by Pops » Sun 09 Feb 2014, 10:04:31
$this->bbcode_second_pass_quote('AndyA', '
')The simple fact remains that there is a lot of not yet extracted oil out there and people are spending gobs of cash to extract it.
The fact that is even simpler is that the "oil" left may cost more to extract than consumers are able to pay. Resources are not reserves and are totally dependent on someone making a profit to become so.
From the EIA$this->bbcode_second_pass_quote('', 'T')he total resource base of oil and gas is the entire
volume formed and trapped in–place within the Earth
before any production. The largest portion of this total
resource base is nonrecoverable by current or
foreseeable technology. Most of the nonrecoverable
volume occurs at very low concentrations throughout
the earth's crust and cannot be extracted short of
mining the rock or the application of some other
approach that would consume more energy than it
produced. An additional portion of the total resource
base cannot be recovered because currently available
production techniques cannot extract all of the in–place
oil and gas even when present in commercial
concentrations. The inability to recover all of the
in–place oil and gas from a producible deposit occurs
because of unfavorable economics, intractable physical
forces, or a combination of both. Recoverable
resources, the subset of the total resource base that is of
societal and economic interest, are defined so as to
exclude these nonrecoverable portions of the total
resource base.
$this->bbcode_second_pass_quote('AndyA', 'T')he market cannot bear $100 oil? Got some proof of that? Or have prices been over that for the past few years?