Naijamericana:

But, further crude oil discoveries will be more expensive and of lower quality in the future.

More expensive, yes........Lower quality, hell to the no.....If deposits are sour, they simply process it and its factored into the cost of producing
Crude exploration costs will always pay for itself. Until they stop trading crude oil in the "markets", it will always be profitable no matter what. Crude oil price is speculative. Right now, it averages 25bucks per barrel to produce and they sell for 90-100 per barrel. Sweet margins. If the cost to produce rises to 100 per barrel, dare I say they will sell at 150 or even more. As long as there is demand and the stingy guys in wall street still smoking "la la", crude will be profitable

davide470: BP just announced a new huge discovery in the Gulf of Mexico, and this is one of the most exploitated oil zones in the world, yet there is still Oil in it..

Nothing, I say, Nothing can replace the 'fossil fuels' (Original Crude Oil).. Crude Oil is here to stay, and stay it will..

Algae matter no be today.

Sorry to bust your bubble, there was a recent even greater find in Australia rivalling that of Saudi reserves; these and as additional more finds are being made, couple with with this latest researched method of producing oil means the commodity is on its way to becoming dead cheap (hopefully cheaper than bottled water).
For Nigeria, this means less oil money and less reason for in-fighting and more reason to diversify the economy and an end to name calling - and the emergence of the real parasites who in real terms contribute no effort to economy other than mere lip service.
Some ppl should be careful about what they are praying for.

Afrobasic: With this invention, natural crude oil prices would fall drastically...

Thanks Science!

Yep, that means Nigeria's oil will become useless.

Good !

Mattex001: Story Story... Most of these innovations dies at the grassroot let's watch and see how far this would go..

Dat depends on d challenges facing d processin technique , eg cost of running d whole thing.

If d cost of converting it 2crude I̶̲̥̅̊s̶̲̥̅̊ a lot cheaper dan d 'status quo', den it will be success, but if it will require a gallon of petrol 2run d machine dat will make a cup of crude oil, den...U̶̲̥̅̊ know d rest of d story...

blink182: You are the one not familiar with oil exploration and production, before you even start to argue, go and research what oil exploration cost in average, money invested in developing new fields, then check what the oil majors have invested in deep offshore fields all over the world.

This project will die in the lab. No need for sentiments just work with facts to open your eyes to reality. I do not have time to start explaining the sort of debts the oil majors are in to finance their operations. Agreeing that this crude oil has an immediate future-10 to 20 years to become mainstream material is like agreeing that dangote will be happy and support the government in making our refineries run at full capacity to sell pms at N25 a litre after he has borrowed trillions of naira already yielding interest...hell no, instead he could even go as far as toppling the government.
Do your research.

IF it becomes a mainstream process that can be harnessed in commercial quantities. Note the emphasis on 'if'. This is unlikely however. But just I case it does, the oil companies will be the first to cash in on it. They are ENERGY companies and will never allow any newbies to displace them, irrespective of their current natural crude commitments.

Afrobasic: With this invention, natural crude oil prices would fall drastically...

Thanks Science!

and Nigeria is doom because this crude oil is only our source income as a nation

phuck_NL:

More expensive, yes........Lower quality, hell to the no.....If deposits are sour, they simply process it and its factored into the cost of producing
Crude exploration costs will always pay for itself. Until they stop trading crude oil in the "markets", it will always be profitable no matter what. Crude oil price is speculative. Right now, it averages 25bucks per barrel to produce and they sell for 90-100 per barrel. Sweet margins. If the cost to produce rises to 100 per barrel, dare I say they will sell at 150 or even more. As long as there is demand and the stingy guys in wall street still smoking "la la", crude will be profitable

The primary quality of crude oil that has made it so valuable and versatile as an energy source apart from its high energy density is its historically high energy return on energy invested, which sadly has been falling as we continue to use up all the easy to access oil.
And if this trend should continue, there will come a time when the energy effort required to drill 1 barrell of oil will be close to or equal to 1 barrel of oil. At that point irrespective of the monetary value oil will no longer be able to perform as an energy source.

