Friday, April 22, 2005

Silly Canadians, Chinese Think Peak Oil is Solved

You have to pity the poor deluded Canadians and the Chinese. Both countries are overexcitedly leaping aboard the latest oilrush pipedream. Luckily, the United States will be spared embarassment, due to the measured advice from it's lawmakers and the oil industry.

It's all about oil shale. Every barrell of the oily sludge pumped from these sandy underground strata can be turned into half a barrell of oil. And the USA is sitting on enough oil shale to rival the Middle East -up to 1.9 trillion barrels.

Sounds promising?

It does to Senator Orrin Hatch, who enthused about oil shale recently, in testimony before the Senate Energy and Natural Resources Committee.

'Who would have guessed that in just Colorado and Utah, there is more recoverable oil than in the Middle East?' Hatch said. 'We just don't count it among our nation's oil reserves because it is not yet being developed commercially.

With oil costing up to $60 a barrel recently, his excitment is perhaps understandable. But Sens. Wayne Allard and Ken Salazar of Colorado, are "wisely urging caution" reports the Denver Post.

"I think that I'm in favor of moving forward on a trial basis and we'll see what the environmental impacts are," said Allard.

"It should be looked at," Salazar says. He favors moving forward "in a thoughtful manner, based on good science and also in a manner that's going to protect our environment."

Such concern for the environment is refreshing in lawmakers, by the way.

Shell Oil told the Committee it'll take at least five years to learn if the new technology really works. The oil giant has already deleloped a recovery process wherby holes are drilled into shale formations and electric heaters suspended in the wells to "cook" out the oil.

The Rush is On

Even though Mideastern oil costs less than $5 a barrel to find and recover, the silly Canadians are already extracting oil from Canada's Athabasca Oil Sands at a cost of $10 to $15 a barrel.

And the giant Chinese offshore oil producer CNOOC Ltd has just paid US$121 million to take a 16.69 percent stake in Calgary-based MEG Energy Corp. [source] The little-known start-up, plans to use steam-assisted technology to melt the tar-like bitumen underground before pumping the heavy oil to the surface. The private firm owns a 100-per-cent stake in oil sands leases that hold recoverable reserves of about 2-billion barrels, the Chinese company said.

And other goofy Chinese investors are being caught up in this hysteria. According to the Hong Kong newspaper South China Morning Post, China's two major onshore producers, China Petrochemical Corp and PetroChina are also negotiating purchases of oil sands assets in Alberta.[source]

"Lower operating costs and higher recoveries resulting from recent advances in technologies have made many similar projects economically viable," Yang Hua, CNOOC's chief financial officer, said in a statement.

CNOOC's chairman and chief executive officer, Fu Chengyu, said the skills learned in Alberta would be useful in exploiting oil sand and shale in China.

There is a conspiracy theory that Big Oil and those behind the invasion of Iraq are using supply chain manipulations to drive up the price of oil -thus flooding the coffers of the U.S government with capital inflows to the dollar. This theory also says that oil companies are push 'Peak Oil' propaganda as a smokescreen for their current vast profits. The further claim is that limited oil is a useful geopolitical lever for key great powers.

But nothing could be further from the truth. Oil companies like Shell are just being prudent, they are not deliberately downplaying this new source of oil. And U.S. legislators are not in league with them, they are simply concerned for the environment.

But for some strange reason the silly Chinese and Canadians aren't listening.

8 Comments:

Anonymous Anonymous said...

Fintan,

Oil sands in Venezuela and Canada exceed several trillion barrels of oil.

Gull Island and Kruparak in Alaska have about double the oil in the middle east.

Off of the coast of Louisana are deep sea oil deposits that exceed the oil previously known to exist in the middle-east.

Peak oil is a scam. You and I know it; however, it is bought into by both sides of the political aisle and Big Oil is about to collect on the investment the Rockefellers made back in 1892 when a Swiss based science conference declared oil a "fossil" fuel.

Fletcher Prouty presciently pointed out that putting a price on a gallon of oil is like putting a price on a pail of water.

We are being duped and there is very little we can do about it except spit and frown.

By the way, have you heard from Mike Ruppert recently?

7:20 pm  
Anonymous mcurb said...

Fintan,

Oil sands in Venezuela and Canada exceed several trillion barrels of oil.

Gull Island and Kruparak in Alaska have about double the oil in the middle east.

Off of the coast of Louisana are deep sea oil deposits that exceed the oil previously known to exist in the middle-east.

Peak oil is a scam. You and I know it; however, it is bought into by both sides of the political aisle and Big Oil is about to collect on the investment the Rockefellers made back in 1892 when a Swiss based science conference declared oil a "fossil" fuel.

