QLD
38 posts
I would suggest to you that instead of quoting articles as some for of reply you should spend some time understanding it. A quote from what you just posted reads
"With a simple oil well costing $22m to drill, exploration companies are taking a huge gamble.
Canadian oil exploration company Oilexco last year drilled 39 out of 140 exploration and appraisal wells in the North Sea, despite rising costs.
Its chief executive officer, Arthur Millholland, said "In 2004 we were paying approximately $55,000 a day for a drilling rig.
"Today we're paying $350,000 a day. So even though the price of oil today is higher than it was in 2004, our costs of doing business here have increased just as dramatically."
and if you read my post with any form of critical analysis you would see that I am infact predicting the demise of oil into the future, so your, "as if he'll bit the hand that feeds him" argument, the only thing you can actually add yourself, has no basis.
there are far more companies than shell in the world and the only reason reserves are increasing in the north sea is because the price is rising. this is quite a basic concept which I already stated in my first post but I will attempt to explain it again using gold, just for you.
Say you have a gold accumulation in the ground at 3ppm (parts per million) and the gold is valued 300 dollars an ounce. Your company has spent the money define the zone, but currently at that price it is uneconomical to mine. that is called a resource. If the price of gold rises the resource may become a deposit, defined as a concentration of minerals with the ability to be mined economically.
in the north sea large reservoirs were long ago discovered and continue to produce to this day and will for some time to come, smaller traps have been located but previous market price would mean a loss to develop so are not classified as reserves. As price increases the economics indicates these deposits may be moved to the "reserved"
catagory. this will continue until there are deposits left that no one is willing to pay for. It happens in every commodity and will so for oil. in Australia the biggest oil dicovery was in the Gippsland basin in the 1960s, it will continue to produce until 2060 or there abouts, on the other hand recent discoveries may only be produced for the next five to 10 years
Please dont worry about my job teabag, I will still have a job in the future, I suggest to you that if you have such an interest you should get an education instead of relying on journalist to supply an opinion for you.
NSW
141 posts
i understand what you are saying, the reason for the pasted article in my reply was, that now the price is right, the oil is worth it, however, these companies invest diddly when it comes to future resource extraction, merely pass the cost onto the conned sumer, and are still able to cry poor and recieve tax breaks and incentives from governments the world over. there are just too many leaking stories, about feilds beinging capped till the price is right, inventors of alternative propulsion devices being offered 'the money or the gun', not too mention political stories, for me to even begin to believe the oil industry is legitimate or honest in any part of their dealings...
QLD
38 posts
Well firstly id like to reply to this PM from teabag,
"if it was not for the rape and pillage of the resource boom you would mopre than likely be stuck in a museum showing rocks and geodes to uninterested school kids, education in this day and age is mostly an oxymoron, a much better term would be indoctrination, you wanna beat your chest and define yourself by what you are rather than who, thats fine, does not mean you're educated, means you're a sheep"
you are obviously a tool with little knowledge of the topic, my point was if you want to portray yourself as knowledgeable about the topic then you should get an education, anyone can watch a doco and quote journalists, you are an armchair professional, congratulations. I do not define myself by my job but listening to someone spout **** about something you have spent alot of time learning about and working on is kind of hard to let pass. swallowing conspiracy theories is what i call a sheep.
Evil Panda
Abiotic oil is chemically possible but the large oil producing regions in the world area attributed to sub marine deposits of organic matter as source rocks and are identified and with fossils as evidence, land deposits are usually in lake deposits with plant matter as the source material for oil formation. these sedimentary enviroment are favourable for structures to trap oil (as well as the deposition of nessesary source rocks) and can deform to produce anticlinal structures. reef systems ie corals have been by far the best source and trap environments as demonstrated in the middle east where systems(like the barrier reef) have been burried and new systems created and buried and so on covering vast areas which reaching depth mature and trap the oil in highly porous coral material. Direct pahways to the mantle are limited, the best being mantle plums occuring infront of subducting crust erupting as volcanos, where hydrocarbons would ofcoarse burn on there way to the surface. it is estimated for those who attribute any hydrocarbon production to an abiotic method to be less than 0.05% of oil in a given accumulation. As igneous rocks are no pourous, with the acception of pumic which occurs at the surface, there is really no where for abiotic oil (even if existing in any reasonable quantity) to accumulate outside of sedimentary environments where fossil fuels are produced.
the russians could cut themselves off from the world market as they have ALOT of oil but no one with any standing is arguing that it is abiotic in origin.
NSW
9207 posts
Timomomo:
Yeah, 'tis what I thought. The Ruskis have a LOT of oil. I guess their oil fields are very deep and they have just developed a way to drill that far down. Russians seem to like drilling big holes and do hold the record. They have sold their drilling technology to countries in similar situations.
You might be interested to know teabagg that the Russians and Australians have an agreement to not compete with each other, that is reduce their prices, on resources which they are both large producers of. Greedy or what?
Teabag:
Reading stuff on the internet in no way, shape or form counts as research.
NSW
9207 posts
Abiotiotic oil.
From "The Professor" who holds a PHD in Geology and spent five years in Russia studying such matters:
Ne Pravda/Not true - in my worst Englo-Ruski.
There is *some abiotic process, but only the same one that fills the reserves in the first place. The source is still the same, ie organic matter. It's just oil from the surrounding porous rocks under pressure that fills the emptying reserve (as timomomomomo has already stated).
Now I must admit that purely by coincidence I came across this professor recently. My original "Professor" is my father-in-law who is Russian, super educated, works in the Duma and knows almost everything. His opinion was something like "What? Are you both stupid and poor? BTW Russia has more oil and gas than you can imagine." I am not sure if he is being typically super patriotic in typical Russian fashion or if he was telling me facts. Riddle in an enigma those people. Land of contrasts but I always love going there.
