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Petroleum reserves Pt. 2 (merged)

Discussions on Energy (only) news. This includes oil, coal, gas., etc.

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Re: Elgin platform disaster

Unread postby rockdoc123 » Fri 30 Mar 2012, 10:21:05

I really hope TOTAL gets lucky here and that this thing seals itself off as you predict. That, however, does NOT equate to all being OK with the safety of hydrocarbon production in general. It seems like the accident frequency is increasing.


The problem with North Sea incident reporting is they report absolutely everything as an incident....from the tool man knocking over a can containing a quarter litre of diesel that sits on the topside deck to something like the Total incident. The number of serious incidents are not increasing in proportion to the number of wells drilled. To the contrary the safety requirements that the British regulatory body has put in place have resulted in fewer serious incidents.

I read a note from Total yesterday that indicates the source of the gas leak is not from the formation they are producing in but rather from a zone hundreds of metres above it where it was not known that gas existed. The most likely scenario in my view now is that the casing over that upper zone developed a channel in the cement bond between the rock and the casing allowing gas to escape into the annulus above. If this were the case the operator should have seen anomalously large annular pressure when they investigated the wellhead to abandon the well. In any event Total suggests this is a small pocket of gas and given the rate seems to be decreasing this seems to be likely. As to whether a top kill will work or not it is impossible to even guess at that until such time as they can inspect the well head. The last I read they were trying to send out a robot submersible to have a look.
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German Bank Won’t Finance Arctic Ocean Drilling

Unread postby Graeme » Mon 23 Apr 2012, 18:28:39

German Bank Won’t Finance Arctic Ocean Drilling, Saying The ‘Risks And Costs Are Simply Too High’

In another stark warning about the dangers of Arctic Ocean drilling, the German bank WestLB announced on Friday that it would not provide financing to any offshore oil or gas drilling in the region. The company’s sustainability manager said the “risks and costs are simply too high.”

The decision was made just a week after insurance giant Lloyd’s of London issued a report concluding that offshore drilling in the Arctic would “constitute a unique and hard-to-manage risk” and urged companies to “think carefully about the consequences of action” before exploring for oil in the region.
Dustin Neuneyer, sustainability manager at the corporate and investment bank WestLB, explained the decision to Environmental Finance:

“The further you get into the icy regions, the more expensive everything gets and there are risks that are hard to manage.… There are projects that are evidently unsustainable in an encompassing sense. For WestLB, the risks and costs are simply too high.”

The bank’s new eight-point policy on offshore drilling lays out specific criteria for the projects and companies that are eligible for financing — excluding any exploration or production activities in areas where the average temperature for the warmest month is below 10°C (50° F). Additionally, the policy’s criteria — which are binding for any company seeking a loan — require companies to use the best available technology, abide by the highest technical safety standards, and show that activities are validated by an independent third party.


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Re: German Bank Won’t Finance Arctic Ocean Drilling

Unread postby Daniel_Plainview » Mon 23 Apr 2012, 19:43:30

Graeme wrote:
The bank’s new eight-point policy on offshore drilling lays out specific criteria for the projects and companies that are eligible for financing — excluding any exploration or production activities in areas where the average temperature for the warmest month is below 10°C (50° F).


Just wait about 10 years and, thanks to global warming, the average temp in the iceless Arctic will be warm and balmy.
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Exxon Mobil profits hit by lower oil production

Unread postby Graeme » Thu 26 Apr 2012, 18:03:09

Exxon Mobil profits hit by lower oil production

The amount of oil the Texas-based company produced in the first three months of the year dropped 7.7pc compared with a year earlier. Oil prices, meanwhile, averaged 12pc higher in the quarter as hopes for the global economy strengthened and tensions over Iran's nuclear programme escalated.
The decline contributed to an 11pc drop in Exxon's overall profits in the quarter to $9.45bn (£5.8bn). That fell short of Wall Street's expectations and helped send the shares down 1.7pc to $85.35 in early afternoon trading.

