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Australian shale oil discovery could be larger than Canada's oilsands ($20 Trillion)
CBC News ^ | Jan 24, 2013 | staff

Posted on 07/10/2013 7:44:24 AM PDT by Titus-Maximus

Linc Energy claims to have found rock formations containing more than $20 trillion worth of oil

Brisbane company Linc Energy says independent studies have confirmed a major shale oil source in South Australia's far north, which officials have estimated could be worth $20 trillion.

The company says U.S. consultants have carried out drilling and geological and seismic surveys around Coober Pedy. Linc Energy holds rights over more than 65,000 square kilometres of land in the Arckaringa Basin and started explorations in 2008.

In a statement to the Stock Exchange, the company said reports from U.S.-based consultants indicate underlying rock formations "are rich in oil and gas-prone kerogen".

'You're talking Saudi Arabia numbers. It's massive, it's just huge.'—Linc Energy CEO Peter Bond

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. "So if you took the 233 billion, well, you're talking Saudi Arabia numbers. It's massive, it's just huge."

By way of comparison, the Athabasca oilsands in Northern Alberta contain almost 170 billion barrels of proven or probable reserves.

"We've also spent a lot of time with our own geologists and external geologists trying to unlock what's the best option there. "What it could do is really turn this thing into the next boom, so where you saw coal-bed methane transform Queensland and the gas industry, shale could and

(Excerpt) Read more at cbc.ca ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: australiaoil; australiashale; energy; oil; oilshale; shaleoil
The town of Coober Pedy is so hot and dry that people actually live underground!

Potentially high lift costs and tough to frac without water but rather deal with Australia than Mideast terrorist states, if I can help it! Nice not to be held hostage anymore.

1 posted on 07/10/2013 7:44:24 AM PDT by Titus-Maximus
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To: Titus-Maximus

We are SWIMMING in Hydrocarbons. Clearly enough for several more centuries of use. Now if only the elites will let us.....


2 posted on 07/10/2013 7:46:29 AM PDT by Kozak (The Republic is Dead. We now live in a Judicial Tyranny.)
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To: Titus-Maximus
Yes, living in old Opal mines. Sort of like real life Hobbit holes.


3 posted on 07/10/2013 7:50:41 AM PDT by katana (Just my opinions)
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To: Titus-Maximus

They are comparing oil in place with proved reserves.

In some locations, that is a difference of a couple orders of magnitude.

Technically (not economically) recoverable may only be 5~10% of that without retorting.


4 posted on 07/10/2013 7:55:37 AM PDT by thackney (life is fragile, handle with prayer)
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To: Titus-Maximus
This depends very much on local geology and water availability. California's Monterey Shale formation is so badly fractured, in multiple ways, due our many earthquake faults that it is not economically feasible to extract. Wholly new "fracking" methods must developed. Basically no one has yet found the "key" to extracting the Monterey Shale. Water availability will be an issue in some parts of it too.

Australia has much less water and I haven't heard anything about the "key" to fracking there having been found.

5 posted on 07/10/2013 8:03:33 AM PDT by Thud
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To: Kozak

Peak oil. PEEEEEEEEAK OOOOOOOOIL!!!!


6 posted on 07/10/2013 8:23:33 AM PDT by bolobaby
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To: Titus-Maximus

Isn’t it great watching the bedouins slowly lose their stranglehold? I’ll feel better when I see the Saudis moving back into the desert on camelback.


7 posted on 07/10/2013 8:27:29 AM PDT by IronJack (=)
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To: Thud

What you say about the Monterey shale is absolutely correct, but the Australia formation they are talking about is not oil. It is keregen like the oil/keregen in the Green River formation in the western US. These keregen/oil formations can also be found in Israel/Palestine. Mongolia, and eastern Europe.


8 posted on 07/10/2013 8:32:12 AM PDT by Ben Ficklin
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9 posted on 07/10/2013 8:32:17 AM PDT by thackney (life is fragile, handle with prayer)
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To: Ben Ficklin

Think Bakken, Eagle Ford, Wolfcamp, Cline rather than Green River. They are going to be drilling and producing oil, at least for now.

The company aims to drill up to six horizontal wells to further confirm its figures, but Mr Bond is confident the region will be home to oil production.

http://www.adelaidenow.com.au/news/south-australia/trillion-shale-oil-find-surrounding-coober-pedy-can-fuel-australia/story-e6frea83-1226560401043

But the oil in place number will have little comparison to the much, much smaller technically, economically recoverable amount.


10 posted on 07/10/2013 8:35:46 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
But the oil in place number will have little comparison to the much, much smaller technically, economically recoverable amount.

Yes. Extract what is easily extracted with today's technology at today's price constraints.

By the time you are done doing that, there will be improved technology and a higher price point to justify it.

When you've exhausted those means, there will be an even better technology, and a still higher price point.

