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The Biggest Oil Discovery In 50 Years?
The Economic Collapse ^ | July 23rd, 2013 | Michael Snyder

Posted on 12/03/2013 2:48:33 AM PST by 2ndDivisionVet

In a virtually uninhabitable section of South Australia, a discovery has been made which could rock the world. Some are calling it the biggest discovery of oil in 50 years. Earlier this year, a company called Linc Energy announced that tests had revealed that there was a minimum of 3.5 billion barrels of oil equivalent sitting under more than 65,000 square kilometres of land that it owns in the Arckaringa Basin. But that is the minimum number. It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area. If that turns out to be accurate, the oil sitting under that land is worth approximately 20 trillion dollars, and it would be roughly equivalent to the total amount of oil sitting under the sands of Saudi Arabia. In essence, it would be a massive game changer.

If the 233 billion barrel figure is accurate (and some have even suggested that the true number could actually be 400 billion barrels), that would make it nearly 10 times larger than the Bakken formation, 17 times larger than the Marcellus discovery and 80 times larger than the Eagle Ford deposit down in Texas.

It would also mean that Australia now has more "black gold" than the nations of Iran, Iraq, Canada and Venezuela.

The closest town to this oil discovery, Coober Pedy, is in the process of being totally transformed. It normally only has about 1,700 inhabitants, but news of this discovery has drawn in 20,000 additional people already and real estate prices in the town are absolutely skyrocketing.

So does all of this mean that gas prices will go down soon?

Well, unfortunately that is not likely to be the case.

First of all, the oil in this formation in Australia is going to be quite expensive to extract. It has been estimated that it is going to cost up to 300 million dollars just to get this site ready for production.

In addition, many of our politicians are absolutely determined to greatly punish the use of oil because they believe that it is the primary cause of global warming. So they continue to raise taxes on gasoline consumption.

Today, motorists in the United States pay an average of 49.5 cents of taxes per gallon of gasoline, and in the state of California motorists pay an average of 71.9 cents of taxes per gallon of gasoline.

Hopefully the price of gasoline will come down a bit over the next few years, but even if it does I would not expect it to come down too much.

But what we can be sure of is that the world is not going to run out of oil any time soon. Those that have been predicting that we are are on the verge of an "energy doomsday" can take a rest for a while.

Sometimes it is funny to look back and remember some of the ridiculous things that our politicians were saying about oil in the old days. For example, U.S. President Jimmy Carter made the following statement back in 1977….

"Unless profound changes are made to lower oil consumption, we now believe that early in the 1980s the world will be demanding more oil than it can produce".

That prediction didn't exactly work out for him did it?

It is time that the American people were told the truth about our energy situation, and the truth is that we have plenty of energy resources. The following stats have been updated from one of my previous articles...

#1 Back in 1995, the U.S. Geological Survey told the American people that the Bakken Shale formation in western North Dakota and eastern Montana only held 151 million barrels of oil. Today, government officials are admitting that it holds 7.4 billion barrels of recoverable oil, and some analysts believe that the actual number could be closer to 24 billion barrels of oil.

#2 It is estimated that there are 19 billion barrels of recoverable oil in the tar sands of Utah.

#3 It is estimated that there are 86 billion barrels of recoverable oil in the Outer Continental Shelf.

#4 It is believed that there are 800 billion barrels of recoverable oil in the Green River formation in Wyoming.

#5 Overall, the United States is sitting on approximately 1.442 trillion barrels of recoverable oil.

#6 According to the Institute of Energy Research, the United States has an 88 year supply of natural gas.

#7 According to the Institute of Energy Research, the United States has a 169 year supply of oil.

#8 According to the Institute of Energy Research, the United States has a 465 year supply of coal.

#9 Goldman Sachs is predicting that the United States will be the number one oil producing country in the world by the year 2017.

So the bottom line is that we have plenty of energy resources. We do not need to be importing oil from OPEC or anyone else.

But just because we are not going to run out of oil, natural gas or coal any time soon does not mean that we should not be developing alternative energy resources. We should definitely be seeking ways to produce energy more cheaply, more cleanly and more efficiently.

If America does not end up leading the world in developing new forms of energy, we should be ashamed of ourselves. And right now, the Chinese appear to be way ahead of us as far as thorium energy is concerned, and Italian scientists appear to be ahead of our own scientists in developing "cold fusion" technology.

So yes, let's be glad that we are not going to be facing a crippling energy crisis in this generation, but let's also not be complacent. There are lots of new technologies out there just waiting to be developed, and the rewards are going to go to those that are able to develop them first.


