Wednesday, January 13, 2010

New Gulf of Mexico Natural Gas Find May be Huge

The new discovery of a potentially huge new natural gas field is a reminder to energy analysts that most of the Earth's surface remains unexplored for its energy and mineral wealth.
The discovery points out the potential for yet another frontier for oil and gas development in an area of the Gulf of Mexico called the Outer Continental Shelf that has been drilled extensively for nearly a century. The difference is the depth and the quality of the pre drilling seismic studies. The studies plus the newly drilled well suggest the same rock and sand layers that in recent years yielded major oil and gas discoveries several hundred miles out in the Gulf may be equally rich with oil and gas in shallow water areas, where exploration and production is much easier and cheaper. There might be a groan heard from those deep water investors if oil prices plummet someday. For U.S. refiners and consumers this is great news.

It’s sure to draw investment back to shallower water depths. This will be another energy stimulus program run by private citizens. _NewEnergyandFuel
Meanwhile, the price of oil hovers around US $80 a barrel, stimulating significant new exploration for energy reserves within non-OPEC countries. Since gas can be converted to liquid fuels (GTL), any new discovery of natural gas is also a discovery of new liquid fuels reserves. The same applies for coal (CTL) and other carbonaceous minerals. Even massively renewable biomass (BTL) will soon be seen as an important source for gasoline, diesel, jet fuel, and other important fuels and chemicals.

You see, peak oil is not just about oil any longer. It is about fungible energy supplies, substitutable energy supplies. So, surprise! The world's supply of energy will only grow larger -- unless political peak oil instituted by statist dictators and deluded climate utopians dooms us to energy starvation.



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