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Thread: American Dependence on Foreign Oil

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    Default American Dependence on Foreign Oil

    Don’t know if it is all true or not ……but sure makes you wonder.

    Read carefully then ask yourself 'why are we dependent on foreign oil?'

    1. Ever heard of the Bakken Formation? Go to GOOGLE and check the listings on the USGS report. It will blow your mind.

    The U.S. Geological Service issued a report in April ('08) that only scientists and oilmen/women knew was coming. It was a revised report (hadn't been updated since '95) on how much oil was in the area of the western 2/3 of North Dakota; western South Dakota; and extreme eastern Montana ... check THIS:

    The Bakken is the largest domestic oil discovery since Alaska 's Prudhoe Bay, and has the potential to eliminate all American dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable... at $107 a barrel, we're looking at a resource base worth more than $5.3 trillion.

    'When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.' says Terry Johnson, the Montana Legislature's financial analyst. 'This sizable find is now the highest-producing onshore oil field found in the past 56 years,' reports The Pittsburgh Post Gazette. It's a formation known as the Williston Basin , but is more commonly referred to as the 'Bakken.' And it stretches from Northern Montana, through North Dakota and into Canada .

    For years, U.S. oil exploration has been considered a dead end. Even the 'Big Oil' companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken's massive reserves... and we now have access of up to 500 billion barrels. And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL! That's enough crude to fully fuel the American economy for 41 years straight.

    2. [And if THAT didn't throw you on the floor, then this next one should - because it's from TWO YEARS AGO, people!]

    U.S. Oil Discovery- Largest Reserve in the World! Stansberry Report Online - 4/20/2006. Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world, more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction.
    They reported this stunning news: We have more oil inside our borders, than all the other proven reserves on earth. Here are the official estimates:

    -8-times as much oil as Saudi Arabia
    -18-times as much oil as Iraq
    -21-times as much oil as Kuwait
    -22-times as much oil as Iran
    -500-times as much oil as Yemen
    - and it's all right here in the Western United States .

    HOW can this BE!? HOW can we NOT BE extracting this!? Because some goofy politicians have blocked all efforts to help America become independent of foreign oil.

    James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East -more than 2 TRILLION barrels. Untapped. That's more than all the proven oil reserves of crude oil in the world today, reports The Denver Post. Don't think 'OPEC' will drop its price, even with this find? Think again! It's all about the competitive marketplace - it will have to.

    Click on the web site listed to read more about the Bakken Formation.

    http://en.wikipedia.org/wiki/Bakken_Formation



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    Default Re: American Dependence on Foreign Oil

    The above was from an email I received.

    Here is the Snopes take on it... (Partially true)

    http://www.snopes.com/politics/gasoline/bakken.asp
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    Default Re: American Dependence on Foreign Oil

    http://en.wikipedia.org/wiki/Bakken_Formation

    The Bakken Formation, initially described by geologist J.W. Nordquist in 1953,[1] is a rock unit from the Late Devonian to Early Mississippian age occupying about 200,000 square miles (520,000 km2) of the subsurface of the Williston Basin, covering parts of Montana, North Dakota, and Saskatchewan.
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    Default Re: American Dependence on Foreign Oil

    3 to 4.3 Billion Barrels of Technically Recoverable Oil Assessed in North Dakota and Montana’s Bakken Formation—25 Times More Than 1995 Estimate—
    Released: 4/10/2008 2:25:36 PM


    Contact Information:
    U.S. Department of the Interior, U.S. Geological Survey
    Office of Communication
    119 National Center
    Reston, VA 20192
    Clarice Nassif Ransom
    Phone: 703-648-4299

    David Ozman
    Phone: 720-244-4543


    Reston, VA - North Dakota and Montana have an estimated 3.0 to 4.3 billion barrels of undiscovered, technically recoverable oil in an area known as the Bakken Formation.


    A U.S. Geological Survey assessment, released April 10, shows a 25-fold increase in the amount of oil that can be recovered compared to the agency's 1995 estimate of 151 million barrels of oil.



    Related Podcasts
    3 to 4.3 Billion Barrels of Oil in North Dakota and Montana
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    Technically recoverable oil resources are those producible using currently available technology and industry practices. USGS is the only provider of publicly available estimates of undiscovered technically recoverable oil and gas resources.

    New geologic models applied to the Bakken Formation, advances in drilling and production technologies, and recent oil discoveries have resulted in these substantially larger technically recoverable oil volumes. About 105 million barrels of oil were produced from the Bakken Formation by the end of 2007.


    The USGS Bakken study was undertaken as part of a nationwide project assessing domestic petroleum basins using standardized methodology and protocol as required by the Energy Policy and Conservation Act of 2000.


