I like to listen to voices outside of the mainstream, but I don't buy everything I hear. I bumped into this one from Joseph Farrell (click here) who I like for his geopolitical insights into what the Banksters are up to. He links to this piece:
You'd think a discovery equivalent to Saudi Arabia would have been pretty big news, but I hadn't heard about it. Let's spend about 5 minutes and dig into this. The announce was in January. The current company market capitalization is roughly 900M$. CONCLUSION: This isn't a very big deal.
Here's Linc Energy's June Corporate Presentation (click here). Here's what I see straight out of the chute from this presentation:
- First reference to this in the company presentation is page 4 and more than half-way down the page. CONCLUSION: Its not that important, otherwise the company would be leading with this.
- Its shale oil (pg 4) which is a lot more expensive and harder to get especially out in the boonies with little infrastructure.
- First discussion of this is on page 17 of the company presentation (again its not that important).
- The money page is page 19 where the "Estimated Recoverable Resource" is about 1/3 the size of one USA shale-oil field (Texas Eagleford) at 3.5B BBL. This is enough to supply the world for four months.
CONCLUSION: This discovery doesn't significantly impact the Peak Oil thesis, although it (and discoveries like the North American Shale Oil discoveries) could prolong the period prior to a significant decline in oil production.
This is a pretty quick evaluation. Let me know where I'm wrong. I'd be really happy if the Peak Oil thesis ended up being wrong (insignificant as far as the global living standard is concerned) although I don't see any evidence for that outcome, yet. Instead I see the global economy slowing down everytime the price of oil goes over $100 and little or no global growth in liquid fuels consumption. It seems to my that "Peak Oil" is one of the main factors limiting the world "going back to normal" economic growth after the $145/BBL oil triggered global financial crisis.