the world,  each has different refining costs, each has different uses.  Even if we produced all of our own gasoline,  we would still be importing certain crudes from overseas,  as we would need them for uses other than gasoline.

 

These are just my scattered thoughts based on your statement.

Again,  welcome to the site.

It has been a long day,  so i am going to bed.

Good night.

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Normy - don't agree with anything in your post but it started me thinking about EIA and there proven reserves estimates of oil reserves in America.  Below is their chart.  I assume the increase in 2010 is oil shale because America has not discovered anything else.  So the EIA have attributed half of Americas proven reserves to a oil play that does not turn a profit!  Do the EIA have there reserves calculations and assumptions audited by professional auditing firms? 

 

chart.png.fd25136bc35a565fb701e21d6294dee8.png

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1 hour ago, NWMan said:

Normy - don't agree with anything in your post but it started me thinking about EIA and there proven reserves estimates of oil reserves in America.  Below is their chart.  I assume the increase in 2010 is oil shale because America has not discovered anything else.  So the EIA have attributed half of Americas proven reserves to a oil play that does not turn a profit!  Do the EIA have there reserves calculations and assumptions audited by professional auditing firms? 

Shale Oil Keeps Growing on Trees

 

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Yea, I have seen these ridiculous numbers from the United States Geological Society (USGS) which the EIA publish leaving out all the ifs and buts.  I believe they can publish what they want.  What I can understand is that, the accounts of shale oil companies must have proven reserves.  If these are public companies then a professional company (auditors) must have signed these reserves off as proven.  People invest in these companies based on this assurance - If in fact it can be shown that these reserves are not proven because of profitability (over several years) then these audit companies are liable for losses incurred by shareholders.

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What I can't understand

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I have just looked up a shale oil companies accounts and they do have proven reserves around 200 MBoe. 

The same company defines reserves as defined by the SEC

"Estimation of Proved Reserves. Under SEC rules, proved reserves are those quantities of oil and natural gas, which, by
analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a
given date forward, from known reservoirs and under existing economic conditions, operating methods and government
regulations"

Does this company have proven reserves if it did not make an operating profit last year producing this oil?  

 

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2 hours ago, NWMan said:

Yea, I have seen these ridiculous numbers from the United States Geological Society (USGS) which the EIA publish leaving out all the ifs and buts.  I believe they can publish what they want.  What I can understand is that, the accounts of shale oil companies must have proven reserves.  If these are public companies then a professional company (auditors) must have signed these reserves off as proven.  People invest in these companies based on this assurance - If in fact it can be shown that these reserves are not proven because of profitability (over several years) then these audit companies are liable for losses incurred by shareholders.

 

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(edited)

Normy, let’s get few facts straightened out.

1) The U.S. shale oil release to world market will definitely be seen by oil watchers, as a “sinister” move to wrest U.S. dominance control of oil/oil price to demolish Saudi-Russia alliance/collusion, to keep oil prices down in order to cut down the revenue of these countries pegged by a monopolistic oil-sales based economy, thus weakening their power. But the basic assumption is at risk. Will shale oil ever sell in competing with OPEC light crude, considering the severely limited refinery capacity in the U.S.? The U.S. has not built a substantial number of new refineries the last 40 years, a genuine complaint among U.S. oil salesmen. The current price drop is due to manipulation of spot market coupled with tanker fleet capacity.

Interestingly, the non-oil producing developing countries and the U.S. are aligned in sharing the objective of keeping oil prices low, though for totally different reasons. The U.S. seeks dominance and poor countries seek survival.

2) The U.S. Strategic Reserves of Petroleum, the highest on Globe, stand at 654.840 million barrels as of October 18, 2018 (U.S. Energy Information Administration) compared to those of a developing nation like India’s at 34.6 million barrels. Although rules were against, the Clinton govt. once released a good part of it to produce oil glut to reduce prices, a game China and India can ill-afford. But Shale is another kind of buffer reserve. Going back on U.S. policy not to sell U.S. oil overseas, the present govt. is inviting energy insecurity for the long-run.

3) A far better wise option would have been: a) To keep the shale oil for posterity, but sell alternative energy technologies (in which U.S. is an unsurpassed world pioneer and master) to emergent and developing economies that could more effectively downsize the oil revenue structure, hence oil price for the long shot.  Thanks to the soaring Global energy demand with a population currently at 7.7 billion, such a policy would have jump-started more jobs in millions in the U.S. than what U.S. defense industries could  ever dream of. Instead, an obstinately imprudent Trump has derailed alternative energy growth and research to rot and vanquish. Additionally, such an option would have reduced colossally oil-industry based emissions worldwide by the switch to alternatives.

George Chakko, ex-U.N. correspondent & oil watcher, now retiree in Vienna (Austria).  

Vienna, 01/ 01/ 2019    14:24 hrs CET

Edited by gchakko

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