    The Bakken Formation estimate is larger than all other current USGS oil assessments of the lower 48 states and is the largest "continuous" oil accumulation ever assessed by the USGS. A "continuous" oil accumulation means that the oil resource is dispersed throughout a geologic formation rather than existing as discrete, localized occurrences.


    The next largest "continuous" oil accumulation in the U.S. is in the Austin Chalk of Texas and Louisiana, with an undiscovered estimate of 1.0 billions of barrels of technically recoverable oil.


    "It is clear that the Bakken formation contains a significant amount of oil - the question is how much of that oil is recoverable using today's technology?" said Senator Byron Dorgan, of North Dakota. "To get an answer to this important question, I requested that the U.S. Geological Survey complete this study, which will provide an up-to-date estimate on the amount of technically recoverable oil resources in the Bakken Shale formation."


    The USGS estimate of 3.0 to 4.3 billion barrels of technically recoverable oil has a mean value of 3.65 billion barrels. Scientists conducted detailed studies in stratigraphy and structural geology and the modeling of petroleum geochemistry. They also combined their findings with historical exploration and production analyses to determine the undiscovered, technically recoverable oil estimates.


    USGS worked with the North Dakota Geological Survey, a number of petroleum industry companies and independents, universities and other experts to develop a geological understanding of the Bakken Formation. These groups provided critical information and feedback on geological and engineering concepts important to building the geologic and production models used in the assessment.


    Five continuous assessment units (AU) were identified and assessed in the Bakken Formation of North Dakota and Montana - the Elm Coulee-Billings Nose AU, the Central Basin-Poplar Dome AU, the Nesson-Little Knife Structural AU, the Eastern Expulsion Threshold AU, and the Northwest Expulsion Threshold AU.


    At the time of the assessment, a limited number of wells have produced oil from three of the assessments units in Central Basin-Poplar Dome, Eastern Expulsion Threshold, and Northwest Expulsion Threshold.



    The Elm Coulee oil field in Montana, discovered in 2000, has produced about 65 million barrels of the 105 million barrels of oil recovered from the Bakken Formation.
    Results of the assessment can be found at http://energy.usgs.gov.


    For a podcast interview with scientists about the Bakken Formation, listen to episode 38 of CoreCast at http://www.usgs.gov/corecast/.
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    Default Re: American Dependence on Foreign Oil

    The issue with the Bakken formation is that it's very wide, not very deep. The formation is as little as 4 feet "tall" in many areas. Until Horizontal drilling, this severely limited the amount of producible oil. Now however, it's there, the technology exists and we should be drilling this like there's gold down there...because there is.
    Last edited by Malsua; October 6th, 2008 at 17:35.

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    Default Re: American Dependence on Foreign Oil

    Quote Originally Posted by Malsua View Post
    The issue with the Bakken formation is that it's very wide, not very deep. The formation is as little as 4 feet "tall" in many areas. Until Horizontal drilling, this severely limited the amount of producible oil. Now however, it's there, the technology exists and we should be drilling this like there's gold down there...because there is.
    Correct.
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    Default Re: American Dependence on Foreign Oil

    Living in north western North Dakota - this is in the local paper nearly daily. There's an entire 1/2 page dedicated to mineral rights leasing, applications for wells, dry wells, producing wells, geologic survey's going one, ect ect ect.

    Make no mistake, this isn't easy oil. It isn't easy to hit, and it isn't easy to extract in volume. This is a very hot topic locally of "if it's worth it or not". Farmers dropping 100k on a well and it running big for a month then drying up to 3 barrels a day. We're calling it prairie roulette because it's so hit and miss even when the survey's are on your side. Wells running large then drying up in a month even with horizontal drilling.

    Prarie roulette offeres a lot of promise. It's making some millionaires, and it's breaking some families. Small venture oil companies come and go so fast the local rig workers call themselves "Kelly Girls". (As in, the Temp service)

    The oil's there, that's for sure. Whoever figures it out how to make it more reliable and in quantity will be considered a genius, because that hasn't happened yet with any consistancy.

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    Default Re: American Dependence on Foreign Oil

    OPEC to cut production by 1.5 million barrels a day

    By Steve Goldstein, MarketWatch
    Last update: 7:24 a.m. EDT Oct. 24, 2008

    LONDON (MarketWatch) -- The Organization of Petroleum Exporting Countries on Friday said it was slashing 1.5 million barrels of oil a day in production as the world's financial crisis dampened demand for energy.

