What it is is a huge prime to the world economy. If it gives the economy a jolt supply will tighten and prices will rise quickly.
You fail to understand the economics of these wells. Clearly many were drilled at less than optimum returns to hold the lease by production. The land in the Bakken is now 100% held by production. Now the goal is to lower cost and increase production. Cost are down by 40% or more. New and improved fracking techniques continue to show great results in improved production. These wells are reaching payout in 18 months or less. Well densities are up 16 per 1280 acre drilling unit and rising. There are decades of drilling opportunities left
Google this ..... Oil and Economic Growth
A Supply-Constrained View
A great pdf presentation giving a perspective on greater supply driving economic activity, not lower prices.
Below is a small part of an article on ISIS and Wahhabism. The official sect of the Saudi royal family. Ask where ISIS funding came from and then understand ISIS is already firmly embedded in Saudi Arabia. And to top it off the Saudis are building a massive fence on the Iraq border
Google the title to get the whole article for the NYT
ISIS’ Harsh Brand of Islam Is Rooted in Austere Saudi Creed
By DAVID D. KIRKPATRICK
SEPTEMBER 24, 2014
BAGHDAD — Caliph Ibrahim, the leader of the Islamic State, appeared to come out of nowhere when he matter-of-factly proclaimed himself the ruler of all Muslims in the middle of an otherwise typical Ramadan sermon. Muslim scholars from the most moderate to the most militant all denounced him as a grandiose pretender, and the world gaped at his growing following and its vicious killings.
His ruthless creed, though, has clear roots in the 18th-century Arabian Peninsula. It was there that the Saud clan formed an alliance with the puritanical scholar Muhammed ibn Abd al-Wahhab. And as they conquered the warring tribes of the desert, his austere interpretation of Islam became the foundation of the Saudi state.
Much to Saudi Arabia’s embarrassment, the same thought has now been revived by the caliph, better known as Abu Bakr al-Baghdadi, as the foundation of the Islamic State.
“It is a kind of untamed Wahhabism,” said Bernard Haykel, a scholar at Princeton. “Wahhabism is the closest religious cognate.”
Sewells, very sad but true commentary on the American public. True comprehensive history is not being taught in this country and we will pay the price eventually
At this point just hold on tight as that cycle goes both ways. Once you run the price down demand ticks up in a large way and up goes the price, less some new supply that was never brought on line when the price fell
With the 3rd quarter in the books we are about to see how hedges can play a dramatic role in a companies earnings on the positive side. Should be a nice contribution to the merger
These guys have an interesting technology for small vein rock mining. Called thermal fragmentation and is designed to greatly reduce waste or dilution and send higher grade ore to the mill. They have some nice presentations on their web site.
Perhaps applicable to Red Lake?
Strange as it might seem the average price paid for a bbl of oil is only 1 or 2 dollars less in the third quarter vs the second quarter. Where the dramatic difference is in the future mark to market pricing on the hedges. The current prices is way down and this will be reflected in the SEC required mark to market pricing. Those losses last quarter for mark to market pricing will be turning into huge gains this quarter while the realized price received for a bbl of oil will not be significantly changed on average quarter over quarter
Net refined petroleum product exports now exceed 2 million barrels daily and the number is rising rapidly. Total exports now exceed 4 million barrels daily. The net effect is highly positive for both the USA and the world economies.
US EXPORTS oof refined products exceeded imports in 2011 for the first time since 1949. Now exceed by 2 million per day
Pio, the 1.7 million number is net. We are indeed exporting close to 4 million bbl daily but continue to import on east coast. Exports are raising while imports fall
In July exports of refined petro products reached 3.8 million bbl per day. While great for the country it is also huge for the environment world wide. No other country exporting petro products has a refining industry that works under rules that are even close to those imposed by the EPA on our industry.
Look at it this way. We are exporting our EPA standards with every barrel of exported Diesel