Tuesday, Sep 05, 2006

USA Oil Reserves Boosted by upto 50%

CNN: Chevron says Gulf drilling a success

Sorry Folks crash is cancelled, USA is now awash with oil.

NEW YORK (Reuters) -- Chevron Corp. said Tuesday it had successfully drilled for oil in the Gulf of Mexico's deep waters, and one published report suggested the breakthrough could increase U.S. oil reserves by as much as 50 percent.

Posted by doggadogdog @ 03:39 PM (577 views)
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17 Comments

1. Oracle said...

You idiot, it takes more than oil reserve discovery to change market sentiment about property in the US. Get ready for negative equity you twat.

Tuesday, September 5, 2006 09:29PM Report Comment
 

2. Anytime said...

Doggadogdog seem to be a very new comer in this world or he has a very little or, no knowledge of world history at all! Or more precisely, the 20th's century history. In any case the best advice we can give to Doggadogdog is to get educated about world history and economic to found that for himself if actually the U.S. ( or the world ) oil output was in decline during the 1930s economic crisis that follow 1920s boom?! Or, if the oil crisis of the late 1970s has generated, at any moment, an ''housing market bubble''. Unfortunately the worlds economy mechanic momentum is a much complex one. Hoops! Sorry Doggadogdog, I rely didnt mean to turn you ridiculous.

Tuesday, September 5, 2006 09:49PM Report Comment
 

3. Anytime said...

Doggadogdog seem to be a very new comer in this world or he has a very little or, no knowledge of world history at all! Or more precisely, the 20th's century history. In any case the best advice we can give to Doggadogdog is to get educated about world history and economic to found that for himself if actually the U.S. ( or the world ) oil output was in decline during the 1930s economic crisis that follow 1920s boom?! Or, if the oil crisis of the late 1970s has generated, at any moment, an ''housing market bubble''. Unfortunately the worlds economy mechanic momentum is a much complex one. Hoops! Sorry Doggadogdog, I rely didnt mean to turn you ridiculous.

Tuesday, September 5, 2006 09:49PM Report Comment
 

4. Ttimgg said...

Oracle, I think that abuse is uncalled for. If dogadogdog is saying something you don't like you need to find a reasoned argument against it. And its possible s/he was being playful rather than contemptuous

Tuesday, September 5, 2006 10:41PM Report Comment
 

5. Retired Banker said...

Don't get too excited, even if this well proves as large as claimed,it would only keep America going for less than 2 years.

Earlier this year the president of Mexico announced the Noxal-1 deepwater well which was thought to
have reserves of 10 billion barrels. This well has since proved to be a failure.

People generally do not realise how enormous the world's consumption of oil now is ( now more than 31 billion barrels per year ),and massive new discoveries are needed just to offset the rapid depletion of
existing wells, added to which world demand is soaring.

Mexico's giant Cantarell well, the 2nd largest in the world and supplying 25% of US needs, has now
started to deplete, and rumours from within the state controlled oil industry indicate that production
could fall to 25% of the 2005 total by the end of 2008.

Bear in mind that Kuwait has recently admitted that its reserves are less than half of the 98 billion barrels
previously claimed, and some industry experts say that the true reserves are probably only 25bbls.
Other Arab producers are also expected to reduce their reserve figures from the inflated claims made
in the 1980/90's so that they could increase their production under the terms of the OPEC quota system.

There are obviously major problems ahead, but don't expect the vested interests to admit this.
The property market can't hold a candle to the oil industry when it comes to protecting itself, and
the major oil companies have always enjoyed favoured status and concessions from governments.

Tuesday, September 5, 2006 10:55PM Report Comment
 

6. sirgoogle said...

What with the US (gas-guzzlers) finding this oil and the 100 million projected Chinese tourists projected to be emerging from China each year it is just as well my kids have just spent the summer looking at glaciers in Switzerland as these will all be gone soon !!

I think Ill be looking to buy a house on higher ground when the HPC comes !!!

Tuesday, September 5, 2006 11:14PM Report Comment
 

7. uncle tom said...

The price of oil has very little bearing on the factors that influence house prices.

There is a vast amount of 'difficult' oil in the world, be it oil sands or reserves at sea that are costly to tap - as in this case. There are believed to be huge reserves west of Shetland - but uneconomic to tap at current oil prices.

This news is pretty irrelevant.

Wednesday, September 6, 2006 12:14AM Report Comment
 

8. harold said...

Doggadogdog, nice wind-up. However...

"The successful well, known as Jack 2, reached a record total depth of 28,175 feet, coming in 7,000 feet of water and more than 20,000 feet under the sea floor."