SA
601 posts
I got this sent to me the other day. Dont know how true it is but it sounds about right:
Fuel: The Mass Debate
Or How to Knock About 50c a Litre Off the Price Of Fuel
First and foremost this debate should be centred on Diesel NOT Unleaded.
Why? You may ask. Just look at the increase in supermarket prices for your answer. While it may cost you $5 or $10 extra to fill your tank everything that is transported (which is everything) rises as Diesel rises. My average basket at the supermarket per week has increased on average $30 and that’s for one person. Australia’s whole economy is tied to Diesel and therefore it should be afforded the same priority and status as water i.e. an essential commodity.
I own a small transport company and I have had to significantly raise my prices twice in the past year just to maintain profit margins. This cost you money too.
I am compelled to write this letter because I am sick of all the namby-pamby pussyfooting around everyone seems to be doing about the current fuel debate. I have spent considerable time researching this area because it affects my income. Contained herein is the WHOLE truth about the debate, the WHOLE big picture, if you will. NO-ONE till now has had the testicular fortitude to stick their necks out and present the WHOLE argument about just how much we are being RIPPED OFF. If you want the truth and the WHOLE truth read on.
DON’T – Listen to spin doctors from the oil companies. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – Listen to the government – state or federal. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – pay too much attention to news or current affairs programs. THEY HAVE THEIR OWN AGENDAS.
So here we go, how to make fuel cheaper!
FIRSTLY – DISBAND FUEL PARITY
Parity, for those that don’t know, is government sanctioned price fixing (simple as that). Parity allows fuel companies to sell their products for the highest current price they find in the Asia Pacific region. It completely disregards supply and demand economics and eliminates any need for competition amongst themselves.
Don’t believe me? Just look at the price of Diesel. If you remember growing up when Diesel was always 10-15c p/l cheaper than Petrol you might understand this more.
How can a product that costs far less to produce (partially a by-product of producing Unleaded as well) and a product that Australia uses more of than any other fuel be MORE EXPENSIVE than Unleaded? Simple, ring Singapore, where they don’t use a lot of Diesel and import all their fuel, find out how much it’s selling for there and charge the same here – sound fair? NOT!
Any other industry who tried this one would be hauled of to the High Court quick smart and prosecuted for price fixing! Oh but hang on, our government ALLOWS them to do this
NUMBER TWO – BARRELL PRICE
That price the news loves to show us each night is the PREMIUM GRADE crude oil price. Australian oil companies DO NOT buy PREMIUM GRADE crude oil! In fact Australia produces around 70% of its own oil and imports about 30%.
The cost of production per litre produced here is cheaper than that of imported fuel, but in no way is this factored into the pump price, because they don’t need to (SEE PARITY ABOVE) we pay a pump price based on PREMIUM GRADE crude oil price the same as if we imported all of it, say somewhere like Singapore! Starting to get the picture?
NUMBER THREE – LEVIES
Everyone knows that both State and Federal Governments take a large slice of the cost of a litre of fuel. This equates in total to about 46% of the price per litre. This money is used for infrastructure, road trauma etc.
etc. so fair enough right? WRONG!
What is wrong is that it is a PERCENATGE! Look at this. If a litre of fuel costs $1.00 then the Government gets 46c p/l, right? A week later fuel rises to $1.10 p/l; the Government gets 50.6c p/l, bingo! Something tells me that in one week, their costs, IN NO WAY have gone up 9%!
As I stated previously – THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY! Why else do they allow fuel companies to maintain PARITY?
If they changed the tax (sorry, levy) to a flat rate tied to the GDP then the fuel price would drop drastically and immediately!
NUMBER FOUR – GST - THE DOUBLE DIPP
Now this one is outright "THIEVERY" and also applies to cigarettes and alcohol.
GST = Goods and Services Tax, correct?
46% or 46c in every dollar in the price of a litre of fuel is TAX (sorry; again, LEVY).
What part of LEVY is a good or a service? YOU CANNOT TAX, TAX RIGHT? WRONG!
You do the math.
Say fuel costs $1.00 p/l – the GST component = 9c
But hang on a minute 46% or 46c of this is TAX!
i.e., 4.14c of the GST is ILLEGALLY CHARGED ON THE TAX COMPONENT! Not much you say?
FOR EVERY LITRE SOLD IN AUSTRALIA EVERY DAY!
That equates to millions of free dollars for the Government! I’ll say it one more time - THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY!
The GST on fuel should be 5.4% not 10%. At $1.75 p/l this would drop the current price by around 8c p/l.
Feeling a little annoyed? You should be!
Even without disbanding parity and introducing real competition among fuel companies, you should be paying about 40c less per litre!
My name is Graeme Strempel, (gusto1@arach.net.au) and I run a small transport business, I happily welcome anyone, Government and fuel companies included to prove me wrong.
WA
1194 posts
one thing wrong...which then makes the rest of it questionable...
fuel levy...aka fuel excise isn't as a percentage of fuel price...its fixed I think at 35 cents. also truck companies can claim a fair chunk of this rebate back with diesel for on road transport. I think the gst may be claimable too for freight companies....
groceries in the shop although connected to the freight costs have increased primarily from lack of supplies worldwide... its why many poor countries have had food riots.
the bad news is...groceries are even going to be more expensive next year.
one other factor with freight.. its about 20k per year to pay the rego stickers for a b train configuration....that's increased over past few years too
NSW
141 posts
said it once, say it again.... watch zeitgeist... all the way through.... www.zeitgeistmovie.com ...... or pm me for a free copy, this whole thing is manipulated to do away with useless eaters... me and you, watch alex jones' endgame, find it at www.infowars.com, i mean www.endgamethemovie.com
