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Russia Discovers Massive Arctic Oil Field Which May Be Larger Than Gulf Of Mexico

Tyler Durden's picture




 

In a dramatic stroke of luck for the Kremlin, this morning there is hardly a person in the world who is happier than Russian president Vladimir Putin because overnight state-run run OAO Rosneft announced it has discovered what may be a treasure trove of black oil, one which could boost Russia's coffers by hundreds of billions if not more, when a vast pool of crude was discovered in the Kara Sea region of the Arctic Ocean, showing the region has the potential to become one of the world’s most important crude-producing areas, arguably bigger than the Gulf Of Mexico. The announcement was made by Igor Sechin, Rosneft’s chief executive officer, who spent two days sailing on a Russian research ship to the drilling rig where the find was unveiled today.

The oil production platform at the Sakhalin-I field in Russia,
partly owned by ONGC Videsh Ltd., Rosneft Oil Co., Exxon Mobil
Corp. and Japan's Sakhalin Oil and Gas Development Co. on June 9, 2009.

Well, one person who may have been as happy as Putin is the CEO of Exxon Mobil, since the well was discovered with the help of America's biggest energy company (and second largest by market cap after AAPL). Then again, maybe not: as Bloomberg explains "the well was drilled before the Oct. 10 deadline Exxon was granted by the U.S. government under sanctions barring American companies from working in Russia’s Arctic offshore. Rosneft and Exxon won’t be able to do more drilling, putting the exploration and development of the area on hold despite the find announced today."

Which means instead of generating billions in E&P revenue, XOM could end up with, well, nothing. And that would be quite a shock to the US company because the unveiled Arctic field may hold about 1 billion barrels of oil and similar geology nearby means the surrounding area may hold more than the U.S. part of the Gulf or Mexico, he said.

For a sense of how big the spoils are we go to another piece by Bloomberg, which tells us that "Universitetskaya, the geological structure being drilled, is the size of the city of Moscow and large enough to contain more than 9 billion barrels, a trove worth more than $900 billion at today’s prices."

The only way to reach the prospect is a four-day voyage from Murmansk, the largest city north of the Arctic circle. Everything will have to shipped in — workers, supplies, equipment — for a few months of drilling, then evacuated before winter renders the sea icebound. Even in the short Arctic summer, a flotilla is needed to keep drifting ice from the rig.

Sadly, said bonanza may be non-recourse to Exxon after Obama made it quite clear that all western companies will have to wind down operations in Russia or else feel the wrath of the DOJ against sanctions breakers. Which leaves XOM two options: ignore Obama's orders (something which many have been doing of late), or throw in the towel on what may be the largest oil discovery in years. 

And while the Exxon C-suite contemplates its choices, here is some more on today's finding from Bloomberg:

“It exceeded our expectations,” Sechin said in an interview. This discovery is of “exceptional significance in showing the presence of hydrocarbons in the Arctic.”

 

The development of Arctic oil reserves, an undertaking that will cost hundreds of billions of dollars and take decades, is one of Putin’s grandest ambitions. As Russia’s existing fields in Siberia run dry, the country needs to develop new reserves as it vies with the U.S. to be the world’s largest oil and gas producer.

 

Output from the Kara Sea field could begin within five to seven years, Sechin said, adding the field discovered today would be named “Victory.”

Duh.

The Kara Sea well -- the most expensive in Russian history -- targeted a subsea structure named Universitetskaya and its success has been seen as pivotal to that strategy. The start of drilling, which reached a depth of more than 2,000 meters (6,500 feet), was marked with a ceremony involving Putin and Sechin.

 

The importance of Arctic drilling was one reason that offshore oil exploration was included in the most recent round of U.S. sanctions. Exxon and Rosneft have a venture to explore millions of acres of the Arctic Ocean.

But what's worse for Exxon is that now that the hard work is done, Rosneft may not need its Western partner much longer:

“Once the well is plugged, there will be a lot of work to do in interpreting the results and this is probably something that Rosneft can do,” Julian Lee, an oil strategist at Bloomberg First Word in London, said before today’s announcement. “Both parties are probably hoping that by the time they are ready to start the next well the sanctions will have been lifted.”

And here is why there is nothing Exxon would like more than to put all the western sanctions against Moscow in the rearview mirror: "The stakes are high for Exxon, whose $408 billion market valuation makes it the world’s largest energy producer. Russia represents the second-biggest exploration prospect worldwide. The Irving, Texas-based company holds drilling rights across 11.4 million acres in Russia, only eclipsed by its 15.1 million U.S. acres."

Proving just how major this finding is, and how it may have tipped the balance of power that much more in Russia's favor is the emergence of paid experts, desperate to talk down the relevance of the Russian discovery:

More drilling and geological analysis will be needed before a reliable estimate can be tallied for the size of the oil resources in the Universitetskaya area and the Russian Arctic as a whole, said Frances Hudson, a global thematic strategist who helps manage $305 billion at Standard Life Investments Ltd. in Edinburgh. Sanctions forbidding U.S. and European cooperation with Russian entities mean that country’s nascent Arctic exploration will be stillborn because Rosneft and its state-controlled sister companies don’t know how to drill in cold offshore conditions alone, she said.

 

“Extrapolating from a small data sample is perhaps not going to give you the best information,” Hudson said in a telephone interview. “And because of sanctions, it looks like there’s going to be less exploration rather than more.” In addition, the expense and difficulty of operating in such a remote part of the world, where hazards include icebergs and sub-zero temperatures, mean that the developing discoveries may not be economic at today’s oil prices.

Maybe. Then again perhaps the experts' time is better suited to estimating just how much longer the US shale miracle has left before the US is once again at the mercy of offshore sellers of crude.

In any event one country is sure to have a big smile on its face: China, since today's finding simply means that as Russia has to ultimately sell the final product to someone, that someone will almost certainly be the Middle Kingdom, which if the "Holy Gas Grail" deal is any indication, will be done at whatever terms Beijing chooses.

 

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Sat, 09/27/2014 - 12:00 | 5262624 OceanX
OceanX's picture

" Arctic field may hold about 1 billion barrels of oil"

 

Big find!  should last, how long?

