The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

The Biggest Oil Discovery In 50 Years?

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Coober Pedy - Photo by Thomas SchochIn a virtually uninhabitable section of South Australia, a discovery has been made which could rock the world.  Some are calling it the biggest discovery of oil in 50 years.  Earlier this year, a company called Linc Energy announced that tests had revealed that there was a minimum of 3.5 billion barrels of oil equivalent sitting under more than 65,000 square kilometres of land that it owns in the Arckaringa Basin.  But that is the minimum number.  It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area.  If that turns out to be accurate, the oil sitting under that land is worth approximately 20 trillion dollars, and it would be roughly equivalent to the total amount of oil sitting under the sands of Saudi Arabia.  In essence, it would be a massive game changer.

If the 233 billion barrel figure is accurate (and some have even suggested that the true number could actually be 400 billion barrels), that would make it nearly 10 times larger than the Bakken formation, 17 times larger than the Marcellus discovery and 80 times larger than the Eagle Ford deposit down in Texas.

It would also mean that Australia now has more “black gold” than the nations of Iran, Iraq, Canada and Venezuela.

The closest town to this oil discovery, Coober Pedy, is in the process of being totally transformed.  It normally only has about 1,700 inhabitants, but news of this discovery has drawn in 20,000 additional people already and real estate prices in the town are absolutely skyrocketing.

So does all of this mean that gas prices will go down soon?

Well, unfortunately that is not likely to be the case.

First of all, the oil in this formation in Australia is going to be quite expensive to extract.  It has been estimated that it is going to cost up to 300 million dollars just to get this site ready for production.

In addition, many of our politicians are absolutely determined to greatly punish the use of oil because they believe that it is the primary cause of global warming.  So they continue to raise taxes on gasoline consumption.

Today, motorists in the United States pay an average of 49.5 cents of taxes per gallon of gasoline, and in the state of California motorists pay an average of 71.9 cents of taxes per gallon of gasoline.

Hopefully the price of gasoline will come down a bit over the next few years, but even if it does I would not expect it to come down too much.

But what we can be sure of is that the world is not going to run out of oil any time soon.  Those that have been predicting that we are are on the verge of an “energy doomsday” can take a rest for a while.

Sometimes it is funny to look back and remember some of the ridiculous things that our politicians were saying about oil in the old days.  For example, U.S. President Jimmy Carter made the following statement back in 1977….

“Unless profound changes are made to lower oil consumption, we now believe that early in the 1980s the world will be demanding more oil than it can produce”.

That prediction didn’t exactly work out for him did it?

It is time that the American people were told the truth about our energy situation, and the truth is that we have plenty of energy resources.  The following stats have been updated from one of my previous articles

#1 Back in 1995, the U.S. Geological Survey told the American people that the Bakken Shale formation in western North Dakota and eastern Montana only held 151 million barrels of oil.  Today, government officials are admitting that it holds 7.4 billion barrels of recoverable oil, and some analysts believe that the actual number could be closer to 24 billion barrels of oil.

#2 It is estimated that there are 19 billion barrels of recoverable oil in the tar sands of Utah.

#3 It is estimated that there are 86 billion barrels of recoverable oil in the Outer Continental Shelf.

#4 It is believed that there are 800 billion barrels of recoverable oil in the Green River formation in Wyoming.

#5 Overall, the United States is sitting on approximately 1.442 trillion barrels of recoverable oil.

#6 According to the Institute of Energy Research, the United States has an 88 year supply of natural gas.

#7 According to the Institute of Energy Research, the United States has a 169 year supply of oil.

#8 According to the Institute of Energy Research, the United States has a 465 year supply of coal.

#9 Goldman Sachs is predicting that the United States will be the number one oil producing country in the world by the year 2017.

So the bottom line is that we have plenty of energy resources.  We do not need to be importing oil from OPEC or anyone else.

But just because we are not going to run out of oil, natural gas or coal any time soon does not mean that we should not be developing alternative energy resources.  We should definitely be seeking ways to produce energy more cheaply, more cleanly and more efficiently.

If America does not end up leading the world in developing new forms of energy, we should be ashamed of ourselves.  And right now, the Chinese appear to be way ahead of us as far as thorium energy is concerned, and Italian scientists appear to be ahead of our own scientists in developing “cold fusion” technology.

So yes, let’s be glad that we are not going to be facing a crippling energy crisis in this generation, but let’s also not be complacent.  There are lots of new technologies out there just waiting to be developed, and the rewards are going to go to those that are able to develop them first.

South Australia

  • Captain Ron

    What the “Frack” are you talkin bout Willis!!!

  • skywatcher

    Australia is not a part of OPEC is t?

    If not an OPEC member no need to sell oil for US petro dollars, which is just another nail in the coffin of the Federal Reserve note.


    • Mondobeyondo

      Australia is not part of OPEC.

  • 2Gary2

    At least the Muslims in the mid east will not get the money. Australia yes–mid east-no

    • Syrin

      Well, this is going to surprise you, but I think if we stayed the F out of the Mid East, they wouldn’t be even a fraction as hostile to us as they are now. So I blame a substantial amount of our Mid East problems on the actions of our gov’t going back decades spanning both parties. I doubt many who come here share my view.

      • I do. Totally.

      • JailBanksters

        Nearly every single problem for the past 100 years can be attributed to the United Stasi of America meddling, interfering, supporting, controlling, manipulating from the White House.

        • seth datta

          And the international banking community.

          • JailBanksters

            The UNited States and International Banking Cartel are Interchangable

      • seth datta

        Brzezinski was pictured helping Arabs out in the 1970s. Now we’re fighting the ‘sophisticated’ boxcutter brigade in the 21st century. Yeah right they are managing these atrocities without our governments at least turning a blind eye to the events that are allowed to unfold and are then spun for propaganda reasons.

