Iceland On Cusp of Oil Boom

  • Posted by a hidden member.
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    Oct 06, 2013 9:51 PM GMT
    Particularly good news for Europe and bad news for the Russians.

    http://www.nytimes.com/2013/10/02/business/energy-environment/iceland-aims-to-seize-opportunities-in-oil-exploration.html?partner=rss&emc=rss
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    Oct 13, 2013 1:33 PM GMT
    For the average white Liberal, it's all bad news.
  • DCEric

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    Oct 13, 2013 1:38 PM GMT
    As someone who works in the US oil regulatory industry, it will be at least 15 years before this is up and running. Oil exploration is not oil production. Also the oil will cost more from Iceland than Russia. Iceland is more liberal and therefore actual protects workers and the environment. After that any oil will have to be shipped, which is more expensive than sending it in by truck (lorry) or pipeline.
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    Oct 15, 2013 3:20 PM GMT
    DCEric saidAs someone who works in the US oil regulatory industry, it will be at least 15 years before this is up and running. Oil exploration is not oil production. Also the oil will cost more from Iceland than Russia. Iceland is more liberal and therefore actual protects workers and the environment. After that any oil will have to be shipped, which is more expensive than sending it in by truck (lorry) or pipeline.


    It will potentially cost more. More regulation doesn't necessarily mean costlier - though in many cases it does. The extraction costs though may end up being less than Russia's given the falling costs of these technologies.

    That being said, while it might cost more, current prices are substantially above the cost of extraction so the overall cost could fall given that markets anticipate. It also suggests there are a lot more resources to be found in places that we didn't think would have extractable energy sources. Finally, Iceland also carries a lot less political risk than Russia does which has turned off the taps before. It's also the dirty (or clean?) secret as to why much of Europe has invested so heavily in alternative energy - not because they care as much about the environment but because of a fear of Russia.

    I am curious though - is a supertanker really more expensive to ship on a per mile basis than say a truck?
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    Oct 15, 2013 10:30 PM GMT
    Great news indeed. Now they can give us our £1billion back.
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    Oct 16, 2013 5:31 AM GMT
    riddler78 said
    I am curious though - is a supertanker really more expensive to ship on a per mile basis than say a truck?


    Obviously, shipping is exponentially cheaper than trucking or trains. I'm not sure about the comparison with pipelines. And yet... all modes are possible in our region, and all are used. I wonder why?

    Obviously part of the answer has to do with scale and distance. Where I live, we are mid-way between two marine terminals so tankers go past every couple of hours, but all of our fuel comes by truck from the PDX terminal. We have the highest fuel prices in the region.

    But why do we have both pipelines and tankers shuttling crude down from Alaska? One would think that the most efficient mode would win out. Hard to find anything rational about it on the internet.
  • camfer

    Posts: 892

    Oct 16, 2013 5:56 AM GMT
    mindgarden said


    But why do we have both pipelines and tankers shuttling crude down from Alaska? One would think that the most efficient mode would win out. Hard to find anything rational about it on the internet.


    Redundancy makes delivery more secure, theoretically speaking. I wish my electric grid, natural gas system, and land line telephones all had more redundancy.
  • camfer

    Posts: 892

    Oct 16, 2013 6:30 AM GMT
    Error saidWhat's a landline telephone?


    I'll wish for redundant cell towers once we get our first one!
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    Oct 16, 2013 6:46 AM GMT
    Cell towers are still hooked up to land-lines. When some doofus with a back-hoe cuts the fiber optic line, it all goes down icon_sad.gif