[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he blue line is the number of rigs. The green and purple lines are two different estimates of Saudi production. Rig count is going through the roof. Production is not.

[NEOPO]

Soothsayer - hilarious - comedy interwined with tragedy is my favorite.................. endangered species they are.

Maybe we will use the steel to build some windmills post peak.

Why do I get the urge to cheerlead for simmons? as he certainly does not need my help.

Someone should write their own book and maybe we will read it.

[NeoPeasant]

$this->bbcode_second_pass_quote('rockdoc123', '')$this->bbcode_second_pass_quote('', 'T')he blue line is the number of rigs. The green and purple lines are two different estimates of Saudi production. Rig count is going through the roof. Production is not.

[shortonoil]

$this->bbcode_second_pass_quote('', 'T')hat was my first thought. Doesn't production lag the deployment of the rigs for many months? If the production curve doesn't mirror the rig count after several months then we should worry.

[Zardoz]

$this->bbcode_second_pass_quote('SoothSayer', 'N')o panic - they are simply making their way to the oil rig breeding grounds in Cromarty.

[Eddie_lomax]

$this->bbcode_second_pass_quote('Leanan', 'Y')up. TOD had an article article about it recently.

In particular, check out this graph. The blue line is the number of rigs. The green and purple lines are two different estimates of Saudi production. Rig count is going through the roof. Production is not.

[SoothSayer]

$this->bbcode_second_pass_quote('Zardoz', '')$this->bbcode_second_pass_quote('SoothSayer', 'N')o panic - they are simply making their way to the oil rig breeding grounds in Cromarty.

[DantesPeak]

In the central part of the Gulf of Mexico, in very deep water, oil companies have announced a major discovery today of oil deep inside the earth.

$this->bbcode_second_pass_quote('', 'C')hevron-led group may find top U.S. oil source

Completes test to 28,175 feet in a well 270 miles offshore New Orleans

LONDON (MarketWatch) -- Chevron Corp. said a production team it leads made the deepest successful well test in the Gulf of Mexico, potentially unearthing a reservoir of oil that could make it the top domestic source.

Chevron said Tuesday that it successfully drilled at the Jack #2 well at Walker Ridge Block 758 to a total depth of 28,175 feet, with more than 20,000 feet of that below the sea floor.

The well, 270 miles southwest of New Orleans, sustained a flow rate of more than 6,000 barrels of crude oil per day, the company said.
Chevron and its co-owners plan to drill an additional appraisal well in 2007.

[evilgenius]

I was watching CNBC this am and found out. Initial estimates are 3 billion barrels. That figure could go as high as 15 billion. There are many logistical problems with pipelines and refinery locations. Nine years to develop. So, by then Prudhoe Bay will be tapped out, almost, I guess?

Immediately the business guys became incredulous about peak oil. They said they ought to have that "Twilight in the Desert" guy back on and see what he says.

[KevO]

$this->bbcode_second_pass_quote('evilgenius', '
')Immediately the business guys became incredulous about peak oil. They said they ought to have that "Twilight in the Desert" guy back on and see what he says.

[eXpat]

Is good that the business guys became instantly incredulous about peak oil (from a purely selfish perspective, from a global one the damage to nature will increase, but there's not too much I can do about that) . That buy us more time to prepare for the future. The of course in due time the crash will be harder...

[Doly]

$this->bbcode_second_pass_quote('eXpat', 'I')s good that the business guys became instantly incredulous about peak oil (from a purely selfish perspective, from a global one the damage to nature will increase, but there's not too much I can do about that) . That buy us more time to prepare for the future. The of course in due time the crash will be harder...

[DantesPeak]

BP oil drilling rig in Gulf of Mexico

$this->bbcode_second_pass_quote('', 'O')il companies say promising tests suggest significant Gulf of Mexico find
The Associated Press
Published: September 5, 2006

Tests of a deep and challenging offshore well in the Gulf of Mexico indicate a significant oil discovery, the partners in the field announced Tuesday.

The Jack 2 well was drilled by U.S. oil giant Chevron Corp., with partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma.

"Test results are very encouraging and may indicate a significant discovery. The full magnitude of the field's potential is still being defined," Statoil said in a statement.

[Eli]

This gets at the heart of one of the great misunderstandings of PO that is lost on the talking head types.

There very well may be a ton of oil two miles below the Gulf of Mexico but it is not going to be cheap.

Peak Oil is not the end of oil just the end of cheap oil.

[Starvid]

Well, the media frames this in a stupid way, but that is only to be expected. They recently found the biggest oil field ever in the Baltic and the media gushed that it could fill Swedish demand for a year. What they didn't mention was that it would fill global demand for only 30 hours.

If the this field is 15 billion barrels it's the biggest find in like 15-20 years, bigger than the 10 billion barrel Kashgan field in Kazaksthan which was found in the early 90's.

Biggest find in 20 years. Enough to sustain 6 months of global consumption. We must find two fields like this every year to keep up with depletion and then put them into production to keep up with production declines in other fields. And then we need another two fields like this next year. And the year after that. And after that. And the year after that, and this must continue for as long as we want to maintain our current oil consumption. If we want to increase consumption we must find new oil even faster.

But still, 15 billion barrels, yeah! We'll need every drop.

---------------------------------------------------------------------------
But if the field is only 3 billion barrels, that's only 35 days of global consumption.
---------------------------------------------------------------------------

By the way, I spoke withe the chairman of ASPO yesterday. He said the succes of deep offshore is what will shape the peak and decide the exact year of peak production.

[Micki]

$this->bbcode_second_pass_quote('', 'P')eak Oil is not the end of oil just the end of cheap oil.

[mekrob]

$this->bbcode_second_pass_quote('', 'I')t is possible (just one scenario) that peak is reached and recession in economy drives oil prices down. In a depression, this could be long lasting and have significant downside impact on oil price.

[Fergus]

So is this Mexican oil or US oil? I did not see where any country claims it or it lays in anybodies terrirorial waters.

So who owns this oil?

[mjdlight]

$this->bbcode_second_pass_quote('Fergus', '
')
So who owns this oil?

[50mpgVWTDI]

Yes - it is a huge find. But

--35 days of global consumption

-- Barely one-half of one percent of daily consumption (400,000/85 million BPD)

I am still buying Canadian oil sands companies.


Best,