US oil reserves surpass those of Saudi Arabia and Russia

[raptor22]

that's the dilemma sir. OPEC can't survive with oil under $100 dollars so it'll go back up to $100 which makes shale very profitable.


shale costs have gone down signically because of new technology and technique.

actually the cost to produce oil shale is below $60 dollars now for most plays
http://oilprice.com/Energy/Crude-Oil/Why-US-Shale-Is-Not-Capitulating-Yet.html


while yes Middle East oil is still cheap to produce they still need oil over $100 to fund their social spending.

What price shale producers prefer for oil and see it profitable in long-term ? I mean in short term OPEC could control the price and keep it cheap to sell as much as it possible but after a while due to new technology (as you mentioned) either 2 sides cooperate and share the market or oil prices would plunge dramatically and both sides would be loser ...

 

[gambit]

Here is the reality...

http://www.eia.gov/tools/faqs/faq.cfm?id=727&t=6

The US import ME oil very little, as in less than %10 of total import as shown above.

Now, what of a single barrel of oil ?

http://www.eia.gov/energyexplained/index.cfm?page=oil_home

Barely %20 of a single barrel of oil is used for gasoline, as in for transportation. The rest of the barrel is used for other purposes such as heating, plastic, and even for cosmetics.

What this mean is that the US can literally collapse the ME if we are ruthless enough. Asia and Europe are not enough to sustain the ME thru import. If you buy something from someone on a regular basis, there is a mutual dependency. Asia and Europe is moving away from that model.

Other than transportation, what other consumers of petroleum in particular and of energy in general ? How about things like appliances ? Increased appliance energy efficiency and solar are inevitable. Transportation is moving towards electricity as well, albeit slowly. All this time, the ME was lackadaisical in improving itself. This shortsightedness will not go away soon and the ME will remain backward at least until your great grandchildren's time.

 

[Mangus Ortus Novem]

The truth is that US has been sitting on this oil far longer than being publically known. Onshore and offshore. The US doesn't need any oil from any one... if it chooses it can export both oil and gas. The genius of the US to collapse the energy market has hurt it for shortest term... but real pain has been inflicted upon Russia and OPEC. Saudis were led the garden path and did not know what hit them or how they are going to come out of it.

IT has never been about oil. Never. Petrodollar is the lifeblood of the US empire. How long will it last? Will US give in to SDR easily. Or will there be major direct conflict instead of proxy wars?

Hopefully, peace pervails. American are wonderful people. You have really get to know them and would have worked with them to know this fact. US elite is different jar of cookies, though.

No offence intended to any side. Thanks!

 

[Oldman1]

The truth is that US has been sitting on this oil far longer than being publically known. Onshore and offshore. The US doesn't need any oil from any one... if it chooses it can export both oil and gas. The genius of the US to collapse the energy market has hurt it for shortest term... but real pain has been inflicted upon Russia and OPEC. Saudis were led the garden path and did not know what hit them or how they are going to come out of it.

IT has never been about oil. Never. Petrodollar is the lifeblood of the US empire. How long will it last? Will US give in to SDR easily. Or will there be major direct conflict instead of proxy wars?

Hopefully, peace pervails. American are wonderful people. You have really get to know them and would have worked with them to know this fact. US elite is different jar of cookies, though.

No offence intended to any side. Thanks!

If we didn't need oil from anyone, we wouldn't put ourselves in an oil embargo from the Arabs that hurt us badly. And the cost to exploit those oil is higher compare to other methods.

 

[C130]

What price shale producers prefer for oil and see it profitable in long-term ? I mean in short term OPEC could control the price and keep it cheap to sell as much as it possible but after a while due to new technology (as you mentioned) either 2 sides cooperate and share the market or oil prices would plunge dramatically and both sides would be loser ...

my opinion is shale is profitable above $70 long term, and the fair price of oil is $80 a barrel.

I doubt we'll see oil over $100 unless there is a massive shortage because of low investment.

 

[Oldman1]

my opinion is shale is profitable above $70 long term, and the fair price of oil is $80 a barrel.

I doubt we'll see oil over $100 unless there is a massive shortage because of low investment.

Some shock effect like major war or oil embargo.

