Coober Pedy OIL

This is a reminder that global shale oil potential is stupendous and exploitation will center in regions were political support is onside now.  Since it is shale oil, it remains expensive oil.  Yet as we have discovered with the Bakken, exploitation is actually rapid in terms of spud to payback delivery volumes.  It also demands a drilling boom that is ongoing.

This means that millions of barrels per day will be entering the international market over the next decade.  It also means, that $100 oil will be well supplied into the near future in volumes able to sustain global demand while drive the investment boom in proving up alternatives.  We need not be too afraid of a real supply squeeze and that is a blessing that was not true at all as recently as five years ago.

No one likes $100 oil, but if that is the price we need to pay in order to just continue, then we will.

This all means that Canada, the USA and Australia will continue to boom oil supplies, allowing them to cleanly exit the import market.  Europe is in the same position with burgeoning Russian oil supplies and their shale reserves are as massive.

This releases international export oil for the growing Chinese and Indian markets and both these countries are trying to ramp up their own supplies particularly with Russia.  These are huge shifts not really seen before.

This Massive Discovery Has Put The Saudi’s Into a Panic

By Money Morning Staff Reports

http://moneymorning.com/ob-article/arckaringa-saudi.php?code=131883

It's the biggest find in 50 years and the media is completely ignoring it...

It is 6 times larger than the Bakken, 17 times the size of the Marcellus formation, and 80 times larger than the Eagle Ford shale.

All told what was recently discovered outside a sleepy Australian town contains more black gold more than in all of Iran, Iraq, Canada, or Venezuela.  

With current estimates at 233 billion barrels its just 30 billion shy of the estimated reserves in all of Saudi Arabia.

According to one renowned international expert, this massive discovery could eventually dwarf the oil rich kingdom as the original estimates are revised.

An advisor to six of the top 10 oil producers and active consultant to 20 world governments, Dr. Kent Moors now believes the find, "may land at 300 or 400 billion barrels," making it one of  "the greatest unconventional oil discoveries any of us will see in our lifetimes."

"It's represents a bona fide redrawing of the global energy map as we know it," Moors says, "and the mainstream media is completely ignoring it."

Where the Hell is Coober Pedy?

But to people who call this place home,  the oncoming oil boom means nothing will ever be the same  ($20 trillion worth of oil can do that to a town).

It's centered around a place called Coober Pedy, an inhospitable speck on the map in Southern Australia.

Founded in 1915, Coober Pedy had long been the home to a scarce 1700 people who lived in residences literally carved out in its caves.

Now another 20,000 people have suddenly flocked there, making it one of the hottest real estate markets in all of Australia.  

Considering the conditions the sudden stampede is remarkable - there's little to no water and temperatures routinely reach above 100 degrees Fahrenheit.

While it's obviously still just the beginning, Coober Pedy real estate agent Di Enders says her phone has been ringing off the hook since the news broke.

"I've had so many calls, you wouldn't believe it," she says. "My brain is about to explode."

"People renting don't want to surrender their houses, they know they won't get another one," she says.

The big draw is the riches about to be pulled out of a vast geological structure called the Arckaringa basin.

Encompassing an area in excess of 30,000 square miles, what's buried within the basin is enough black gold to completely change the global oil landscape-not to mention the lives early investors.

Analysts now believe ground zero will be much like is was in Saudi Arabia in the 1950's.

And according to the inner circle briefing below by Dr. Moors, there's one little company that controls the whole thing.

And since Arckaringa footprint will be beyond extensive, hundreds of wells, massive infrastructure networks, gathering systems, pipelines, processing facilities and support services will vital.

/

The Death Knell for OPEC

The massive find has been likened to the Bakken and Eagle Ford shale oil projects in the US, which have created legitimate boom times in Texas and North Dakota.

The outflows from these areas have been so big they have given way to predictions that the US could overtake Saudi Arabia as the world's largest oil producer as soon as this year.

Even at the lowest estimate, the Coober Pedy fins is set to make Australia a net oil exporter; at the higher estimate, Australia would become one of the world's biggest oil exporters.

"What we're seeing up there is a very, very big deposit," says South Australia's mining minister, Tom Koutsantonis, "If the reserves and the pressure was right over millions of years and the rocks have done the things they think they've done, they think they can extract vast reserves of oil out of South Australia which would have a value of about $20 trillion."

Dependence on OPEC's crude is already slipping as the U.S. and Canada unlock unconventional oil supplies from deep underground shale deposits with new drilling techniques.

Now there's even more completion bubbling up from "Down Under."

Given all of the trouble in the Middle East, the Saudi's have good reason to be alarmed.

Enormous oil shale deposit found in Coober Pedy, Australia

http://www.examiner.com/article/enormous-oil-shale-deposit-found-coober-pedy-australia

July 16, 2013

A massive oil find has put the Australian Outback on the energy map. The oil in the Southern Australia oil shale resource is estimated at maximum of 233 billion barrels, topping all of Australia’s reserves put together and nearly equivalent to all the oil in Saudi Arabia.

According to Tempo, the Australian oil deposit dwarfs those known deposits in the U.S., outsizing the Bakkenformation six times, Marcellus shale 17 times, and the Eagle Ford deposit 80 times over. Australia now has more oil than does Iraq, Iran, Venezuela, or Canada.

The oil yet to be extracted is valued at $20 trillion, putting Australia on the energy map among the big-money players. The resource is also putting the small town of Coober Pedy on the map. With 1,700 inhabitants, the town attracted 20,000 people recently.

Some oil experts believe the deposit may eventually yield as much as 400 billion barrels, up from the initial maximum estimate. The valuable resource resides in shale rock and must be extracted using fracking. Australians must meet the challenge of environmental backlash while developing the technology to extract the resource efficiently.

Americans are largely unaware of the Australian find, not because they’re disinterested but because the mainstream media shows disinterest in reporting the good news of a colossal fossil fuel find anywhere, nevermind way down under.

With a black gold deposit of such a size in Australia, one thing is for sure: There won’t be windmills going up in the Outback.