TOPICS: Business/Economy; Politics; Society
KEYWORDS: australia; china; climatechange; energy; fusion; gas; oil; thorium
Comments?
1 posted on 12/03/2013 2:48:34 AM PST by 2ndDivisionVet
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To: 2ndDivisionVet

Libturds! They make ridiculous assertions and God laughs!


2 posted on 12/03/2013 2:52:52 AM PST by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: 2ndDivisionVet
How can 0bama sabotage this?
3 posted on 12/03/2013 2:53:41 AM PST by Excellence (All your database are belong to us.)
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To: 2ndDivisionVet

Impossible....the libtards have been pushing “Peak Oil” for years so isn’t about time mother earth ran out....already ?

Thankfully libtards are never wrong...


4 posted on 12/03/2013 2:56:31 AM PST by Popman
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To: 2ndDivisionVet
Sounds like someone's found some black gold.


5 posted on 12/03/2013 2:57:34 AM PST by McGruff (Obama lied. Period!)
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To: 2ndDivisionVet

Australia is a lot more stable than the middle east,then I add in China’s new thirst for petroleum. Next I stir in a much shorter shipping route to China. To my mind that makes Australia’s oil a very tempting morsel for China over the next century.


6 posted on 12/03/2013 2:57:51 AM PST by The Working Man
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To: 2ndDivisionVet

So let’s get it.


7 posted on 12/03/2013 2:58:07 AM PST by Bullish (America should yank Obama like a rotten tooth before he poisons the entire body)
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To: 2ndDivisionVet

According to libtards...we will invading Australia to steal their oil....as soon as we have a conservative potus....


8 posted on 12/03/2013 3:00:42 AM PST by Popman
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To: 2ndDivisionVet

Well Instead of Arabic we will have to learn how to speak Australian!


9 posted on 12/03/2013 3:05:59 AM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: 2ndDivisionVet

Can we start to make real cars again?

10 posted on 12/03/2013 3:11:48 AM PST by eCSMaster ("It is not the color of his skin, ... it is the blackness that fills his soul")
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To: Jimmy Valentine

Well mate oil seems to be peaking on the high end instead of the low end.


11 posted on 12/03/2013 3:31:55 AM PST by riverrunner
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To: 2ndDivisionVet

12 posted on 12/03/2013 3:41:42 AM PST by ClearCase_guy
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To: 2ndDivisionVet; McGruff

This is actually quite humorous , Coober Pedy , the town near the find is where the Mad Max movies were filmed and of course their subject matter was finding oil/gas in a world that is a wasteland... The locals of Coober Pedy were many of the actors in the film ,, yes they are that bizarre .. it is an area so hot that almost every building is underground.. It’s also the opal capitol f the world ,, many people find enough opals just digging out their houses to pay for the construction.


13 posted on 12/03/2013 3:57:42 AM PST by Neidermeyer (I used to be disgusted , now I try to be amused.)
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To: 2ndDivisionVet

Maybe they can build the Keystone Pipeline in Australia.


14 posted on 12/03/2013 4:01:13 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: ClearCase_guy

Why does that Nip have a Tommy gun?


15 posted on 12/03/2013 4:02:09 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: The Working Man

“...To my mind that makes Australia’s oil a very tempting morsel for China over the next century.”

Exactly what I was thinking.


16 posted on 12/03/2013 4:02:37 AM PST by SatinDoll (A NATURAL BORN CITIZEN: BORN IN THE USA OF USA CITIZEN PARENTS)
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To: central_va

Who can fathom the inscrutable mind of the yellow peril?


17 posted on 12/03/2013 4:03:28 AM PST by ClearCase_guy
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To: 2ndDivisionVet; thackney
So the bottom line is that we have plenty of energy resources. We do not need to be importing oil from OPEC or anyone else.

Well, that's not how free markets work. Unless the author is making a stand for nationalizing the oil production (Hello, Venezuela.), the private enterprises that extract the oil would/should be able to sell the fruits of their economic risk and labor on the world market. It's a misconception (and an error in economics) to think that since the oil sits under our geopolitical boundaries, it would only get used within our borders.

In short, oil is a world market commodity. To restrict trade would only cause abnormal price inflation.

18 posted on 12/03/2013 4:07:52 AM PST by GreenAccord (Bacon Akbar)
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To: ClearCase_guy
This is what a Nip submachine gun looked like in WWII:


19 posted on 12/03/2013 4:14:30 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: 2ndDivisionVet

Anything to keep down Islamic Arab influence in the U.S. Much rather buy oil from old friends in Australia.