 

http://en.wikipedia.org/wiki/List_of_countries_by_oil_consumption

 

http://www.eia.gov/countries/index.cfm?view=consumption

Sat, 09/27/2014 - 12:02 | 5262639 barre-de-rire
barre-de-rire's picture

so when they get more than warmed by us/eu they announce they have even more than what they are expected to have.

 

that soundz like the most biggest taunt ever to me.

 

obozo must be quad facepalm ( hands + feets )

Sat, 09/27/2014 - 12:17 | 5262672 SafelyGraze
SafelyGraze's picture

1. send in advisors (a.k.a. "spotters")

2. build coalition

3. bombs away!

 

Sat, 09/27/2014 - 12:28 | 5262707 Pinto Currency
Pinto Currency's picture

 

 

Awaiting ISIA (Islamic State in the Arctic).

Must bomb.

Sat, 09/27/2014 - 12:37 | 5262732 Skateboarder
Skateboarder's picture

Allan's Icebars!!!

Sat, 09/27/2014 - 12:45 | 5262755 SafelyGraze
SafelyGraze's picture

+1 skateboarder

if that is your Real Name

Sat, 09/27/2014 - 12:55 | 5262771 BaBaBouy
BaBaBouy's picture

Well, EU Et AL, Bow To Russia...

SO, We Will Have VLAD, Who Is A Big Proponent Of PHYSICAL GOLD, Out On A Shopping Spree Pretty Soon...

Hmmmm, Wonder How Much Actual Physical GOLD Is Really Available, Soon Find Out...

Sat, 09/27/2014 - 13:01 | 5262780 Latina Lover
Latina Lover's picture

Memo from Fed Reserve to Obama:

MUST.INVADE.RUSSIA. NOW!

Sat, 09/27/2014 - 13:22 | 5262792 svayambhu108
svayambhu108's picture

EROEI! Getting that out of there would loose most of its punch value. Also imagine black goo spilled over the Arctic. Not a game changer. Just a little bit to prolong US agony.

Sat, 09/27/2014 - 15:13 | 5263059 CrazyCooter
CrazyCooter's picture

Unless you are posting the information that shows the EROI doesn't work, you can't make that claim.

The quality of the crude (light vs heavy, etc) is a huge variable. I don't see that being clearly stated upthread.

The majors wouldn't be in the arctic if it wasn't economical given the right fields.

Furture oil was always going to be more expensive; economics dictates the cheapest/best fields are produced first.

If the premise of the article, which is there is a wide area with similar geology where at least one formation is proven to have substantial oil deposits, that is a big deal.

ANd it is certainly better than this shale/fracking stupidity we have going on over here ...

Regards,

Cooter

Sat, 09/27/2014 - 15:23 | 5263076 Funny Money
Funny Money's picture

Bullshit to this discovery.  I'll believe it when it's coming out of the gound.

Sat, 09/27/2014 - 17:03 | 5263271 Fractal Parasite
Fractal Parasite's picture

Now y'all understand why Russia has established a force of Arctic paratroopers - the first of its kind in the world.
As explained by Nikolai Starikov (starting at 3:50).

Eco-movements - a tool for suppressing industrial competitors
http://www.youtube.com/watch?v=bA5ZauDMceg

Sat, 09/27/2014 - 17:14 | 5263297 max2205
max2205's picture

.Drilled by Russia financed by China with USmTreasuries as collateral and Barry BeHeading back to the golf course

Sat, 09/27/2014 - 21:46 | 5263898 clymer
clymer's picture

great. Now we'll never exploit zero-point energy, charge clusters, fuel cells or cold fusion.

 

(Chris Martenson releases denial article in 3..2..1..)

Sat, 09/27/2014 - 22:35 | 5263998 Calmyourself
Calmyourself's picture

No worries pal, FBI froze Teslas head they will thaw it out any day now..  Problem is some dude encrypted the PW to the cryo vault and left it on his iphone..

Sat, 09/27/2014 - 23:50 | 5264109 Four chan
Four chan's picture

whats milkshake in russian?

Sun, 09/28/2014 - 07:42 | 5264405 GetZeeGold
GetZeeGold's picture

 

 

 

Larger Than Gulf Of Mexico

 

 

Why aren't we drilling in the Gulf Of Mexico again?

Mon, 09/29/2014 - 04:06 | 5266250 StychoKiller
StychoKiller's picture

Because Obama!

Sun, 09/28/2014 - 00:36 | 5264154 Son of Loki
Son of Loki's picture

Heck with those Spanish classes. I told my Dad today I'm switching to Russian. Much moar valuable.

Sun, 09/28/2014 - 00:41 | 5264159 Manthong
Manthong's picture

What the frack?

How dare the Rooskies claim to have more security?

I sense war on the horizon.

Sun, 09/28/2014 - 02:05 | 5264235 Volkodav
Volkodav's picture

Russian Accelerator

forget the others for learn

Sat, 09/27/2014 - 22:54 | 5264026 Acidtest Dummy
Acidtest Dummy's picture

But the .gov over unity financial system has been such a success.  /s

Sun, 09/28/2014 - 02:50 | 5264259 SAT 800
SAT 800's picture

Looks like its time for the pigeon to shit on the chess board and claim he won.

Sun, 09/28/2014 - 23:06 | 5266031 Torgo
Torgo's picture

Russians wash their balls in ice water!

Sun, 09/28/2014 - 00:45 | 5264163 NeoclassicalSui...
NeoclassicalSuiGeneris's picture

http://qz.com/272140/exxonmobil-reportedly-finds-oil-in-the-russian-arctic/

I've a doubt. If almost 1 million of barrels have found in the RUSSIAN ARCTIC, all this oil will be sold in dollars or ruble?

Sat, 09/27/2014 - 19:32 | 5263585 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

It'll be ok if they just keep BP outa there!

Sat, 09/27/2014 - 21:27 | 5263861 post turtle saver
post turtle saver's picture

... and by BP you mean Transocean

not to worry, the only folks capable of getting that stuff out are Texans, that's why Exxon and Parker Drilling are there showing hunters of squirrel and moose how it's done... the same guys that taught the bunch of drunks running the Siberian fields to not drop it all on the ground and actually get it into the pipeline instead...

Putin wouldn't have an oil and gas economy to talk about if it wasn't for Texas... they simply don't have the engineering & logistics chops for it...

