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Wednesday, March 26, 2008

Hofmeister vs Simmons

Shell CEO Hofmeister on Peak Oil & Simmons


Matt Simmons Responds -

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posted by Oil Shock at 6:49 PM

1 Comments:

Blogger Anaconda said...

Mr. Simmons fails to account for a virgin oil prospecting territory in his analysis: Deepwater, deep-drilling.

There are three examples I can cite. Chevron has discovered deep oil in the Gulf of Mexico, the Jack 2 well. The oil was discovered more than 20,000 feet deep below the floor of the Gulf, in around 7,000 feet of water, for a total of 28,000 feet below the surface. Chevron has even described this find in their "Human Energy" ads. This find is estimated to have anywhere from 3 to 15 billion barrels of oil.

Crude oil has been found 180 miles off the coast of Brazil 16,000 feet deep below the floor of the Atlantic Ocean. This find is also estimated to in the billions of barrels of oil.

Oil has been discovered in 9,000 feet of water in the Nigerian Delta off the West coast of Africa.

Three oil finds in three distinct locations with differing geological characteristics. Deep water, deep-drilling is in its infancy. There is a vast new territory to explore, considering all the deepwater off-shore areas around the world. Is it expensive? Yes, but profitable at current crude oil prices, and still profitable down to around $70 a barrel.

The surface has been hardly scratched in this new arena for oil exploration.

Mr Simmon's predictions simply don't take this fact into account.

Predictions of Peak oil are premature.

4/05/2008 10:32 AM  

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