Fletcher Prouty presciently pointed out that putting a price on a gallon of oil is like putting a price on a pail of water.

We are being duped and there is very little we can do about it except spit and frown.

By the way, have you heard from Mike Ruppert recently?

7:21 pm  
Blogger Pain4U2 said...

Peak Oil, NWO, 2 sides of the same coin.

8:56 pm  
Anonymous Gus Mahler said...

If they ever devise and patent a way to create oxygen, we are in deep doo doo!

6:51 am  
Anonymous Anonymous said...

SILLY GULU,

Peak Oil is not about Zero Oil left, it is about how the CHEAP to produce and Grade A (sweet light crude) petroleum is dimminishing.

If THAI (toe to heel hot air injection) actualy works (we don't know yet) it would free up the oil SANDS in Canada, and tar pits in California, Venezuala, Russia etc.

However, we are scraping the bottom of the barrel (literaly) and all the oil in Canada Sands is not recoverable even with TAHI. The "oil" Karegen Shale is much, much, worse...bieng a Rock of sorts...it is harder to get the oil out than sand, and probly will never compete with COAL.

I suggest you skeptics go to www.peakoil.com, post your thoughts, and get an education on the facts.

10:14 pm  
Blogger Fintan, BreakForNews.com said...

Listen, don't tell us to go to peakoil.cia -you wanna be telling those Canadians and Chinese to go there. They are the ones investing in this technology.

Seriously though, these new reserves are only one of reasons we are not running out of oil anytime soon. We can use all grades of crude oil -the more the merrier and the lower the overall price. When we look like we are running out of oil, we can use the natural gas. Then we can switch all home heating to use spray-on solar panels. Then we can use biomass to generate gas. Eventually we can connect our new electric car to the latest household magnetic zero-point generator.

We are drowning in a sea of energy sources -just waiting to be tapped.

That why, (pardon the pun): 'Peak Oil' doesn't hold water!

The tuned-in people on the alternative internet already know that 'Peak Oil' is bogus. It was a disinfo gambit aimed at supporting the invasion of Iraq and covering the profit-gouging spree by the Oil Corporates -who are making historic amounts of loot even as I write. Peak Oil my a**.

11:13 pm  
Anonymous Anonymous said...

Finton,

The Canada Sands can and will be used, on that we agree. There IS a diffrance on how much can be strip mined (about 10%) and how much is even HARDER to recover.

Even still, the oil sands will not be CHEAP oil...so oil prices will stay higher than in 2000, even with a (planed?)recession on the horizon.

Also the price of iol in DOLLARS (petro-dollar) is increasing because the dollar is cheap (devalued) compared to the Euro. So oil producing countries have an unwritten policy to make up the diffrence in devaluation by charging more for the remaining "light sweet crude". In effect they are getting Ero prices without making the USA's "Green Machiene" on thier front doorstps like Iraq did when it openly switched to Euro for all oil sales.

When it comes to biomass (form GM Rapeseed, zero THC hemp etc.) you must factor in EROEI (energy returned on energy invested). biomass can have a Positive EROEI, thus making it a POSITIVE energy source...but its energy gain is paltry compared to Petroleum.

It will be energy, but it WONT be CHEAP. And CHEAP energy is what made our Fiat currancy and economy run well. Is it any coincidence the economic problems of America's manufacturing base came on the heels of the Peak oil production of the USA in 1970?

Most of the other technologies you mention are either currently untenable, or just plain hokey. A "magnetic zero-point generator" is a scam unto itself, and has NEVER been demonstrated to power anything, period. Many of the patents granted for it have been revoked because of Sheisters bliking "investors" with such promises.

Finton Wrote: "Listen, don't tell us to go to peakoil.cia"

I especialy love your rubber glove touch on labling just about every dissenter a CIA hack. Either it's a great way to kill the competition...or you lable others to take the heat off of yourself...

If you are afraid to deal with the complex issue of energy, then by all means skip www.peakoil.com

If not I will be happy to see y'all there, I go by the screen name "The Virgininan"

4:46 pm  
Anonymous gus mahler said...

We all know that that honorable group of men running the oil industry in America, and their noble allies in government would never try to put forth a scam to increase their already obscenely enormous profits. It almost sounds similar to that tax loophole that was used by many Texas oilmen to amass their fortunes called the oil depletion allowance. Kennedy was calling for the removal of this policy right before he was assassinated, a fact that many have found suspicious. But they are only cynical ingrates, unappreciative of all the wonderful things these "captains of industry" have bestowed upon mankind. Yes, they are nothing but "CONSPIRACY THEORISTS." They must realize that men in positions of such power only have our best interests in mind. [Hint]- I am being facetious.

8:35 am  

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