More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

[c1ue]

Perspective on the $1T Afghan mineral report?

http://news.bbc.co.uk/2/hi/americas/8476395.stm

A new US assessment of Venezuela's oil reserves could give the country double the supplies of Saudi Arabia.

Scientists working for the US Geological Survey say Venezuela's Orinoco belt region holds twice as much petroleum as previously thought.

The geologists estimate the area could yield more than 500bn barrels of crude oil.

This assessment is far more optimistic than even the best case scenario put forward by President Hugo Chavez.

The USGS team gave a mean estimate of 513bn barrels of "technically recoverable" oil in the Orinoco belt.

Chris Schenk of the USGS said the estimate was based on oil recovery rates of 40% to 45%.

Petroleos de Venezuela SA (PDVSA), Venezuela's state oil company, has not commented on the news.

However, Venezuelan oil geologist and former PDVSA board member Gustavo Coronel was sceptical.

"I doubt the recovery factor could go much higher than 25% and much of that oil would not be economic to produce", he told Associated Press news agency.
Venezuela holds the largest oil reserves of any Opec country outside the Middle East. Saudi Arabia has proven reserves of 260bn barrels.

[reggie]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

USGS says more oil in Venezuela than Venezuela does

The argument to shut down domestic energy continues its development.

[nitroglycol]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

Several possibilities come to mind:

1. One or both countries has simply made a mistake somewhere in their estimation process.
2. Venezuela fears, rightly or wrongly, that the US will eventually go after them for their oil, and is thus talking down the amount of oil they have to reduce US interest.
3. Venezuela and other countries want to talk down the amount of worldwide oil reserves so it will command a higher price.
4. The US is itching to invade, and is talking up Venezuela's reserves to strengthen the case for such an action.

Any other suggestions?

[Starving Steve]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

Oil is leaking up everyday, all along the California coast. Why not drill for it and solve the budget problems for the State of California, and also solve the trade deficit problem with the US, i.e, to stop importing foreign oil from hostile countries like Venezuela? The Americans have some hard thinking to do: to send more money to Hugo Chavez and his friend, Arminijad, in Iran in exchange for oil, or to drill for oil in U.S. waters? And if the Americans take the obvious choice, i.e, to drill for domestic oil, who gives a sh*t about damaging bird habitat? (Not me.)

Why doesn't the Obama Administration understand? Why doesn't Dr. Chu, the head of the Energy Department in the Obama Administration, understand? The choice is so darn clear; it's a no-brainer. The choice is domestic oil, Alberta up-graded oil from the tar sands, natural gas, hydro-electricity, and atomic power.... End of story.

[gnk]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

Oil is leaking up everyday, all along the California coast. Why not drill for it and solve the budget problems for the State of California, and also solve the trade deficit problem with the US, i.e, to stop importing foreign oil from hostile countries like Venezuela? The Americans have some hard thinking to do: to send more money to Hugo Chavez and his friend, Arminijad, in Iran in exchange for oil, or to drill for oil in U.S. waters? And if the Americans take the obvious choice, i.e, to drill for domestic oil, who gives a sh*t about damaging bird habitat? (Not me.)

Why doesn't the Obama Administration understand? Why doesn't Dr. Chu, the head of the Energy Department in the Obama Administration, understand? The choice is so darn clear; it's a no-brainer. The choice is domestic oil, Alberta up-graded oil from the tar sands, natural gas, hydro-electricity, and atomic power.... End of story.

There's another argument politicians can never discuss publicly.

So long as we have the world's reserve (petrodollar) currency - and an easily expandable fiat paper one at that, it is better to consume everyone else's oil, than to consume our own. And to maintain the world's reserve currency, we need to run account deficits (see Triffin dilemma). Of course, there are limits... but only the PTB know them... hopefully. And then it's on to Plan B.

Ask yourself, what's more valuable: a) money that can be printed (electronically typed digits) at will, or b) domestic oil that when each barrel is consumed, is gone forever?

That's an easy question, right?

[roxtar]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

Anyone that's ever read "Confessions of an Economic Hitman" by John Perkins knows exactly what's going on here.

I think that one could accurately make some pretty dire predictions about Hugo Chavez's future.

[reggie]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

Anyone that's ever read "Confessions of an Economic Hitman" by John Perkins knows exactly what's going on here.

I think that one could accurately make some pretty dire predictions about Hugo Chavez's future.

Naw, Hugo is one of our guys. And Perkins is still a company man.

[thriftyandboringinohio]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

There's another argument politicians can never discuss publicly.

..it is better to consume everyone else's oil, than to consume our own...

My feelings precisely.
I hope the last viable oil wells on earth are in the United States, used for our benefit.
Lets burn theirs first, even if it hurts.

[gnk]

Re: More wacky USGS tales: USGS says more oil in Venezuela than Venezuela does

My feelings precisely.
I hope the last viable oil wells on earth are in the United States, used for our benefit.
Lets burn theirs first, even if it hurts.

Unfortunately, I don't think we'll ever reach that point.

Peak Oil will be another factor in the return to a global gold standard. When the US loses reserve currency status, that formerly exported inflation will come home to roost - in a very big way.

The petrodollar system was created during the cold war. At that time, the Soviet Union barely used oil. The Middle East - hardly. Africa? Didn't exist on the consumption map. Asia? But for Japan, and a few other small nations, most rode bicycles.

There are a few more billion people on the planet that have magically entered the global marketplace in a period of barely two decades. Lopsided consumption of resources due to paper manipulation is at its end. Gold/Resource based currencies will be back.

A gold stadard may sound barbaric to some here - they will say it's even unworkable. You know what's equally barbaric and unworkable? An artficial monetary system that distorts economies and consumption. Our ride on the gravy train is over. For many, tapping on computer keys all day and driving luxury cars as a result will be a thing of the past.

Today: Credit=Wealth

Tomorrow: Real Assets=Wealth

Credit can be conjured up out of nothing. Real assets cannot.