      • chris

        On the contrary i think most here do share your view.
        Did America really only start to go downhill once it became the best friend of Israel?

      • Gay Veteran

        is it raining cats and dogs?!?!?!?
        I actually agree with Syrin

    • Bad Kitty Cat

      If the oil is in a western nation, the US won’t want it IMO. As someone from Canada it seems as if they give a hard time to their allies about buying their resources (oil and lumber come to mind).

    • Ralfine

      Australia is very attractive to Muslims. There are even camels in Australia, and a huge desert.
      And like other Muslim countries Australia doesn’t allow gay marriage.

  • markthetruth

    China knew this and brought up enough to be energy efficient . But like all things is there’s alot of anything it’s worth less.

    the end…

  • Mondobeyondo

    Hey Australia, thanks for the news!! I know we’re friends and allies and best buds and stuff, but just in case, we’ll send over the South Pacific Fleet to ensure we get our fair share.

    Why? Cause you know, it’s for your own security and protection. (and ours too but now is not the time to discuss such delicate diplomatic matters, just trust us to do the right decision because we always know best)

    • Ralfine

      And well, make sure the American sailors will get enough dope in your harbours and boys and girls.
      And don’t dare to arrest them for drink driving or rape.

  • E_G

    Oil equivalent, meaning NOT oil! Probably tar sands or heavy oil, which is not light crude that modern industrial civ is used to having. This stuff will be intensive and expensive to extract, and the EROEI will be massive. Never gonna happen, and if it does it will just pollute the planet and cause collapse faster. Same with offshore drilling.

    By the way, the Institute of Energy Research is a front for the Koch brothers and the oil industry, they spread lies and propaganda! Shame for quoting them.

    • Tom_F

      It is shale oil. Right in the links.

  • markthetruth


    the end…

    • Beanodle

      Drill bits and casing melt when they get close to inner active materials – magma and such like. The core is as hot as the sun.

      • MeMadMax

        He was being sarcastic……….

        • markthetruth

          Good to know there are Logical people out there.

          the end…

      • Mondobeyondo

        Sorry, but not even the sun is as hot as a Jimi Hendrix solo.

        • markthetruth

          “excuse me while I kiss the sky”

          the end…

          • Whoopdy Do

            I thought it was “Excuse me while I kiss this guy”?

      • ChingatchCroute

        If you get that far down, there should be enough heat to generate electricity.

      • Ralfine

        Well, you only need to drill deep enough to get water steaming when you pump cold water in.

        Iceland is doing that, and New Zealand, and Germany, and a few other countries.

        • markthetruth

          Iceland is special because of it’s geological location of the high concentration of volcanoes.

          the end…

          • Ralfine

            Yes, they don’t need to drill so deep.

            But instead of drilling for oil you could drill for heat in the US. And instead of building a pipeline for oil you build a grid from the power plant.

            Yellowstone should be hot enough.

          • markthetruth

            It is but then it comes to conservationist .

            the end…

          • Whoopdy Do

            Hmm. One of the world’s largest (though currently dormant) supervolcanoes. Sure, let’s drill an outlet hole right down to it….

          • Ralfine

            Yes, and pump some cooling water down.

            Do you really think, a 1m hole has an influence on a caldera of 50km diameter?

          • mistywindow

            Over to Archimedes:

            “Give me a big enough lever and a place to stand, I’ll move the world.”

            Thin end of the wedge.


          • Ralfine

            Yes, a butterfly can cause a tornado.
            So stop sneezing.

  • Dan

    By sweeping the idea of peak oil under the rug we are ignoring a significant fact: the relationship between hydrocarbon reserves and flow rates are not the same as they used to be – reserves have increased but flow rates are not as high or sustainable.
    Perhaps the most important thing we need to pay attention to is net energy returns, on which we run society. Shale oil discoveries may be massive in terms of the total number of barrels of oil – but what they lack are high and sustained flow rates. And there’s a lot of confusion out there right now, with several analysts that should know better, waving their hands at increasing reserves and then making the utterly wrong conclusion that peak oil is a defunct theory.

    • Syrin

      Agreed, but what alternative do we have right now? They are looking to find an alternate fuel source, but none has emerged yet

      • Ralfine

        The greatest source is efficiency.

        Just remember capitalism – you increase the profit by reducing the input.

        You can also increase profit by buying more companies, but then, one day, all companies are bought.

        And then?

      • John W.

        If we could come up with a BS to energy conversion method the US congress and Obama and his administration could be the power source. Unlimited BS,

    • seth datta

      Energy return on energy invested dictates that currently only solar energy can replace oil as a viable substitute, however, not enough funding is put into developing SBSP (space-based solar power) as it would threaten the elite’s stranglehold on world populations through oil.

      • Ralfine

        We can start by selling solar roofs and wind turbines and electric motor boats and diving pumps to small islands in the South Pacific.

        • Tim Taylor

          There is NOT enough solar energy to replace oil. MIT professor Nocera has discussed this. There is no need to replace carbon-based fuels. We need to clean up our act in how we extract and burn it. That’s it. And we need to continue to drive innovation into energy savings. If everyone in this nation used LED lighting…… as just one example. The government could issue credits for every company, municipality and citizen to get free LED lighting. And we should mandate those lights are made in our nation. The savings we could achieve through innovation throughout our economy are astronomical. And they would create a lot of jobs.

          We could cut electricity and carbon fuel usage by an astronomical number by empowering innovation. Something Obama doesn’t understand.

          • Ralfine

            So, where did the fossil fuel come from, if not from the sun?

            Fossil fuel is stored solar energy, plants made from water and carbondioxide under the sun and then transforming slowly for 250 million years (give or take a few).

            Basically like a backup battery. So, what will happen when the battery becomes empty?

          • Tim Taylor

            That’s pretty impressive. It’s too bad you have no scientific understanding of what you are talking about.

