‘Giant’ Oil Discovery in Gulf of Mexico

[coyotes_geek]

I agree with most of this content. But there is the fact that a market driven economy is also based on the politicians subcomed to the financures of their elections.

What was being discussed in this last election? The ability to capitalize on alternative sources of energy. Not to be burdened with a petroleum based energy system.

This happened in 1972 during the gas shortage crisis. Many alternative means were being introduced. Some making strong headway into our energy choices. Low and behold....petroleum costs drastically reduced to accomodate the already prevalent combustionable automobile.

Why would it be a viable solution? Allow other means of gathering energy to fuel our homes and factories and let the petroleum industry be the source of fuel for our growing need to transport. Regulate our energy sources to accomodate a specific need.

This country has unlimited resources to providing energy to all it's fuel dependant needs. Why not allow all to equally be part of the solution instead of just one to be dominant?

It's not about someone out there giving permission. It's about the economics. The day someone figures out how to deliver an energy alternative at a price that's compe ive with oil, that source will start to balance things out immediately.

[Extra Stout]

They probably could if they could refine it quicker.


A new refinery hasn't been built in the US since 1976.

That talking point is one of the irreedemably stupid ones I can never let pass.

OIL COMPANIES EXPAND THEIR EXISTING REFINERIES. BUILDING ALL-NEW ONES IS POINTLESSLY EXPENSIVE.

[RandomGuy]

but, but, but, but, but, but, but, but, but, but, but, but, but..........................

....what about the existing oil fields that are currently in the end stages of their productivity?

Nice find. There will be more in the years ahead.

The really big "but" in this case is:

but, they are still not finding it faster than we are using it up.

Repeat after me, kids:

Declining supplies and increasing demand makes the price point go up.

I now return you to your regulary scheduled anti-environmentalist diatribes, please carry on.

[RandomGuy]

It's not about someone out there giving permission. It's about the economics. The day someone figures out how to deliver an energy alternative at a price that's compe ive with oil, that source will start to balance things out immediately.

Indeed, and as oil gets RELATIVELY more expensive that bar will be easier and easier to clear.

I doubt oil will be fully replaced as an energy source in my lifetime, but humanity will get an ever decreasing share of its overall energy needs from it, and that shrinkage will accelerate.

[RandomGuy]

That talking point is one of the irreedemably stupid ones I can never let pass.

OIL COMPANIES EXPAND THEIR EXISTING REFINERIES. BUILDING ALL-NEW ONES IS POINTLESSLY EXPENSIVE.

Indeed. If you read the financial statements and annual reports, you can garner that although no new refinery has been built since then, refining capacity is actually greater than it used to be. Expansions and gains in efficiency.

[boutons_deux]

"boost output in the region by 50 percent to 600,000 barrels of oil equivalent a day after 2020"

so now production in the region is 400,000 b/d, and this find boosts that to 600,000 b/d, or +200,000 b/d.

total world production is over 80,000,000 b/d.

So, in 10 years, this find will boost production by 0.02% per day. "giant"

[DarrinS]

That talking point is one of the irreedemably stupid ones I can never let pass.

OIL COMPANIES EXPAND THEIR EXISTING REFINERIES. BUILDING ALL-NEW ONES IS POINTLESSLY EXPENSIVE.

Fair enough. BP better start expanding their Texas City refinery.


At least you made a better point than Chump, which was that 87.5% is not very close to 100%. I guess he fills his tank when the needle gets halfway between full and 3/4 full.

[TeyshaBlue]

"boost output in the region by 50 percent to 600,000 barrels of oil equivalent a day after 2020"
so now production in the region is 400,000 b/d, and this find boosts that to 600,000 b/d, or +200,000 b/d.
total world production is over 80,000,000 b/d.

So, in 10 years, this find will boost production by 0.02% per day. "giant"

Actually, closer to .025%. For a single find to have any measurable impact is pretty major.

[Wild Cobra]

At least you made a better point than Chump, which was that 87.5% is not very close to 100%. I guess he fills his tank when the needle gets halfway between full and 3/4 full.

Considering the economic slump, that 7/8th capacity sounds right. When we were doing better, we were between 90% to 95% capacity because we were using more oil. It's also possible that some refinery expansion has occurred as well.

I'm not to worried about refining capacity. If we need more, they will build it. One of the things a supply and demand economy produces. When more capacity is needed, it is the company that expands refining capacity that will get the increased market share.

[Yonivore]

Did more dinosaurs die or something?

[ChumpDumper]

Fair enough. BP better start expanding their Texas City refinery.


At least you made a better point than Chump, which was that 87.5% is not very close to 100%. I guess he fills his tank when the needle gets halfway between full and 3/4 full.

Considering the economic slump, that 7/8th capacity sounds right. When we were doing better, we were between 90% to 95% capacity because we were using more oil. It's also possible that some refinery expansion has occurred as well.

I'm not to worried about refining capacity. If we need more, they will build it. One of the things a supply and demand economy produces. When more capacity is needed, it is the company that expands refining capacity that will get the increased market share.

Darrin gets owned by Wild Cobra of all people.

Also get this through your thick skull, Darrin -- that 87.5% figure is the highest at only two points this year. The rest of the time it has always been LOWER.

Why is that?

[clambake]

If you need me, I'll be on youtube.....while I'm at work

[boutons_deux]

"When more capacity is needed"

do nothing, restrict supply, and pocket 10s of $Bs for doing nothing.

How's everything else in your Ivory Tower surrouned by an ideological fog?