Analysts said that the drop in production underlined the challenge the world's biggest energy companies face in tapping new reserves of oil to meet rising global demand. Rex Tillerson, Exxon's chairman and chief executive, said that the company is working on several new fields that will drive production up by between 1pc and 2pc a year over the next four years. Last year Exxon struck a $3.2bn deal with Russia's Rosneft that will allow the US company to drill for oil in the Arctic Ocean.

However, the bigger headache for Exxon is the sharp drop in natural gas prices. Exxon was one of the first companies to make a big bet that natural gas will play a central role in meeting America's energy needs when it paid $41bn for rival producer XTO Energy in 2009. A glut of production and investment in the country's natural gas fields since then has helped drive prices to the lowest in 10 years. They dropped 40pc in the first quarter.


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Re: Exxon Mobil profits hit by lower oil production

Unread postby Graeme » Thu 26 Apr 2012, 18:13:13

Same gas, different results for Exxon and Shell

Natural gas figures large in these two oil majors' long-term strategies and it also loomed over their first-quarter results released yesterday. The similarities ended there however.

Shell expects 2012 to be the first year its gas output consistently exceeds that of oil. Earnings from its gas business more than doubled in the first quarter, helping the company beat the consensus forecast overall. Contrast that with Exxon, which missed expectations mainly because of weaker upstream numbers that include profits from gas output.

In the global gas game, location is critical. With US gas prices moribund, Exxon's big bet on the fuel via 2010's purchase of XTO Energy still drags on profits. Gas sold in Europe and Asia fetches much higher prices. In the first quarter, only 5 percent of Shell's output was US gas compared with 14 percent for Exxon.


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Re: Exxon Mobil profits hit by lower oil production

Unread postby dissident » Fri 27 Apr 2012, 08:31:57

Maybe the management of Exxon can spend a few more million funding global warming deniers and then their profits will go back up.
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Re: Exxon Mobil profits hit by lower oil production

Unread postby BobInget » Fri 27 Apr 2012, 08:59:03

XOM's big bet on NG (the other liquid fuel hydrocarbon) by buying XTO, will pay off in good time.
This BTW, is not the first Exxon slippage in production. Despite what management may say publicly about 'peak oil', actions speak louder.
Perhaps a few readers here are unaware, Shell Oil is also looking to NG to save their chili.
http://en.wikipedia.org/wiki/Gas_to_liquids
http://marcellusdrilling.com/2011/12/sh ... ids-plant/

<<Shell is moving into natural gas in a major way. In fact, natural gas will eclipse crude oil for Shell sometime next year by being more than 50 percent of Shell’s global production. Shell has committed to spending $2 billion to build an ethane cracker plant in the Marcellus region of the U.S., and now they are talking about building a gas-to-liquids plant. Shell invested an astonishing $19 billion in a gas-to-liquids plant in Qatar. Imagine that investment coming to the U.S.! Such is the transformative power of shale gas.>>

Getting back to Exxon: This from the WSJ; http://online.wsj.com/article/SB1000142 ... 29260.html

Like it or not folks, coal & oil giants are not about to give up on hydrocarbons.

Now, for some real PO news: 'will Canada continue to import Brent priced crude into their Atlantic Provinces, while selling oil in western Canada for discounts as high as $20. per Bbbl (off WTI) to the US?'
That BTW, often comes to a $40 USD price differential!
I happen to know the answer. It's NO. By this time next year, at least half of Canada's oil sands production will be diverted from export to the US and end up in Ontario and Quebec. It's called pipeline reversal. http://www.calgaryherald.com/business/e ... story.html
This should be good news for US enviromentalists that disdain those filthy tar sands.
Losing an additional million barrels of Canada's exports (by late 2013, 500,000 Bpd should be flowing west to Asia, another PL reversal.)
As with climate change, the safe thing to do is prepare for the worst. That is why 'big oil' is slowly converting to 'big gas'.
(full discloser, I have been buying oversold, dividend paying, shares in Canadian and US gasbags of late)
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Re: Exxon Mobil profits hit by lower oil production