          • Ralfine

            Yeah, too bad. Maybe should change my profession.

          • Brian Davids

            Unverified company based tests claim estimates of 3.5 billion barrels, this 233 billion barrels claim is pure pipedream fiction. And given this company’s willingness to throw around fairyland figures with zero evidence, plus the fact they’re begging for money, I’d question even the 3.5 billion barrel claim. There simply isn’t anything credible to trust in their claims.

          • Geo

            And you of course do because you’ve been watching Fox “News” making you highly qualified.

          • John W.

            Why do you clowns always use the “FOX News” put down. Are ABC,CBS or NBC any better? Guess you think it makes you seem smart. Guess again.

          • carol.geiger

            You talk nonsense; coal is made from plants, oil comes from animals and there are NO Millions of years. You repeat rubbish. Animals and plants were 4500 years ago washed into basins at the Flood and quickly covered with sediments in the water so they could not rot away but under pressure and temperature accumulate into coal or oil.

          • Ralfine

            Whatever, you still need a long time to create what we are just using up by burning them.

          • Brian

            You are the one talking nonsense Carol. Coal and oil do in fact take millions of years to form. Also coal formations only exist on land, not under any bodies of water. Your description of how coal and oil are formed are way out in left field.

          • antred

            4500 years ago, eh? Go back to your bible-fantasy and leave this discussion to educated people.

          • Mondobeyondo

            To quote a non-specific 1966 episode of the “Batman” TV comic series:

            “Too late, Batman!”

            The U.S. has already legislated that the old familiar light bulbs be replaced with the new, curly french fried shaped LED bulbs by 2014, if I remember correctly. As a matter of fact, no retailer can sell incandescent bulbs (you know, the ones Tommy Edison invented) past that date. Yep, that includes Home Depot, Lowe’s and Wal Mart.

          • Tim Taylor

            Those are flourescent, not LED. LED’s last about 40 years, are marginally more environmentally friendly and consume even less wattage.

          • Pam Massey

            I have some LED. Really bright but the bulb lasted about a year. It is an over the sink light and not used that much.

          • Doug

            Edison did not invent the light bulb. He bought the patent from a couple of Canadian guys who did not have the means to get it into production.

          • Reynaldo Neggle

            How about of if everyone drove a fuel efficient car instead of using Ford F250s to pick up a bail of hay and a quart of milk. In reality, you can tell by most people’s choice of vehicle that they really just don’t care. The most wasteful society in the history of mankind is about to get spanked anyway when it all goes to h3ll.

          • bubblegum

            have you considered that not everyone can afford a new car? Not because they don’t care!

      • Pam Massey


      • Michael Harrington

        Solar in space? at how many dollars per pound? not even economical at 10 times the energy return.

    • RealityBetraysUs

      Why do you think all the cities now have buses that run on LNG? Locally I know they have lng pump stations that sell a gallon of fuel for 2$ a gallon compare that to the cost for gas or deisel! I think the future is going to be LNG or propane not gasoline or deisel. Best bet buy a hybrid vehicle that will run on what ever is cheapest and available.

      • Reynaldo Neggle

        You’re probably right, and every square foot of available land will be pock marked with toxic gas wells.

    • Michael Harrington

      I cannot, nor shall not allow your falsehood on flow rates to sit. Fracking has made wells deliver far more oil per day than they had done before.

      This is science, your statement was propoganda. You have not learned the age of the internet destroys the idea of propoganda. Only the truth can survive.

  • JohnO


    As an Aussie I would like to shed a little light on this.

    Firstly, it’s bloody remote.. Australia is a huge continent. There are no ports, no harbours, no towns, no cities, almost no infrastructure out there.

    You’re going to need investors to spend billions and many years building up the well and refining capacity to cope.

    Then there’s the hostile, Greenie South Australian electorate combined with leftists who have taken over Canberra.

    We have the worlds LARGEST economy wide carbon tax of over $23.00 a ton which has doubled electricity prices in less than 12 months.

    The Greens have control of our Senate (Thanks to inner city latte sipping voters in inner city electorates) who would fight any development tooth and nail.

    I’m affraid to say, that unless things in Australia change that oil will forever remain burried underground… Along with our mind boggling Shale Gas reserves which some estimate are twice those of all the combined worlds reserves and then some.

    Australia.. we should be a superpower, we have every single resource you could ever want and the smarts to utilise them.

    Instead, we are rapidly becomming a second rate welfare state.

    • K

      Thanks, that is some very useful information.

      • transumer

        Thanks, JohnO Good info to chew on.

    • MeMadMax

      One thing I know about lefties: They can be easily bought =P

    • Michael from Australia

      Also, if you have a business, and you put up the prices because the utility bills go up due to this carbon scheme, if you say that you put up the price due to the carbon tax, YOU COULD GET A FINE UP TO 1.1 MILLION DOLLARS.

      just google “australia 1.1 million fine”

      • Ralfine

        Well, then don’t tell anyone.

        Tell them your costs went up. That you give everyone more holidays, that you give gay couples the same perks as other couples, there are so many possibilities to attract rather than repel.

    • Ralfine

      Australians are lazy. They will never be a super power.

      England shipped all their criminals to Australia. What do you expect? 😉

      • cracker

        Ralfine get off your high horse you Cretan. I love how you generalize an entire population. Take a long look in the mirror …

        • Ralfine

          Come on everybody knows that the Aussis are surfing the whole day, and partying the whole night. LOL

          That’s why everybody loves to emigrate there.

          And, it’s “cretin”.

          • Magic_Man_in_the_Sky

            Maybe he thinks you are a Greek or a Philistine… a Cretan….from Crete. 😉

          • Matthew

            Surfing and Partying sure, But we still wrestle the Crocks every weekend and take on them bloody drop bears every other Thursday.

        • Kyle

          And you take a look at the mirror also or did you break it already?

