[Rhodes22-list] Where's the oil.

[Bud]

Rummy,
  there is still a lot of "easy" oil in Texas as well.  Back in the 
early '80s they "capped" a lot of producing
wells because it was not worth the cost to pump it out and refine it.    
Note that "capping" is not simply
screwing on a cap, the owner must pour cement down the well hole to 
prevent an eco disaster.  They
need to drill a new well to get the same old oil.

-Bud

R22RumRunner at aol.com wrote:

>I have a friend in Houston, TX who is an investment banker. He  mentioned a 
>project he was working on for purchasing 55 square miles of land in  Texas for 
>oil drilling. I told him that I thought all the oil was gone from  Texas and 
>this is his reply.
> 
> 
>I might have thought the same thing.  I have a good  friend, a PHD 
>Geophysicist and former professor of geology at the  University of Utah, who thinks that 
>the oil and gas yet to be discovered is  equal to what has so far been found. 
> He bases his conclusion on what he  describes as the reality of geology vs. 
>what geologists "thought" about  geology.  He says that based on the data and 
>information  available 25 years ago anyone might conclude that the product yet 
>to  be discovered was declining.  The reality is that there is a huge 
>contrast  between the information available now about the subsurface vs. the  
>thinking before the advent of the technologies we now use in the search for oil  and 
>gas.  The new technologies show that what was thought to be true, is  not.
> 
>Most of the geophysicists I know say the same thing.
> 
>I might add that what I do is move the  risks of investment in the sector to 
>the energy company - investors do not  participate; unless they choose to do 
>so by investing in a completely  separate investment.  The goal is to invest 
>and get capital back in a short  period of time - low  risk
>
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