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« Ka-Ching | Main | There's a War On UPDATE: Situation Unchanged; There Remains a War On »
May 05, 2005

Ka Ching II: The Wrath of Khan

Small oil company anounces billion-dollar find:

A tiny oil company has snapped up leasing rights to a half-million acres in central Utah that it says could yield a billion barrels or more of oil.

Geologists are calling it a spectacular find — the largest onshore discovery in at least 30 years, located in a region of complex geology long abandoned for exploration by major oil companies. It's turning out to contain high-quality oil already commanding a premium at refineries.

With the secret out, industry players expect a bidding war to break out at the next Utah leasing auction, set for May 17 in Salt Lake City.

At today's prices the oil reserve could bring Utah $5.6 billion in royalties, state auditors conservatively estimate. Although the discovery is still playing out, the oil will take years to recover and some skeptics question the company's projections for a region yet to be fully surveyed.

"It's just very highly unlikely because the U.S. onshore has been picked clean, if you will," said Fadel Gheit, senior oil analyst at Oppenheimer & Co. in New York.

"That's like finding a wallet in the subway after all the cleaners went through it. It's possible, but very highly unlikely," he said.

Gov. Jon Huntsman said he was aware of the discovery "and we are tracking the progress with great interest. If the prospects prove to be true, it will be important that the resources are developed responsibly."

Gee, I hope there aren't any caribou around.

Thanks to LauraW.


posted by Ace at 10:51 AM
Comments



Everyone gets extra green jello tonight to celebrate

Posted by: brak on May 5, 2005 10:53 AM

When are going to hear that it is in a enviromentally sensitive area, and is the habitat to the rare and endangered sand flea; it would be a crime against nature to drill for oil in this area.

Posted by: dittybopper on May 5, 2005 10:56 AM

If anyone's really interested, the local paper's take can be found here.
This is my neck of the woods and although not as tough an area as those Detroit badasses from another thread, we DO have something called "9-Mile Reservoir."

Posted by: skinbad on May 5, 2005 11:18 AM

Oh fine. Where are we going to bury all that nucular waste NOW?

Posted by: Dave in Texas on May 5, 2005 11:27 AM

No caribou, just mormons. Which in a way are like caribou in that the dominant males can mate with as many females as they can get away with and it's all legal and stuff.

Posted by: compos mentis on May 5, 2005 11:28 AM

It is very cold. . . in Utah. . .

KHAAAAAAAAAAAAAAAAAN!

Cheers,
Dave at Garfield Ridge

Posted by: Dave at Garfield Ridge on May 5, 2005 11:28 AM

"It's just very highly unlikely because the U.S. onshore has been picked clean."

Except, you know, for Texas. And Louisiana. And Oklahoma. And California. And Alaska. Some estimates put Texas oil alone at 129 billion barrels (that's more than Iraq at 112 billion). It's just cheaper to extract it from places like Saudi Arabia, and as a result, there is more exploration there. We're not "dependent" on foreign oil. We just prefer its lower price.

Whenever a politician says that "the resources must be developed responsibly," it means that they figure out ways to tax it to the hilt and "regulate" the shit out of it with production quotas and other rules that divert the benefits to their friends. Which drives up the price, and makes Kuwaiti oil more attractive. Go figure.

Posted by: Finn McCool on May 5, 2005 11:34 AM

If Wolverine could produce 1 billion barrels at once, it could satisfy the nation's demand for about 45 days — less than the reserve that Congress may open at the Arctic National Wildlife Refuge, which by equally speculative estimates may contain 10 billion barrels of oil.

Welcome news, even 45 days is 45 days worth of money we don't send to the Islamic bloodsuckers in OPEC.

Posted by: 72 optimists on May 5, 2005 11:34 AM

Dammit, who cares, there's THERE'S STILL A WAR ON!

Posted by: Joe R. the Unabrewer on May 5, 2005 11:54 AM


It was a male horse, get it?

