Tuesday, April 1, 2008

Oil in North Dakota?

There seems to be a lot of excitement in the blogosphere over this press release, claiming that there is a large oil field in North Dakota. From the looks of the map, I wonder if the field is some sort of extension of the tar sands in Canada.

That said, the release claims the oil is difficult to extract, and that only now, with prices as high as they are, is it economically viable.

If true, this would be great. However, like the occasional shale oil boomlet, I will believe it when I see oil coming out of the refineries.

3 comments:

William R. Barker said...

Anthony,

It's not so much lack of oil as it is lack of refining capacity that is our problem at this stage of the game.

Couple lack of refining capacity with monopolistic tendencies and a speculative market operating far outside the physical reality of the "energy crisis" and what you get is...

What we see.

(*SHRUG*)

Of course, this noted, I'm still in favor of drilling wherever and whenever it's economically viable - economic viability being a function of the markets - rigged markets to an extent.

Damn government policies. Elect me Dictator!!! Viva la Barkerist Revolution!

(*WINK*) (Fat chance, huh?!)

BILL

Anthony said...

Bill -- I agree with you on much, other than NATO policy of course!

I agree with respect to refining capacity. That has a lot to do with oil problems now. The initial jump in gas prices was due to refineries damaged in Katrina and things have not gotten better. I would like to see more refineries.

However, while I understand that oil is fungible (or most of it is, Venezuelan oil is really not), I would like to see more US drilling as well as expansion of the Canadian tar sands. With oil at 100 a barrel, those sources now are economically viable. I would rather the $ go to North Dakota and Canada rather than someplace nasty.

As for the "Barkerist Revolution" -- you said it right -- fat chance.

One of these days I promise to write my essay on the Zubrin Plan.

Anthony said...

And just to make it clear, I will be skeptical about this North Dakota oil field story until I see oil pumping out of the field.