Sat, 09/27/2014 - 23:16 | 5264065 post turtle saver
post turtle saver's picture

lol @ the downvotes with no counter... knee jerk much? face it you know I'm right, it must burn your hides

Sun, 09/28/2014 - 01:56 | 5264232 magnetosphere
magnetosphere's picture

remember when shell tried to drill in the alaskan arctic and failed miserably?  nobody knows how to drill there yet

Sun, 09/28/2014 - 05:07 | 5264311 Parrotile
Parrotile's picture

Seeing as Russia held the record for the deepest "hole in the ground" for a considerable time, I'd be a little cautious in suggesting they haven't got the technology or knowledge, 'cause they clearly demonstrated that they did.

They CAN do it, and they WILL do it. They do NOT need Texan (or for that matter anyone else's) help.

http://www.slate.com/blogs/atlas_obscura/2014/05/08/kola_superdeep_borehole_is_the_world_s_deepest_hole.html

Sun, 09/28/2014 - 09:39 | 5264539 post turtle saver
post turtle saver's picture

... which was bypassed by an actual productive well... Sakhalin-1 Odoptu OP-11 Well... drilled by (wait for it)

Parker Drilling out of Houston

why? because just putting a hole in the ground as a glorified science project is a far cry from boring a production well

thanks for proving my point, btw

Sun, 09/28/2014 - 08:51 | 5264475 escapeefromOZ
escapeefromOZ's picture

 Were they using Texan Know how and experience ?

Sun, 09/28/2014 - 08:59 | 5264484 escapeefromOZ
escapeefromOZ's picture

 Were they using Texan Know how and experience and engineering ?

Sun, 09/28/2014 - 09:44 | 5264545 post turtle saver
post turtle saver's picture

last time I checked Prudhoe Bay is well north of the Arctic circle, and there's this thing called the Trans-Alaska pipeline that was built for it...

I've seen more of Dalton Highway than I care to tell, please do go on and tell me what can't be done oil-wise north of the Arctic circle...

Sat, 09/27/2014 - 14:09 | 5262906 Escrava Isaura
Escrava Isaura's picture

 

The level of misinformation by some commentators are disturbing.

 

“P.S.P.S.  I deeply value wisdom of some economists.  In particular, Professor Nicholas Georgescu-Roegen has changed my life forever.  My two-year study of his magnum opus, "The Entropy Law and the Economic Process," 1971, Harvard University Press: Cambridge, Massachusetts, and the dozens of monographs he quoted there, changed my outlook on everything, and made me a different scientist.  The writings of Professors Filip Mirowski and Herman Daly have also impressed me greatly.  The problem is that these giants of science have been thoroughly ignored by the mere technicians and dilettantes, who also call themselves main-stream economists.” — Tadeusz (Tad) Patzek

http://patzek-lifeitself.blogspot.com/2012/04/discrete-charm-of-living-at-peak.html

 

Sat, 09/27/2014 - 14:20 | 5262930 Livermore Legend
Livermore Legend's picture

"The level of misinformation by some commentators are disturbing.".....

But Par for the Course...

BTW, Nice Reference..

Sat, 09/27/2014 - 15:54 | 5263145 VAD
VAD's picture

The inability of an "author" to conjugate a verb is disturbing.

Sat, 09/27/2014 - 18:36 | 5263437 Bangalore Equit...
Bangalore Equity Trader's picture

Listen VAD. Let me be real clear here. You are right. The "AUTHOR" is in fact, "DISTURBING".

A sick mo-fo.

Sat, 09/27/2014 - 21:26 | 5263854 Escrava Isaura
Escrava Isaura's picture

 

Talking about authors

By James B  

1. I was jogging today thinking about Edward Baptist's new book "The Half Has Never Been Told: Slavery and the Making of American Capitalism", where he makes the case that the rise of industrial society in the US did not wash slavery away, but rather that it was built on top of it. That tells me that from the founding of the US in the 18th century until today, our wealth was based first on slaves, and second on burning fossil fuel that is loading carbon in the atmosphere. That is very sad.

2. What is a better storyline? That peak oil pervades the narrative, and gives it a foreboding sense of doom; or rather that by continually delaying the end of fossil fuel by fracking, shale oil, drilling in the deep ocean, drilling in Greenland, and finally mining methane hydrate on the ocean floor, that in fact we can keep burning fossil fuel until carbon in the atmosphere exceeds 1,000 ppm?

Which should we fear more? Running out of oil, or not running out of oil?

 

http://cassandralegacy.blogspot.com/2014/09/the-greatest-peak-oil-novel-ever-written.html?showComment=1410561980335#c6904855283178466848

 

Sat, 09/27/2014 - 22:59 | 5264041 Acidtest Dummy
Acidtest Dummy's picture

You've neglected the genocidal capture of enormous land and resources just as the industrial revolution launches.

Sun, 09/28/2014 - 08:40 | 5264466 Escrava Isaura
Escrava Isaura's picture

Actually, I did… If you were referring to North America.

http://www.zerohedge.com/news/2014-07-13/what-power-consumption-telling-us-about-us-economy#comment-4952463

 

Sun, 09/28/2014 - 02:59 | 5264267 SAT 800
SAT 800's picture

I don't read novels; but of course, all global warming enthusiasts do; their entire body of literature consists of "novels" and can be classified as fiction. You're not so much a victim of fairly professional propaganda, as a person who stumbled across a story line with good financial backing that satisfied your emotional needs. None of this has anything to do with reality, of course.

Sun, 09/28/2014 - 08:42 | 5264468 Escrava Isaura
Escrava Isaura's picture

SAT 800

Good morning,

Its 8:41 AM in Washington, D.C. and NO one above your comment used the word "Global Warming" but, you.

 

Did you mean to say Pollution, Resource Depletion, or perhaps, Human Stupidity?

Sun, 09/28/2014 - 00:29 | 5264142 GooseShtepping Moron
GooseShtepping Moron's picture

I read Philip Mirowski's book Machine Dreams and was fascinated by it. The man is certainly a devastating genius and he seems to have read everything ever published in the field of economics, but I was not always able to get a clear idea of the point he was actually making. If you have some light on this, please share.

Sun, 09/28/2014 - 10:02 | 5264580 Citxmech
Citxmech's picture

Amonzon's page made it sound like he was projecting the effect AI, including Kurzweil's "singularity," to economics/trading.