          • cracker

            That’s the problem with the world everyone loves to generalize either a group of people or a country. Get a life you (Troll). Get out from under your bridge and see what’s going on in the world.

      • jr

        Yea… and England shipped the Puritans to America!

        • Ralfine

          Unfortunately not all of them.

      • Mondobeyondo

        Are you serious?

        • Ralfine

          Just look at Germany. They have 30 days paid holiday every year, and that doesn’t include the public holidays like labour day or Christmas.
          And they get all their sick days paid.

          On top of that they only work 38h per week.

          When you call them on Friday afternoon, you don’t reach anyone, because they are off after lunch.

          What kind of economy can you expect from that?

          (well apart from being the top exporter of the world, and bailing out all of South Europe)

          And people are not happy in Germany, the population is shrinking, people emigrate to Australia.
          Now there are less than 80 million left.

          • Kyle

            And falling.

            A lot like Rome before it fell as the government got lazy and lived high on the hog.

      • Pam Massey

        Must have worked. About the only nation we do not send billions of dollars. Plus you red and pink logo makes me think you are in a leaky boat.

        • Ralfine

          Aren’t we all?

          The equality sign to remind that you deserve the same rights as I.

      • Kyle

        SHHHHHHHH SHHHHHHHH! It’s forbidden for people to know the truth.

        Remember. Rule number #1 is to make America look bad at all costs either real or imagined then go drink a beer to forget it all with you’re elite friends to celebrate the NWO and their Agenda 21.

        Say anything else and you will have to either be in Prison or live on the run.

    • Hammerstrike

      But it is flat (easy to build road/pipeline/railway) and in Scandinavia, one can buy mutton from New Zealand.

      China can, hence its export of “rare earths”, because they understand why large-scale investement is important.

      So in case of war…

    • chris

      Maybe someone (major oil producer) knew about this oil wealth some time ago and has funded the Greens to prevent Australia becoming a ‘superpower’ and keep the oil price high?

      • Kyle

        I wouldn’t put it past them. I bet the Chinese oil companies did it as they know they will lose their foothold if Australia became the next world superpower.

        (Gasp) Australia having a free market and actually producing their own goods not relying on foreign countries telling them how to live? What is this world coming too?

    • peace angel

      The reason they won’t drill and the US does not drill is because of Agenda 21 the NWO plan to depopulate the world by 90% (by destroying the economy) and to create the NWO. Australia signed it in 1992 when Bush Sr. signed it and Clinton made it law. The plan is to destroy the world and imprison it’s citizens and the World Bank and the United Nations are destroying the economy in all of Europe and Australia, New Zealand and Canada as we speak to begin the world turmoil that will cause world chaos, worse than we are seeing today and to make the US the “model” for the NWO.

      • Grey

        Does it matter if it is agenda 21 or just the nature of cost benefit? to us the people on the street I mean, the cost of fuel and other petroleum products is going to go one direction. UP. what does that mean for us the man on the street? Poverty, locality, lack of options, possibly starvation disease and death…

      • Magic_Man_in_the_Sky

        If Obama is pushing depopulation, why is he filling America with super fecund Muslims…..who have multiple wives with multiple births and thereby regenerate with the same rapidity as rabbits….???

        • VoteNo1

          Wow. I am not Muslim, but you’re description could not be more biggoted & flat out incorrect. The adults are speaking here…

      • el duderino

        have you read Agenda 21? didn’t think so.

    • WRFlynn

      John O and Dan are both correct. This “find” is not anywhere close to economically feasible, at least not until the price of oil rises significantly, and I mean many fold higher than it is today.

      • Gay Veteran

        and that is a point the entire article misses:

        “…So the bottom line is that we have plenty of energy resources….”
        at what COST? how many of these resources would be left in the ground even if oil went to $200 a barrel?

        • WRFlynn

          Probably all of them would stay in the ground at $200. Even at $500/bbl the demand would shrink to the point few could afford any fuel, at least for what we’ve become used to with plentiful, cheap and easy, everyday transportation. The point I’m making is this frackable oil found in the deepest nooks and crannies will probably stay right where they are.

          • Gay Veteran

            I totally agree. But too many people have bought into the corporate propaganda that we can lots of cheap energy if only we would “drill, baby, drill”

          • Stone Skull

            we can’t have solar powered jumbo jets

          • Gay Veteran

            uh, true

          • Kyle

            And too many people bougth into the government propaganda that they can be protected if they give up their rights and freedom.

      • antred

        And even then it might still be a loser in terms of net-energy, which would make the whole thing pointless.

    • Bob

      …also, it’s oil shale, not regular oil, and has to be heated in situ (i.e., underground) , very very expensive.

    • John W.

      Your immigration policies like those of all Western nations will soon have you at third world status so enjoy the second rate status while you still can. Feel better?

  • K

    Once I would have thought this was good news indeed. Now with the lockstep relationship between Government and big business. I predict little or no change. They will take their time bringing these new sources online. There will be setbacks real or planned. It is in both industry and Governments’ interest to keep the price of oil high. What pain that might cause the regular citizen. I think they have already proved, they could care less.

    • K

      Detroit bankruptcy back on course. Judge who blocked it overruled.

  • snoopy

    I’m going to have to unsubscribe from your blog unfortunatly as this recent blog is so factually inaccurate. Please stay within the area of expertise you are knowledgable in and don’t stray into the field of geology and energy with your cornucopian economist viewpoint.

  • Tom_F

    All the source links are from six months ago. Why is this now so important?

    • Ralfine

      It might be easier to occupy Australia than Syria.

