Huge Oil Find In Australia

Geico266

Geico266

Touchdown! Greaser!
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Geico
Geico266 said:
Conventional wisdom was there was no oil in AU. None, Zero, Zip, Nada.
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That claim would surprise many folks in the oil industry in Australia.
 
Geico266 said:
Say goodbye to the strangle hold the middle east has on us. :yes:
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I doubt it. This is shale oil, which requires "fracking" to access. Like much of the oil being extracted in North Dakota and Canada, it is only economically viable to extract when oil prices are high. Saudi oil is much cheaper to extract.
 
Brad Z said:
I doubt it. This is shale oil, which requires "fracking" to access. Like much of the oil being extracted in North Dakota and Canada, it is only economically viable to extract when oil prices are high. Saudi oil is much cheaper to extract.
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Other sources claim between 3billion and 250 billion barrels. Quite a gap there.
 
Hmmmmm......

Was there anything accurate in the OP?
 
Go read the dec 10, 2013 article in the Newcastle Herald....a different take on it, and very recent.
 
When they found bucketloads of diamonds in Canada did the price of diamonds go down?
 
The Bass Straits in SE Australia have long been known for oil. That's how Kermit Weeks (Fantasy of Flight) finances his museum. His grandfather was the geologist who found oil there and Kermit gets the inheritance.
 
Velocity173 said:
The Bass Straits in SE Australia have long been known for oil. That's how Kermit Weeks (Fantasy of Flight) finances his museum. His grandfather was the geologist who found oil there and Kermit gets the inheritance.
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I did not know about the Kermit Weeks connection. Grandad must have had some business sense. They had some tough foundation problems for the Bass Straits platforms (not that it matters, just a technical tidbit) - that's about all I remember that was remarkable about the Aus offshore business. The offshore drilling company that I worked for back in the day had a rig over there for awhile.

There's also onshore production.
 
bartmc said:
Other sources claim between 3billion and 250 billion barrels. Quite a gap there.
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This might explain the gap:

The reports estimated the company’s 16 million acres of land in the Arckaringa Basin in South Australia contain between 133 billion and 233 billion barrels of shale oil trapped in the region’s rocks.

It is likely however that just 3.5 billion barrels, worth almost $359 billion (£227 billion) at today’s oil price, will be able to be recovered.
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http://www.telegraph.co.uk/news/wor...worth-of-oil-found-in-Australian-outback.html


I'm just a little curious why there is so much negativism about this. Is it a matter of not wanting to get hopes up? Is there some information that counters the claims? I'd like to be optimistic, but I am too ignorant to form an opinion either way. I'd rather it was here, but if not, then good for the Aussies.
 
JOhnH said:
This might explain the gap:




http://www.telegraph.co.uk/news/wor...worth-of-oil-found-in-Australian-outback.html


I'm just a little curious why there is so much negativism about this. Is it a matter of not wanting to get hopes up? Is there some information that counters the claims? I'd like to be optimistic, but I am too ignorant to form an opinion either way. I'd rather it was here, but if not, then good for the Aussies.
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There is excess oil everywhere, including in the states. It is not a free market so finding more doesn't change the price at the pump.
 
ClimbnSink said:
When they found bucketloads of diamonds in Canada did the price of diamonds go down?
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The two models are 180 degrees from each other.

Oil is commodity-priced. Many bidders are in the market, and they bid higher when they have to meet demand, lower when the supply allows. The demand is growing, so prices are going up, and a bidder knows that whatever the price, he will probably be able to sell at a profit.

The diamond market is close-held. Bidding for "retail" diamonds (the ordinary grades and sizes) is based on "sights," which are held by only a few people. They decide what the retail price range will be, and the prices remain fairly steady. More supply simply means a larger reserve to be bid on some time down the road, by the same handful of sightholders. They know that demand is fairly steady, so an increase in prices means a decrease in sales.
 
I'm wondering why America buys any oil from other countries when we can produce all the oil we will ever need in the future, simply by the algae process.

We will be energy independent by 2015,,, wonder who said that?
 
So much for the Peak Oil scare of not so long ago. But if the Greenies have their way, the only benefit will be if we can figure out how to eat it.
 
LDJones said:
So much for the Peak Oil scare of not so long ago. But if the Greenies have their way, the only benefit will be if we can figure out how to eat it.
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But, but, but, Mr. Jones! We know everything about our planet and there is nothing left to discover or invent! :mad2::mad2:

:rolleyes:



;)
 
comanchepilot said:
they are foretelling the future? Get me their stock page . . .
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Time diff...Oz is ahead of us. Adelaide is UTC/GMT +9:30 hours or Australian Central Daylight Time (ACDT).

At this timestamp, 12/9/13 10:36 am MST, it's 12/10/13 4:06 am ACDT.