    "This slowdown in oil demand is serving to exacerbate the situation in a market which has been over-supplied with crude for some time, an observation which the Organization has been making since earlier this year. Moreover, forecasts indicate that the fall in demand will deepen, despite the approach of winter in the northern hemisphere," the oil cartel said.

    It also noted that "oil prices have witnessed a dramatic collapse -- unprecedented in speed and magnitude -- these falling to levels which may put at jeopardy many existing oil projects and lead to the cancellation or delay of others, possibly resulting in a medium-term supply shortage."

    The cartel said it was going to cut its production ceiling of 28.8 million barrels a day by 1.5 million barrels, effective Nov. 1.

    Analysts had been expecting a cut between 1 million and 1.5 million barrels a day, though a few observers said the cuts could reach as high as 2 million.

    Oil prices have fallen from highs above $147 a barrel in July to as low as $63.05 a barrel on Friday.


    Oil futures were trading $3.44 lower to $64.40 a barrel in recent action as world equity markets tumbled. See full story.
    "As far as today's price faction, it's what we have seen since September -- overall de-leveraging , there's risk aversion with what's going on in equity markets and the oil market is getting caught in downdraft," said Mike Wittner, an analyst for Societe Generale in London.

    The biggest producer, Saudi Arabia, is cutting 466,000 barrels a day, with six-figure declines also coming from Iran, Kuwait, the United Arab Emirates and Venezuela.

    SocGen's Wittner said the fact that OPEC gave specific cuts by country -- it doesn't always do so -- lends some credibility to its call for production cuts. That little dissension was seen also was constructive from OPEC's perspective, he said.

    "The fact it was such a fast, business-like meeting is good from OPEC's point of view," Wittner said.

    OPEC said it's going to meet again on Dec. 17, in Oran, Algeria. But it didn't give a specific commitment to cut production further.

    Steve Goldstein is MarketWatch's London bureau chief.

    http://www.marketwatch.com/news/stor...8-DD31F5D9E622

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    Default Re: American Dependence on Foreign Oil

    Opec wants to halt oil price slide but fears making financial crisis worse

    Members of the Opec oil producers’ cartel began negotiations on Thursday on whether to cut ouput in a desperate bid to halt the slide in crude prices.

    By Russell Hotten, Industry Editor
    Last Updated: 6:58AM BST 24 Oct 2008


    Saudi Arabia's Crown Prince Sultan at OPEC summit in Riyadh last year. Photo: REUTERS

    But fears of a deep cut in production receded amid signs that some members of the 13-strong group believe that a higher oil price will reduce further demand by the major consumer nations.

    Opec president Chakib Khelil said on Thursday that his organisation, which accounts for about 40pc of oil production, would take care not to worsen the global financial crisis.

    He said: “It’s a concern that we could make the financial crisis worse by taking too strong a reduction,” adding that the decision “should not impact the world economy which is already in pretty bad shape.”

    Thursday’s talks in Vienna will be followed by a further meeting Friday to ratify the agreement. It is thought that Opec hawks such as Iran and Venezuela are pushing for 3m barrel a day reduction, taking daily output down to about 43m.

    But Opec kingpin Saudi Arabia wants a smaller cut, believing that a jump in the oil price will be self-defeating and force consumers in Europe and America to reduce demand.

    Analyst John Hall, of John Hall Associates, said: “My feeling is that there will be a cut of 1m-1.5m barrels, leaving Opec to sit back and watch what happens to the price. I would not expect the price to react strongly to such a cut.”

    The price of crude has more than halved since it reached a record $147.2 a barrel in July. Some Opec members, especially Iran, fear that their economies will suffer through the drop in revenues.

    The oil price rose ahead of the meeting to about $62 a barrel. David Kirsch, an energy markets analyst at Washington-based PFC Energy, said he believes the market has already factored in a 1m barrel a day cut, meaning prices would not change much in the short-term if Opec reduces output by that much.

    This latest Opec meeting, brought forward from next month because of the severity of the slide in prices, comes as Russia shows increasing interest in cooperating with the organisation.

    Russia, the world’s second largest oil producer after Saudi, has traditionally had representatives at Opec meetings but has never publicly tracked the organisations cuts and increases in production quotas.

    But on Wednesday Russia’s Deputy Prime Minister Igor Sechin said his country may build a margin of spare oil production capacity as a means of influencing prices. However, he said Russia would not join Opec.

    Ian Day, chief executive of the risk management consultancy Diligence, warns that any move by Russia to cooperate with Opec is fraught with political dangers. “One of Russia’s objectives might be to counter America’s influence on Saudi Arabia’s control of Opec. You could see Russia driving a wedge between Opec, with support from Iran and Venezuela.” He believes that if Russia’s oil revenues are reduced, Moscow might try to recoup money by raising the price of gas it exports to Europe.

