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Posts tagged “oil resources”

By Robert Rapier on May 7, 2013 with 7 responses

Estimate for Williston Basin Oil Resources is Doubled

Last week the U.S. Geological Survey (USGS) provided an update of oil and gas resources in the Bakken region. This was their first update since a 2008 report that estimated mean undiscovered volumes of 3.65 billion barrels of oil and 1.85 trillion cubic feet of natural gas in the region. The new estimate includes the Three Forks formation which largely lies underneath the Bakken in the Williston Basin that sprawls across North Dakota, South Dakota, Montana, and southern Saskatchewan.

(Related: The Energy Industry’s Production Challenge: 100 Million Barrels Per Day)

The new USGS assessment stated that the Three Forks formation had not been previously assessed, but that an assessment was warranted based on a rise in drilling and production in the formation. Inclusion of the Three Forks formation added an estimated mean resource of 3.73 billion barrels of oil to the estimated 3.65 billion barrels of oil in the Bakken formation for a total estimated resource of 7.4 billion barrels of undiscovered, technically recoverable oil in the two formations. The two formations were also estimated to contain a mean of 6.7 trillion cubic feet (tcf) of undiscovered, technically recoverable natural gas and 0.53 billion barrels of undiscovered, technically recoverable natural gas liquids (NGLs). CONTINUE»

By CER News Desk on Nov 27, 2012 with no responses

Libya’s Political Instability Making Oil Investment Difficult

More than a year following the ouster of Muammar Gaddafi as leader of Libya, oil production has returned to pre-civil war levels, but a variety of factors are combining to keep investors away from the OPEC nation, a fact that is only contributing to the continued unrest of the country’s people.

By Andrew Holland on Aug 31, 2012 with no responses

Energy Federalism: A Good Idea in the Romney Plan

Power to the States

Yesterday, I wrote about the shortcomings of the Romney energy plan, saying that by looking simply at supply-side, it only goes halfway; a real energy policy addresses both demand and supply sides. There is one part of the plan, however, that I want to highlight because I believe it deserves praise.

The section that stands out as genuinely new and innovative is Romney’s plan to transfer control over energy production on federal lands to states. A Romney Administration would allow states to “establish processes to oversee the development and production of all forms of energy on federal lands within their borders” with the exception of lands “specially designated off-limits” (presumably national parks and the like). Federal agencies would certify state’s regulations as meeting an “adequate” level, but would leave most of the decisions to the states themselves. Romney would then encourage a “State Energy Development Council” that would allow states to share best practices and work together. This idea of Energy Federalism would allow states – the “laboratories of Democracy” in Justice Brandeis’ terminology – to test different regimes for energy production.

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By Will Rogers on Jul 2, 2012 with 1 response

Rocking the Boat in the Energy Rich South China Sea

Beijing is flexing some more muscle to protect its energy interests in the South China Sea.

Last week, China began combat-ready patrols in the waters around the potentially resource rich Spratly Islands that both China and Vietnam have disputed claims to. And on Friday, China Daily reported that Beijing may develop a military presence in Sansha – a newly incorporated city located on one of the disputed Paracel Islands that was stood up to administer Chinese authority over the country’s South China Sea territories. (The city was established in response to a recent Vietnamese law that claimed sovereignty over the Paracel and Spratly Islands.)

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By Andrew Holland on May 22, 2012 with 9 responses

Are Countries With Vast Oil Resources Blessed or Cursed?

A Complex Issue

A couple of months ago, Robert Rapier, Sam Avro, and I had an interesting debate about the resource curse in the context of a Tom Friedman column about how countries that aren’t blessed with natural resources succeed because they are forced to invest in their people. I believe, as my post (Oil – Easy to Produce, but Not Easy to Buy) said, that countries blessed with natural resources like oil “don’t have to learn how to build factories” because they can sell oil to the world instead. Robert and Sam cited countries like Norway, the U.S., and the U.K. as examples of countries that have thrived even with resources.

The new edition of The New York Review of Books features an article, “What Makes Countries Rich or Poor?” written by Jared Diamond that is a review of Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoglu and James A. Robinson. This is another book to add to my ever-growing list of ‘must-reads’ – but Diamond’s review gave some interesting points that are very relevant to our previous discussion about the resources curse and what causes countries to grow or fail. The truth, as shown by the article, is complicated: there are many determinants to growth, and  it is difficult to separate out individual causes.
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By Robert Rapier on Mar 26, 2012 with 35 responses

Setting the Record Straight on U.S. Oil Reserves

The Difference Between Oil Shale and Oil from Shale Formations

There has been some confusion lately about the overall extent of U.S. oil reserves. Some claim that the U.S. has hundreds of billions or even trillions of barrels of oil waiting to be produced if the Obama Administration will simply stop blocking development. So, I thought it might be a good idea to elaborate somewhat on the issue.

Oil production has been increasing in the U.S., primarily driven by expanding production from the Bakken Shale Formation in North Dakota and the Eagle Ford Shale in Texas. The oil that is being produced from these shale formations is sometimes improperly referred to as shale oil. When politicians speak of hundreds of billions or trillions of barrels of U.S. oil, they are most likely talking about the oil shale in the Green River Formation in Colorado, Utah, and Wyoming. Some have assumed that since we are accessing the shale in North Dakota and Texas, the Green River Formation and its roughly 2 trillion barrels of oil resources will be developed next. But these are very different types of resources. CONTINUE»

By Robert Rapier on Dec 12, 2011 with 55 responses

Why Some Republicans are Delusional About Oil and Energy Policy

Two Sides of a Coin In a recent video blog about energy politics, I stated that in my opinion each of the major political parties in the U.S. only gets half of the energy picture. Democrats tend to demonize oil usage, with many believing that we can shift to renewables for our energy needs. To be clear, we can — but not in the way they imagine. They simply underestimate the role oil plays in our lives, and therefore overestimate the ease of a transition. As a result, they feel they have little use for oil companies, and so they are perpetually at war with the oil industry. Of course renewables certainly have a role, and must be the long-term… Continue»