  • markthetruth

    Cleveland wrestles with crime sprees

    Trying to understand what is often the inexplicable is a common aftermath of any gruesome crime spree, but officials linked the latest problems to poverty and the disintegration of neighborhoods that allowed
    crimes to go undetected. There is a long history of social research on links between poverty and crime

    Google article

    the end…

  • Beanodle

    This Australian Cooper Pedy find was announced last January. Australia is roughly the same size as the continental U.S. There are other finds to be announced.
    Here’s a quote made a few years ago by the then chairman of B.H.P. – the biggest mining company in the world. “:Oil and Gas? Don’t worry, we (Australia) have more than anybody”. This was in response to a question from a MSM journalist questioning the amount of natural Gas being sold to China.
    This quote often gets slipped by when commentators are talking about peak oil or other such nonsense.

    The current ongoing gas supply contracts to China alone run to well over $100 billion.

    There’s plenty more oil and gas deposits tied up in 99 year contracts that were made out pre 1973 (Australia)

  • MeMadMax

    So much for “madmax” lololololololol

  • seth datta

    More Nwo control of resources as uk and us get pumelled.

  • Syrin

    Well Brazil, Australia, Argentina, Chile (South America in general) are experiencing RECORD cold and snow right now, so that’s going to slow things down.

    Want so see a GREAT conversation that took place last week?

    “During yesterday’s Environment and Public Works hearings, Sen. David Vitter asked a panel of experts, including experts selected by Boxer, “Can any witnesses say they agree with Obama’s statement that warming has accelerated during the past 10 years?”

    For several seconds, nobody said a word. Sitting just a few rows behind the expert witnesses, I thought I might have heard a few crickets chirping”.

    These are some of the HAND PICKED “scientists” who push global frauding, but were unwilling to go on record to defy all the actual science on hand showing a rapid trend to COOLING. We set 14,000 RECORDS for cold and snow in the US alone in a 6 week span this spring.

    • Ralfine

      All more reason to insulate your home and reduce energy use.

      The house I built for my parents uses 30kWh of electricity per year and square metre for heating and warm water.
      (With winters 25 below zero)

  • Sparkie

    I live in Australia. We won’t be using the oil, like we don’t make the most of our abundant cheap coal. The socialist government has hobbled industry and as a result, individuals, by taxing the air we breath as part of the big green con.

    It will be sold to our competitions who aren’t as stupid as us.

    • Ralfine

      Well, you need water to utilise tar sands and shale gas.

      I seem to remember, that you don’t have much water in most of Australia?

      So, start building some water pipelines to these oil areas. And maybe some roads and airports to feed all the workers there.

      We will sell you anything you need. But you need to pay in cash or gold. I’m sure you understand.

  • TtT Engine

    Yes, remember the pagan enviro-frauds in the 70’s keeping us in gas lines [odd/even gas days] lying through their teeth that the world was running out of petroleum ? How much were we overcharged for gasoline in the 70’s and today ? Oh yes, remember the pagan enviro-frauds in the 70’s telling us to prepare for the coming ice age that could be twenty years away ? Oh, yes remember the pagan enviro-frauds telling us to drink bottled water, the tap water contained impurities and was dangerous to our health ? Now, municipal tap water is so yummy, drink up ! Now we have Goreleonie pagans corrupting Earth science weather and climate date in order to fraud planet Earth again. Global warming now climate change ? Why was the Copenhagen climate summit cancelled Mr. massage ? How many other pagan enviro-frauds can we think of ? THINK THINK THINK with the brain God gave you. STOP relying on BIG OBESE GOVERNMENT. They have bankrupted the R/W/B morally and financially and we have enabled them. Go get these mega abundant, God given, R/W/B natural resources responsibly before the hour glass of time runs out on us. Life sustaining jobs and our high standard of living lies at our fingertips. Thank God on your bended knees for these fruits of the Earth and for the work of human hands. Christi Fidelis !

    • Ralfine

      Yes you are so right.

      There is cheap oil everywhere. If you take off the top of the streets, you will have the same as tar sand, and don’t even need to dig big holes in the middle of nowhere.

      Just as you go, pick up a bit of the street and put it into your tank.

      (if you find sarcasm, you can keep it.)

  • Makati1

    It’s really getting deep folks…

  • Kim

    Shale oil? Really, Michael? U call that an abundance of energy resource? What a joke. It’ll take more energy and resources to get it out of the rock than it’s worth. Michael, you’re forgetting the formula: EROEI.

    • Hammerstrike

      Peak oil? Well. it has been a while since we heard that one, decades even and we´r still waiting for it.

      Governements can even taxe oil use nearly by half and things still work.

      Beside, oil is 5 kilometer underground and drills can reach to 3? Czar bomba, 5 becomes 2.

  • condaggitt

    I’m still waiting for them to “discover” an elephant oil field in Vietnam…. more then a few of the people on the street I grew up on who fought there came back with the same stories..

    So 40 years later (say 2015) after millions of vets are dead and the rest too old or weak to care…maybe its time to miraculously find that oil.

  • seth datta

    Peak oil = peak (well paid) middle class jobs = peak society = peak feminism = from now on, we can expect the West (and perhaps the World) to go on a negative socio-economic trajectory in general until either:
    (a) a new energy source is found that rivals oil
    (b) lots of population is lost through wars/disease/starvation etc..

    Guess which option we’ll be headed down?

  • Michael from Australia

    I heard about this from American internet sites, BUT NOTHING IS MENTIONED HERE IN AUSTRALIA. You would think that it would be in the newspapers or TV, but i haven’t seen anything. It is just like what i hear Americans say, they say they they find news on the internet but not in their own country.

    • addictiveaussie

      Ummmm, actually it was all over the newswires months ago. The involved, Linc Energy ASX listed LNC share price skyrocketed on the announcement.
      By coincidence just before the announcement Russion tycoon Roman Abramovich became a significant shareholder and his investement company has partnership signed deals with Linc.
      It is worth noting that LNC have also developed a number of advanced technologies for G to L, UCG and oil recovery.
      Their Gas to Liquid technology is very significant and leads all other similar technology.

