[CARVER]

LUKOIL DISCOVERED MAJOR FIELD IN CASPIAN SEA

$this->bbcode_second_pass_quote('', '.').. The reserves of the new field under the “probable” and “possible” categories are estimated to be 600 million barrels of oil and 1.2 trillion cubic feet of gas. Completion of exploration, preparation and approval of the design documentation for the development of the field will allow to upgrade the reserves in to the “proved” category.

The new field is the first predominantly oil field within the licensed areas of LUKOIL in the Northern Caspian. 75% of the total reserves of the field is oil, while all the other fields opened by the Company in the Caspian region are mostly gas fields.

The oil reserves of the new field considerably exceed those of the adjacent field after Yu. Korchagin which is prepared for development, and favorably differ from the latter by the main geological parameters. The new field surpasses the previously opened fields in the Caspian region in its oil production potential.

Preliminary calculations show that the maximum oil production rate at the new field will exceed 5 million tons and the accumulated production will be around 80 million tons (with the extraction ratio of 0.5).

The new field and the field after Yu. Korchagin set foundation for future vast off-shore oil production infrastructure with reliable crude material base and annual production rate of around 8 million tons.

The new field is the major oil field which was ever opened in Russia for the last 10 years and allows LUKOIL to essentially increase efficiency of the expensive works in the Caspian sea.

The new field was give the name of Vladimir Filanovsky, famous oil man who made a great contribution into the development of the national oil industry.

[emersonbiggins]

600 million barrels? Major field? A week's worth of global consumption?
LOL - I love it.

[PWALPOCO]

Yep , here we are again , this is the 3rd story like this in as many months that I remember.

I think last time out I called up ol Windows calculator and did the maths and was like "omg ! Thats just a weeks oil".

What matters tho is at some point , this will be turning out tens of thousands of barrels per day for however long. It may not be that great but it will help offset some other field thats dropped production by a similar amount.

Peak oil has either just been nudged another fraction back , or if you think weve already hit PO then least the downside has just had a little of the sting taken out of it for a while longer.

Ill take 600 million barrels over none at all .... but this isnt the field we need , we need some Saudi Arabias please !!

Paul

[thor]

$this->bbcode_second_pass_quote('PWALPOCO', 'Y')ep , here we are again , this is the 3rd story like this in as many months that I remember.

I think last time out I called up ol Windows calculator and did the maths and was like "omg ! Thats just a weeks oil".

What matters tho is at some point , this will be turning out tens of thousands of barrels per day for however long. It may not be that great but it will help offset some other field thats dropped production by a similar amount.

Peak oil has either just been nudged another fraction back , or if you think weve already hit PO then least the downside has just had a little of the sting taken out of it for a while longer.

Ill take 600 million barrels over none at all .... but this isnt the field we need , we need some Saudi Arabias please !!

Paul

[Longsword]

As stated on the news headline, this is a “major” oilfield. The average Joe (who has no idea of the global consumption level) reads this, and concludes that there is no problem, 500 million barrels must last like... 1000 years at least! Yup, all those green peoplez are stupid and there is plenty of oil to go around, so I’m gonna buy a second Hummer.

We really should start calling oil field sizes in relation to the global consumption, this would be called something like “1-week field”.

[coyote]

I agree this is just a drop in the bucket... but a thought just occurred to me. Could the 'Colin Campbell effect' apply here? What I mean is, could they be underreporting the find for tax purposes, as Campbell says other majors have done, so that there will be fake 'reserve growth' in this field? Or does that only apply to American companies? Lukoil is listed on the NYSE... anybody know about this stuff?

[CARVER]

The discovery was mentioned on the financial news, and I took the press release from the Lukoil website. It was not meant for the average Joe, and probably not meant to be converted to days of current world oil consumption, but probably to $$. I don't know if the 'major field' classification is standard among oil companies, like > 300 million barrel field = major field.

I think oil prices will have to climb high enough to make alternatives price competitive, to get us to make the transition. However the transition will take time. We need high oil prices to make us act, however once we are acting as (fast as we can), even higher oil prices will not do us any good, because we are already doing what we can. If we are hoping for a smooth transition then I think we will need a low oil production decline rate. I think that the amount of new oil discovered in the next 5 - 10 years will play an important factor in that. That will offset some of the production declines of other fields. I hope the discoveries in the coming 5 - 10 years will be above expectations and that they won't come online before the decline, or before we start to make some serious effort to make a transition and do away with our wasteful and destructive behavior.

Any additional production it provides, before we start making a serious transition, will only buy us some time to R&D better technology.

Any additional production it provides, once we have started making a serious transition, will buy us time which will make the transition easier (and R&D better technology).

[FairMaiden]

I've read alot about how SA is under-development and there are alot more oil fields there yet to be discovered...anyone see any "major oil discovery" stories coming from SA? Are they looking? If they aren't, maybe they don't need to (and I'd say peak isn't here yet)...but if they are looking and not finding...then I'd say we are in trouble. Hard to predict anything without the numbers of the biggest player...

FM

[Rincewind]

$this->bbcode_second_pass_quote('CARVER', 'T')he discovery was mentioned on the financial news, and I took the press release from the Lukoil website. It was not meant for the average Joe, and probably not meant to be converted to days of current world oil consumption, but probably to $$. I don't know if the 'major field' classification is standard among oil companies, like > 300 million barrel field = major field.

[joewp]

$this->bbcode_second_pass_quote('thor', '')$this->bbcode_second_pass_quote('PWALPOCO', 'Y')ep , here we are again , this is the 3rd story like this in as many months that I remember.

I think last time out I called up ol Windows calculator and did the maths and was like "omg ! Thats just a weeks oil".

What matters tho is at some point , this will be turning out tens of thousands of barrels per day for however long. It may not be that great but it will help offset some other field thats dropped production by a similar amount.

Peak oil has either just been nudged another fraction back , or if you think weve already hit PO then least the downside has just had a little of the sting taken out of it for a while longer.

Ill take 600 million barrels over none at all .... but this isnt the field we need , we need some Saudi Arabias please !!

Paul

[The_Virginian]

Ding Ding, we have a WINNER!

[Anjorni]

True, it may only be 1 weeks worth of Global Oil demand, but a) it wont all be sucked from the ground in that amount of time - so if nothing else, it may offset the sting a BIT. More importantly b) who's to say that the will PUT it on the global market? so globally it's only a weeks demand, but how many years will it be of Russian demand?

This may be going off on a tangent, but if people start realizing that there isnt much left to extract, countries may try to keep it for themselves - so if Russia (and others) decide to keep it, we may be on our way down S creek w/ no paddle for us in the states... We've already pumped much of our own resources...

[Longsword]

$this->bbcode_second_pass_quote('Anjorni', '
')This may be going off on a tangent, but if people start realizing that there isnt much left to extract, countries may try to keep it for themselves - so if Russia (and others) decide to keep it, we may be on our way down S creek w/ no paddle for us in the states... We've already pumped much of our own resources...

[rockdoc123]

$this->bbcode_second_pass_quote('', 'I')t is my understanding the the definition of a major field is suffering from shrinkage. Didn't the industry definition used be > 1x109 and is now it is down to 500X106 barrels?

[Russian_Cowboy]

$this->bbcode_second_pass_quote('', '.').. The reserves of the new field under the “probable” and “possible” categories are estimated to be 600 million barrels of oil and 1.2 trillion cubic feet of gas

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he 600 million barrels are a pure speculation.