Or the Aussies could follow the American model, and not do anything because we wouldn't see the oil for 10 years, and therefore continue to fund terrorism with every tankful of ME gas...

11 posted on 07/10/2013 8:50:40 AM PDT by null and void (Republicans create the tools of oppression, and the democrats gleefully use them!)
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To: null and void

Think Bakken, Eagle Ford, Wolfcamp, Cline rather than Green River.


12 posted on 07/10/2013 9:02:57 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

That is correct but it is worth noting that initial estimates of ‘oil in place’ are usually much lower than what’s really there (ie Bakken continues to ‘grow’ with each new estimate).


13 posted on 07/10/2013 9:20:20 AM PDT by tatown
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To: tatown
Bakken’s oil in place has not grown significantly. It has been the technically recoverable amount that has greatly grown.
14 posted on 07/10/2013 9:23:33 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
"The company aims to drill"

That was 6 months ago.

OTOH There will always be some variation in specific gravity and/or viscosity and "lighter" fractions, but somebody has to come up with big bucks to develop the entire project.

OTOH the western private sector oil companies and service companies are flush and being shut out by the national oil companies...................

OTOH there have always been highly skilled promoters in energy, especially when they are holding the leases.

15 posted on 07/10/2013 9:40:35 AM PDT by Ben Ficklin
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To: Thud

“Australia has much less water and I haven’t heard anything about the “key” to fracking there having been found. “

Saltwater pipelines from the coast?


16 posted on 07/10/2013 9:57:19 AM PDT by Rebelbase (Our parents: The Greatest Generation. Their kids and grand kids: The Stupidest.)
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To: Ben Ficklin

The older article was the first I found that said how it was being produced (not retorting). I didn’t mean to imply that is that is done so far.

I take the article of this thread use of oil in place rather than recoverable to be that promotion over useful info.

Cheers.


17 posted on 07/10/2013 10:02:31 AM PDT by thackney (life is fragile, handle with prayer)
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To: Titus-Maximus

The article must be wrong because the libs say we are already at peak oil.


18 posted on 07/10/2013 10:35:45 AM PDT by jrestrepo (See you all in Galt's gulch)
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To: thackney

Dow issued a paper back in 1974 that estimated total reserves to be 10 billion bbls. Since that time the estimates have continued to be revised up (almost exponentially). The estimates for recoverable oil have grown at a similar, if not greater, rate.

http://www.energyandcapital.com/resources/bakken-oil-field


19 posted on 07/10/2013 12:07:11 PM PDT by tatown
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To: tatown

A landmark paper by Dow in 1974 recognized the Bakken Formation as a major source for the oil produced in the Williston Basin and suggested the Bakken was capable of generating 10 billion barrels of oil.

That is not oil in place, that was an estimate of technically recoverable oil.

The oil in place is several hundreds of billions.


20 posted on 07/10/2013 12:23:31 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Read the article, the ‘oil in place’ estimates are in there.


21 posted on 07/10/2013 12:29:58 PM PDT by tatown
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To: tatown
Bakken was capable of generating 10 billion barrels of oil.

I read "capable of generating" to mean a production quantity.

Nor do I see the value of estimates prior to 3D seismology, horizontal steerable drilling, etc to have much meaning in comparisons to today's estimates.

Leigh Price was the one that did the real work with sufficient data in the late 90s. There have been other real estimates since then, notably Meissner & Banks; Flannery & Kraus as well as Bohrer. All of those estimates are lower, not greater, values for total oil in place of the Bakken.

22 posted on 07/10/2013 12:39:18 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Yeah I think the language the author chose to use was not very precise and please note that I’m not trying to argue with you, I am referencing this article simply to show how the total hydrocarbon number (both total and recoverable) keeps going up.

1974: 10 billion bbls

1982: 92 billion bbls

1983: 132 billion bbls

1999: 270-500 billion bbls

Here is another article that articulates it even better:

http://www.undeerc.org/bakken/oilproduction.aspx


23 posted on 07/10/2013 1:03:33 PM PDT by tatown
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To: tatown

1974: 10 billion bbls

1982: 92 billion bbls

1983: 132 billion bbls

1999: 270-500 billion bbls

2000: 32 billion bbls

2006: 300 billion bbls

2008: +167 billion bbls

- - - - - - -

Let us assume you are correct. Even this article states that early data was very limited. The modern studies with current data are not trending larger for oil in place.


24 posted on 07/10/2013 1:10:39 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

2000 is an outlier and the 2008 estimate is North Dakota only.


25 posted on 07/10/2013 1:21:56 PM PDT by tatown
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To: tatown

I guess we see it differently.

Cheers!


26 posted on 07/10/2013 1:27:15 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

The trend is your friend, don’t fight the tape... Lol

~ Cheers!


27 posted on 07/10/2013 1:32:38 PM PDT by tatown
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