  • Bogdan

    I once saw this comparison: In the oceans of the planet, there is 116 (one hundred and sixteen) times more gold than all the gold that has ever been extracted in the history of mankind. However, that god is so difficult and expensive to extract, that probably we won’t see any of it being extracted in our lifetimes.
    Same is true with oil. There is plenty of it underground, but how expensive is it to extract? We’ve already extracted the cheap oil…

  • Ralfine

    “Today, government officials are admitting”

    And you believe your government, of course.

  • Ralfine

    How much energy do you need to spend to transform tar sand into gasoline?

    Tar sand being basically of the same consistency as the tar put onto the roof to protect timber against water and covered by sand to make it non-sticky.

    Now you take it off and make gasoline of it, or you use it to make pharmaceuticals, nylon, polyester, plastics?

    And tar sand doesn’t just ooze out of the earth and flows in pipelines.

    So, how much of that recoverable tar sand needs to be burned to create heat to make the other tar sand runny enough to separate the tar first from the sand and then make it liquid enough to transport it?

    How many trucks you need to operate or build?

    Would it be cheaper to build a wind turbine and produce all the electricity needed just by utilizing the hot air produced by politicians?

    Anyway, wrong question.

    Let’s sell pumps and tar heaters and trucks to dumb Americans.

    And food to their workers.

    Make sure you get most of your invoices paid before the boom comes to an end.

  • skywatcher

    Is Australia an OPEC member, if not this is another nail in the coffin of those US PETRO DOLLAR FEDERAL RESERVE NOTES.?

  • Ralfine

    “About 450 million barrels of oil have been produced from
    the area since 2008, the geological survey said in its report.”

    That’s very impressive. Currently the worldwide usage is about 30 million barrels per day.

    Now, imagine China, India, Nigeria and all African countries multiplying their oil use hundredfold to reach American levels, then you will get an idea how much money you can make in the 10 years this new supply will suddenly last.

    Anyway. We can sell pumps to America. And trucks and diggers.
    Just ask.

  • bashar

    Anything that makes the Saudis weak is ok by us. You get your oil & we do what we aim to do.

  • Ralfine

    “#9 Goldman Sachs is predicting”

    And we all believe them of course because of their excellent track record of predicting their own financial crisis.

  • Stacey

    Michael ,could you do an article on the cars they have in the UK that get over 70 MPG that are banned in the US? If one is found in the US it must be removed within 30 days or be impounded and crushed. Just look up Volkswagen UK. The Volkswagen TDI wagon gets over 70 MPG.

  • Bad_Mr_Frosty

    Yay Aussies!

    Boo Muzzies!

  • jakartaman

    Oh no – the world is fried for sure now.
    I thought the experts were predicting we would deplete oil by 2050? Now we have found all this dirty black stuff right under our feet. Where are all those neat green jobs going to go? Where will all the electric cars go – What will be do with all the wind generators that are killing birds?
    This is terrible news!

  • Vermaphax

    So does this mean we are going to attack Australia? I don’t want to, I like Aussie’s. I have an idea…leave the oil and gas alone and develop Thorium technology, the only reason Governments don’t use it now is because it doesn’t go boom.

  • Hammerstrike

    Peak oil? Ha!

  • Brian

    Well 2 things regarding this article.

    First, If this does really pan out to be 233 billion barrel oil reserve that will only extend the worlds oil reserve by 7.5 years at our current rate of consumption. Less if we the worlds consumption continues to increases. So not really a lot of oil.

    Second, oil reserves have always been over estimated. OPEC countries have always done that as it allows them to produce more. Saudi Arabia is one of the best for this. There was a period where they were producing close to 10 million a day for years yet their stated reserves remained the same without any new discoveries. Governments/ their agencies or the oil companies cannot be trusted when stating oil reserve estimates. As the one comment below points out not all the oil in a particular field can be recovered.

    • edrobar2978

      Also, they should consider the EROEI on the new fields discovered, because what it matters is the net available energy for the society, if the EROEI rate is below 10:1 would mean that oil field will enter in soon depletion.

  • edrobar2978

    Michael, for the very first time I’m not agree with you, the conventional oil production plateaued in 2005, there are some additional production thanks to Shale Oil, Shale Gas and Tar Sands, which requires a lot of money and WATER!!!!, the companies are drilling offshore in the deep sea (2 km) which makes the prices higher. I know that @peaktweat has re-tweeted some of your good articles, I recommend you to take a deep look to their timeline.

    • callmecordelia1

      This is the first time I have to respectfully disagree with Michael, too. I think the rate we are consuming our natural resources far exceeds the rate we are finding good, usable fuel. We probably have more years left than the Peak Oil people say, but I think it’s a more pressing issue than this article would make it seem.

      • edrobar2978

        The ‘Peak Oil’ theory is not about the planet running out of oil, actually there’s plenty Oil in the ground, but there’s to difficult and expensive to extract and to refine it, also its a low quality raw material. Peak Oil is about the peak on the conventional oil. additional production like tar sands and shale oil and gas (unconventional oil) have been included in the annual production report of the International Agency of Energy, but the unconventional oil has a low return on energy invested, thus the net energy available for society declines. If the energy available goes down, it is almost impossible to create new jobs, the connection between Work and Energy came from long time ago, and energy is the blood for this system (capitalism, socialism etc…)

        • callmecordelia1

          I’ve read a little about peak oil, and follow Chris Martensen here and there to see what he’s saying about it. I haven’t decided what I think about all of it, but it’s definitely an interesting subject. I’d be interested in more of your thoughts about it.

          • edrobar2978

            For Peak Oil subject, I usually read Richard Heinberg, he has a dilated experience in this field, if you are in Twitter you can find me in the account @thealien230511, I’m always looking for energy, climate and finance news.

