Finally: The Link To Leonardo's Essay on Oil: The Next Revolution

This essay has received a lot of press in the past few days. For any number of reasons (most of which have to do with "I am already a believer, I don't have time to read another essay on how big the Bakken is") but this morning, taking a break from reading the autobiography of Stephen Spender, I was alerted to the article (again) by Don. 

Even if you feel as comfortable with the Bakken as I do, you will enjoy reading section 6, starting on page 56 and running through page 61 of the PDF link:

Full Text of "Oil: The Next Revolution: The Unprecedented Upsurge of Oil Production Capacity and What It Means for the World"

Much of this was written in investment letters back in 2008, "scamming" folks to subscribe to investment newsletters. Even Snopes felt it necessary to weigh in on the "Bakken hype":

According to news accounts, although new drilling techniques have greatly increased oil production in Bakken formation (sic) in recent years, as of February 2011 that region was still yielding less than half a million barrels per day. Last updated March 10, 2011. 

It looks like Snopes needs to update its assessment. But I digress. Forget the Snopes link. Do not pass "go." Do not collect $200. Go directly to the first link above, and then skip directly to section 6, page 56.

By the way, the question has been asked why Saudi seems content with increased production in light of dropping oil prices. The article sent to me by Don, included this Saudi story link. So, now four reasons why Saudi continues to pump so much oil despite dropping prices:

a) Saudi was preparing for the Iranian sanctions, and overshot the mark
b) Saudi is determined to "destroy" Iran economically; Iran is its biggest threat
c) Saudi is determined to destroy the nascent tight shale revolution
d) Saudi feels sorry for the American consumer paying nearly $4.00/gallon

Three of the four possibilities above are all very likely; only one is unlikely.

Speaking of Iranian sanctions, Platts said this: the sanctions mean squat. The sanctions were due to go into effect July 1, 2012. This was posted yesterday...repeat yesterday...repeat yesterday...

The US Thursday exempted China and Singapore for 180 days from sanctions levied against countries who trade with Iran.

In announcing the decision, Secretary of State Hillary Clinton said in a statement that both countries, "have significantly reduced their volume of crude oil purchases from Iran."

The State Department said the latest action brings to 20 the number of countries that have now qualified for such an exception.

So, there you have it. Who knew that Iran sent oil to at least 20 countries?

Let's see:

• US announces sanctions. 
• Saudi announces production boost.
• US announces exemptions.
• Saudi ....

Wow, this posting really digressed.