Environment & Energy
Related: About this forumShale oil estimates double: 7.4 billion barrels in N.D., Mont.
http://www.startribune.com/business/205462611.html?refer=yThe new number from the U.S. Geological Survey is based on data largely from oil company and state drilling records. But unlike the agency's 2008 estimate, it includes more than 3 billion barrels of oil believed held in the Three Forks formation, which is directly below the oil-rich Bakken formation.
Large-scale drilling in Three Forks didn't occur until after that earlier assessment, and the formation is now estimated to hold as much recoverable crude as the Bakken, according to the USGS. The agency calls the formations the largest continuous oil accumulation it has ever assessed and some industry insiders think its potential is even stronger.
"It's a great number but it's conservative," said Ron Ness, president of the North Dakota Petroleum Council, which represents more than 400 companies working in western North Dakota's booming oil patch.
Oh, hooray
thelordofhell
(4,569 posts)And have some minor catastrophic earthquakes..............
nothing too big........
riverbendviewgal
(4,251 posts)good
NickB79
(19,114 posts)Part of the reason the Keystone XL was routed as it was was so that it could handle some of N. Dakota's shale oil as well. Right now they're pretty much maxed out on export capacity, to the point they're shipping it out on rail cars that increases costs by several dollars a barrel.
wtmusic
(39,166 posts)TransCanada wants XL very, very badly.
earthside
(6,960 posts)... to convince us that we are awash in oil.
Of course, oil production in other parts of the world is declining, ie., old fields are, well, old. This Nor'Dakota oil will not even come close to making up the difference we are losing from depreciating fields.
Furthermore, the easy to get shale oil is what they are extracting now, the Three Forks formation is deeper and will be even more expensive to pump.
Anyway, I'm not sure I believe these reserve estimates ... oil companies stock prices go up if it looks like they have product to sell in the future, they have a big interest in promoting the notion of big reserves.
Champion Jack
(5,378 posts)" oil companies stock prices go up if it looks like they have product to sell in the future, they have a big interest in promoting the notion of big reserves. "
Nailed it
> Anyway, I'm not sure I believe these reserve estimates ... oil companies stock prices go up
> if it looks like they have product to sell in the future, they have a big interest in promoting
> the notion of big reserves.
They're applying the old Saudi trick: Inflate "reserves" to whatever fictional level you want and
just make sure to cash most of it out before the truth comes home ...