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Khurais a Drop in the Bucket

June 16, 2009

Analysis of:Saudi Aramco Starts Up Production at Khurais Oil Field | www.rigzone.com

It's important that the secretive Saudis have announced a large new field coming on line, but the Khurais field's reported size - 27 B bbls. - is roughly 10% of the prior Saudi total (if such estimates are credible), and merely 2% of proven global reserves. It is no panacea, perhaps even for the Saudis.

Costs and Quantities will be the Keys

June 16, 2009

Analysis of:U.S. Gas Hydrates Find Has Worldwide Implications | www.rigzone.com

Finding ways to identify and reach gas hydrates is important, but the key will be cost and quantities, compared both to traditional natural gas and oil. Being near existing infrastructure will help, but the production economics need to be better understood.

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