          • callmecordelia1

            Thank you! I appreciate the info.

  • Nacho

    Hello Michael, I really like your blog, I read it everyday, but regarding the oil issue, all these data are absolutely false. They lie to us all the time, especially on this subject. It´s a very interesting issue, I recommend you two guys: Richard Heinberg and Jeff Rubin. Check his interviews or conferences in youtube. Also their great books: “the party is over” and “Why Your World Is About to Get a Whole Lot Smaller”

  • Based on global oil consumption of 90 million barrels per day, the lower estimate would provide the world with a mere 39 days of oil (the highest ‘estimate’ 12 years). Given that preproduction estimates are always overly optimistic and the global economic system looks poised to collapse (there goes the capital to exploit this find), I would argue that this is just another example of wishful thinking and just serves to kick the ‘oil can’ down the road a bit further; a tiny bump in the drawdown of a finite resource that has provided a TEMPORARY boast to human ‘growth’. And, as others have stated, the rate of discovery has been falling steadily since the 1950s but the rate of consumption has not…we are consuming at a rate far beyond that sustainable for much longer.

  • cory

    i would still like to see a push for clean energy, i have seen all the finite resources propaganda.

    just seems to me that we are doing ourselves and the planet a disservice to not push the bounds of our technology and live as clean and efficiently as we possibly can.

  • GetRich

    Time to buy Ling Energy’s stocks?

  • GetRich

    I mean Linc Energy…

  • MichaelfromTheEconomicCollapse

    A new interview with me about the declining economy…


  • Vincenzo

    Now if Pappagallo can get to it before Lord Humungus, all will be well.

  • RarefiedSnotress

    Big oil finds in Australia. Guess who’s going to gain bigtime.. Your ever-productive competitor, geographically closer happy trader with Australia.. China 🙂

  • Robert

    The import thing to realize is that even if 100s of trillions of barrels of oil were discovered, the price will not “go down” significantly. Why? Because oil is a commodity and is traded on the world market, hence even if the US had 100 trillion barrels of oil that would last 10,000 years into the future, the product is still traded on the commodity market which is world wide.

    to understand this you need to separate the phrase “US energy independence” which has been spouted by virtually every President since Nixon and various Senators and representatives from the term “price of a barrel of oil.” The two have absolutely nothing in common. The US could reach a point to be considered totally energy independent and oil is still bought and sold on the world commodity market so the price of oil will reflect that. Same thing with gasoline. To understand that you need to separate the word gasoline from the term price of oil. Yes the price of oil has some to do with the price of gas, but consider the fact a few years ago when oil was $140 per barrel, and nationwide gas was between $3.70 and $4.50 per barrel. Today oil is right around $100 per barrel and gas is around $3.70. See the disconnect? Gasoline is also sold on the world market and reflects world pricing

  • skywatcher

    Since Australia is not an OPEC member buyers of this oil will not need to hold reserves of US FEDERAL RESERVE NOTES to pay for the ‘black gold”. This is another nail in the Federal Reserve Notes.

  • Mondobeyondo

    What about Canada? Don’t they have shale oil deposits that could be tapped? And they’re a lot closer to the U.S.

  • mannasage

    How the oil & gas w/b transported for use is the big problem now, not just the funding.

  • Kim

    energy independence. What a joke.

  • Auntie M

    Frankly I am sick of being manipulated and lied to by government and corporations!! What a bunch of wessels!!

  • timo46

    Great article Micheal as always, to me its a matter of concern for each other. Yes we have plenty of oil but there are so many other options. In Israel they are working on a car that runs on hydrogen and batteries, its an amazing car they have running already. I think hybrids are one of the best invention around for transportation because it uses duel fuels. Why do we keep depending on one fuel, we don’t have to no more.

  • andy bloke

    im from coober pedy,maybe petrol would get cheaper in Australia,

  • mover

    Points to note
    1. The basin has pipelines for Gas at the edge of this field at a place called Moomba
    2. Chevron has just paid Beach energy a company with ground in the location $300 million for a share in their permits.
    3. there is a deep water port not so far away at Whyalla which also has a steel mill etc

  • Magic_Man_in_the_Sky


  • AussieGirl

    As another aussie i can say that this hits the nail right on the head.

  • Dave of OK

    It is nice, Michael, you saying something positive about the future. The longer we live on this planet the more oil we will probably find; so peak oil is not going to be the issue that brings us down at least for us and our children, but all bets are off for our grandchildren. Now if we could be so sure of what that new oil will do to the environment for our grandchildren.

  • Lightning Mike

    Hey Michael nice to see a hopeful link to lenr! Been following all the developments at ecat world for the last two years and its getting much closer to commercial reality. Defkalion just demoed their lenr reactor at ICCF and it was at the University of Missouri this year. Rossi says he’s partnered witb a US manufacturer so there’s one good thing for a American rebirth. Retrofitting all our existing heating systems will put some people to work and the plummeting cost of energy will help us all make ends meet..Yay!

  • Sandbagger

    If I were Australia, I’d be counting the days until the U.S. decides they have a terrorist problem, are violating human rights, and need Democracy re-instated.

    You know the U.S. isn’t about to let Australia keep that oil.

    Be ready, Aussies…!

    Bully Boy and his gang are a-coming.

    (Wonder if the petro-dollar will benefit?)

  • Pam Massey

    No we do not need to be importing oil. BUT! This country is based on free enterprise. That means the highest bidder. So out of America it goes. If our oil that is produced was kept in the US our gas prices would be much lower. Every man for himself. I guess if you are filthy rich it doesn’t matter where you live. The thing is I wouldn’t want to live any where else. Alas I am far from even “well Off” so I guess I can’t understand that perspective. If business would not love money but just make a good profit and have some love of country and fellow man this country would once again be the greatest nation on Earth!