What did you take away from it?   

Sun, 09/28/2014 - 12:28 | 5264847 GooseShtepping Moron
GooseShtepping Moron's picture

What I took away was that the book was part history, part conclusion which did not follow from the arguments. The hero of the book is John von Neumann, a figure who certainly deserves respect and attention. In the first half of the book Mirowski *seems* to be arguing against the over-mathematicization, reification, and systemization present in economic thinking and I thought "I'm really going to like this." By the end, however, it turns out that this isn't quite the case.

Mirowski believes that traditional economics (of whatever school) has failed because it has adopted an overly physicalist view of the subject matter. The principal debates among economists heretofore have concerned themselves with how entropy is to be managed within the system. Mirowski elucidates this in a chapter titled "From MAD to MOD."

These two idiosyncratic acronyms describe conflicting views of "Maxwell's Demon," which in Mirowski-speak refers to the force necessary to rise above economic stagnation and actually thrive. MAD stands for the Maxwell's Augustinian Demon, in which suboptimal economic arrangements are seen as a sort of privation to be overcome by perfecting the system (e.g. Pareto Optimization, the Walrasian General Equilibrium). MOD stands for the Manichaean Other Demon, a much more sinister force of low entropy eating evil which must be fought tooth and nail (e.g. Keynesianism, Marginalism). Those who are familiar both with economic history and Christian theology (as I am) will more quickly see the application here.

Mirowski's thesis, I believe, is that in the development of economic thought opinions shifted from MAD to MOD until John von Neumann (who is scarcely ever mentioned as an economic thinker) came along and settled the matter in favor of MAD with his novel techniques of Monty Carlo integration, square integration, and the ergodic hypothesis.

He concludes by pronouncing the "Socialist Calculation Debate" (i.e. the purported inability of Socialist markets to provide a means of true price discovery, discussed by Hayek and others) moot after the advent of stored-program computers, and declaring that decision bots can discover true prices by engaging in Dutch auctions with one another, hence the subtitle of the book, "Economics Becomes a Cyborg Science."

I had originally thought Mirowski's take on "cyborg science" was critical, but it turns out to be laudatory. I found the book to be both anticlimactic and incorrect, and I'm not sure why anyone would think he was on to something with his thesis.

Sun, 09/28/2014 - 12:54 | 5264925 GooseShtepping Moron
GooseShtepping Moron's picture

One more thing. Here is a review of Machine Dreams from the Ludwig von Mises Institute which agrees with my general assessment.

http://mises.org/misesreview_detail.aspx?control=205

Sun, 09/28/2014 - 17:46 | 5265470 Escrava Isaura
Escrava Isaura's picture

Goose,

Thanks for the link. Going to check it.

 

However, Austria economics is part of the Neoliberal policies...By opposing Neoclassical Economics.

 

Divide and rule, remember?

 

Sun, 09/28/2014 - 11:39 | 5264757 Escrava Isaura
Escrava Isaura's picture

GooseShtepping Moron,

Sorry, I just noticed your post and not sure you addressed your question to me.

Anyway, did not read "Machine Dreams" but here’s in PDF:

http://monoskop.org/File:Mirowski_Philip_Machine_Dreams_Economics_Becomes_a_Cyborg_Science.pdf

 

And here is Philip Mirowski, at his best:

The thought collective was of two minds concerning orthodox neoclassical economics: Chicago and the Virginia public choice crowd—followers of James Buchanan and Gordon Tullock—were in favor, whereas the Hayekian Austrians and the postmodern neoliberals were opposed. The solution was instead for them to promulgate a new shared epistemology and a related set of double truths for their own true believers. Their philosopher’s stone maintained that everyone should be free to believe whatever florid nonsense caught their fancy because the vast mass of humanity was irreparably condemned to ignorance.

http://www.publicbooks.org/nonfiction/how-did-the-neoliberals-pull-it-off

 

Sun, 09/28/2014 - 12:26 | 5264876 GooseShtepping Moron
GooseShtepping Moron's picture

Thanks for the PDF. It's been about 6 years since I read it, so I might take a look at it again to refresh my information.

Sun, 09/28/2014 - 09:24 | 5264518 Grimaldus
Grimaldus's picture

Don't forget "takebeer"!!

Grimaldus

 

Sat, 09/27/2014 - 12:57 | 5262773 Kirk2NCC1701
Kirk2NCC1701's picture

Isia is a variation of Isaiah.  So it's actually crypto-Hebrew, not Islamic.

Hence, as Obama claims (quite correctly): "Not Islamic".

Sat, 09/27/2014 - 21:41 | 5263889 Renewable Life
Renewable Life's picture

Something about "chess" comes to mind!

Maybe the Fed thinks it can print water and oil, problem solved, otherwise we have a piper to pay soon in the a West!

Sat, 09/27/2014 - 12:41 | 5262744 Kirk2NCC1701
Kirk2NCC1701's picture

I hear it's real close to GULF OF TONKINSKI, to which the US has Exceptional Rights.

Sat, 09/27/2014 - 13:20 | 5262811 kchrisc
kchrisc's picture

"GULF OF TONKINSKI"

Brilliant!

And yes, I almost looked up where that was before I made the connection.

Good stuff.

An American, not US subject.

Sat, 09/27/2014 - 13:24 | 5262818 Ignatius
Ignatius's picture

Wait until China gets done drawing their territorial map of the North China Sea (if you've seen the miracle they've accomplished in drawing the borders in the South China Sea).

Sat, 09/27/2014 - 18:49 | 5263446 Bangalore Equit...
Bangalore Equity Trader's picture

Listen Ignatius. Fucking China-men. Always with the passive shit.

Someone needs to step in and show China that USSA is the "BOSS".

Sun, 09/28/2014 - 10:12 | 5264604 auntiesocial
auntiesocial's picture

.... sees if www.gulfoftonkinski.com is available ... lol

 

Sat, 09/27/2014 - 12:44 | 5262749 Freddie
Freddie's picture

Exxon Mobil has to stop working with Russia due to BS sanctions due to NWO's civil war they started in Ukraine.

The NWO is really going to hate Putin now.   Amerika needs a real man like Rock Hudson in Ice Station Zebra toi teach those Russkies.  Rock was Obam's kind of guy like his good pal George Clooney.