Tanx.....Im followin dis post pass twitter. relatin 2my project

phuck_NL:

More expensive, yes........Lower quality, hell to the no.....If deposits are sour, they simply process it and its factored into the cost of producing
Crude exploration costs will always pay for itself. Until they stop trading crude oil in the "markets", it will always be profitable no matter what. Crude oil price is speculative. Right now, it averages 25bucks per barrel to produce and they sell for 90-100 per barrel. Sweet margins. If the cost to produce rises to 100 per barrel, dare I say they will sell at 150 or even more. As long as there is demand and the stingy guys in wall street still smoking "la la", crude will be profitable

What is the difference between light sweet and heavy crude oil?

I pray that nigeria oil company will divert their source of energy so that we won't be taken unaware.....shale oil,biofuel...the western scientists are not sleeping. I thought NNPC opened a dept for renewable energy,what has happened since?

I sorry for Nigeria!

Let us remember that algae is a type of higher plant that is rampant! These western scientists are always working,they mean business and I know that they will definitely mass produce this technology. Its all about being energy independent .Look at a country like brazil,they have fossil fuel and are at the fore front when it comes to biofuel,biodiesel n biogas! They even have filling stations for biofuel.

Naijamericana:

What is the difference between light sweet and heavy crude oil?

They are different but not polar opposites.

Sweet crude contains little or no sulphur as opposed to sour crude which is rich in sulphur.
Heavy crude as the name implies, contains heavy compounds which make it very viscous and therefore, difficult to produce, you most likely have to do EOR to produce this unlike light crude which may flow naturally from production wells.
Sour crude has disadvantages like corrosion of pipes (due to its sulphur content) so it is less desirable than sweet crude; and the extra cost of producing heavy oil makes lighter crude a preference above it.

Its only a dormant mind that thinks and says ,"its impoissible"! I'm not saying nigeria should forget fossil fuel,let the FG make policies that will encounrage this and start investing on it from the proceeds of fossil fuel sales instead of looting it,, so that the country will have something to fall back on when things change. I admire and envy countries like south africa,china,south korea,japan,germany who are not oil producing countries but have strong economy.

Kay-Dee:


They are different but not polar opposites.

Sweet crude contains little or no sulphur as opposed to sour crude which is rich in sulphur.
Heavy crude as the name implies, contains heavy compounds which make it very viscous and therefore, difficult to produce, you most likely have to do EOR to produce this unlike light crude which may flow naturally from production wells.
Sour crude has disadvantages like corrosion of pipes (due to its sulphur content) so it is less desirable than sweet crude; and the extra cost of producing heavy oil makes lighter crude a preference above it.

Ok...what determines the price of crude oil worldwide?

Naijamericana:

Ok...what determines the price of crude oil worldwide?

The price is determined by various factors some of which are; supply and demand and a little speculation of future availability, US monetary policy,etc.

Naijamericana:

Ok...what determines the price of crude oil worldwide?

Without speaking too much grammar, it is SPECULATION. Crude oil is traded on the floor of the "markets"
The price of crude oil has nothing to do with the actual cost of production. That is why Oil majors keep laughing to the bank. Crude oil is profitable at 40 dollars a barrel. It's just that most of them would rather halt drilling operations till its as high as 80 and above due to their greed.

dorox:
The price is determined by various factors some of which are; supply and demand and a little speculation of future availability, US monetary policy,etc.

Wrong

phuck_NL:

Without speaking too much grammar, it is SPECULATION. Crude oil is traded on the floor of the "markets"
The price of crude oil has nothing to do with the actual cost of production. That is why Oil majors keep laughing to the bank. Crude oil is profitable at 40 dollars a barrel. It's just that most of them would rather halt drilling operations till its as high as 80 and above due to their greed.

Right, but I still believe that the cost of extracting heavy crude oil will eat into profits and whatever price we pay at the pump isn't factored into the cost of E & D. Besides, there is also the cost to refineries processing the heavy crude oil into gasoline and other petrochemicals. They have to be mindful of the crack spread as well.

Naijamericana:

Wrong

Actually it's correct. It is just that Speculation is the highest factor.
They Speculate based on supply and demand. i.e whether or not there are more proved reserves available and things like 3billion Chinese and Indians requiring energy for their economy. The main factor though is SPECULATION

The mix of refined products is also affected by the particular blend of crude oil processed by a refinery, and by the capabilities of the refinery. Heavier crude oil will constrain the production of derivatives in less sophisticated refineries.