Extreme deep wells such as Jack 2 are only commercially viable when the price of oil rises above c. $55/60 a barrel. Question is, has West Texas Intermediate Crude Oil price collapsed on this earth-shattering find? Err... no. Seems that the oil industry might not be so impressed with Jack 2. Anyhow, the find is irrelevant to HPC USA, which has clearly already started. It's way too late to do anything meaning to halt the inevitable collapse in property prices and with it the USA's consumer led economy.


Wednesday, September 6, 2006 12:24AM Report Comment
 

9. markd said...

Yep, nothing to get over excited about. The US uses 20 million odd barrels of oil a day, so even if this find and the other recent ones referred to do contain 15 billion barrels of oil it only amounts to 2 years worth.

Wednesday, September 6, 2006 08:36AM Report Comment
 

10. indiablue19 said...

Interestingly, California, which represents over a quarter of GNP [gross national product] in the USA has just signed on to the Kyoto Treaty without Bush's say-so. They has in effect declared themselves a separate entity in relation to emissions and pledge to create new forms of energy. As California have major scientific research facilities in UCLA, Cal TECH, Berkley, UC Davis, and all of Silicone Valley, I wouldn't put it past them. But Arnie had better get out his bazooka if they are going to prevail over the oil magnate vetoes on progress.

Wednesday, September 6, 2006 09:16AM Report Comment
 

11. the bald man said...

US oil reserves are low anyway a 50% boost is not that significant (see markd's note)

Wednesday, September 6, 2006 10:40AM Report Comment
 

12. Doggadogdog said...

Oracle, I am a bear, I was posting a tongue in cheek comment...... If that's the reaction I get on this board I will refrain from posting any more news articles. The article was found on CNN, so I assumed its legitimacy.

I can't wait for negative equity, I have been renting for 7 years from my useless Irish landlady who has bought up half of Edgbaston. My fridge door fell of 2 months ago, it is still not fixed, stuck on with gaffer tape.

Dont be so sharp to shoot people down in flames.

Wednesday, September 6, 2006 10:45AM Report Comment
 

13. tyrellcorporation said...

Kyoto is another absurd talking shop, like the UN and the EU,etc, etc.

I think if the Kyoto protocols were implimented as they were intended to be, it would delay CO2 emmissions by just a few years over the coming century. The only thing that will alter people's behaviour is grubby water lapping around around their Jimmy Choos and the inconvenience of not being able to get hammered at weekends because the town centre is a lake!

FACE IT!... and as SirGoogle says if you get back into the housing market at any stage make sure you buy at least 20 metres above sea level.

I little known fact is that when the Thames barrage was built they raised it only about twice a year. I heard recently it's now raised about 30 times a year! Isn't the Thames gateway the area most favoured by Prezzer to build his mega city? The guy's certainly got a sense of humour!

Wednesday, September 6, 2006 11:01AM Report Comment
 

14. miniftse said...

Uncle Tom, "The price of oil has very little bearing on the factors that influence house prices." - not sure I agree with you on that. I reckon the price of oil is the biggest driver behind the recent increases in interest rates. If oil is expensive, everything else is expensive and we have inflation. It is running out and we currently dont have an answer for the problems it will cause, that is why the governments of the world have no option to accept inflation.

I'm always surprised by the lack of attention oil related news topics generate on this blog.

I don't think the oil discovery refered to in the article will make a difference, but it does raise a very valid point. I don't know why as a forum we condone people like Oracle calling other people 'tw@ts'? It's just rude.

Wednesday, September 6, 2006 01:09PM Report Comment
 

15. Doggadogdog said...

Thankyou miniftse, I am an uber bear, wanna be FTB who is priced out of the market. My comment was tongue in cheek. Saw the article and thought I would post it. maybe Oracle was having a bad day.

Wednesday, September 6, 2006 01:18PM Report Comment
 

16. Rickyb said...

I have to agree with miniftse, that the price of oil has a major effect on many aspects of the economy including inflation and thus interest rates. The world currently uses 4 barrels of oil for every 1 barrel that is discovered, and extraction is becoming increasingly difficult and expensive. This situation is only going to get worse over the coming decades as demand starts to exceed supply, and the occasional minor discovery such as this is unlikely to have much impact.

Wednesday, September 6, 2006 02:43PM Report Comment
 

17. indiablue19 said...

I do believe that it was, for some reason, Bilderberg's rallying cry that "whoever controls oil and drugs" controls the world. Since the war in Afghanistan began and the Taliban was said to be "driven back," the opium production has gone up 60%. One has to wonder why Russia, then the West in general, wants this pile of dirt so terribly -- expect that a monumental crop of poppies is growing in it. Also note, BP's major oil drilling in Alaska has "shut down" indefinitely for repairs. A very odd development. Oil reserves in reserve?

"Oh what a tangled web we weave when first we practice...."

Wednesday, September 6, 2006 03:24PM Report Comment
 

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