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Ireland's first oil well to yield 4,000 barrels per day
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Aurora



Joined: 24 Jan 2007
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PostPosted: Thu Mar 15, 2012 12:23 pm    Post subject: Ireland's first oil well to yield 4,000 barrels per day Reply with quote

Quote:
BBC News - 15/03/12

An Irish company says it has found the Republic's first viable oil well.

Oil exploration company Providence Resources says it has made the discovery 70km off the Cork coast.

The firm said its exploratory Barryroe oil well delivered double the amount of oil needed for future full-scale extraction to make commercial sense.

The exploratory well yielded almost 4,000 barrels of oil a day. Providence Resources Plc also has drilling permits in Northern Ireland.

Article continues ...

A mere drop in the ocean. Wink
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Tarrel



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PostPosted: Thu Mar 15, 2012 12:53 pm    Post subject: Reply with quote

So, that'll be 4 thousandths of a percent of the World's daily demand then.. Rolling Eyes
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Tarrel



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PostPosted: Thu Mar 15, 2012 1:02 pm    Post subject: Reply with quote

Mind you, if they kept it all, it's very roughly enough for 150 litres per household per year, or enough for around 2,500 miles of transport per household per year in a small fuel-efficient diesel car.

An over-simplification, I know.
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vtsnowedin



Joined: 07 Jan 2011
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PostPosted: Thu Mar 15, 2012 1:04 pm    Post subject: Reply with quote

Cool You have to start somewhere. Now if they can just find another 176,000 barrels per day Ireland will be self sufficient in crude. Rolling Eyes
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clv101
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PostPosted: Thu Mar 15, 2012 1:12 pm    Post subject: Reply with quote

It's very unlikely this 4000 bpd well will be the only productive well. They said on the radio this morning that the field was something like 16 million barrels. With horizontal wells (which this first well isn't) flow rates will be significantly higher. It always used to be the case that the first to be found tended to be large but not the largest field in a new province.

In short this is big news for Ireland. It's quite possible Ireland will be earning many hundreds of millions of dollars per year from this - with a population less than one tenth the size of the UK, that would be like billions of dollars in the UK.
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Tarrel



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PostPosted: Thu Mar 15, 2012 1:13 pm    Post subject: Reply with quote

Or to put it another way, 4,000 barrels a day will allow each of the 128,000 family owned farms in Ireland to use a tractor for roughly 60 hours per year.

You can see where I'm going with this...even a tiny amount like 4,000 barrels a day becomes useful when one thinks about using it only for the bare essentials. 60 hours of tractor use doesn't seem much, but I'd happily take it as a break from doing the work myself! I wonder how many of my hours would be freed up by 60 tractor-hours?
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woodburner



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PostPosted: Thu Mar 15, 2012 1:27 pm    Post subject: Reply with quote

It would depend what you were doing. Some tasks would be impossible single handed. On the other hand 4000 barrels out of the ground is not 4000 usable barrels. There is the overhead for refining and transport.

There is also the problem of being a target for invaders (one in particular who likes this sort of approach). Make an accusation of t*****ism, and send in the troops.

(***** Embarassed that looks like an error)
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emordnilap



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PostPosted: Thu Mar 15, 2012 1:33 pm    Post subject: Reply with quote

clv101 wrote:
It's quite possible Ireland will be earning many hundreds of millions of dollars per year from this - with a population less than one tenth the size of the UK, that would be like billions of dollars in the UK.


It's also possible that Providence will be able to write off its world-wide expenses against this find (a la Shell), such is the perverted system they helped create. Combine that with - take your pick - how's about low royalties, low corporation tax, the 'double Irish' taxation, the putting of this oil on the world market rather than keeping it for use in Ireland, the off-shoring of profits, the very favourable residency rules, there are no doubt tons of other loopholes.

Ireland will probably gain the price of about four barrels in a hundred (going by Google Ireland's effective tax rate of 4%).

What a begrudger. Laughing
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Tarrel



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PostPosted: Thu Mar 15, 2012 4:39 pm    Post subject: Reply with quote

Quote:
It would depend what you were doing. Some tasks would be impossible single handed. On the other hand 4000 barrels out of the ground is not 4000 usable barrels. There is the overhead for refining and transport.


Yes, although I read somewhere that you actually get slightly more than a barrel of refined products from a barrel of crude. I guess offset against that is the energy cost and, as you say, transportation.

Maybe switch to using old landrovers. I hear they'll run on practically anything. Just turn up at the well-head and ladle it in!

Seriously though, I do wonder how long it will be before nations start looking to keep their oil resources for their own use. Perhaps the commercial model will change, with oil-companies being paid for their expertise, labour and equipment to extract the oil on behalf of the nation's government, rather than being given the rights to extract the oil and then taxed on the revenues.

At the end of the day, in an era of diminishing reserves, as an oil-producing nation what would you rather have; a supply of oil that you could use prudently and strategically to maintain food production and essential transportation at predictable cost, or a pile of $US that may turn out not to be worth the paper they're written on?
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emordnilap



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PostPosted: Thu Mar 15, 2012 4:47 pm    Post subject: Reply with quote

Tarrel wrote:
At the end of the day, in an era of diminishing reserves, as an oil-producing nation what would you rather have; a supply of oil that you could use prudently and strategically to maintain food production and essential transportation at predictable cost, or a pile of $US that may turn out not to be worth the paper they're written on?


Just substitute 'nation' with 'globe'. Wink
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Tarrel



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PostPosted: Thu Mar 15, 2012 4:52 pm    Post subject: Reply with quote

Quote:
Just substitute 'nation' with 'globe'.


In that case we'd all need to be thinking, and acting, as one. Don't think we're quite there yet, unfortunately. Sad
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Aurora



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PostPosted: Thu Mar 15, 2012 5:39 pm    Post subject: Reply with quote

Quote:
Oil exploration company Providence Resources says it has made the discovery 70km off the Cork coast.

70km off the Irish coast? Does the oil actually belong to Ireland? Smile
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PS_RalphW



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PostPosted: Thu Mar 15, 2012 5:53 pm    Post subject: Reply with quote

Most countries claim mineral rights up to 200 (250 ?) miles offshore, where there isn't a competing claim from another country in range. Then a treaty is drawn up, which generally draws a straight line dividing the sea bed between the two.

That is why the UK claims Rockall, because it gives mineral rights to a huge area of sea bed. ( 200,000 square miles)
It is also why Argentina is so keen the get the Malvvinas back, and why the UK will never let the Falklands go.

Beyond 250 miles, I guess it is freeforall, or some obscure international law of the sea applies,
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emordnilap



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PostPosted: Thu Mar 15, 2012 6:44 pm    Post subject: Reply with quote

Aurora wrote:
Quote:
Oil exploration company Providence Resources says it has made the discovery 70km off the Cork coast.

70km off the Irish coast? Does the oil actually belong to Ireland? Smile


Not really. It belongs to Providence. I doubt that Ireland will benefit very much. Confused

But I get what you're asking really. At this particular location, if not Ireland, then who?
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kenneal - lagger
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PostPosted: Thu Mar 15, 2012 7:48 pm    Post subject: Reply with quote

Russia are claiming the continental shelf that extends outwards from Russia. Hence oil discoveries in the Arctic almost to the Canadian 250 mile limit are Russian ("And we've got the bomb to prove it" says Putin)
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