Peak Oil News and Message Boards

In this post I present the results from an in-depth time series analysis from wells producing crude oil (and small volumes of natural gas) from the Bakken - Bakken, Sanish, Three Forks and Bakken/Three Forks Pools - formation in North Dakota. The analysis uses actual production data from the North Dakota Industrial Commission as of July 2012 from what was found to be a representative selection of wells from operating companies and areas.

Royal Dutch Shell (RDS.A) is a large oil and gas producer in North America that has been making acquisitions that are sure to increase its yields in the future. Shell is looking to make an impact in shale oil production, an industry that has the potential to change our entire economy in the next five years. Shale oil refers to a rock that releases petroleum like liquids when heated up and are richer in crude, a process that will revolutionize the oil industry. Domestically, it can be found in many different states and could potentially produce between 1.2-1.8 trillion barrels of oil in the future. To put these numbers into context; America consumed an estimate of 7 billion barrels of oil in 2011 according to the U.S. Energy Information Administration. The Royal Dutch Shell have viewed the extreme amounts of shale oil in America as an opportunity to expand and multiple their production in future years.

As a rule of thumb, the cost of production for most shale plays in North America is $40-45/bbl, which is not that much different from costs using conventional methods. It is above-ground logistics that cause lower prices for fracked oil. We don't have enough pipelines to efficiently transport the fracked oil to the refineries. Consequently, supply backs up at the hubs, creating big discounts. For example, in late June, Canadian oil and Bakken oil were at huge discounts, almost $20/bbl to WTI. Because of pipeline disruptions and refinery downtime, Canadian producers were receiving under $70/bbl for their oil. But only 2½ months later, the logistics are running smoothly and Bakken oil is now selling at only a $3/bbl discount to WTI.

TheAntiDoomer wrote:Shell's Shale Oil Expansion
http://seekingalpha.com/article/891381- ... -expansion

Royal Dutch Shell (RDS.A) is a large oil and gas producer in North America that has been making acquisitions that are sure to increase its yields in the future. Shell is looking to make an impact in shale oil production, an industry that has the potential to change our entire economy in the next five years. Shale oil refers to a rock that releases petroleum like liquids when heated up and are richer in crude, a process that will revolutionize the oil industry. Domestically, it can be found in many different states and could potentially produce between 1.2-1.8 trillion barrels of oil in the future. To put these numbers into context; America consumed an estimate of 7 billion barrels of oil in 2011 according to the U.S. Energy Information Administration. The Royal Dutch Shell have viewed the extreme amounts of shale oil in America as an opportunity to expand and multiple their production in future years.

http://static.cdn-seekingalpha.com/uplo ... _thumb.jpg

Plantagenet wrote:To be fair, the "running in place" aspect of frakking has some positive benefits.

AdTheNad wrote:

Plantagenet wrote:To be fair, the "running in place" aspect of frakking has some positive benefits.

That is good for jobs! We should all go around and start breaking windows to give those unemployed glaziers something to do!

Zorg: Where are the stones?

Priest Vito Cornelius: I don't know. And even if I did know, I wouldn't tell someone like you.

Zorg: Why? What's wrong with me?

Priest Vito Cornelius: I try to serve life. And you seem to want to destroy it.

Zorg: Oh, Father. You're so wrong. Let me explain.
[Puts an empty water glass on his desk]

Zorg: Life, which you so nobly serve, comes from destruction, disorder and chaos. Now take this empty glass. Here it is: peaceful, serene, boring. But if it is destroyed...
[Pushes the glass off the table. It shatter on the floor, and several small machines come out to clean it up]

Zorg: Look at all these little things! So busy now! Notice how each one is useful. A lovely ballet ensues, so full of form and color. Now, think about all those people that created them. Technicians, engineers, hundreds of people, who will be able to feed their children tonight, so those children can grow up big and strong and have little teeny children of their own, and so on and so forth. Thus, adding to the great chain of life. You see, father, by causing a little destruction, I am in fact encouraging life. In reality, you and I are in the same business.

pstarr wrote: ....hate Obama. Wind up, talk down. Same old same old

Lore wrote:I'm sure the California gold rush produced lots of jobs at the time and then lots of ghost towns.

Pops wrote:The article at TOD looks at real world conditions as opposed to your investment fluffing PR pieces.

If you have anything to actually critiqe the article with aside from "Investment" salesmen I'd be happy to see it.