Saturday, November 30, 2013

World Oil Scenario

In April, 2007 I received following email which is self explanatory:
DailyWealth via

The U.S. Govt's
Secret Colorado
Oil Discovery

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. Three companies have been chosen to lead the way. Test drilling has already begun...

Northwestern Colorado. August 2005.

The U.S. Energy Department announces the results of a land survey...
It was conducted to determine the official amount of oil a thousand feet deep in the Rocky Mountains...
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.
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.
When asked about America's least-publicized oil supply, Utah Senator Orrin Hatch said:
"The amounts of oil are staggering. Who would have guessed that in just Colorado and Utah, there is more recoverable oil than in the Middle East?"
Here's the kicker...
The U.S. government already owns the land. It's been right there under our noses the whole time.
In fact, the government's appointed a small group of companies to lead the way to the oil.
Test drilling has already begun.
And the profit forecasts are ridiculous. According to the RAND Corporation (a public-policy think tank for the government), this small region could produce:
Three million barrels of oil per day... That translates into more than $20 BILLION a year.
These are the conservative estimates. The U.S. Energy Dept. estimates an eventual output of 10 million barrels of oil per day. At that rate, the money flow would be even greater.

I've written this letter to tell you everything I've learned about this rarely publicized oil reserve... who's drilling it... and how to get a piece of the world's biggest, untapped oil supply — before it's too late.
In 2011 the following authentic table of world oil reserves was published:
Figure – 1: World oil reserves by country.
The history of world oil prices is given in the following graph In Figure-2. Note the steep rise in oil prices from 1999 when it was about 15 dollars which increased to $ 40 by 2005 when production of shale oil was started in USA and went up to $ 95 in 2011 almost in the same proportion as the increase in US shale oil production as shown in figure-3 below:

Figure -2: World crude oil prices from 1970 to 2011.


Figure -3: Shale oil production in USA.

Until 1973 oil was being sold by the he Arab and other oil exporters at USD 2 per barrel. In that year it was raised to USD 11 per barrel by OPEC countries. It was publicized as the Arab reaction to the Yom Kippur war. But it is interesting to note that at about this time production of North Sea oil became feasible at the prevailing prices and the regular Brent oil production started in 1975-6. Could it be that the idea of increasing oil prices actually originated in a European mind?
Similarly there seems no technically compelling justification for the steep rise in oil prices in the first decade of the 21st century, except that it may have been artificially jacked up to a level that makes shale oil production feasible. The oil exporters obviously do not mind cutting production to a level that would maintain prices at nearly four times the fair value. However this new oil cartel including the US is cutting the throats of the other countries that are dependent on oil imports. In fact they are subsidizing the US shale oil production.
In this arrangement, obviously, the US will make a rapid economic recovery at the cost of many other nations. But how it is going to shape the world economy as a whole in future decades is an important question.
Related URLs:

No comments:

Post a Comment