As the world energy consumption climbs, there is increasing pressure on governments and oil companies to continue uncovering large oil and natural gas deposits. This is necessary to stem the tide of national dependence on foreign oil and will continue to be an important political and economic factor until either fossil fuels are phased out in favour of cleaner energy technology or the fossil fuel supplies run out.
It is easy to understand how in this climate of increasing need, the so-called discovery of 500 billion barrels of crude oil in the United States Bakken oil field arouses a great deal of interest. Continually rising costs of crude oil from OPEC countries has resulted in more expensive heating fuel and gasoline for vehicles, both of which have had a negative impact on the quality of life for citizens of developed nations that import oil to meet their energy needs.
But what is the real status of this oil field? There has been much promotion on the internet about how this is the next big oil boom and that wise investors should seize this opportunity to get in on the ground level in order to make massive profits from the imminent rivers of oil that will be flowing forth from this great deposit. Not only have proponents of the Bakken Oil Field suggested that oil can be produced from this site at as low a cost as $16US a barrel, but that there is sufficient oil there to meet all of the US's energy needs for up to 40 years. They have even gone as far as to say that this field will hail the return of cheap automotive gasoline in the United States.
To make sense of the claims and data surrounding the Bakken oil field one really only needs to understand two terms. Oil fields are described as either Discreet or Continuous. A discreet oil field contains the vast majority of the deposit in one location that is at least fairly easily tapped and brought to the surface. These are the oil deposits that have brought such wealth and influence to the OPEC countries.
The other type of oil deposit is described as Continuous. While this sounds like a positive description, it actually means that the oil is spread out through many layers and over a wide area. There will be small pockets of pooled oil but these will generally represent only a tiny fraction of the total amount of oil in the surrounding rocks. Obviously this is a far inferior type of oil deposit in comparison to the Discreet type. The status of an oil deposit as Continuous means that access to the oil is either very limited or impossible.
The Bakken Oil Field is a Continuous oil field. The United States Geological Survey has recently reported that less than 1% of the upper end estimate of 503 billion barrels of oil at the site are readily accessible, meaning pooled into deposits large enough to be commercially viable. The remainder of the oil is distributed thinly throughout the area. Because of this it is unlikely that the oil in this area will be profitable to extract any time soon, and the prospect of $16US barrels of oil is a wild claim.
This is a case of buyer beware. The hype surrounding this deposit is certain to attract people who are willing to fool others into investing in empty promises. The promise of cheap oil and huge personal profits are two things that affect us in every day life; the first because we are tired of forking out large sums of money at the petrol pump, the other because we all want to make sound investments and achieve financial freedom.
Roger Vanderlely.
Find out more about fossil fuels and Solar Power Facts at www.green-planet-solar-energy.com. The site covers current technologies, the science behind solar power, formation and use of fossil fuels, home energy installations, kids projects and much more.
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