 

[RoadRunner401]

Up until the middle of last century, the United States was the largest producer of oil and controlled oil prices. Theoretically, oil prices should be a function of supply and demand. When supply and demand increase, prices should drop and vice versa. But the reality is different. Oil's status as the preferred source of energy has complicated its pricing. Demand and supply are only part of the complex equation that has generous elements of geopolitics and environmental concerns.

Regions that hold pricing power over oil control vital levers of the world's economy. The United States controlled oil prices for a majority of the previous century, only to cede it to the OPEC countries in the 1970s. Recent events, however, may end up with the pricing power swinging back towards the United States and Western oil companies.

 

[-xXx-]

OPEC is finished. North America holds more oil than the entire Middle East and Russia combined.

So let the world unite and bring more freedom to US

 

[SOHEIL]

Low prices helps Iran's economy to get rid of oil dependency...

 

[XenoEnsi-14]

We shouldn't dig it up.

 

[The SC]

Bro, I disagree with you since enery is my research area. Wind energy is comparable or even cheaper in Europe than fossil fuel based power generation. Oil will be used for value added products in petrochemical industry but the road transport, trains, industrial and residential needs will be met with the renewable sources. Only air transport will utilise oil for the next 50-60 yrs.

It rains a lot in Europe, and I mean a lot!, if you are talking about outhern Spain , Southern France and Southern Italy than that is not Europe..So oil will be needed for a very long time in Europe or they will need 50 nuclear plants each to get rid of it , like France , but still..

 

[war&peace]

It rains a lot in Europe, and I mean a lot!

So??? actually I'm a bit disappointed mate as it seems your knowledge of renewable energy sources is limited only to solar energy while

1. Wind
2. Hydel (water)
3. OTE
4. Waves
5. Biomass
6. GTE
7. Solar

are all renewable energy sources and some people include nuclear into the list as using reprocessing most of the fuel can be recycled...So your knowledge of rain only affects solar...while water and wind form the largest chunks of this energy pie.

Southern France and Southern Italy than that is not Europe

Wow...I never heard that..Please provide me the source, definition of Europe...I really wonder what geography you have been taught? May be because you are from Canada so you think a whole continent has to be identical in climate? sorry you are extremely wrong...Asia extremely cold in the north to very warms in the south, even in countries like USA has very cold areas (Northern states, Bismarck etc) and very warm areas (valley of death, southern states etc), Pakistan can have -40 F up in the north and +40 F in the south at the same time.

So oil will be needed for a very long time in Europe or they will need 50 nuclear plants each to get rid of it , like France , but still..

It is not even worth my answer since it is motivated by emotions rather than some knowledge.

 

[The SC]

There are no emtions here, buddy , I lived in Northern Europe and I know what I am talking about.. All your 3,4,5,6 points are being in R&D some are very difficult to implement even in laboratories..
pleae show us your knowledge everyone here is thirsty of that

 

[C130]

So??? actually I'm a bit disappointed mate as it seems your knowledge of renewable energy sources is limited only to solar energy while

1. Wind
2. Hydel (water)
3. OTE
4. Waves
5. Biomass
6. GTE
7. Solar

are all renewable energy sources and some people include nuclear into the list as using reprocessing most of the fuel can be recycled...So your knowledge of rain only affects solar...while water and wind form the largest chunks of this energy pie.

Wow...I never heard that..Please provide me the source, definition of Europe...I really wonder what geography you have been taught? May be because you are from Canada so you think a whole continent has to be identical in climate? sorry you are extremely wrong...Asia extremely cold in the north to very warms in the south, even in countries like USA has very cold areas (Northern states, Bismarck etc) and very warm areas (valley of death, southern states etc), Pakistan can have -40 F up in the north and +40 F in the south at the same time.

It is not even worth my answer since it is motivated by emotions rather than some knowledge.

you can't depend on renewables.


wind turbines don't spin at all times, and drought can effect hydro.

I can see renewables complenting fossil fuels but not replacing them entirely.

 

[war&peace]

you can't depend on renewables.


wind turbines don't spin at all times, and drought can effect hydro.

I can see renewables complenting fossil fuels but not replacing them entirely.

Feeble arguments, similarly it can be said that fire can destroy oil wells and reserves, political blockade can disrupt supply lines etc.... do you realise...you sounded kinda desperate with the reasons.