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http://www.detnews.com/2005/business/0509/04/B01-302719.htm

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Sunday, September 4, 2005

Oil, natural gas lines return to life in Gulf

Bloomberg News reports


Oil and natural gas production in the Gulf of Mexico rose for a fourth day Saturday as energy companies continued to bring back output lost when Hurricane Katrina swept past platforms last week.

The storm has shut 1.18 million barrels of daily oil output, or 79 percent of normal Gulf production, and 5.8 billion cubic feet a day of gas production, or 58 percent of normal output, according to a report from the Minerals Management Service in Washington.

About 30 percent of U.S. oil production comes from offshore platforms in the Gulf of Mexico. The area accounts for 24 percent of U.S. natural gas output.

Separately, Houston-based Marathon Oil Corp., the fourth-biggest U.S. oil company, expects all seven of its refineries to be operating at capacity Monday, the company said Saturday.

Marathon also said it received approval for a loan of 1.5 million barrels of oil from the Strategic Petroleum Reserve. The loan will help provide crude oil for the company's Midwest refineries, which include Michigan's only refinery, in Detroit.

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http://www.businessweek.com/ap/financialne...me_down&chan=db

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The Associated Press/WASHINGTON
By BRAD FOSS
AP Business Writer

Oil prices fall; gasoline prices decline


SEP. 7 2:53 P.M. ET The supply fears that dominated energy-market psychology in the aftermath of Hurricane Katrina receded somewhat on Wednesday as attention turned to expectations of softening demand. Futures prices for crude oil, gasoline and heating oil fell.

"As much as Katrina has taken supply off the table, there's also demand it has taken off the table," said oil analyst John Kilduff of Fimat USA in New York.

Some of the demand that has been lost is due to the devastation and evacuation of New Orleans. The rest is likely to be a consumer response to higher prices, Kilduff said.

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http://news.tradingcharts.com/futures/9/6/70259769.html

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Oil Prices Dip As Storm Relief Efforts Rise

NEW YORK, Sep 12, 2005 (AP Online via COMTEX) -- Crude oil prices dropped Monday, led by falling gasoline futures as Hurricane Katrina relief efforts gained momentum and traders expected the high cost of gas at the pump to hamper demand.

Light sweet crude for October delivery fell 74 cents to settle at $63.34 a barrel on the New York Mercantile Exchange, after falling as low as $62.55 earlier in the day. Gasoline futures tumbled nearly 9 cents to settle at $1.8737 a gallon, while heating oil fell about 8 cents to settle at $1.8143 a gallon.

Brent crude for October delivery fell $1.04 to settle at $61.80 a barrel on the International Petroleum Exchange.


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In reply to: healyn on Monday 05/09/05 10:02pm

Healyn,

 

Sure, when you have an active petroleum system with current production within the oil or gas window, you'll get recharge.

 

But how fast ? If a million-barrel recoverable field refills at a ton of oil per year, then in a mere 140 000 years you'll have your field back.

 

Ian Whitchurch

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In reply to: ian_whitchurch on Tuesday 13/09/05 01:52pm

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If a million-barrel recoverable field refills at a ton of oil per year, then in a mere 140 000 years you'll have your field back.

 

Now thats a long term investment Ian http://www.sharescene.com/html/emoticons/biggrin.gif

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In reply to: ian_whitchurch on Tuesday 13/09/05 10:52am

Hi Ian, not being a scientist or a geologist, I can still sucsribe to the idea that hydrocarbons can be generated as the article claims.

Take shale rocks and the vast quantities of gas and or oil that is extracted from rocks that are both the source rock and the hydrocarbon generator.

I attended a Tomahawk presentation recently where is was said that in areas of the US wells have been productive for 100 years. In these wells when shale fractures start closing the wells are refracced to reopen them and they continue to produce gas.

 

I think most of us on the planet can claim some knowledge of the what lies below the surface to the extent of one spade's depth and we've only just begun to understand some of the geology but still make many misinterpretations of the data available to us. What's the success rate for oil or gas wells outside of known hydrocarbon producing shale areas?

 

If we know so little of the planet's geology why can't this claim have some credence in the short term not the 140 million years you suggest?

 

cheers

 

 

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In reply to: healyn on Tuesday 13/09/05 09:39pm

Healyn,

 

The overwhelming evidence from the hundred and thirty or so years of oil production is that old fields dont refill.

 

Sometimes you do have oil or gas leaking up from deeper reservoirs, casuing some evidence of refill ... but these are the exceptions, not the rule.

 

Often, you have technological changes that make reserves that were previously abandoned as uneconomic producers, whether thats water flooding, acid treatment or whatever (on the topic of shale plays, they found the first gas Barnett Shale in the early 1900s, and produced them in the 1980s ... it needed horizontal drilling and $7 gas to make it work).

 

Shale plays are actually a special case - there's no reservoir, you just pull it directly out of the source rock before it's had a chance to migrate away.

 

We've learned a lot about oil and gas exploration in the last hundred and fifty years.

 

One of the things we learned is that the success rate for oil or gas wells outside known hydrocarbon producing shale areas is nil. You have to have source, and source is almost always hydrocarbon-rich black shales of one description or another.

 

Yes, you do have hydrocarbon migration, and sometimes the source has to be hypothesised, because it is so darn deep you never drilled it, but you have to have source.

 

But at the end of the day, oil fields get emptied once, and once you've done that, they dont come back.

 

Otherwise, the great oil producing regions of New York, Pennsylvania and Ohio would be contributing much, much more than they are.

 

Ian Whitchurch

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In reply to: ian_whitchurch on Wednesday 14/09/05 08:44am

Thank Ian for replying in detail. What you say is quite true, however there are other schools of thought about how and where oil and or gas is produced and over particular time periods. Continual natural regeneration of hydrocarbons in particular areas is one school of thought. However as you say the time period for this to occur is somewhat moot.

 

Cheers

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