Naijamericana: The mix of refined products is also affected by the particular blend of crude oil processed by a refinery, and by the capabilities of the refinery. Heavier crude oil will constrain the production of derivatives in less sophisticated refineries.

You are mixing it up. You are talking downstream here. The price of gasoline, diesel, LPO, LGO and other bi-products of crude refining are affected by the cost of crude but the PRICE of CRUDE itself is determined by speculation. The upstream operators do not care whether the refinery can process it or not when the PRICE of CRUDE OIL is being determined. The refineries buy at whatever price is determined at the New York exchange.

The refineries pass on the cost by adjusting the final price of gasoline and other products. This in no way affects the price of Crude oil.
Yes heavy crude, sour crude will be cheaper than sweet crude because of the extra processing but it does not determine the price.

For example, Bonny light - nigerias own sweet crude may sell at 110 per barrel while wti may sell for 100 per barrel because of impurities such as excess CO2 and sulfur that need to be processed. The difference in price is usually 10-15 per barrel.

But the point is that the 110 and the 100 per barrel prices were not set by refineries or any other entity but simply by speculators at the "exchange market"
The cost of processing by the downstream refineries is passed on in the price of gasoline...etc

Naijamericana:

Ok...what determines the price of crude oil worldwide?

It's basically demand and supply and anything that affects them. For eg., geopolitics affecting or threatening to affect supply and speculations arising from uncertainties about future events that may affect D & S. N.gas prices also change with changes in demand due to the weather.

Naijamericana:

Wrong

Can you elaborate on your answer and tell me why you think I am wrong?

Naijamericana:

Right, but I still believe that the cost of extracting heavy crude oil will eat into profits and whatever price we pay at the pump isn't factored into the cost of E & D. Besides, there is also the cost to refineries processing the heavy crude oil into gasoline and other petrochemicals. They have to be mindful of the crack spread as well.

..... eat into whose profits ? Refineries or Producers ? If it's not profitable to the companies, they won't do it.

Countries that want companies to explore for resources like heavy oil will reduce royalties, lease and other costs to offset the extra cost of production and cheap market price, making it profitable for the companies, and in most cases the profits by far exceed the production costs so the need for enhanced recovery at an extra cost is not always a discouraging factor.

Yes, the price you pay at the pump is not exactly considered during E&P but rather, it is the price of oil in the global market that determines whether or not a well will be produced or abandoned. This market price is determined by global demand and supply factors and market speculations.
The downstream operators (refineries) will fix the price (not the price you see on trading floors) you pay at the pump based on how much they obtain crude oil from upstream markets and cost of refining.

WTI benchmark just crossed $100, me think this purported discovery is just a researcher trying to sell snake oil in exchange for more grants.

Kay-Dee:


..... eat into whose profits ? Refineries or Producers ? If it's not profitable to the companies, they won't do it.

Countries that want companies to explore for resources like heavy oil will reduce royalties, lease and other costs to offset the extra cost of production and cheap market price, making it profitable for the companies, and in most cases the profits by far exceed the production costs so the need for enhanced recovery at an extra cost is not always a discouraging factor.

Yes, the price you pay at the pump is not exactly considered during E&P but rather, it is the price of oil in the global market that determines whether or not a well will be produced or abandoned. This market price is determined by global demand and supply factors and market speculations.
The downstream operators (refineries) will fix the price (not the price you see on trading floors) you pay at the pump based on how much they obtain crude oil from upstream markets and cost of refining.

Eat into the profits of refiners of course. Upstream production is always more profitable despite the initial high cost. Once the oil is flowing you are good to go.

Oil producing countries buckle up your oils might not be needed again in some years time. I pray every household would be able to produce its oil as farmers produce grains.

Rexyl: Oil producing countries buckle up your oils might not be needed again in some years time. I pray every household would be able to produce its oil as farmers produce grains.

You are funny

Rexyl: Oil producing countries buckle up your oils might not be needed again in some years time. I pray every household would be able to produce its oil as farmers produce grains.

Without oil there would not be enough grains to feed half of the worlds population.

dorox:
Without oil there would not be enough grains to feed half of the worlds population.

...with the development farmers will now have double honors in crop production. Much oil + much grains. Just pray that the research becomes very successful. I should now be preparing to acquire large acres of farm land.