Sat, 09/27/2014 - 14:18 | 5262924 Socratic Dog
Socratic Dog's picture

Ah jeez.  Does that mean Clooney's a homo?  Is nothing sacred?

Sat, 09/27/2014 - 14:26 | 5262950 Skateboarder
Skateboarder's picture

"Nothing is sacred, back then or now.
Everyone's wasted... Is that all there is? Is that it now?"

Iron Maiden - Judas Be My Guide

Sun, 09/28/2014 - 01:33 | 5264209 Freddie
Freddie's picture

Well Bruce Dickinson and "Eddie" like birds and crumpet but Rob Halford of Judas Priest is more like Clooney, Rock Hudson and are TelePrompter in Chief.

Bruce landing Ed Force One at Manchester

https://www.youtube.com/watch?v=O3seZHG15Pc

Sun, 09/28/2014 - 13:15 | 5264954 Skateboarder
Skateboarder's picture

Early Judas Priest, before Rob Halford convinced everyone to wear leather for the rest of their lives, consisted of flannel-wearing dreamers. The first three Priest albums are by far some of the greatest music ever composed.

Mon, 09/29/2014 - 17:18 | 5268308 mkkby
mkkby's picture

The reason this is interesting is the oil will be flowing in a decade or two... just when saudi oil will be sputtering to a halt. 

This will be expensive product with low EROI -- but it may be the only game in town.  And it won't be priced in petro dollars.  It will be priced in rubles or yuan.  A real game changer.  I'll take Putin's side of the chess board for the mid to long term future.

Sat, 09/27/2014 - 15:01 | 5263036 tony wilson
tony wilson's picture

gorge cooney is his nick name that mother fucker sucks any cock that is off white yes sir.

he like dat famous icecream brand clooney has a thousand flavors of semen in his belly he only moved to italy for the un refugees constant supply of fresh if stinky meat.

Sat, 09/27/2014 - 16:15 | 5263189 Skateboarder
Skateboarder's picture

now that is sum siqq shit yo

Sat, 09/27/2014 - 21:10 | 5263795 tony wilson
tony wilson's picture

the guy is bent as a banannana

deal with it faggots do not even get me started on hugh jerkoff gutpunch jackman or bradley i can get 2 rabbis up my anus copper.

you cannot exist in hollywood with smokin the talmudic pole of spielbergs

Sat, 09/27/2014 - 15:51 | 5263139 WmMcK
WmMcK's picture

Old joke: What did Rock Hudson and Len Bias have in common? - both got into some bad crack.

Sun, 09/28/2014 - 13:16 | 5264955 Bobby Lee
Bobby Lee's picture

"Who would ever have thought when we were kids that we would get more pussy than Rock Hudson?"

Mon, 09/29/2014 - 03:54 | 5266245 SAT 800
SAT 800's picture

LOL. good point.

Sat, 09/27/2014 - 21:50 | 5263914 MilwaukeeMark
MilwaukeeMark's picture

Guess that means Obama's going to have to suck Putin's dick to get back in his good graces.

Mon, 09/29/2014 - 03:54 | 5266244 SAT 800
SAT 800's picture

But will it be on U-tube ?

Sat, 09/27/2014 - 12:02 | 5262642 FieldingMellish
FieldingMellish's picture

And the cost? 2-3 barrels extracted for each one invested?

Sat, 09/27/2014 - 12:31 | 5262719 Augustus
Augustus's picture

I'll take that deal every hour, all day, every day, for as long as you want to offer it.

How fast can I double or triple my money?

Sat, 09/27/2014 - 13:04 | 5262785 tvdog
tvdog's picture

I think you missed his point.

Sat, 09/27/2014 - 18:33 | 5263443 ebear
ebear's picture

I think he missed his own point.  

Sat, 09/27/2014 - 14:19 | 5262926 samcontrol
samcontrol's picture

just over six years just in dividends as explained below.

Sat, 09/27/2014 - 12:51 | 5262763 Kirk2NCC1701
Kirk2NCC1701's picture

Long PETRO-Rubles, long GAS-Rubles.  Long ENERGY-Rubles.

Long winter in Kiev.  Bitchez Kievski.

Sat, 09/27/2014 - 14:11 | 5262912 samcontrol
samcontrol's picture

I,m long big driller SDRL and tiny driller AWCLF at current prices.

Around 14% and 22%+ dividends respectively ...

Recent smash down because of apparent slowdown in sector, possible dividend cuts , oil prices RUssia conflict and probable manipulation make my call a lifetime buying opportunity with these two .Do your own DD and tell me I'm not right.

Sat, 09/27/2014 - 14:16 | 5262918 samcontrol
samcontrol's picture

oh and by the way ....

tax free on the dividend for those of you who usually pay 30% ( u know who u are) . In case of SDRL (bahamas based company). that means $4 a share NET. annually .At current share price of $27.....

ok back to bummer guns COMEX gold and Putin beans ...

Sat, 09/27/2014 - 20:55 | 5263779 IronShield
IronShield's picture

Looking at that chart (SDRL) question is, when did you get long?  Cause that's one big stinky (though due for a bounce).

Sat, 09/27/2014 - 21:13 | 5263807 samcontrol
samcontrol's picture

bought 500k at 30

Sun, 09/28/2014 - 01:36 | 5264218 Freddie
Freddie's picture

Norway's Statoil (STO) is down but a pretty solid outfit too.

Sun, 09/28/2014 - 06:36 | 5264361 samcontrol
samcontrol's picture

forward p/e is 11 on STO vs 8 on sdrl.
Divy4% vs 14% .... way older rigs...

Sun, 09/28/2014 - 20:15 | 5265755 Volkodav
Volkodav's picture

which is older rigs?    STO or SDRL?

what you know about AWCLF?   NADL?

where you look to follow these?

 

Sun, 09/28/2014 - 20:55 | 5265818 samcontrol
samcontrol's picture

SDRL has the most modern fleet of them all.
AWlcf is tiny just three rigs but extremely well managed .
Dividends seem safe.

Both are darts at a board in a casino just like any stock.

Mon, 09/29/2014 - 03:57 | 5266247 SAT 800
SAT 800's picture

Actually, I think you are right. buy low; sell high? isn't that the way it goes.