Posted by: shit from shinola on May 5, 2005 11:59 AM

Yeah, speaking of "there's a war on" Instapundit is yelling it again today....Damnit, doesn't he know that there's oil in Utah? Black gold, uh, Utah Tea....

Posted by: GregD on May 5, 2005 12:01 PM

MORE FROM TOGO: Nevermind, there's a war on.

Now click this link and buy what I'm getting in the mail from Amazon. Because there's a war on.

Posted by: Instapundit on May 5, 2005 12:05 PM

Those "it would only last for X days" arguments are the province of the retarded. Our oil imports are taken from multiple sources at incremental amounts. That's just how it works, so it isn't meaningful to say it would only last this long if we relied on it exclusively, because no country does that.

You could just as easily say there's no point in repairing Iraq's oil infrastructure because with 100 billion barrels, it would only last us a handful of years (which it would, if we relied on those reserves exclusively).

Posted by: Russell Wardlow on May 5, 2005 01:19 PM

BREAKING NEWS: Federal investigators have filed charges against Wolverine, inc., alleging that they actually found all that oil while working on a job in Iraq for the UN Oil For Food Program. They then concocted this story about oil buried in "Utah" (as if!) to divert suspicion.

Posted by: See-Dubya on May 5, 2005 02:35 PM

Those "it would only last for X days" arguments are the province of the retarded.

I think that overstates the case.

Being the only yardstick of measurement given in the quote, 45 days was the simplest way to not deviate from the article. The real point was that no matter how large or how seemingly inconsequential an amount can be gotten from domestic sources, it is that amount of money we are not paying those bloodsucking governments in OPEC to finance terror, squander at the gambling tables of the world, or blow on international whoring expeditions and shopping trips.

Posted by: 72 optimists on May 5, 2005 03:51 PM

Liberal to God (as the loan-shark “Tony the Knee capper” is smashing in his door over a huge debt):

Oh God, if you’re up there please speak to me.

Yes, my son?

Wow! You’re real! I always knew it. Can I ask you a question?

Certainly my son.

God, how long is a thousand years to you?

To me a thousand years is like a second.

And God how much is a million dollars to you?

To me a million dollars is like a penny.

Well, now we’re getting somewhere. God?

Yes, my son.

Can I have a penny?

Sure, just a second.

Posted by: oldie but goodie on May 5, 2005 05:01 PM

>When are going to hear that it is in a enviromentally sensitive area, and is the habitat to the rare and endangered sand flea; it would be a crime against nature to drill for oil in this area?

Truth is stranger than parody: 20 years ago my Dad's tiny company found geologically-promising land in this same part of Utah. We tried to lease the drilling rights from the Federal government, but were told that although we could pay for a lease, we wouldn't be allowed to drill within sight of the "I-70 corridor" because--wait for it--the BLM claimed the sight of a drilling rig near the Interstate would "disturb the natural scenic beauty of the area." Really.

Of course that unspoiled "natural" beauty included the concrete of Interstate-70. And the cars that were presumably bringing seekers of vistas thru the area. But hey, we can't have drivers seein' a nasty ol' *drillin' rig* anywhere in 250 miles of desert.

Hell, it might make 'em think that they wouldn't even *be there* but for the oil that powered their car.

The irony of "Interstate highways and cars=natural but drilling rigs are offensive" was lost on the Feds.

I'm completely in favor of preserving the environment, but the mindless Leftist morons of this country who would ban drilling within sight of an Interstate on the grounds that it wrecks the view deserve what they're about to get.

--sf

Posted by: on May 8, 2005 10:25 AM

sf- I live in about eight miles from the Covenant Field wells. You would get a kick out of knowing that the three wells they have drilled are about seven or eight miles from I-70, though up a canyon and out of sight. The current wells are on private land, but Wolverine has lease rights on a fair bit of BLM land in the area. The maps I have seen suggest that at least some rigs will be within sight of the freeway once the field is fully developed.

Posted by: Jason on May 10, 2005 01:22 PM
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