Interesting fact about oil

[webbie]

Two drilling companies merged today - and the reason is:

"The combined company will have a global fleet of 146 rigs, including harsh-environment jackups and ultra-deepwater drillships.

Marshall said the merger gives the new Transocean a broader customer base, particularly with state-owned national oil companies, which control almost 90 percent of global oil reserves. It also will give Transocean greater exposure in the growing deepwater drilling market."

Notice the bold part. It shows how there is virtually no hope of there being a "free" market, nor of a couple private finds here and there making an impact! 90% Nationalized - WOW

 

[BrotherBart]

Yeah. It is telling that Exxon Mobil is 14th in value among the oil companies in the world. Those nationals are some big boys.

 

[begreen]

All the more reason to play well with the grand nationals until we reduce the addiction.

 

[webbie]

Chavez, Putin, I love ya!

Down with capitalism! Up with the Saudi State Oil Company (Saudi Aramco)..... nothing like having the same folks who spread fundamentalism also controlling the tap. Notice how quickly that great "spread of democracy" is happening "by the sword". I think what we have done is to get bogged down, which allows every other country in the world to pretty much ignore our attempts (or past attempts) at actually spreading the good parts of our market system.

What a world.......

Hey, BB, do you own any RIG or OIH?

 

[BrotherBart]

Nope. No funds. Every dime is on XOM's nose. To win, place and show. I have taken a lot of heat from the diversify crowd. But my average cost per share is eighteen bucks. I would rather have my hand in the pocket of the guy that is paying the drillers and the well service companys. Refining margins are where the money is really at year after year. We will run out of oil some day. We ran out of refinerys twenty years ago.

Back in the high flying tech stock days I just reminded everybody that we had gone to war many times for oil but never for computer chips. When the techs cratered I retired and started buying and selling their assets tractor trailer loads at a time. In the nine/eleven crash I dipped down $26,000 on XOM for a little while while every other stock was going to hell in a hand basket.

On the Chavez deal most people don't realize that Exxon only left $750 million behind down there. Chump change in that business. Chevron walked away from billions in sunk costs. And he doesn't have many people to sell that heavy crude to but them when it come right down to who has the facilities that can handle it. Cheaper to buy it from him than continue to keep having guys shot off the tops of the rigs in the valley.

Don't look for any free heating oil from Chavez this year. He is a little short of talent to run the big stills now.

 

[Todd]

How much oil can be left here on Earth? Maybe we should all just use as much as we can til it's gone? Seriously, I really don't see bio fuels, ethanol, or any other alterative fuel making it til OIL is gone!

 

[BrotherBart]

How much oil can be left here on Earth? Maybe we should all just use as much as we can til it's gone? Seriously, I really don't see bio fuels, ethanol, or any other alterative fuel making it til OIL is gone!

I was thinking about that today. The amount of oil consumed daily is truly mind boggling. There isn't anything available in that quantity period that would get it done. It isn't just gasoline or electricity. It is in everything we use. Even that T-bone was from a cow raised on feed that was fertilized. EVERYTHING! The cloth in your shirt is a blend with polyester. 100% crude oil. Every plastic item you own. EVERYTHING.

I won't be around for it but it ain't gonna be pretty.

 

[Highbeam]

I don't imagine the oil going away like a light switch. It will become rarer and more expensive. People will still use it for essentials and more essential things but only the rich will use it in quantities as a fuel.

 

[keyman512us]

How much oil can be left here on Earth? Maybe we should all just use as much as we can til it's gone? Seriously, I really don't see bio fuels, ethanol, or any other alterative fuel making it til OIL is gone!

I was thinking about that today. The amount of oil consumed daily is truly mind boggling. There isn't anything available in that quantity period that would get it done. It isn't just gasoline or electricity. It is in everything we use. Even that T-bone was from a cow raised on feed that was fertilized. EVERYTHING! The cloth in your shirt is a blend with polyester. 100% crude oil. Every plastic item you own. EVERYTHING.

I won't be around for it but it ain't gonna be pretty.

Well...I'm sure there will be signs when it is coming..lol :

 

[keyman512us]

How much oil can be left here on Earth? Maybe we should all just use as much as we can til it's gone? Seriously, I really don't see bio fuels, ethanol, or any other alterative fuel making it til OIL is gone!

...Good point Todd. But the Reality:

 

[keyman512us]

For Now???

 

[keyman512us]

"The powers that be" might begin take a serious look at "a real energy policy" when this becomes a reality lol:

 

[keyman512us]

But then again??? The most interesting (and saddest) fact of all:

 

[keyman512us]

But not to worry...they still have "one more ace up their sleeve" that people will buy "hook line and sinker".

 

[keyman512us]

After all...What was it we were told by the prez??? "America is a nation addicted to oil..."

 

[keyman512us]

But at the end of the day...There is always "Tommorow". Perhaps the younger generations are learning by our example.

 

[Sandor]

The oil patch is starting to get rather interesting.

I have been following this issue for nearly three years since I became aware, mostly through theoildrum.com . Trying to determine what is happening is really not that easy; do you listen to Dan Yergin or Matt Simmons? What I do is play a simple game of connect the dots. Craig's "Interesting Fact about Oil" is simply another line connecting the dots, and over the last three months or so, there are plenty of lines being drawn between those dots and the pace seems to be accelerating.

Ace over at theoildrum.com is predicting flat production until 2009, then a 1 percent decline to 2012, then a 4 percent decline after that. He has plenty of documentation to back it up. Remember, 2005 was peak oil production and the difference has been made up with Natural Gas liquids and "other fuels".

Whether you choose to believe this stuff or not is your own business. I believe it and I am making preparations, however, I am still thinking like Todd and enjoying the hell out of life.

P.S. Craig, hold on for a couple more years and your site will be worth some serious money, whatever the value of a USD will be.

P.S.S BrotherBart, unless you are on your deathbed, you will see the impact. Really, your are already seeing it, but it will get worse.

Enjoy!

 

[saichele]

The oil patch is starting to get rather interesting.

I have been following this issue for nearly three years since I became aware, mostly through theoildrum.com . Trying to determine what is happening is really not that easy; do you listen to Dan Yergin or Matt Simmons? What I do is play a simple game of connect the dots. Craig's "Interesting Fact about Oil" is simply another line connecting the dots, and over the last three months or so, there are plenty of lines being drawn between those dots and the pace seems to be accelerating.

Ace over at theoildrum.com is predicting flat production until 2009, then a 1 percent decline to 2012, then a 4 percent decline after that. He has plenty of documentation to back it up. Remember, 2005 was peak oil production and the difference has been made up with Natural Gas liquids and "other fuels".

Whether you choose to believe this stuff or not is your own business. I believe it and I am making preparations, however, I am still thinking like Todd and enjoying the hell out of life.

P.S. Craig, hold on for a couple more years and your site will be worth some serious money, whatever the value of a USD will be.

P.S.S BrotherBart, unless you are on your deathbed, you will see the impact. Really, your are already seeing it, but it will get worse.

Enjoy!

Does Ace's prediction say anything about regulatory changes?

If or when we start seeing real declines in production, we'll go after every bit of it we know about, ANWR, atolls, whatever. A change in regulation is only one election cycle away.

That said, it's short term, but will be an interesting scramble for a decade or two.

Steve