20 posted on 12/03/2013 4:15:18 AM PST by MuttTheHoople (Nothing is more savage and brutal than justifiably angry Americans. Don’t believe me? Ask the Germa)
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To: The Working Man
China’s new thirst for petroleum

It's right at their fingertips in the South China Sea........

South China Sea

21 posted on 12/03/2013 4:22:34 AM PST by Hot Tabasco (Miss Muffit suffered from arachnophobia.....)
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To: 2ndDivisionVet
We should definitely be seeking ways to produce energy more cheaply, more cleanly and more efficiently.

I can't wait until we figure out a way to produce limitless, non-polluting energy, so that we know how liberals will try to stop us from doing so. They're going to have to get really creative with it.

22 posted on 12/03/2013 4:25:48 AM PST by Hardastarboard (Temporary tag line - RIP Paul Walker)
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To: 2ndDivisionVet

In 1969 they said we’d be out of oil by 1980. I say we’d better be using it up fast or we’ll be drowned by 2020.


23 posted on 12/03/2013 4:35:48 AM PST by 867V309 (Obama- he's just crazy enough to do it.)
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To: thackney

Ping


24 posted on 12/03/2013 4:36:11 AM PST by saganite (What happens to taglines? Is there a termination date?)
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To: McGruff

Texas Tea...


25 posted on 12/03/2013 4:37:23 AM PST by abb
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To: saganite; 2ndDivisionVet

If you go to a real news source, instead a blog, you find Linc reported it differently. The blog tries to confuse oil in place with recoverable amounts, very different values in shale formations.

http://www.telegraph.co.uk/news/worldnews/australiaandthepacific/australia/9822955/Trillions-of-dollars-worth-of-oil-found-in-Australian-outback.html

The reports estimated the company’s 16 million acres of land in the Arckaringa Basin in South Australia contain between 133 billion and 233 billion barrels of shale oil trapped in the region’s rocks.

It is likely however that just 3.5 billion barrels, worth almost $359 billion (£227 billion) at today’s oil price, will be able to be recovered.

- - - - - - -

http://www.abc.net.au/news/2013-01-24/major-oil-discovery-in-outback-sa/4481982

The company says up to 233 billion barrels of oil are estimated to be trapped in the shale.

Chief executive Peter Bond says even if the amount of retrievable oil is well below that, the discovery is still “bigger than the Cooper Basin and Bass Strait combined”.

“If you stress test it right down and you only took the very sweetest spots in the absolute known areas and you do nothing else, it’s about 3.5 billion [barrels] and that’s sort of worse-case scenario,” he said.


26 posted on 12/03/2013 5:32:57 AM PST by thackney (life is fragile, handle with prayer)
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To: eCSMaster

1955 - ‘56?


27 posted on 12/03/2013 5:40:26 AM PST by Rannug
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To: 2ndDivisionVet

That is near the largest cattle ranch in the world Anna Creek Station. 6 million acres.


28 posted on 12/03/2013 5:54:12 AM PST by Resolute Conservative
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To: 2ndDivisionVet
It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area. If that turns out to be accurate, the oil sitting under that land is worth approximately 20 trillion dollars

Puts the US national debt in perspective.

29 posted on 12/03/2013 6:22:40 AM PST by Stentor
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To: eCSMaster
Can we start to make real cars again?

The hard top version of one of those saved my butt in 1968. I was hit head on sitting at a light with both feet on the big brake petal. Then I saw it coming. The next thing I know my forehead bounced off the steering wheel my wire rim glasses were hanging by one ear and all I could see in front of me was a wall of green. I pushed out the passenger side and checked my parts. I was giddy because my body didn't have a dent. The front bumper was driven back over the tires. There wasn't a seat belt to be found in that car.

30 posted on 12/03/2013 6:38:25 AM PST by Stentor
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To: ClearCase_guy

If “the” came South now, Australia would be a push over as they now have no guns in private hands to fight back with.


31 posted on 12/03/2013 7:36:39 AM PST by Ruy Dias de Bivar (Sometimes you need 7+ more ammo. LOTS MORE.)
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To: central_va

***Why does that Nip have a Tommy gun?***

Captured from the Brits when the Japs over run Hong Kong, and Singapore.

OK, just guessing.


32 posted on 12/03/2013 7:38:50 AM PST by Ruy Dias de Bivar (Sometimes you need 7+ more ammo. LOTS MORE.)
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To: thackney

Thanks. Glad you straightened that out.


33 posted on 12/03/2013 2:10:26 PM PST by saganite (What happens to taglines? Is there a termination date?)
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