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"Saudi-sized structures, they are that big."

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  • "Saudi-sized structures, they are that big."

    Anybody know anything about this:
    "Saudi-sized structures, they are that big."

    That's GNS Science's David Darby's take on the oil reserves contained deep off the coast of New Zealand's Taranaki Basin.

    He estimates up to 10 billion barrels of oil could be recovered.

    That's more oil than Norway, Oman, India, Indonesia and the United Kingdom.

    Of course, this oil has to be found first. And one tiny Australian company - stock selling for just $2.57 on the ASX - is leading the pack by a country mile.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    Or a clever media stunt by the tiny Aussie company to try increase demand on the $2.57 shares


    • #3
      True, but sometimes where there is smoke there is fire.
      "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


      • #4
        There are other options. The company they are referring to I think is TAP oil, but there's also CUE, NZO, PPP, etc.


        • #5
          Not interested in oil companies but the stated comment that there is large quantities of oil out there. Fact or fiction?
          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


          • #6
            Hi AMR
            Have had a browse around and the only Aust oil company around $2.50 is the Australian Worldwide Exploration Ltd.(AWE)
            "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


            • #7
              Originally posted by muppet View Post
              Not interested in oil companies but the stated comment that there is large quantities of oil out there. Fact or fiction?
              According to the peak oil theory, all the oil in the world has been discovered, extracted and is now stored in a few ships in the gulf.


              • #8
                And if you drive your car to the supermarket YOU'RE PUTTING THE WHOLE PLANET AT RISK!
                Squadly dinky do!


                • #9
                  wooops, does that mean driving a 6 litre V8 100 metres to work on a rainy day is not a good idea?


                  • #10
                    Thanks, Terry, you've just melted another bucket of ice from the Ross Ice Shelf!


                    • #11
                      Economist's warning: Oil supplies are running out fast

                      9:41AM Monday Aug 03, 2009
                      By Steve Connor
                      A worker at the Nahran Omar oil refinery in Basra, Iraq. The IEA's chief economist has warned the world faces a catastrophic energy crunch as oil supplies run out. Photo / AP
                      The world is heading for a catastrophic energy crunch that could cripple a global economic recovery because most of the major oil fields in the world have passed their peak production, a leading energy economist has warned.
                      Higher oil prices brought on by a rapid increase in demand and a stagnation, or even decline, in supply could blow any recovery off course, said Dr Fatih Birol, the chief economist at the respected International Energy Agency (IEA) in Paris, which is charged with the task of assessing future energy supplies by OECD countries.
                      In an interview with The Independent, Dr Birol said that the public and many governments appeared to be oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years - at least a decade earlier than most governments had estimated.
                      But the first detailed assessment of more than 800 oil fields in the world, covering three quarters of global reserves, has found that most of the biggest fields have already peaked and that the rate of decline in oil production is now running at nearly twice the pace as calculated just two years ago.

                      On top of this, there is a problem of chronic under-investment by oil-producing countries, a feature that is set to result in an "oil crunch" within the next five years which will jeopardise any hope of a recovery from the present global economic recession, he said.
                      In a stark warning to Britain and the other Western powers, Dr Birol said that the market power of the very few oil-producing countries that hold substantial reserves of oil - mostly in the Middle East - would increase rapidly as the oil crisis begins to grip after 2010.
                      "One day we will run out of oil, it is not today or tomorrow, but one day we will run out of oil and we have to leave oil before oil leaves us, and we have to prepare ourselves for that day," Dr Birol said.
                      "The earlier we start, the better, because all of our economic and social system is based on oil, so to change from that will take a lot of time and a lot of money and we should take this issue very seriously," he said.
                      "The market power of the very few oil-producing countries, mainly in the Middle East, will increase very quickly. They already have about 40 per cent share of the oil market and this will increase much more strongly in the future," he said.
                      There is now a real risk of a crunch in the oil supply after next year when demand picks up because not enough is being done to build up new supplies of oil to compensate for the rapid decline in existing fields.
                      The IEA estimates that the decline in oil production in existing fields is now running at 6.7 per cent a year compared to the 3.7 per cent decline it had estimated in 2007, which it now acknowledges to be wrong.
                      "If we see a tightness of the markets, people in the street will see it in terms of higher prices, much higher than we see now. It will have an impact on the economy, definitely, especially if we see this tightness in the markets in the next few years," Dr Birol said.
                      "It will be especially important because the global economy will still be very fragile, very vulnerable. Many people think there will be a recovery in a few years' time but it will be a slow recovery and a fragile recovery and we will have the risk that the recovery will be strangled with higher oil prices," he told The Independent.
                      In its first-ever assessment of the world's major oil fields, the IEA concluded that the global energy system was at a crossroads and that consumption of oil was "patently unsustainable", with expected demand far outstripping supply.
                      Oil production has already peaked in non-Opec countries and the era of cheap oil has come to an end, it warned.
                      In most fields, oil production has now peaked, which means that other sources of supply have to be found to meet existing demand.
                      Even if demand remained steady, the world would have to find the equivalent of four Saudi Arabias to maintain production, and six Saudi Arabias if it is to keep up with the expected increase in demand between now and 2030, Dr Birol said.
                      "It's a big challenge in terms of the geology, in terms of the investment and in terms of the geopolitics. So this is a big risk and itis mainly because of the rates of the declining oil fields," he said.
                      "Many governments now are more and more aware that at least the day of cheap and easy oil is over, [however] I'm not very optimistic about governments being aware of the difficulties we may face in the oil supply," he said.
                      Environmentalists fear that as supplies of conventional oil run out, governments will be forced to exploit even dirtier alternatives, such as the massive reserves of tar sands in Alberta, Canada, which would be immensely damaging to the environment because of the amount of energy needed to recover a barrel of tar-sand oil compared to the energy needed to collect the same amount of crude oil.
                      "Just because oil is running out faster than we have collectively assumed, does not mean the pressure is off on climate change," said Jeremy Leggett, a former oil-industry consultant and now a green entrepreneur with Solar Century.
                      "Shell and others want to turn to tar, and extract oil from coal. But these are very carbon-intensive processes, and will deepen the climate problem," Dr Leggett said.
                      "What we need to do is accelerate the mobilisation of renewables, energy efficiency and alternative transport.
                      "We have to do this for global warming reasons anyway, but the imminent energy crisis redoubles the imperative," he said.
                      - INDEPENDENT
                      The International Energy Agency's chief economist says global oil production is likely to peak in 10 years' time.
                      "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


                      • #12
                        Is anyone else getting sick of the constant dire predictions about everything from oil to climate change?
                        Squadly dinky do!


                        • #13
                          Don't forget the financial situation.
                          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


                          • #14
                            2007 Saudi oil production was 10,248,000 barrels/day, so at that rate, the 10 billion barrels would last about 2.6 years. How many years have the Saudis being going?

                            Oil consumption is running at about 50 million barrels per day, so 10 billion is around 6-7 months supply.

                            The Taranaki basin is not as forgiving as the Saudi desert, so retrieving the oil (if it is there) will be harder (and more expensive).

                            The point about peak oil is not that "all the oil in the world has been discovered", but that the rate of extraction is past it's peak - consumption continues to rise, but extraction is falling.