    Opec comprises 12 members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. The thirteenth, Indonesia, is due to leave the organisation at the end of 2008.

    http://www.telegraph.co.uk/finance/f...sis-worse.html

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    Default Re: American Dependence on Foreign Oil

    Refiners Look to Reduce Production as Falling Gas Prices Cut Into Profits

    OCTOBER 27, 2008

    By ANA CAMPOY

    As falling gasoline prices squeeze refining profits, there are signs that refiners are ratcheting back production to pare losses.

    Gasoline output, which had been expanding as U.S. refineries came back online after hurricane-related shutdowns, dropped for the first time in weeks, according to data reported last week from the Department of Energy. Philadelphia refiner Sunoco Inc. said last week that it is shutting down a unit used in gasoline production at one of its refineries, though it declined to say why.



    "It makes no sense to be running [equipment] if they're not making any money," said Daniel Katzenberg, an analyst at Oppenheimer & Co.

    Following oil prices down, the cost of gasoline tumbled to a national average of $2.699 for a regular gallon Sunday, far from its high of $4.114 in July, according to the auto club AAA. That has brought relief to consumers and businesses nationwide -- but not refiners.

    The business of processing crude oil into gasoline suffered earlier this year as oil prices skyrocketed to $145 a barrel in July. Refiners were unable to pass on the higher cost to consumers who balked at paying record-high prices at the pump. Refining profit margins collapsed, and many companies resorted to production cutbacks, making for some of the lowest operating rates at U.S. refineries in years.

    But the refining business isn't faring much better now that oil prices are lower, because gasoline prices have dropped at a faster pace. Over the past three weeks in the Gulf Coast spot market, gasoline cost an average $1.86 a barrel less than crude oil, according to data compiled by Muse, Stancil & Co., a consulting firm specializing in the energy industry. With prices at those levels, refiners lose money with each barrel of crude oil they process into gasoline.

    If that continues, gasoline inventories likely will shrink, which could eventually pressure gasoline prices higher, say analysts. So far, though, slacking production hasn't put the brake on falling prices. Since Wednesday, gasoline prices have dropped 16 cents a gallon, and by Sunday were 14 cents less than what they were at this time last year, according to AAA.

    The auto club expects prices to keep falling in coming weeks, reaching $2.50 before the end of November and possibly dipping lower by the end of the year.

    A spike in oil prices or a surge in gasoline demand could throw off that forecast. But crude-oil prices continue to fall, dropping nearly $4 to $64.15 a barrel Friday despite a decision by the world's major oil exporters to slash oil production. Although demand for gasoline has ticked up in the past couple of weeks, it remains well below last year's levels.

    "We're certainly looking at further weakness," said Stephen Schork, president of the oil-and-gas firm Schork Group. He expects gasoline prices to go up, but not until the first quarter of next year.

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    Default Re: American Dependence on Foreign Oil

    It's "Peak Oil"

    Oh wait, what?

    I am so full of asshats that were claiming that oil was at its peak because of supply concerns. Google Rightwhale. Emblematic of the issue. The issue was speculation by asshats like Lehman going long on Oil.
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    Default Re: American Dependence on Foreign Oil

    Bakken Reassessed by U.S. Geological Survey
    March 26, 2012

    "It's the largest field found in the world in 40 years," said the CEO of Continental Resources, Harold Hamm. He said he is confident in the oil production of the Bakken Oil Formation in Eastern Montana and Western North Dakota.

    Hamm's company is the largest leaseholder and driller in the Bakken shale, working off of about 125,000 acres in the area.

    "This is the largest field ever found in America ever," Hamm said. "It's bigger than Prudhoe Bay. Our estimate is that it holds 24 billion barrels recoverable, and we think that's a conservative number. We think that will prove to be on the low side of what we really do get out of it."

    In 2008, the U.S. Geological Survey estimated the Bakken formation could have up to 4.3 billion barrels of recoverable oil. But they've sent a team of geologists and geochemists back to the Bakken to study rock samples from previous drillings. They normally reassess oil formations after about 10 years, but the Bakken isn't a typical oil formation.

    "It's very rare that we reassess this quickly," said Brenda Pierce, the manger of the USGS Energy Resources Program. "The Bakken is such an unusual reservoir and what is technically recoverable really has changed in a short period of time."

    Pierce also said their scientists are learning new concepts from studying the Bakken.

    "I mean I think it's kind of breaking the way for other potential unconventional oil reserves (and) resources," Pierce said. "I mean it really is world class."