Unread postby BobInget » Fri 27 Apr 2012, 08:59:04

XOM's big bet on NG (the other liquid fuel hydrocarbon) by buying XTO, will pay off in good time.
This BTW, is not the first Exxon slippage in production. Despite what management may say publicly about 'peak oil', actions speak louder.
Perhaps a few readers here are unaware, Shell Oil is also looking to NG to save their chili.
http://en.wikipedia.org/wiki/Gas_to_liquids
http://marcellusdrilling.com/2011/12/sh ... ids-plant/

<<Shell is moving into natural gas in a major way. In fact, natural gas will eclipse crude oil for Shell sometime next year by being more than 50 percent of Shell’s global production. Shell has committed to spending $2 billion to build an ethane cracker plant in the Marcellus region of the U.S., and now they are talking about building a gas-to-liquids plant. Shell invested an astonishing $19 billion in a gas-to-liquids plant in Qatar. Imagine that investment coming to the U.S.! Such is the transformative power of shale gas.>>

Getting back to Exxon: This from the WSJ; http://online.wsj.com/article/SB1000142 ... 29260.html

Like it or not folks, coal & oil giants are not about to give up on hydrocarbons.

Now, for some real PO news: 'will Canada continue to import Brent priced crude into their Atlantic Provinces, while selling oil in western Canada for discounts as high as $20. per Bbbl (off WTI) to the US?'
That BTW, often comes to a $40 USD price differential!
I happen to know the answer. It's NO. By this time next year, at least half of Canada's oil sands production will be diverted from export to the US and end up in Ontario and Quebec. It's called pipeline reversal. http://www.calgaryherald.com/business/e ... story.html
This should be good news for US enviromentalists that disdain those filthy tar sands.
Losing an additional million barrels of Canada's exports (by late 2013, 500,000 Bpd should be flowing west to Asia, another PL reversal.)
As with climate change, the safe thing to do is prepare for the worst. That is why 'big oil' is slowly converting to 'big gas'.
(full discloser, I have been buying oversold, dividend paying, shares in Canadian and US gasbags of late)
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Re: Exxon Mobil profits hit by lower oil production

Unread postby pstarr » Fri 27 Apr 2012, 10:54:36

BobInget wrote:By this time next year, at least half of Canada's oil sands production will be diverted from export to the US and end up in Ontario and Quebec. It's called pipeline reversal. http://www.calgaryherald.com/business/e ... story.html

according to the story the reversal brings condensate from Eagle Ford Shale and the U.S. Gulf Coast to Fort Saskatchewan, Edmonton. I assume for upgrading the tar sands. That means your interpretation is bass ackwards, like the flow. :razz:
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Re: Exxon Mobil profits hit by lower oil production

Unread postby misterno » Fri 27 Apr 2012, 12:55:09

What is the reason for lower oil production?

Technical or peak oil? Anybody knows?
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Re: German Bank Won’t Finance Arctic Ocean Drilling

Unread postby dissident » Wed 02 May 2012, 06:46:16

So, this bank will just lose business to the many other banks that will finance these operations. Next.
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Re: German Bank Won’t Finance Arctic Ocean Drilling

Unread postby GASMON » Wed 02 May 2012, 13:53:12

If Germany won't finance, China will (With $$$ owed from America).

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Less cause to panic about oil running out

Unread postby Graeme » Tue 08 May 2012, 09:55:52

Less cause to panic about oil running out

For nearly 50 years we have been familiar with the concept of “peak oil”. The phrase was coined by the Shell geoscientist M King Hubbert, who accurately predicted that the US would hit its highest levels of oil production by the early 1970s, and decline thereafter.

Predicting the precise point at which the global extraction of oil will reach the top of its bell-curve has proved more difficult, partly because the size of untapped reserves must be classed as a “known unknown”.

But now a remarkable study says a strong chance exists that the worldwide demand for oil will peak by 2020 – and that this will most likely occur before any constraints on supply begin to make themselves felt. This startling conclusion has been reached after careful examination of the most recent academic and professional thinking on population, technology and public policy trends. The study was led by Ricardo Strategic Consulting in collaboration with Kevin J Lindemer and with industry-wide participation.

