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A California 'Black Gold' Rush
IBD Editorials ^ | September 28, 2009 | INVESTORS BUSINESS DAILY Staff

Posted on 09/28/2009 4:48:14 PM PDT by Kaslin

Energy: An amazing number of oil finds have been made this year, including the biggest in California in 35 years. If the world is running out of oil, why do we keep finding more of it?

The mantra of the anti-drilling crowd has been that oil companies like to sit on their leases and the oil in the ground, hoping to drive up the price. They should use the leases they have or lose them, these critics say. They also like to add that the world is running out of oil so it doesn't matter anyway.

Occidental Petroleum hasn't been sitting on anything. For the past decade it's been actively acquiring drilling rights and leases in California where the oil, at least on land, has been said to be an exhausted resource.

But Occidental felt there was more to be found and that the technology for finding and recovering it had advanced somewhat from that day in 1859 when America's first well was drilled in Titusville, Pa.

It was only a matter of time before the "code" of California's seismically fractured underground was deciphered. That code was cracked this summer, when Oxy announced that it had found the equivalent of between 150 million and 250 million barrels of oil and natural gas in an undisclosed part of Kern County.

"In our view, Oxy's declared discovery may only scratch the surface of the ultimate potential of its acreage in the San Joaquin basin," said Doug Leggate, an oil analyst at investment firm Howard Weil Inc. "We suggest the resource potential could reasonably exceed 1 billion barrels."

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Editorial; Front Page News; Government; US: California
KEYWORDS: anwr; arcticoil; bhoenergy; blackgold; bp; britishpetroleum; california; chukchisea; crude; crudeoil; drillbabydrill; drillbarrydrill; drillgate; drillheredrillnow; drilling; drilllikebrazil; energy; energyindependence; energypolicy; ibd; naturalgas; ocs; offshoredrilling; offshoreoil; oil; oilreserves; peakoil; petroleum; sanjoaquinvalley; schwarzenegger; shaie; shaleoil; shalerock; usgs

1 posted on 09/28/2009 4:48:15 PM PDT by Kaslin
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To: bareford101; BerniesFriend; blaveda; Bookwoman; Celeste732; dsc; Faux_Pas; fortunecookie; ...

2 posted on 09/28/2009 4:49:10 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
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To: Kaslin

We best start drilling our own oil. If things blow up in Iran, oil could go to $400 a barrel. Of course our politicians can’t see that and they won’t listen. If the price of oil starts going up real fast, all politicians that blocked our own oil need to resign.


3 posted on 09/28/2009 4:56:29 PM PDT by RC2
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To: RC2

We could have been drilling years ago, if it had not been for the enviro wacoes and those supporting the ban


4 posted on 09/28/2009 5:04:27 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
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To: RC2

> If the price of oil starts going up real fast, all
> politicians that blocked our own oil need to resign.

Not only will they NOT resign, they will be re-elected.

Especially the DemonRATs.

DemonRAT voters are not rational.

Of course, you can’t expect a lot of rational or logical thinking from corpses, union parasites, street bums driven from polling place to polling place for a pack of smokes and a jug of Ripple, and people who don’t understand English.


5 posted on 09/28/2009 5:07:06 PM PDT by Westbrook (Having more children does not divide your love, it multiplies it.)
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To: Kaslin

Ping


6 posted on 09/28/2009 5:08:26 PM PDT by truthguy (Good intentions are not enough!)
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To: Kaslin

When Israel strikes Iran, we are going to need our oil....


7 posted on 09/28/2009 5:13:51 PM PDT by Freddd
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To: Kaslin

Any sensible country would be exploiting these newly found oil reserves as soon as possible.

Not us. Instead, we will do whatever it takes as a nation to keep ourselves from it, while paying handsomely for it from other countries. I wonder which envirowhacko group will be in court first to stop them from breaking ground on the discovery because an “environment study” hasn’t been conducted on how the drilling will affect some fly or other insect. I’m sure there will also be an activist judge in whatever court they envirowhackos go to that will delay the drilling for a decade or more....


8 posted on 09/28/2009 5:14:43 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: truthguy

Is it at all possible that we’re dumb like a fox? I know it’s a lot to hope for, but what if we worked our way through “THEIR” oil before drilling ours? Why not make “THEM” supply us with theirs before deleting ours?

Recipe:

1) Take a couple of thousand nutjobs in search of a cause.
2) Mix in some regulation with roadblocks to force American Companies to drill abroad.
3) Demonize the Oil Companies to fuel the fire
4) Create an energy Department to monitor anybody and everybody nergy related
5) When prices and supply reach a peak, and we’re sitting in the cold and riding bicycles, drill at home because we will drop our stupid cause to save our declining standard of living.


9 posted on 09/28/2009 5:20:22 PM PDT by theyreallthesame
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To: Ernest_at_the_Beach; AdmSmith; Berosus; bigheadfred; Convert from ECUSA; dervish; Fred Nerks; ...
Oxy announced that it had found the equivalent of between 150 million and 250 million barrels of oil and natural gas in an undisclosed part of Kern County.

10 posted on 09/28/2009 5:25:00 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: Kaslin
Critics of offshore drilling, including Gov. Arnold Schwarzenegger, use the spill of 80,000 barrels of crude some six miles off Santa Barbara nearly four decades ago to block efforts to corral the billions of barrels of recoverable oil off the California coast.