    The USGS is using the same methods to survey the Bakken so the results can be more accurately compared to previous assessments. They plan to complete the study by late 2013.

    Officials with the USGS said Bakken oil is a light, sweet crude of high quality. It is commonly used for processing into gasoline. It is in high demand, particularly in the industrialized nations.

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    Default Re: American Dependence on Foreign Oil

    GAO: Recoverable Oil in Colorado, Utah, Wyoming ‘About Equal to Entire World’s Proven Oil Reserves’
    May 12, 2012

    The Green River Formation, a largely vacant area of mostly federal land that covers the territory where Colorado, Utah and Wyoming come together, contains about as much recoverable oil as all the rest the world’s proven reserves combined, an auditor from the Government Accountability Office told Congress on Thursday.

    The GAO testimony stressed that the federal government was in “a unique position to influence the development of oil shale” because the Green River deposits were mostly beneath federal land.

    The Green River Formation–an assemblage of over 1,000 feet of sedimentary rocks that lie beneath parts of Colorado, Utah, and Wyoming–contains the world’s largest deposits of oil shale,”Anu K. Mittal, the GAO’s director of natural resources and environment said in written testimony submitted to the House Science Subcommittee on Energy and Environment.

    “USGS estimates that the Green River Formation contains about 3 trillion barrels of oil, and about half of this may be recoverable, depending on available technology and economic conditions,” Mittal testified.

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    Default Re: American Dependence on Foreign Oil

    Farmers Hit The Jackpot In Kansas Oil Boom
    May 25, 2012



    Farmers in Kansas are hitting the jackpot.

    But instead of holding the winning lottery numbers, it's all about owning the right piece of land.

    In Harper County, Kan., and the surrounding areas along the south central border of the state, oil companies are pinpointing plots of land they think will become drilling hotspots and offering farmers up to $1,250 an acre for the mineral rights that allow them to drill there.

    Only a year ago, these same rights were worth about $25 an acre, said Gordon Stull, a lawyer in the town of Pratt, who helps clients negotiate mineral right leases.

    With a knock at the door, many local farmers who have been sitting atop their mineral rights for decades are suddenly seeing their lives change forever.

    John Walker, a 63-year old farmer who has been harvesting wheat in the small town of Anthony since he was six years old, has received $1.5 million over the past year after leasing out mineral rights on 2,000 acres of his land.

    Walker received $550 an acre for leasing out half of them last year, then received $1,000 an acre for the other half this year. He will also get royalty payments of 20% from any oil that is produced on that land.

    "I've had to pinch myself every morning just to know I'm awake ... we've kind of hit the jackpot," said Walker.

    Oil boom strikes Kansas

    With the new money, Walker went straight to the John Deere store and swapped some of his old farming equipment for two new tractors, a baler, a swather and two pickup trucks. He also bought a luxury motor home, so that he and his wife can start taking a few vacations. But he won't be quitting his day job any time soon, he said.

    Mineral rights grant access to the materials beneath the land. So farmers are still able to farm the land above the minerals that they lease out. If a well is drilled, however, they will no longer be able to farm on the portion of land where it is located.

    Jack Gates, a 64-year old farmer who leased out 160 acres of his mineral rights for $1,000 an acre, may not have earned a life-altering sum but the $160,000 he received will help him retire more comfortably.



    Previously, Gates had struggled to save for retirement. The cost of fertilizer kept climbing as prices for wheat, his big crop, kept falling. He believes that God was responsible for this recent stroke of good fortune, and he doubled his regular contributions to his church as soon as he received his check -- in addition to paying off several small loans and putting more than $10,000 toward his retirement savings.

    "Without this money, my retirement would have been on faith that the Lord would have provided for me somehow," he said. "It's just a blessing that we're able to participate in the oil boom going on in Harper County."

    Power in numbers: Oil companies typically negotiate with one landowner at a time when leasing mineral rights. This often sparks rumors and jealousy among neighbors about how much more money one farmer was offered than the one who lives down the road, said Stull, the lawyer.

    After noticing the discrepancies among the amounts oil companies were paying local landowners last year, Stull began helping clients band together and negotiate equal prices.

    For the oil companies, it's a mixed blessing. While negotiating with a group of farmers makes it more difficult for them to offer a lower price to someone who may not know the value of their mineral rights, it saves them the time and paperwork that comes with dealing with each property owner individually, said Stull.

    Randy Blanchat, a farmer from Danville, was offered $500 an acre for his rights last year. In an effort to negotiate a higher rate, Blanchat, his wife and three close friends, started a committee and recruited more than 100 local landowners to pool together some 30,000 acres of mineral rights.

