It’s time to kill the PEAK OIL Myth. It’s dangerous to our future. Like Global Warming hoaxes it perpetuates the notion than men are smarter than God. Knowing what resources God has given us and where he’s put them is to quote the Obama” is above my pay grade” but I have faith that we can find all we need if we keep looking.

The largest gas field in the US, the Barnett Shale was drilled through for more than 50 years before some people figured out how to produce it. Ditto for the Haynesville and a number of Shale plays that are just now coming online.

We have the Bakken formation found in the 1950’s. We have most of Alaska, the outer continental shelf, the oceans, the Arctic, and a great deal of the western US that has not been explored properly.

For years the greenies have been talking about our unexplored oceans and that we know more about the moon than the deep sea floor. We really know very little about the subsurface of our good green earth. With new exploration tools, drilling technologies, and completion techniques I am confident we can find all we need if we can keep the government and the chicken little’s from getting in the way.

It’s not time to fear the future, buy in to wind hucksters and carbon credit sellers, it’s time to drill.

Building pipelines to the EU gives Russia power to dictate political terms to NATO and the west.

Russia has planted its flag over the Arctic which many believe contains as much as 18% of the world’s energy reserves.

Here Green, See Red has never been truer. The Georgia-Russian Pipeline War is just an obvious sign of battles to come.

TXCO Resources reports strong Pearsall well flows 
  
  Thursday, August 07, 2008

TXCO Resources Inc. has provided initial test results on its Myers 2-683H well targeting the Maverick Basin’s Pearsall shale gas resource play.

Following completion of a five-stage fracture stimulation, the well (100 percent working interest through completion) flowed an average of approximately 3.5 million cubic feet of gas per day and 2,500 barrels per day of frac fluid at 3,875 psi flowing tubing pressure. Flow rates continue to rise as the well returns frac fluid.

The well is TXCO’s third horizontal Pearsall well to be fracture stimulated this year and the first to be successfully treated with five stages. It is the first Pearsall well in which the horizontal lateral, 3,000 feet long, was fully cased, cemented and perforated for limited entry. Also, the Company conducted microseismic monitoring from a nearby offset well during the treatment, allowing it to observe and modify the stimulation in real time. The Myers well provides TXCO with valuable data that will be used to improve future frac designs on other Pearsall wells to be drilled and fracture-stimulated in the future.

TXCO’s combined Pearsall project area exposes the Company to the overpressured shale play on more than 848,000 gross acres (340,000 net acres) across the Maverick Basin in Southwest Texas.

Don't you get it ?

 Global warming and the environmental movement has been used to steal your freedoms away from you. They took property rights away from landowners. Now they have taken your ability to travel and work by shutting down the engine of our economy with promises of windmill farms and solar power mini-cars. Peak Oil and Global Warming are outright lies to scare you into giving up your heritage as free people engaged in the free enterprise system.

It's taken them years to kill off the energy supply with restrictions on offshore drilling, drilling in public lands like ANWR, the development of Oil Shale and Heavy Oil. Our politicians from both parties along with well funded public interest groups have created a crisis that may end our forefathers dream and the best hope of free men everywhere.

Global Warming is a hoax, the Energy Crisis is real and I'm sure it's manmade.

A leader in Congress sees a need for "obviously more production" from America's abundant energy reserves. Is Rahm Emanuel, head of the House Democratic Caucus, joining the "drill here, drill now" bandwagon?

The Illinois Democrat made those remarks when asked by CNBC's Erin Burnett what the Democratic energy agenda would be. Perhaps it was a Freudian slip, but it just happens to be the truth — something 57% of the American people agree with, according to a new Gallup poll.

While attacking GOP presidential nominee John McCain for "trying to drill our way out of the situation," Emanuel told CNBC: "I think you have to have both — obviously more production — but also to start to invest, which has not happened, in (energy) alternatives as well."

So do we. This is pretty much what congressional Republicans and President Bush have been saying all along.

We need to develop all of our domestic energy resources, none to the exclusion of any other source — nuclear, clean coal, oil, natural gas, wind, solar, heck, maybe even switch grass.

And while it is true that we can't get all of our energy needs from domestic sources, it doesn't mean we shouldn't get any of it here.

We've got a lot — in ANWR, in the Outer Continental Shelf, and in the oil shale out West.

How about subsidizing shale oil extraction with the billions we currently subsidize ethanol and other biofuels with?

The Department of the Interior estimates that there are 112 billion barrels of technically recoverable oil beneath U.S. federal lands and coastal waters. That's enough oil to power 60 million cars for 60 years. That's not counting the trillion barrels locked up in shale rock — three times the total oil reserves of Saudi Arabia.

Rep. Emanuel is not being truthful when he says we need to "start" funding alternative energy.

According to the Energy Information Administration, solar energy is subsidized to the tune of $24.34 per megawatt hour and wind energy by $23.37.

By contrast, natural gas gets a mere quarter, hydroelectric about 67 cents and nuclear power $1.59. Wind and solar, despite all their subsidies, contribute less than 1% of our total electricity generation.

