Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Disturbing headlines abound!

Oil falls on oil find as Iran, weather take backseat

"A test well is already flowing 6,000 bpd [barrels per day], and if even the low end of reserve estimates is accurate, [3 billion barrels] represent 400,000 bpd for 20 years, as much as Prudhoe Bay produces, currently," said John Kilduff, an analyst at Fimat USA.

I’m a geologist so math isn’t my strong point but to get production up to 400,000 bpd from 6000 bpd is going to take many years of drilling deep wells. I don’t want to minimize the impact of the discovery because it is truly huge. However, converting reserves to flowing barrels takes considerable time and effort.  I think we have at least 5-10 years before we have to lay off all the geologists.

Oil ends lower on oil discovery as Iran, weather take backseat - MarketWatch.