  • David MacKenzie

    Is $300 million (these days) really all that much for oil site preparation? That’s about half the cost of a professional hockey arena or football stadium.

  • So anything from 39 days worth to as much as 7 years’ worth of oil, the latter is IF the most optimistic guess is correct.

    We’re saved! For (maybe… up to…) 7 whole years.


    • marque2

      You sure about that? Why would this be different than all the other oil shale plays that are profitable today?

  • charleshgarrido

    can we go..?
    See Yaa!
    Charlie G.

  • James Shiflett

    Yada Yada. I’ve heard this before. Every time in the past fifty years, whenever someone has discovered a new oil field, they ALWAYS high ball the estimate. This two hundred and fifty billion barrel discovery will turn out to be 80 billion barrels at best. Same thing happened with the North Slope estimates.

    • marque2

      I think you are just bloviating. At least in the United States, as long as I have been alive we have only had 20 billion barrels of oil in reserve, and once that runs out we would be in serious trouble. Well in 20 years they have pumped out 100 billion of that 20 billion in reserves. Seems like at least in the USA and probably Australia the estimates are low.
      Middle eastern countries tend to exaggerate because they want to one up each other.

  • Reynaldo Neggle

    The Bakken Shale formation probably did only contain 151 million barrels based on the technology of the day. Same goes for the other stats. Maybe we can even get oil out of turnips if we apply enough money and technology to the problem, but how much will that oil cost?

  • Kyle

    From Jimmy Carter? LOL.

  • roberta4343

    how much enviromental damage will it cause is it mitgatable and do the benefits outweigh this damage? can they develople better technology to extract and refine with the least damage to the air water land?

  • Where’s Mr. Tesla when we need him?

  • Steve

    Guess the Aussies will now become the next new threat to global peace, with their newly suspected WMD developments and bent for world domination. And we thought they were our best friends and allies. The USA has an obligation to invade Australia to ensure the dastardly Aussie threat never reaches fruition. Pray the USA can save us from the Aussies, and the terror and ruin all that oil can buy.

    • marque2

      I didn’t know that there were job opportunities for being an imbecile. It is quite interesting to note, there is no oil in Afghanistan. And more interesting that almost all the oil contracts in Iraq went to China, and the oil is being sent there as well.

      But keep babbling, maybe someone can put you in a home, where you can keep safe with all your interesting conspiracy theories.

  • marque2

    Those things were politicians say if things go this way there will be more demand for X than there is supply, show a stunning ignorance of economics. (referring to stupid Carter quotes)

    There can almost never be more demand than supply. If demand goes up, the price goes up as well until there is an equilibrium. What they really mean is that there is much greater demand for oil at 10 cents a barrel than will ever be supplied.

    And market prices are what cause people to conserve on their own. If gas went to $10 per gallon in the US – without tax intervention, folks would figure out on their own without government help, how to cut back, car pool, purchase more efficient vehicles, and go to substitute energy sources (eg like how they went from trees to coal in England when trees became too dear. )

  • marque2

    I don’t see where you are coming from. Why are you watching idiot videos. Just about everything eco nuts have predicted is false. The world population growth is slowing down and will be at equilibrium in about 35 years, sources of energy which were suppose to be all gone in 1991 (peak oil – remember) are turning up everywhere. It now turns out that “burning ice” lines every continent and has a 3000 year supply of energy at conservative estimates, (and possibly more since it is guessed this source renews itself) with currently feasible extraction technologies. The world has 600 years of coal at current rates, and it looks like about 100 years of oil, though this figure is going higher and higher.

    We will have evolved into new beings before we run out of carbon base fuel to run our iPhones.

    • antred

      It doesn’t matter whether or not the global population still keeps growing because it has already far exceeded the carrying capacity of the planet. Also, resource demand is going to keep growing exponentially anyway since huge numbers of Chinese and Indians are still dirt-poor and hoping to acquire first-world standards of living in the future. Meanwhile conventional crude oil production is plateauing and set to decline, and all we have to take up the slack are low-output, low-EROEI sources like tight oil, deep-sea, etc.

  • marque2

    Your article is merely non-committal. Though you are right, it could be overblown. It certainly hasn’t turned out that way in the United States however.

  • Ceunei

    Okay. That is it. There is so much oil to be had, it is obviously time to well-regulate off-gassing. Google Harbin, China for today October 21,2013, to see why. There aren’t enough air filters in the city to clean up that pollution…

  • mileikowski

    so why this breaking kept secret all these years unless ain’t discovery

  • Noah Rosenblum

    Why is oil crude futures climbing again ?
    With a so clued massive discovery, oil (gasoline) prices should be dropping like an anchor at sea.
    It’s False, or too good to be true.

  • antred

    You lost me at #4 …. “It is believed that there are 800 billion barrels of recoverable oil in the Green River formation in Wyoming.”

    The people who believe that probably believe in Santa Claus as well. The stuff in Green River formation is not oil, it’s freakin’ kerogen. The process of extracting that kerogen and converting it into oil would be very costly, both in terms of energy and money. As of now, no one has found an economically viable way of doing that.

    As for the rest of your article, sure why not always go with the most wildly optimistic reserve estimate … that’s totally honest journalism.

  • easy

    Do you need a Loan?
    Are you looking for Finance?
    Are you looking for a Loan to enlarge your business?
    I think you have come to the right place.
    We offer Loans atlow interest rate.
    Interested people should please contact us on
    For immediate response to your application, Kindly
    reply to this emails below only.

    Please, do provide us with the Following information if interested.
    1) Full Name:………
    2) Gender:………
    3) Loan Amount Needed:………
    4) Loan Duration:………
    5) Country:………
    6) Home Address:………
    7) Mobile Number:………
    8)Monthly Income:…………………
    )Which site did you here about us…………………
    Thanks and Best Regards.


Finca Bayano

Panama Relocation Tours



Facebook Twitter More...