    Chasing the American Dream in a Walmart parking lot

    Forming the huge block sparked a bidding war between three oil companies, ending in an offer that none of the landowners could resist, said Blanchat.

    Blanchat's committee wouldn't release the specifics of the deal, but they did say the rate was more than double the original offer.

    Many of the landowners in the group were shocked by the outcome.

    "It's hard to believe we're getting such a windfall, when just weeks ago we were trying to pay our bills and make ends meet," said Randy's brother, Jeff Blanchat, who also leased his mineral rights in the block.

    Blanchat does have some concerns, however, especially about the possible water contamination from fracking that he's heard about in other parts of the country.

    "[Oil companies] say the new technology makes it safer than vertical drilling, but we just don't know," he said. "I don't like to think we sold out for the almighty dollar, but let's be honest -- if all my neighbors are going in it's not going to matter if I don't let them drill on my land. Either I can get some of the pie or none of the pie."

    Big windfalls:
    For Harper County's farmers, that pie has been made even bigger by another force of nature: The wind.

    The largest wind farm in the state of Kansas, being built this year by BP and Sempra, is paying local farmers good money to use their land for its hundreds of turbines.

    Leon Zoglman, a 64-year old farmer, agreed to host 12 giant wind turbines on his land. In return, Zoglman said BP will pay him more than $20,000 so it could place a transmission cord across a mile and a half of his property. It will also dole out another $3,000 a year for the use of roughly 1,200 acres of his land for 10 years or until the turbines begin producing energy -- whichever comes sooner.

    Oil rig workers make nearly $100,000 a year

    But the real money should come once production starts, which BP expects will happen by the end of this year. Zoglman said he will also receive production royalties -- although he has no idea what kind of payments to expect. He's heard that he could get more than $700 a month per turbine, depending on how much wind is produced. If that were the case, Zoglman could bring in more than $100,000 a year in extra income.

    When asked what royalty rates landowners could expect from wind turbines, BP said it does not disclose the terms of its leases with landowners.

    Zoglman said the money he has already received has helped him pay off some of his farm loans. Should he get decent production royalties, it would give him a nice cushion in case his farming income doesn't cut it.

    "That will be guaranteed income, because the wind is always gonna blow," he said. "Whereas with farming it's a big gamble whether you get a crop and how much you get."

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    Default Re: American Dependence on Foreign Oil

    Gas prices hit $8 in NJ, Pa. in Lukoil protest



    Sal Risalvato, second right, answers a question at a Lukoil service station Wednesday, Sept. 12, 2012, in South Plainfield, N.J., as a large gathering of Lukoil dealers and workers protested what they say are unfair pricing practices by Lukoil North America. More than 50 Lukoil gas stations in New Jersey and Pennsylvania were jacking up prices to more than $8 a gallon Wednesday to protest what they say are unfair pricing practices by Lukoil North America that they say leave them at a competitive disadvantage. Risalvato of the New Jersey Gasoline, Convenience, Automotive Association said the protest was aimed at raising consumer awareness about the challenges facing Lukoil dealers and to get Lukoil to respond to dealer grievances. (AP Photo/Mel Evans)

    By Katie Zezima
    Associated Press / September 12, 2012

    SOUTH PLAINFIELD, N.J.—More than 50 Lukoil gas stations in New Jersey and Pennsylvania jacked up prices to more than $8 a gallon Wednesday to protest what they say are unfair pricing practices by Lukoil North America that leave them at a competitive disadvantage.

    Dozens of Lukoil franchise owners also gathered to protest at a station in this central New Jersey town where the posted prices were an eye-popping $8.99 a gallon.

    The owners and the New Jersey Gasoline, Convenience, Automotive Association said the one-day protest was aimed at raising consumer awareness about the challenges facing Lukoil dealers and getting the company to respond to dealer grievances.

    Station owners said Lukoil charges them more for gasoline than other companies charge their franchisees, forcing them to pass that increase onto consumers. It is not uncommon, they said, to see a competitor selling gas to the public for considerably less than what they're paying Lukoil per gallon.

    "My price on invoices is what my competitors are selling on this street," said Khalid Zackria, owner of the South Plainfield station where the dealers assembled. "That's why it's hard for me to survive."

    Sal Risalvato, executive director of the gas station association, said Lukoil charges 7 cents more per gallon than other companies and that owners might pay more on top of that depending on where their station is located.

    Lukoil North America issued a statement defending its pricing practices, which it said comply with state law, and accused the gas station association of encouraging "public misstatements and ill-conceived actions." It said it does not comment on its competitors' prices.

