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The Forum > Article Comments > Oil megaprojects won't stay on the shelf for long > Comments

Oil megaprojects won't stay on the shelf for long : Comments

By Nicholas Cunningham, published 10/11/2015

Extracting oil from these frontier areas required more advanced technology and a lot more capital: Ultra deepwater, Arctic offshore, heavy oil sands, and increasingly, the Lower Tertiary.

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I see that after 12 years since another company's efforts BP is to drill in the Great Australian Bight
http://www.bpgabproject.com.au/go/doc/5771/2243598/
The water depth is 1-2.5 km and a long way from any cleanup crews if there is an oil spoil. However my hunch is that BP will do their dough.

Even if there was some oil would $50 a barrel be enough? I think we may be in fool's paradise with the current low oil price. Before 2020 you'd have to think there will be a major correction.
Posted by Taswegian, Tuesday, 10 November 2015 8:05:22 AM
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Oil exploration is one thing and extraction is another, itís a matter of finding oil before someone else does.

By identifying the where aboutís of oil they have a reserve on itís location.

There is no shortage of oil, with 50 years of proven reserves, and another 50 years of unproven reserves, oil exploration will continue as a reservation of itís existence.

Oil usage is in decline, so a higher price may not be of longer term benefit to the ones with oil to sell. Oil refineries are being built in Arabia, so we may even get cheaper fuel, when Singapore does not have so much say in what we pay for fuel.
Posted by doog, Tuesday, 10 November 2015 9:31:31 AM
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1. While the US is benefitting immensely from low price shale oil extracted in the US - those poor Russian are reliant on expensive to extract Siberian-Arctic ocean oil.

Poor Putin can't afford his military aggression.

2. Too bad about "the massive Gorgon LNG, led by Chevron, which saw costs balloon to more than $54 billion" as that is an Aus project.
Posted by plantagenet, Tuesday, 10 November 2015 2:43:19 PM
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I'm afraid I have to mostly agree with Doog,and note that the smart money should be aimed at safer bet alternatives! Which although may have a long lead time before they start to produce, like oil from algae, with some types up to 6o% oil!

Child's play to extract from some of the sun dried and crushed filtrate as ready to use diesel or jet fuel products. Estimated to cost as little as 44 cents a litre, even with a fuel excise included?

Able to be grown in endlessly available sea water, if that's all there is!

Simply put, once the capital costs are returned and the seed material is built up to necessary production levels; the rest is just endless profit as far out as the eye can see, at least until some of the aging infrastructure needs to be repaired, rebuilt or replaced?

And given much of it can be long life plastics and or concrete, costs can be minimised, even as the cost of rigs and platforms become increasingly prohibitive for the blokes with very deep pockets and an appetite to waste money!

Algae absorb 2.5 times their bodyweight in carbon, and given optimised conditions double that bodyweight and oil production capacity every 24 hours, and will happily bloom the best as a mop crop cleaning up effluent, which can then be safely reused for other agricultural pursuits.

The ex crush material can be use as a source of arable land and food free of (petrol replacing) ethanol made by fermentation?

Moreover, algae only require 1-2% of the water needed for conventional irrigation and would therefore lend themselves to myriad small projects on family farms, which could a they extracted and sold fuel, expand significantly, given algae huge growth performance curve.
Rhrosty.
Posted by Rhrosty, Tuesday, 10 November 2015 5:18:59 PM
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Plantagenet said:
1. While the US is benefitting immensely from low price shale oil extracted in the US -

Shale oil is anything but cheap oil. Break even price is $US70 to US$ 90 a barrel.

The number of operating shale drilling rigs is continuing to fall.
Down some 60% since October last year.
I think there will be a rise in the price, but when ---?
These big swings in price were predicted back in the 1990s to occur
after peak oil, which happened in 2006.
They said there would be a few cycles like this before it settled.
Posted by Bazz, Thursday, 12 November 2015 4:00:34 PM
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me bad Bazz

I meant shale GAS https://en.wikipedia.org/wiki/Shale_gas

"Shale gas is natural gas that is found trapped within shale formations.

Shale gas has become an increasingly important source of natural gas in the United States since [2000], and interest has spread to potential gas shales in the rest of the world.

In 2000 shale gas provided only 1% of U.S. natural gas production; by 2010 it was over 20% and the U.S. government's Energy Information Administration predicts that by 2035, 46% of the United States' natural gas supply will come from shale gas."

Planta
Posted by plantagenet, Thursday, 12 November 2015 5:09:43 PM
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