The joke of it is that the oil gurgles up through the ocean floor anyway and has for ten thousand years. Its coming up whether you drill for it or not, so you may as well drill.

11 posted on 09/28/2009 5:27:31 PM PDT by marron
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To: Kaslin

Past time to tell the Government to go pound sand!!


12 posted on 09/28/2009 5:29:42 PM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: RC2
I am not advocating it, but some may want to do more than ask them to resign...


13 posted on 09/28/2009 5:36:30 PM PDT by taildragger (Palin/Mulally 2012)
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To: Kaslin

They tell us we’re in the biggest economic crisis since the great depression, and here we sit with 10 percent unemployment or more sending several hundred billion dollars a year out of the country buying fuel... our states are bankrupt because nobody’s at work paying taxes...

And there we sit with enormous energy deposits right under the ground and right off shore. You could ask yourself why our elected politicians are so determined to keep us from tapping into our offshore oil, and our oilshale, and why they’ve declared war on coal, or you could just vote them out of office and get someone in there who works for us rather than OPEC.

Tap those reserves and the royalties from the oil, and the income taxes from all the workers, and the taxes on all the businesses flow right into the state’s coffers. People are buying cars and houses and clothes and stereo equipment and putting everyone else back to work. Or you can keep it all off line and off limits and watch the whole country circle the drain.


14 posted on 09/28/2009 5:36:54 PM PDT by marron
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To: Kaslin
could be "technically recoverable, median-value reserves" of 5.74 billion barrels of oil and 10 trillion cubic feet of natural gas off-limits from the northern tip of San Luis Obispo County to the Mexican border.

"In our view, Oxy's declared discovery may only scratch the surface of the ultimate potential of its acreage in the San Joaquin basin," said Doug Leggate, an oil analyst at investment firm Howard Weil Inc. "We suggest the resource potential could reasonably exceed 1 billion barrels."

So were possibly looking at 7 billion barrels of oil...lol

15 posted on 09/28/2009 5:51:09 PM PDT by dragnet2
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To: Kaslin

This is the best and maybe only way to reboot and recapitalize our country. Energy creates wealth. It created much of the wealth in this country from PA then TX then CA (oil played a huge part in CA growth), AK then back to the Gulf of Mexico.

Energy creates wealth - petroleum based energy not thius green BS. I am all for diesel, turbo plug in hybrids that could get 100+ mpg. VW and BMW are cutting edge there.

Sadly, GM’s Opel was also very cutting edge.

The environmentalists and libs are on the Saudis and Islamists payroll to stop energy independence.


16 posted on 09/28/2009 6:00:41 PM PDT by Frantzie (Do we want ACORN running America's healthcare?)
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To: marron

There is a map here of the area of oilseeps in California

http://geomaps.wr.usgs.gov/seeps/where.html

At the north end of the area was the site of the first oilwell in Calif in Petrolia.


17 posted on 09/28/2009 6:02:17 PM PDT by Lurkina.n.Learnin
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To: marron

Florida’s House and Senate voted for offshore drilling in the area the state could allow drilling. There is tons near Cuba that Cuba, China and Russia will get.

Oil companies cause less damage than cruise lines and cruise lines pay zero taxes while oil companies poay toins of taxes.

RINO Charlie C(s)issy said he would veto it. FL offshore probably has 20 billion barrels or 1/10 of the Saudis reserves.


18 posted on 09/28/2009 6:09:05 PM PDT by Frantzie (Do we want ACORN running America's healthcare?)
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To: Kaslin

Well this explains why the Water to the valley farmers was cut off. The darter was just the excuse.
The power brokers in LA used a war to take away some of the most valuable land from the Japanese farmers.
Just another land grab brought to you by the state that perfected this.
BTW doesn’t Al Gore have connections with Occidental?


19 posted on 09/28/2009 8:15:55 PM PDT by free thinker 03 (Wouldn't it be refreshing if politicians actually did what they said)
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To: Frantzie

Exactly! From an enviromental standpoint, who do you trust more, US oil companies or cubans or chinese?


20 posted on 09/28/2009 8:18:39 PM PDT by boop (Democracy is the theory that the people get the government they deserve, good and hard.)
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Could be my tin foil cap is too tight, but I think this has something to do with cutting off the water to the farmers. Unable to grow crops, yet tax bills due, when will they be forced to sell and who will snap it up at a devalued price...only to exclaim ‘Eureka!’ Texas tea in Californee!


21 posted on 09/28/2009 9:03:37 PM PDT by FreeStateYank (I want my country and constitution back, now!)
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To: Kaslin

If there’s oil off your coast and you want to drill, then DRILL for it, dammit!!!

What are the feds going to do? Send the Marines to stop you from drilling in your own territorial waters? Uhhh ... no.

For a while I thought it might be wise to keep our oil and gas in the ground and let the rest of the world run dry. But then I remembered that a LOT of our treasure is being sent to nitwits who hate us, just to pay for our oil addiction. Uhhh ... no. Better to use our own.

Then again, a drilling ban is just one more way for the enviro-whackos to keep us suppressed. As if global warming, spotted owls, delta smelt and polar bears having to swim wasn’t enough ...


22 posted on 09/28/2009 9:42:15 PM PDT by DNME (All your rights end when the next "national emergency" begins!)
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To: DNME

Just use the 10h amendment and nullify the Fed’s actions.


23 posted on 09/29/2009 3:53:07 AM PDT by MattinNJ (Palin-I cannot spare this woman. She fights.)
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