Chevy & GMC Vans

Had a buddy of mine call this morning about this. Haven't heard anything on the news but have been reading about the Canadian part of this oil find. Of course this field wasn't just discovered. In fact it was found in 1951 but we didn't have the tech. to drill for for it. Estimated 500 billion barrels of oil at 16.00 a barrel.
Maybe hope for this country and the Astro/Safari world after all.lol
Now,,wonder how long before production or will we continue to support the Arab world.

Oil Production in the Bakken

The Bakken oil play stretches across Montana, North Dakota and into Southeastern Saskatchewan. We're talking about some potentially massive reserves of oil, too. The amount of oil in place has been estimated between 271 billion and 503 billion barrels of oil. A recent U.S. Geological Survey (USGS) sets the amount of original oil in place at 413 billion barrels.

Okay, so how much of an oil boom are we talking about?

Even if we take the lower estimates, that's still a huge amount of oil, far more than the 36 billion barrels of oil believed to be in Alaska's North Slope.

Let's just say that North Dakota oil production has been growing significantly. Crude oil production has been strong, up to about 40 million barrels in 2006. That's roughly a 20% increase since 2004.

Although I wanted to keep the topic on the U.S. side of the Bakken play, it wouldn't feel right if I didn't briefly mention the Canadian part of the formation.

As you may have known, I feel the oil sands in Alberta are going to play a significant role in future Canadian oil production. But having said that, remember that the Alberta oil sands are highly viscous and must be heated in order to extract the oil. The process can become quite energy intensive.

Trust me, there's a world of a difference between the heavy oil in Alberta and the light sweet crude underneath the Bakken play in Southeastern Saskatchewan. Now that the Alberta government are implementing oil royalties, trying to dip into oil companies' pockets, Saskatchewan property is starting to look more attractive.

Don't be surprised to see an exodus of smaller oil companies looking to exploit the rich oil resources in the neighboring province.

Investing in Peak Oil and the Bakken


So the question for investors is hoping to get into the action, "What do we do next?"

With an increasing interest in the Bakken oil formation, oil production from both North Dakota and Montana will inevitably increase over the next few years, creating a substantial opportunity for investors.


Until next time,


Keith Kohl
http://www.energyandcapital.com

P.S. The U.S. Geological Survey just released its long-anticipated study revising its estimates of the Bakken formation. The report confirms the Bakken is the largest "continuous" oil accumulation ever assessed by the USGS... and has 25 times more oil than its previous estimate. The Bakken story is just heating up, and investors are now faced with an unprecedented opportunity to capitalize. Learn more in this breaking Bakkan report.

would be nice to have another source with $117 a barrel this morning and regular hitting $3.60 a gallon locally...and I got to travel next weekend ](*,) ](*,) ](*,)

Last year at this time, we were paying 2.84 for fuel, now our trucks are paying 4.059. Not sure how much longer we can survive. Our customers will not allow the full cost to be past on.

If all this is true then N. America can become independent and supply it's own energy needs?
Sounds too good to be true...

From what I have been able to tell the price of Oil is being driven up by speculators. There is no shortage at all. The release above is only one that has come out in the last few weeks. Brazil also discovered a huge oil reserve as well. Even OPEC claims that increased production will not decrease price right now.

At the moment there are apparently good reserves and they are growing (of pumped oil), demand is starting to slow down as well, yet the price still keeps going up. Why? Speculators who keep driving it up. However, whenever speculation pushes a price up like this it almost always comes crashing down (witness the tech bubble bursting).

For the moment though, we need to suck it up.

Rileysowner wrote:From what I have been able to tell the price of Oil is being driven up by speculators. There is no shortage at all.

So many people just don't seem to get this.

Yes, the oil companies are raking in huge profits, but it is due to the commodities market and speculators who think oil is worth $117 a barrel. This is a rich man's game of investing and sadly it is the consumer who suffers.

mdmead wrote:

Rileysowner wrote:From what I have been able to tell the price of Oil is being driven up by speculators. There is no shortage at all.

So many people just don't seem to get this.

Yes, the oil companies are raking in huge profits, but it is due to the commodities market and speculators who think oil is worth $117 a barrel. This is a rich man's game of investing and sadly it is the consumer who suffers.

Exact-a-mun-doe

mdmead wrote:

Rileysowner wrote:From what I have been able to tell the price of Oil is being driven up by speculators. There is no shortage at all.

So many people just don't seem to get this.

Yes, the oil companies are raking in huge profits, but it is due to the commodities market and speculators who think oil is worth $117 a barrel. This is a rich man's game of investing and sadly it is the consumer who suffers.

That is a major part of it for sure. The other part of it is refinery capacity. Most of em are full capacity ok well all of em. But due to the 70s rampant tree hugging hippie escapades it's damn near impossible to increase refining capacity or build more refineries. Same as no more nuclear plants for the same hippie reason. Barrel prices can plummet but prices at the pump won't be as affected due to that. I see an example of this everyday. Due to that fire recently at the esso refinery lowering output all the esso stations around here can be 10 to 15 cents a litre higher than the non esso supplied station across the street. So in other words if you were a tree hugger in the 70s I dislike you very very much lol.

At this point I'm seriously considering getting a diesel (big honkin truck I hate small cars) and working something out with a few of the local restaurants. All told if I go all hardcore about waste veggie oil even doing the full glycerine removal on it we are talking 50-60 cents a Gallon. That or a 4BT swap on the safari but that would probably be more or close to as expensive as just buying a late 90s 1 ton DRW.

Being in the transportation business I may be more aware of this than most since we see slow downs before the rest of the nation sees shortages or higher prices. If people knew just how close this nation operates as far as how little is in the pipe line, pipe line being, fuel, food supply, whatever we comsume, there would be many who would have a very hard time sleeping at night. In other words, it wouldn't take much to shut the US down and I do mean a complete shut down. One example, if there was a nationwide truck strike, the shelves in all food stores would be empty in 1.5 days with NO alternate mode to resupply stores and pipline of product between supplier and end user would be consumed by those and the familes involved in this part of the supply chain.