Gotta love the Tardis!
 
ClimbnSink said:
There is excess oil everywhere, including in the states. It is not a free market so finding more doesn't change the price at the pump.
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The price of oil is only loosely coupled to pump prices.

The issue with pump prices is that the amount of refined product is limited by available refinery capacity. And since it's almost impossible to get regulators to approve new refineries, that shortage will only get worse.

Thank the EPA and their state brethren.
 
Clark1961 said:
I did not know about the Kermit Weeks connection. Grandad must have had some business sense. They had some tough foundation problems for the Bass Straits platforms (not that it matters, just a technical tidbit) - that's about all I remember that was remarkable about the Aus offshore business. The offshore drilling company that I worked for back in the day had a rig over there for awhile.

There's also onshore production.
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There's also offshore production off the west coast as well, they had a huge leak there not that long ago.
 
JeffDG said:
The price of oil is only loosely coupled to pump prices.

The issue with pump prices is that the amount of refined product is limited by available refinery capacity. And since it's almost impossible to get regulators to approve new refineries, that shortage will only get worse.

Thank the EPA and their state brethren.
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Not true, it's about reinvesting capital when it's not necessary. There are at least 2 new refineries being built right now.
 
Henning said:
Not true, it's about reinvesting capital when it's not necessary. There are at least 2 new refineries being built right now.
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How many new refineries have opened in the United States this century?

1 in Wyoming with a capacity of 3,000 bbl/day
 
JeffDG said:
How many new refineries have opened in the United States this century?

1 in Wyoming with a capacity of 3,000 bbl/day
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Right, but that has nothing to do with not being able to, that has to do with not wanting to. Why reinvest all that money when they are still reaping profits off the refineries built on public war appropriations money? Same reason we are on oil at all still, why reinvest in infrastructure when you are recording record profits?
 
Henning said:
Right, but that has nothing to do with not being able to, that has to do with not wanting to. Why reinvest all that money when they are still reaping profits off the refineries built on public war appropriations money? Same reason we are on oil at all still, why reinvest in infrastructure when you are recording record profits?
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Yet the oil companies reap crappy profits that put them well behind most industries in terms of return on investment.
 
Yes by all means. Return on investment is minuscule for big oil. That's why they only give the president of exxon a 375 million dollar bonus on retirement. A paltry sum for the head of a monopoly. Right?
 
Jimmy cooper said:
Yes by all means. Return on investment is minuscule for big oil. That's why they only give the president of exxon a 375 million dollar bonus on retirement. A paltry sum for the head of a monopoly. Right?
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Go ahead and pull their financials. But you won't find them in your DU/Daily Kos talking point generator, so you might have to go a bit further afield.
 
Geico266 said:
Say goodbye to the strangle hold the middle east has on us. :yes:
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Huh?

We are not dependent upon Persian gulf oil. That is a common misconception. Of the top 5 countries that we buy oil from, only one is Mideast. In order:

Canada 28%
Saudi Arabia 13%
Mexico 10%
Venezuela.9%
Russia 5%

Only 20% of our oil imports are from Persian Gulf countries.
 
It's nice to see such a fine understanding of the awl bidness in this forum. Just wunnerful I tell you.

The refineries we have today may be setting in the same location as refineries we had 50 years ago but they aren't the same equipment. Parts of our transportation infrastructure are quite old but most of it has been replaced or enlarged. Other parts of our transportation infrastructure are newly built.

We produce hydrocarbons here in the US that we have know of for decades but lacked the expertise to extract. There are similar resources the world over.

The conspiracy theorists always see someone in the bushes (or on the grassy hill) but there really isn't someone out there suppressing technology unless you count the anti-frac crowd.
 
Clark,

I sure hope the oil industry has the foresight to construct the new refineries an areas a tad less vulnerable to natural disasters. What was it?...2005?...when we had the horrible hurricane season and almost every refinery on the gulf coast was shut down at one time or another? Prices skyrocketed, not because of any oil shortage, but rather because a significant portion of our refining capacity was lost.

Not very good planning.
 
Australian oil. This must explain why the US is pivoting from the Middle East to the Pacific.

I can see the bumper sticker now. "No War for Oil. Bring our troops home from Australia." :D
 
JeffDG said:
Yet the oil companies reap crappy profits that put them well behind most industries in terms of return on investment.
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JeffDG said:
Go ahead and pull their financials. But you won't find them in your DU/Daily Kos talking point generator, so you might have to go a bit further afield.
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Why don't you share with the rest of the class?
 
Brad Z said:
I doubt it. This is shale oil, which requires "fracking" to access. Like much of the oil being extracted in North Dakota and Canada, it is only economically viable to extract when oil prices are high. Saudi oil is much cheaper to extract.
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Yeah. Wars are cheap. Right.
 
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