This article was orginally posted on Subrosa blog and is reproduced here with permission.
I was casually reading through my Tweets when I saw the following from Captain Ranty “The Russians will be pleased to see Libya normalise. They were the only f****** finding anything. BP – nowt. Shell – zip. Russia 7 wells, 7 finds.”
This reminded me of a bit of research I carried out a few months ago which was prompted by an article I’d read on the web about the success of Russian oil prospecting. They’d been very successful and this had been attributed to research, which had been carried out in the late 1940s and early 1950s. Due to a shortage of oil in Russia at the time and a lack of potential oil imports the Russian had decided to look at hard at what oil really was and where it was to be found.
They discovered that oil was, in fact, produced deep within the earth and flowed up through deep faults into reservoirs. At the time this was a fairly wild thing to suggest and it gained no traction at all in the West. Since then however, they have gone on to explore in areas, which do not fit the traditional topology for oil prospecting and have been pretty successful, just as Captain Ranty suggested in his tweet.
They drill deeply, very deeply. Much deeper than Western Oil companies which is no surprise given the traditional search for oil is looking for decomposed dinosaur and other creatures residue. The Russians don’t believe a word of “fossil fuels” or of peak oil for that matter.
Which brings us neatly to another group of people who have trouble with oil, our environmental friends or Greenies. They don’t like oil because it produces CO2, which is a very bad thing, although it isn’t. They have managed to have oil exploration completely stopped or curtailed to the extent that there are supposed shortages and of course it’s running out. The oil companies are no angels that’s for sure and neither are the futures commodity oil speculators.
So oil could be plentiful, cheap and last for a very long time. The fact that it is becoming ever more expensive, duty hikes notwithstanding, causes us all major headaches and problems. The cost is passed onto to us for the petrol we buy, the goods we buy which are delivered to the shop using oil and of course every sort of item, which contains or is contained by oil based products. It is also still used for heating especially in its gaseous form the price of which also increases beyond which is sensible.
The bottom line is Russia has demonstrated significant success in finding new oil in significant quantities by using science to determine what is actually possible rather than relying on discredited science mixed with global warming fairy stories as we in parts of the west do.