Scraping the bottom of the barrel

18 08 2014

Amazing how the media manipulates an ignorant readership…….  this from finance.ninemsn:

Australia’s largest oil discovery in decades has been found off the coast of Western Australia.

The discovery was made by US company Apache, in the offshore part of WA’s Canning Basin.

While the results are said to be in the early stages of evaluation, Apache said the find could potentially yield up to 300 million barrels of oil.

Stocks in Carnarvon Petroleum, an Australian-owned junior partner in the venture, instantly rocketed to 20 cents a share, after closing at 8 cents on Friday.

Carnarvon managing director Adrian Cook said the discovery was “one of the most significant development in Australian oil and gas in recent times”.

“[It is] the most significant new oil play in the North West Shelf since the Enfield discovery opened up the Exmouth basis almost 20 years ago,” Mr Cook said.

“The implications on the rest of our acreage are still be assessed but the potential is extraordinary. “

Source: Fairfax Media

REALLY……..  “extraordinary”?  NINE MONTHS worth of Australian consumption……..  “extraordinary”?   Isn’t the fact that “[It is] the most significant new oil play in the North West Shelf since the Enfield discovery opened up the Exmouth basis almost 20 years ago,” significant in itself?  The fact that the biggest find in 20 years is nine months worth of consumption…?

Sorry folks, Australia is still on target to run out of oil by 2020.  Move right along, nothing to see here….

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6 responses

18 08 2014
robertheinlein

Mike, I get your point, but according to http://www.nationmaster.com/country-info/stats/Energy/Oil/Consumption, Australia consumes 946,300 bbl/day (2009). It’s a lot of carbon, but not quite 100,000,000 bbl/day! And, some of it goes to make plastics, fertilizer, etc.
—Bob

18 08 2014
mikestasse

The error is fixed. Still, nine months worth is still not going to fix the predicament…..

18 08 2014
robertheinlein

By 2020, solar will be well on its way to dominating all energy sources. Mark my words, the changes are coming.
—Bob

18 08 2014
Michael IBBOTT

Hi Robertheinlein, I don’t mean to spoil the party but I don’t think solar will survive without oil. How will the metals and silicon required be mined? Mining trucks run on oil. Where will all the heat energy come from to produce the solar panels and their components. Gail Tverburg writes on the “Our finite world” blog on how renewables will fail once fossil fuels fail. Its a very good read and she explains really well the issues faced by renewables in the future.

Also Mikestasse, do we know what type of oil discovery this is? Is it shale, is it very deep, Will it be profitable to extract at todays oil prices?

On a semi related note I was talking to a friend of mine who works on the gas rigs in the bass straight and also on the gas station near Sale. He is not aware of peak oil etc however he told me how they have had to build an extra processing plant onshore because the gas fields they are now mining are so much dirtier ( extra sulphur content I think ) that they need twice the processing they did 10 years ago. According to my friend he said ” they are now mining from gas fields that they would never have considered 10 years ago”.

19 08 2014
mikestasse

Hi Robert, thanks for commenting……. I did some digging of my own following your comment, and interestingly, whilst the original link shows a sea platform as a means of illustrating their article, I’ve discovered that the Canning Basin is on land and…….. it looks like it’s just more shale to boot!!

“The Canning Basin is an underexplored petroleum basin in northwestern Australia. The basin has historically had a low success rate for oil and gas exploration in conventional reservoirs. The Goldwyer Shale is organic-rich and has drilling shows that suggest it may be a commercially viable unconventional reservoir similar to shale gas reservoirs in the United States.”

http://canningpetroleum.com/canning_basin.html

So there we have it…….. it’s not conventional oil, and furthermore, there is no way you can trust ANY potential production numbers, especially after that Californian play was downgraded by some 95% [memory involved]! You just cannot believe a single word those bastards write…. and to think the share price went up on that…. just amazing.

19 08 2014
John Doyle

You might have seen the statistic that world daily consumption is 82.77mbl.
Interestingly, in 316 days world consumption is a cubic mile. Renewables to match are 32,850 wind turbines, and 91,250,000 solar panels. They are not in the race. But locally after the fall and assuming we save some technological capacity we may benefit but it’s not a given.
We really need a financial crash first while we still have some resources available to pick up the pieces.

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