Sat, 09/27/2014 - 14:09 | 5262907 Livermore Legend
Livermore Legend's picture

Yes, that pesky little thing EROEI.....

Sat, 09/27/2014 - 14:21 | 5262933 Amish Hacker
Amish Hacker's picture

This is no time for arithmetical reality, Livermore, we're talking about a treasure trove worth nearly $900 billion, enough to cover the US budget deficit for...last year.  OK, never mind.

Sat, 09/27/2014 - 15:11 | 5263054 Rubbish
Rubbish's picture

A Trillion here, a Trillion there and before you know it...

 

Putin calls us all Bitchez, see my Gold and Oil

Sat, 09/27/2014 - 20:48 | 5263768 COSMOS
COSMOS's picture

The Russians can do a lot with a trillion dollars.

Sun, 09/28/2014 - 10:10 | 5264598 Citxmech
Citxmech's picture

The real questions here are what the net return will be on that oil, and how long will it take to bring what rate of flow online.  So far, nobody seems to have any solid answers on those points.

I'm sure it's "worth it" at this point to try to bring some production on line from the Arctic - but what does that say about the remainder of Russia's oil reserves that this is big news and the next big development push?

Big picture:  If this is the best option for Russia's oil industry right now in terms of new development, they must not have many other options that are any easier.  What does that tell you? 

Sun, 09/28/2014 - 12:31 | 5264886 emersonreturn
emersonreturn's picture

citxmech,

 

very interesting point, yes, it does tell us something.  it's as revealing about exxon's options as it is russia's.  the early claims on the kara sea were that it challenged SA's fields.  certainly many have suggested SA's sites are nearing their end. 

Mon, 09/29/2014 - 03:59 | 5266248 SAT 800
SAT 800's picture

It tells me they're going to have more geo-political clout than we will.

Sat, 09/27/2014 - 21:47 | 5263902 Lower Class Elite
Lower Class Elite's picture

9 billion barrels? Wow, impressive. That's about 3 1/2 months worth of global consumption. Take that, peak oil!

Sat, 09/27/2014 - 12:05 | 5262651 Jumbotron
Jumbotron's picture

HAHAHAHA !!

Go RIIIiight ahead Russia.  Tap into it.  Let's see just how IN-expensively you can get drill rigs out there.......extract said shit-ton of oil.....transport it BACK to terminal......refine it from what ever shape it's in.....(hint hint....it ain't LIGHT SWEET oil).....and then transport it to market.

Oh....and sell it in something other that Petrodollar.

Oh....it WILL be great for Russia and China.   And not so great for the world.  Because it will mean nothing for bringing down the world price of oil.  The supply will simply be gobbled up by China, Russia and India.  And especially China who will pay whatever it takes to keep their economic engine going.....to the detriment of the West.  Russia will get rich and more belligerent against the West.  And Europe and the U.S. will continue to slide into irrelevence.

But make no mistake......the Great Ponzi LOVES oil as it is a GREAT way to launder money and to blow another bubble.  But the Great Ponzi will fail like all ponzies.  And when it does.....no amount of oil will save it and those of us caught up in the Ponzi.

Sat, 09/27/2014 - 13:49 | 5262861 flapdoodle
flapdoodle's picture

You forget the other name for Russia is "Extreme Coldistan". They know how to operate under extreme conditions. A good example is the Lada automovile the Soviets made. A piece of crap otherwise, but worked great during the winter...

Sun, 09/28/2014 - 01:50 | 5264224 Volkodav
Sat, 09/27/2014 - 14:34 | 5262967 demoses
demoses's picture

You call this a ponzi? Fracking on the other hand is what? Well you got one thing right in your post - one just has to erase a few words "bla bla bla bla Petrodollar bla bla bla the Great Ponzi bla bla bla". Bravo! You are spot on!

Sat, 09/27/2014 - 16:28 | 5263215 Jumbotron
Jumbotron's picture

"You call this a ponzi? Fracking on the other hand is what? Well you got one thing right in your post - one just has to erase a few words "bla bla bla bla Petrodollar bla bla bla the Great Ponzi bla bla bla". Bravo! You are spot on!"

 

First of all, asshole, E V E R Y T H I N G in the world of energy extraction and production is A U T O M A T I C A L L Y a Ponzi because it is first and foremost fueled by F I A T  !!! 

Second....that oil is deepwater and also deep crust.  It's cooked.  It is NOT light, sweet crude of the cheap to extract and cheap to refine stuff that powered the first 100 years of our oil fed, Ponzi financed Global Utopia.

Third.....they're only able to get at this at ANY kind of reasonable cost because the Artic ice sheet has broken up a bit for whatever reason.....Global Warming....Al Gore flying around the world SPOUTING HOT AIR about Global Warming.....what ever.  But the Artic changes.....and changes fast.  The cost of setting up a drill rig, paying guys with the special know how and balls to live in that environment AND to go under A VERY COLD SEA TO DO UNDERWATER MAINTENANCE WHERE THERE ARE EVEN MORE STORMS THAN WHAT THEY GET IN THE GULF OF MEXICO OR EVEN THE NORTH ATLANTIC (BRENT)......well.....let's just say IT ISN'T GOING TO BE CHEAPER THAN THOSE AFORE MENTIONED FACTS....MUCH LESS DRILLING IN THE OIL PATCH OF TEXAS.

And where do you think, my Xbox One, masturbating in his mother's basement all day to stoner music, friend of mine does Russia get ALL THAT MONEY to do this ?????

From a Russian Computer with the Cyrillic version of CTRL-ALT-P.  In other words.....PONZI FIAT !!!

Run along, Junior.  I hear the timer going off on your Hot Pocket in the microwave.  Bon Apetit.

Sat, 09/27/2014 - 16:05 | 5263171 trader1
Sun, 09/28/2014 - 06:16 | 5264348 Gavrikon
Gavrikon's picture

Indeed!   Hahahahaha!!!

 

Fuck YOU Oboner!  Fuck you neo-con warmongers!  Fuck You NATO!!!!!

I could not be happier, personally.

Sun, 09/28/2014 - 08:53 | 5264479 effendi
effendi's picture

Jumbotron, if the Russians can operate coal mining operations well  inside the Artic Circle then I'm sure that the challenges to extract the oil will be overcome.

