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 ...
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.
We are SWIMMING in Hydrocarbons. Clearly enough for several more centuries of use. Now if only the elites will let us.....
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.
Australia has much less water and I haven't heard anything about the "key" to fracking there having been found.
Peak oil. PEEEEEEEEAK OOOOOOOOIL!!!!
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.
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.
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.
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...
Think Bakken, Eagle Ford, Wolfcamp, Cline rather than Green River.
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).
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.
“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?
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.
The article must be wrong because the libs say we are already at peak oil.
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
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.