    Lukoil is Russia's second-largest oil producer. The first Lukoil-branded service stations in the U.S. opened in 2003 and today the company has more than 500 in the Northeast and Mid-Atlantic. Many of the franchisees entered into agreements with other companies that were bought by Lukoil.

    The gas station association said the high prices were meant to get the attention of customers so they know the price pressures they are facing.

    Gas stations taking part in the protest handed out fliers to customers explaining why they are struggling to keep their prices down and put up banners asking customers to contact Lukoil. One car pulled into the Lukoil station around the time of the protest; its driver circled the pumps and left.

    Roger Verma, who co-owns four Lukoil stations and three Exxon stations, said he pays 18 to 20 cents more per gallon to buy gas from Lukoil than from Exxon.

    "Me, as a consumer myself, won't go to Lukoil," Verma said. "How can I expect my customers to?"

    Steve Hamparsumian, who owns a Lukoil in Bloomingdale, said his gas station was acquired by Lukoil about six years ago. Since then he said he has lost 50 percent of his business. He said his rent has tripled in that time.

    "We have to pay considerably higher prices for anyone else," Hamparsumian said. "Not only are we selling less, our customers have to pay higher prices."

    Risalvato said Lukoil and other companies engage in zone pricing, or varying prices based on the competition in local marketplaces. He said Lukoil is an "egregious offender" when it comes to zone pricing, further adding to the higher price it charges owners for gas.

    Lukoil, in its statement, defended zone pricing, saying it's a "commercially reasonable practice" used by gasoline marketers for many years and fully compliant with state law.

    "We deeply regret that the NJGCA, a trade lobbyist, has apparently encouraged public misstatements and ill-conceived actions which harm consumers, rather than engage in constructive dialogue," the company said.

    Tom Kloza, chief analyst at the Oil Price Information Service, which has an office in central New Jersey, said Lukoil and its dealers have had a tenuous relationship over the past few years.

    "There has been a history of discontent," he said.I

    http://www.boston.com/cars/news/arti...ukoil_protest/

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    Default Re: American Dependence on Foreign Oil

    More on the Green River Formation...


    An American Oil Find That Holds More Than All of OPEC

    November 13, 2012

    Drillers in Utah and Colorado are poking into a massive shale deposit trying to find a way to unlock oil reserves that are so vast they would swamp OPEC.

    A recent report by the U.S. Government Accountability Office estimated that if half of the oil bound up in the rock of the Green River Formation could be recovered it would be "equal to the entire world's proven oil reserves."

    Both the GAO and private industry estimate the amount of oil recoverable to be 3 trillion barrels.

    "In the past 100 years — in all of human history -- we have consumed 1 trillion barrels of oil. There are several times that much here," said Roger Day, vice president for operations for American Shale Oil (AMSO).

    The Green River drilling is beginning as shale mining is booming in the U.S. and a report by the International Energy Agency predicts that the U.S. will become the world's largest oil producer by 2020. That flood of oil can have major implications for the U.S. economy as well as the country's foreign policy which has been based on a growing scarcity of oil.

    The IEA report does not detail where the American oil will be coming from, but the largest deposit is the Green River formation which has yet to tapped in any significant way.

    This tantalizing bonanza, however, remains just out of reach, at least for now. The cost of extracting the Green River oil at the moment would be higher than what it could be sold for. And there are significant environmental obstacles.

    The operation might require so much water it would compete with Denver and agriculture for vital supplies, the GAO report warned, could pollute underground streams, affect fish and other wildlife, and kick up so much dirt it would leave national monuments in a cloud of dust.

    Nevertheless, the federal government has authorized six experimental drilling leases on federal land in an effort to find a way to tap into the riches of the Green River Formation.

    Day's American Shale has a lease on 160 acres 40 miles northwest of Rifle, Colo. It has already produced oil on a pilot basis, and now stands poised, if it gets the necessary government permissions, to produce on a larger scale.

    Getting oil from Green River shale is a different proposition than getting gas and oil from other sites by using the controversial method of "fracking," fracturing the underground rock with pressurized, chemical-infused water.

    The hydrocarbons in Green River shale are more intimately bound up with the rock, so that fracking cannot release them. The shale has to be heated to 5,000 degrees Farenheit before it will give up its oil.

    Producers have been trying to accomplish that in one of two ways: Either they bring the shale to the surface and then cook it , or they sink a deep shaft and place an electric heater at the base, a process called in-situ. AMSO has been testing in-situ with mixed success.

    "We put in a 600 kilowatt electric heater in, 2,100 feet below the surface," said Day. "The idea was that this would heat the shale and cause the conversion of solid hydrocarbons into liquid oil and gas. These, then, would be brought to the surface."