Also, why did the author of the above piece state that the Texas based US oil company must either lose its Russian investments or face the DOJ wrath? Couldn't the company find a third solution in delisting in the US and move the nominal headquarters outside the reach of Washington? (Mumbai, HK, Moscow, Singapore are all international cities with major corporations operating in them). Might be a good time for them to start using another currency as well to sell their oil.

Sat, 09/27/2014 - 12:22 | 5262691 edwardo1
edwardo1's picture

It's approximately ten days of global crude consumption.

Sat, 09/27/2014 - 12:38 | 5262736 Skateboarder
Skateboarder's picture

But in the mind of the guy who goes to the pump and fill up a few galons, a million, let alone a billion, sounds like forever. Never mind there are a jillion other fools like him thinking the same thing.

Sat, 09/27/2014 - 14:07 | 5262898 Livermore Legend
Livermore Legend's picture

'Nuff' Said, Punto...

Sat, 09/27/2014 - 14:27 | 5262951 holmes
holmes's picture

Gas at the pump can be had for under $3.00 in NJ. Somehow the resourceful energy companies keep finding the black gold. Amazing how the profit motive will incentivize people.

Sat, 09/27/2014 - 16:31 | 5263225 Jumbotron
Jumbotron's picture

"Amazing how the profit motive will incentivize people."

 

Amazing how Ponzi Fiat printed on a whim perversely incentivizes people. 

 

There...fixed it for ya.

Sat, 09/27/2014 - 12:38 | 5262731 Kirk2NCC1701
Kirk2NCC1701's picture

Obama: YOU DIDN'T DRILL THAT!

Putin:  YOU CAN'T DRILL THAT.  BITCH!

Sat, 09/27/2014 - 12:46 | 5262756 elegance
elegance's picture

That field? 10 days of world consumption. Whole basin? 100 days... Probably more expensive to recover than shale oil (LTO not the kerogen shit) as well. 

Don't really understand why GRU agent Durden has his panties twisted in a bunch.

 

Also these claims are eerily similar to those about Prudhoe bay. And that one never lived up to the hype.

 

Sat, 09/27/2014 - 13:42 | 5262847 I Drink Your Mi...
I Drink Your Milkshake's picture

Agreed.

You can bet your sweet bippy that production up there is more expensive. Not to mention the seasonal aspect that stems production.

There may have been early speculation for Prudhoe Bay that hovered around 25 billion barrels but once the wells were in place, the pre-production estimates were pulled back. Granted it's production has peaked, but it's exceeded output that was estimated in 1974. Guess you're referring to the investor hype, rather than the geo reports at the time. In the oil business you listen to the guy in denim, not the guy in Aqua Velva.

Sat, 09/27/2014 - 14:06 | 5262897 Livermore Legend
Livermore Legend's picture

.

Sat, 09/27/2014 - 16:32 | 5263226 Jurassic
Jurassic's picture

You missed the point. Its about how much money can Russia get from it, not how long it lasts for the world consumption.

Mon, 09/29/2014 - 12:37 | 5267207 Zerozen
Zerozen's picture

I hate it when people do these dumb "how many days of world supply?" calculations. This field doesn't have to feed the whole world's oil appetite.

A billion barrels is plenty, let alone 9 billion.

If you can get something like 250mpd of production from this field, which would be considerable, you'd have more than 10 years of production from the billion barrels.

Regardless though, the fact that we're looking at exploiting oil resources in these kinds of conditions should tell you something about how much harder it is getting to find oil.

 

Sat, 09/27/2014 - 13:08 | 5262793 junction
junction's picture

Compare this oilfield find to the thousands of fracked up gas wells in the USA, each well with an expiration date five years or sooner from now.  Or compare the Kara Sea find with the solar power farms that will cost tens, if not hundreds of millions to create for non-baseline power using solar panels that start degrading after five years.  Solar power farms that have the long term viability of Solyndra.  Farms only really effective at killing birds, "streamers," including bald eagles.  For Obummer's template to ruining this country's economic viability on orders from his NWO masters, look no further than Michelle's school lunch program.  A lunch program that requires unpalatable food that leaves school children hungry, with much of the food (which doesn't have to be organic or tasty) tossed in the garbage.  Obama NWO pragrams includes a mix of CIA mercenaries (including ISIL headhunters) in the Middle East,  sanctions to support Obama's Ukraine thieves and the arrests and convictions of tens of thousands of Americans using illegal wiretaps and perjured testimony from law enforcement (especially U.S. prosecutors). All programs supported by the Republicans as well as Democratics in Congress.  The USA is in a death spiral. 

Sat, 09/27/2014 - 13:51 | 5262867 Jack Sheet
Jack Sheet's picture

Correction
"Michael's school lunch program"

Sat, 09/27/2014 - 14:03 | 5262891 Livermore Legend
Livermore Legend's picture

Exactly...

Sat, 09/27/2014 - 14:41 | 5262983 JLee2027
JLee2027's picture

Peak oil ?

Sat, 09/27/2014 - 18:09 | 5263396 HowardBeale
HowardBeale's picture

" Arctic field may hold about 1 billion barrels of oil"

Now if they can find another 99 spots like that one, they can add about 3 years to the Age of Oil; if not, they added a workweek wrapped with weekends...

Sat, 09/27/2014 - 20:34 | 5263741 HowardBeale
HowardBeale's picture

2 thumbs down? Imagine the severity of the disturbed mind that would give the thumbs down to math...

Sat, 09/27/2014 - 22:41 | 5264010 Volkodav
Volkodav's picture

education system do that...

Sun, 09/28/2014 - 06:17 | 5264349 Gavrikon
Gavrikon's picture

It's jis' dat math be racis' in' sheeit!

Sun, 09/28/2014 - 13:15 | 5264953 citrine
citrine's picture

Plus 1. Very clever

Sun, 09/28/2014 - 01:04 | 5264189 palmereldritch
palmereldritch's picture

Those numbers are irrelevant if they have located a reservoir with the porosity, permeability and rejuvenation of KSA  but the public disclosure is one data point and it can be extrapolated to awesome potential numbers!

That said, the proximal crustal thickness of Greenland is intriguing.

