As usual, here is the place where you get the unfettered truth about what's going on in the world and today I will pull back the curtains on the BP oil leak and what will go down as one of the most important discoveries of the 21st century - that oil is abiotic - produced inside the Earth and is not simply rotting dinosaurs and old plants (aka "fossil" fuel).
The amount of oil seeping into the Gulf of Mexico, at this very moment, emerges from an *ocean* of oil that is almost as large as the Gulf itself! This ocean of oil didn't appear there because it was a giant fish graveyard. It was not a prehistoric jungle 20 miles high and 500 miles wide. This oil is abiotic oil and is produced by geological actions in the earth itself.
Abiotic oil is created by intense pressures on carbon, hydrogen, oxygen and sulphur. The sort of pressures required to create oil are natural as one gets down a certain depth under the heavy crust and in the upper layers of the mantle. In some ways oil is the natural lubrication system for the crust and the upper layers of the mantle as it shifts and orbits the planet's core.
The best think-tanks have known this for several decades now and have kept it hush hush to keep prices of oil high and help the oil industry. This was necessary because oil companies have huge assets and those assets are put to good use in infrastructure, research and development in more than simple oil production. Capitalism requires that certain commodities be given a value above and beyond the cost of procurement. Now that we have a leak which will not be able to be plugged, it's time to prepare and explain what exactly is going on with the Deep Horizon well and why it is almost impossible to cap that Genie back in the bottle.
The underground oil oceans are under far more pressure than their ground well brethren and contain much more oil. At the depth of the Deep Horizon well, one mile under the sea the per inch pressure is 2640 pounds per square inch. The ocean floor in these locations is very dense and can contain the underground oil oceans. Even so, in the Gulf, an Exxon Valdez size amount of oil naturally seeps into the Gulf every year. This under crust oil is seeping into all the oceans, but the Gulf, due to its size and geographic position, makes the seepage measurable.
So BP can be excused a great deal of ignorance in dealing with this new type of well. The typical cures are not working and they will not work. Think how much pressure this underground oil must exist with to support the thin crust between it and the ocean! The odds are the Gulf's underground oil ocean exists between 15,000 and 30,000 psi at all points. Most oil equipment is not made to handle the upper end of this pressure spectrum. So caps blow off, plugs fail and almost nothing can stem the flow of oil now merging an ocean of oil and the Gulf of Mexico.
The two relief wells now being drilled are probably not a good idea, because unlike a ground well this may not "divide" the pressure and create 3 wells with manageable 5,000 psi flows. In fact, depending on the size of this ocean of oil, twenty or thirty relief wells might still only bring the psi down to 10,000! So the relief wells may just create 3 leaks where there was one before. If this is the case, BP seriously needs to fire their current geologists and hire some of the Russian abiotic oil scientists to assist them in corralling the flow from this oil ocean. Watch the news, and hope that BP actually understands what it is dealing with because the relief well option illustrates some of the senior geologists at BP do/did not think the oil is abiotic. If, in August, when the relief wells are finished and we have 3 leaks in lieu of one you will understand why. After reading this you will know more than the BP geologists.
So rejoice. Do not crucify BP for their ignorance in this matter. Thank them. They have, accidentally, proven oil is abiotic and that "Peak oil" is a myth. Do not expect prices to reduce that much though, because this abiotic oil is generating huge new expenses to control and recover. The very good side of this equation is that it wont run out - until the planet itself does. The energy crisis - which was always a myth - is over. Don't let the government get away with issuing no new undersea drilling permits. BP will need to be there for decades and you want other companies to develop experience in this regard. Tapping abiotic oil from under the seas will require all the world's great oil companies expertise. Geologists will need to get better educations than the one's they have gotten. The truth is geology is almost as 'mystical' a science right now as weather prediction. No one knows what is at the core, in the mantle or exactly how a planet forms in the first place and its relationship to the solar body it orbits.
Well...some people do, but they either work here or get their information here where no question is impossible to answer and where peeks behind the curtain of life are par for the course. ;-)
Looks like my "soft release" of information has been successful. The energy companies are gently announcing that there is no shortage of fuel. This was necessary for their own financial health as well. In boom times more projects and construction creates more demand.
For all you oil engineers looking for the next big score...here you go...courtesy of good ol' SDAI:
And this explains WHY I released the data:
Now get going, secure those drilling permits, encourage industry and the market with optimism! The peak oil propaganda stuff worked fine at generating market action and justifying prices during boom times, but now is just another anchor on the markets and industrial growth.
We're about to create a new boom and make the 21st century all it was promised to be...and more.