A key component of our overall conclusion is the assessment that the future contribution to oil demand growth from China, the world’s fastest-expanding market, will be less substantial than is generally anticipated. This outcome will arise because of China’s drive to limit its dependency on imported energy – particularly oil – and owing to the impact of the country’s demographic time-bomb on its economic growth.


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Re: Less cause to panic about oil running out

Unread postby ohanian » Tue 08 May 2012, 10:27:20

There is no reason to panic about the high price of oil in the future any more than there is reason to panic about the date of your own death. Both shall occur. Both will come to pass. The question is not what to do when the time comes but what did you do before the time comes.
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Re: Less cause to panic about oil running out

Unread postby pstarr » Tue 08 May 2012, 11:19:20

According to the linked article
most important downward pressure on oil demand will derive from the dramatic increase in fuel efficiency of conventional vehicle engines, not least in the US. Beyond 2020, market penetration of new forms of automotive technology, especially the electric vehicle in its various hybrid guises, will begin to have a more appreciable effect.
and
first-generation biofuels could play an important part in further reducing fossil-fuel demand, without compromising food supplies – assuming that growth of crop yields can be maintained, and problems of underinvestment remedied.
The first will only happen if we remove passenger safety equipment (cage and air bag equipment) to lighten the car. As for the second; it's outdated nonsense. So-called "1st Gen" biofuels" means corn ethanol and palm oil, both failures at this point. Since GW's corn-liqueur mandate fuel prices have quadrupled in the USA. As for the rest (the unmentioned 2nd and 3rd gen cellulosic and algae biofuels) you have to shell out a couple of grand to hear how they will save us.
Last edited by pstarr on Tue 08 May 2012, 11:30:37, edited 1 time in total.
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Re: Less cause to panic about oil running out

Unread postby ralfy » Tue 08 May 2012, 11:30:19

The energy returns from biofuels are not sufficient. And then there's also Brazil, Russia, India, and emerging markets.
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Re: Less cause to panic about oil running out

Unread postby Pops » Tue 08 May 2012, 13:17:15

Graeme wrote:The study was led by Ricardo Strategic Consulting in collaboration


http://www.ricardo.com/en-GB/Who-we-are/Company/
Ricardo’s deep technical knowledge and wide experience is particularly apparent in the transportation sectors that we serve, which range from passenger cars and motorcycles, to commercial, agricultural and off-highway vehicles, railway locomotive power and marine propulsion systems. Key areas of expertise include low-carbon gasoline, diesel, hybrid and fuel cell powertrain technologies; the latest driveline and transmission systems; control electronics and software development; vehicle systems integration, and the engineering of the latest concepts in wind energy and tidal power systems.


The reason the study finds what it does is pretty obvious, good marketing.
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Re: Less cause to panic about oil running out

Unread postby davep » Tue 08 May 2012, 13:37:54

The first will only happen if we remove passenger safety equipment (cage and air bag equipment) to lighten the car.


Or, heaven forbid, start driving smaller fuel efficient cars. This may help US consumption, but Europe has already cottoned on to this a long time ago and has far less margin for improvement.
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Re: Less cause to panic about oil running out

Unread postby AdTheNad » Tue 08 May 2012, 15:33:44

pstarr wrote:So-called "1st Gen" biofuels" means corn ethanol and palm oil, both failures at this point.

Is palm oil a failure? In terms of butchering rainforest and leading orangutans towards extinction obviously, but is it also bad purely in terms of EROEI?
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Re: Less cause to panic about oil running out

Unread postby dissident » Tue 08 May 2012, 15:44:25

AdTheNad wrote:
pstarr wrote:So-called "1st Gen" biofuels" means corn ethanol and palm oil, both failures at this point.

Is palm oil a failure? In terms of butchering rainforest and leading orangutans towards extinction obviously, but is it also bad purely in terms of EROEI?


Corn ethanol is for sure. Since there is no new physics when it comes to palm oil, it will have the same poor EROEI issues. I believe that with palm oil there is not enough real estate to meet even a fraction of the south-east Asian demand. We are still waiting for the panacea called cellulosic ethanol.
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