These geologists are Russian school and they do not 'wild cat' per se.  They re-wrote the science awhile ago (regardless of what the rubes and non-players believe).

Sun, 09/28/2014 - 02:42 | 5264254 fel.temp.reparatio
fel.temp.reparatio's picture

...still, one hell of a paycheck for that workweek (wrapped with weekends) no?

Sun, 09/28/2014 - 01:34 | 5264212 Gusher
Gusher's picture

Gusher's axiom once again confirmed:  We find oil almost every place we look for oil.  FYI, ND's Baaken is huge. But Siberia has a shale basin 20 times bigger!  And a huge shale oil find discovered in Australia a couple years ago. We are not running out of oil.

Sun, 09/28/2014 - 06:09 | 5264342 tostaky06
tostaky06's picture

winter will be good :)

Sun, 09/28/2014 - 06:09 | 5264343 tostaky06
tostaky06's picture

winter will be good :)

Sun, 09/28/2014 - 06:30 | 5264358 Walt D.
Walt D.'s picture

12.5 days for the whole world

56 days for the US

100 days for China.

Sun, 09/28/2014 - 08:17 | 5264432 sessinpo
sessinpo's picture

OceanX      " Arctic field may hold about 1 billion barrels of oil"

 Big find!  should last, how long?

 http://en.wikipedia.org/wiki/List_of_countries_by_oil_consumption

 http://www.eia.gov/countries/index.cfm?view=consumption

----

Crap like that was said in the early 80's. People that think that like that are as bad as the  global warming progressive alarmists.

Back in the 80's, oil was predicted to run out about now. Instead we have increased production and trillions in more barrels of oil discovered. Get over it. And BTW, we are entering global cooling. Climate change is a farce because climate always changes.

Sun, 09/28/2014 - 08:53 | 5264480 overmedicatedun...
overmedicatedundersexed's picture

do you want truth or do you want your vision reinforced ? for truth one must find facts and then surprise allow the facts to enter into your vision. fact: we world wide are still making gasoline/oil powered cars and airplanes run on oil products. long before oil becomes scarce, we will have stopped making these vehicles dependent on oil. a few electric powered cars less than 1% is not what I mean. ergo those whose economies depend on oil have not changed one iota. so oil based economies are still viable. when that changes(mass production of oil dependent vehicles) get back to me.

Sun, 09/28/2014 - 14:05 | 5265022 HowardBeale
HowardBeale's picture

At "OceanX" of denial:

You forgot:

  • "Cigarettes don't cause cancer"
  • "Contraception is a sin"
  • "My god is the only god"
  • "Wall Street provides liquidity"
  • "CNBC is a news program"
  • "Science is a conspiracy"

And if you are interested--which you aren't--you could look into the Emmisions Released On Net Energy Extracted (ERONEE); hint: it's an exponential function in a declining EROEI world, so you are going to have to consult with someone that has math abilities beyond addition (read: not your parents) to gain an understanding...

Sun, 09/28/2014 - 11:10 | 5264716 mc225
mc225's picture

if the usa uses 20mil per day, that's 50 days for a billion.

Sat, 09/27/2014 - 11:57 | 5262625 Cognitive Dissonance
Cognitive Dissonance's picture

Right about now the USA is drawing up plans to bomb and then invade Russia in order to bring freedom and democracy to the Soviet heathens and their oil.

Sat, 09/27/2014 - 11:58 | 5262631 NoDebt
NoDebt's picture

At this point I'd be more willing to belive the Russians will invade the US than the other way around.  Red Dawn style.  They'll bypass Detriot, obviously.

Sat, 09/27/2014 - 12:09 | 5262657 BlindMonkey
BlindMonkey's picture

Nice fantasy but... Napoleon said ‘Never interfere with an enemy while he’s in the process of destroying himself.’

Sat, 09/27/2014 - 12:17 | 5262674 TahoeBilly2012
TahoeBilly2012's picture

That oil belongs to "Gods chosen people" and god dammit, they will get it!

Sat, 09/27/2014 - 12:30 | 5262715 sodbuster
sodbuster's picture

Yeah!! What the heck is OUR oil doing way up there!!!???

Sat, 09/27/2014 - 14:13 | 5262914 SilverTech
SilverTech's picture

What's our oil doing under their ice?

Sat, 09/27/2014 - 12:41 | 5262743 Anarchy 99
Anarchy 99's picture

priceless

Sat, 09/27/2014 - 22:39 | 5264005 Volkodav
Volkodav's picture

I need look that up if he said that before or after Borodino...

 

 

Sat, 09/27/2014 - 12:35 | 5262726 GooseShtepping Moron
GooseShtepping Moron's picture

"Detriot"

Nice one. If that was a typo, it was a very happy accident. If it was intentional, it was brilliant.

Sat, 09/27/2014 - 13:05 | 5262787 NoDebt
NoDebt's picture

Nothing I do is an accident.  Except when I have an accident.

Sat, 09/27/2014 - 13:08 | 5262791 peter4805
peter4805's picture

I thought it was spelled "Debtroit."

Sat, 09/27/2014 - 12:01 | 5262638 Winston Churchill
Winston Churchill's picture

Updating their plans Cog.Updating.

Sat, 09/27/2014 - 12:23 | 5262680 juangrande
juangrande's picture

No comments yet on the link to CO2 warming "possibly" being the reason this part of the Arctic is more accessible and therefore, more CO2 emissions will be possible with extraction of more oil? You see, the hydrocarbon industry knew exactly what they were doing!! There's probably some great deposits in Antarctica, too.

 

As a possible plus for the environment, polar bears ( depending on infrastructure required) will have more places to rest from swimming and more food ( dumps, drunken russkies wandering around at night, etc).

Sat, 09/27/2014 - 13:02 | 5262783 juangrande
juangrande's picture

6 downvotes showing lack of sense of humor amongst the new breed of hardcore ZH'ers.

Sat, 09/27/2014 - 14:09 | 5262904 in4mayshun
in4mayshun's picture

Down votes due to the majority of ZH's not buying into the bull crap lies that CO2 from human activities affects the weather. That's like saying my house stinks because some ants farted.

Sat, 09/27/2014 - 14:20 | 5262931 fockewulf190
fockewulf190's picture

With 7 billion ant farts...you best not have any house partys.

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