    Things have not gone smoothly.

    "We plugged it in the first week in January," said Day, referring to the heater. "It burned out like your toaster, only this is a toaster that costs several million dollars to repair. Just in the past month we've figured out what went wrong. We expect to re-install in December. If we're lucky, we'll put heat in the ground again before the end of the year."

    If everything pans out and if AMSO gets the green light from the federal government, the company's half-dozen wells initially might produce about 1,000 barrels a day. Later, at peak production, Day estimates they could produce "100,000 barrels a day for 30 years."

    Enefit, an oil producer headquartered in Estonia, has been producing oil from oil shale in Europe for more than 30 years, according to the CEO of its Utah subsidiary, Enefit American Oil. Rikki Hrenko says Enefit brings the shale to the surface, then heats it in retorts.

    "It's more labor intensive to have to mine the shale," Hrenko said. "But the economics are still quite feasible." She puts the break-even price at about $65 a barrel. The cost of producing in Utah, she thinks, will be only slightly higher than in Estonia.

    Enefit doesn't lease its Utah site from the U.S. government; it owns it. "We purchased it March 2011," Hrenko says. The company's goal is to have all the necessary permits by the end of 2016, start construction, and to be producing oil commercially in 2020 at the rate of 25,000 barrels a day.

    Among the hurdles faced by would-be Green River producers are environmental costs, first among them being water consumption, according to the GAO report. Current estimates on how much water might be needed to realize the potential of Green River oil "vary significantly," the report admits. But water in the arid west already is in short supply, and ranchers and environmentalists eye warily the oil industry's potential thirst.

    Water would be used not for fracking, but as a lubricant for drilling. Frank Rusco, GAO's director for energy and science issues, told ABC News water also would be used as steam "to stimulate the flow of oil." Water would also be neeeded, as at any work site, for dust control and cooling.

    Day said he expects AMSO's in-situ wells will be water-neutral. Experiments so far suggest that the company may get a barrel of water from the rock for every barrel of oil extracted. AMSO intends to cool its operations using radiators, not water.

    Rusco doubts substantial amounts of oil could be produced from Green River anytime soon because production is not yet economical. It costs more to produce a barrel of oil here than the oil can be sold for on the market.

    GAO's report says commercial development of oil shale is "at least 15-20 years away."

    Glenn Vawter, executive director of the National Oil Shale Association in Glenwood Springs, Colo., isn't so sure. Right now, he says, it costs his members somewhere between $40 and $80 to produce a barrel of oil from shale, depending on the technology they use. The price of oil, currently at $86 a barrel, has risen in the past over $100 a barrel and continues to fluctuate. Technology, he points out, is also evolving.

    A Canadian oil producer has experimented with using radio energy to heat rock.

    "The economics remain a bit speculative," Vawter said, but he thinks that "big production" might be only five to 10 years out.

    There's no question, says Rusco, that the oil is there, all 3 trillion barrels of it.

    "The technology for assessing oil reserves is pretty good," Rusco said. "I don't say there isn't a wide margin of error, but you can have great confidence that there is a very, very large amount of oil trapped down there that could be recovered. It's just that, so far, it can't be recovered at a profit."

  17. #17
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    Default Re: American Dependence on Foreign Oil

    I saw previews for a movie when I went to see Red Dawn about a company trying to get fracking rights in some Midwestern mountain town (looked like Utah or Colorado to me) and of course it was about the "evil oil company" screwing the citizens and "having a change of heart".

    Two people commented at almost the same time about "Liberal assholes". I was one of the commenters. Another was to my right and we looked at each other and both did "thumbs up" at the same time haha.
    Libertatem Prius!


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    Creepy Ass Cracka & Site Owner Ryan Ruck's Avatar
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    Default Re: American Dependence on Foreign Oil

    Yep, Promised Land is an anti-fracking movie with Matt Daaaaaaamon and, as posted here (I think by vector) it is backed by Arab oil money!

    It will flop.

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    Default Re: American Dependence on Foreign Oil

    We here in Aurora, Colorado, a developer and oil company friendly city of about 330,000 people, have just authored legislation that allows fracking within the city limits. There's no oil shale here. That's about 160 miles west of here in the mountains. But, there are plenty of oil reserves. Oil companies, Anadarko, Conoco-Phillips and others, are directional drilling here with explorational operations. They are happy we're working with them.

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    Default Re: American Dependence on Foreign Oil

    We know MMCo. I was just commenting that the movie was showing previews.

    I wish some of these bozos would do a real movie, showing that we WANT the jobs, we want the incoming money to the economy. But... NOOOOO.

    Grrr
    Libertatem Prius!


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