Barack Obama wants to increase gas prices through a windfall profits tax that consumers will wind up paying and, as it did in the Carter era, decrease supply and increase our dependence on foreign oil.

In his latest gaffe, Obama told CNBC he didn't really object to $4 gas, just that it occurred too quickly. Obama said: "I think that I would have preferred a gradual adjustment."

Rather than a slower increase in gas prices, as Obama prefers, Rep. John Peterson, R-Pa., prefers a rapid increase in domestic oil supply.

He says he will push for an amendment to an upcoming spending bill that would open up U.S. waters between 50 and 200 miles offshore. Fifty miles is how far off the Florida coast China and Cuba are drilling for oil.

"Tapping America's huge reserve of deep-ocean energy helps us fight terrorism and increases our domestic energy supply, which will help put downward pressure on energy prices," says Greg Schnacke, president of the aptly named Americans for American Energy. "With Americans suffering at the gas pump and with higher energy bills, it's a no-brainer that the OCS (Outer Continental Shelf) should be developed."

Data show global demand for oil and natural gas will likely grow 45% by 2030 compared with 2006.

America's oil and natural gas energy needs will grow and need to compete with that demand. Obviously, as Emanuel put it, we'll need more production — domestic production. All Rep. Emanuel has to do is reach across the aisle and endorse Rep. Peterson's amendment.

We suggest that we drill here and drill now, and show the world that the America that split the atom and put men on the moon can fuel its own cars and power its own factories.

We suggest that the GOP and John McCain shout from the rooftops a new, and winning, campaign slogan: "It's domestic energy, stupid!"

Test wells were drilled through the Barnett Shale Formation for years and only dry holes and some information was developed. Mitchell Energy geologist and engineers finally figured out that they could frac or prop open the limited permeability (ability for oil to flow) with sand and natural gas began to flow in Wise County.

Sandy Dvorin a wildcatter from Dallas figured out that the same Barnett Shale could produce in the Dallas /Ft. Worth suburbs and the Barnett Shale rush was on. Sandy told me he could only get $3 or less for his natural gas and the wells were barely economic at that price. 7170 Barnett Shale wells have been drilled and completion techniques have improved. The prices have improved to over $11 per million cubic feet.

Today 3.1 Billion Cubic feet of natural gas flows from horizontal wells and a few vertical wells with fracs. The reserves are conservatively estimated to be in excess of 26 Trillion Cubic Feet of natural gas. Operators are paying up to $26,000 per acre for a 3 year lease with 25% royalties. This was just the beginning.

There are major shale plays in Wyoming, Arkansas, Mississippi and a brand new play in Northern Louisiana and East Texas know as the Haynesville Shale. The Haynesville Shale was over 168 Trillion Cubic Feet of Natural Gas in reserves. Leases in some of the hot spots are going for $35,000 per acre with 25-36% royalties.

Down to the south the Pearsall Shale is heating up. We have leases with shallow oil zones between the Barnett and the Pearsall plays. I believe these plays will fill in and we are just in the beginning phases of many major discoveries.

Oil and Gas Real Estate plays might be a good way for the small guy to participate in increasing our energy reserves. If you own the lease and can hold the leases with shallow production you can farm out portions of the leases and reserve royalties as well as receive a large lease bonus. These deep wells can cost up to $7-10 million to drill and complete and investors could retain 5-10% in overriding royalties which could earn millions per year per well.

Help is on the way. Now, if we could get congress to get out of the way of the big boys.

Energy: With the price of oil spiking above $127 a barrel, the search for scapegoats has begun. Some point to the Saudis, OPEC's No. 1 producer. Others blame the oil companies. We have a better candidate: Congress.

As President Bush traveled to Saudi Arabia to ask the House of Saud to open the oil spigots a bit wider, Congress showed once again how clueless it is when it comes to energy policy.

Underscoring its failure to grasp the nature of our current problems, the Senate Appropriations Committee on Friday refused to end its moratorium on oil shale development in Colorado.

"If we are really serious about reducing pain at the pump," Colorado's senior senator, Republican Wayne Allard, said, "this is a vote that would make a difference in people's lives." He's right.

But the shale proposal went down to defeat with Allard and 13 other Republican members in favor and 15 Democrats opposed. Once again, Democrats were on the wrong side, opting to keep oil in the ground and punish you with higher prices as a result.

This was no minor thing. Estimates put the amount of oil locked in shale in both Canada and the U.S. at more than 1 trillion barrels. Pulling out even a tenth of that would quadruple our current reserves.

This is the same Congress that refuses to allow drilling in Alaska's Arctic National Wildlife Refuge, which holds up to 20 billion barrels of crude, or offshore, where another 30 billion await.

Meanwhile, Brazil — which recently made a major oil discovery almost in sight of Rio's beaches — announced that it has leased 80% of the world's deep-sea offshore oil rigs. In other words, Brazil unlike the U.S., isn't dithering as prices soar. It's drilling.

If you think Congress' decision-making on energy couldn't get any worse, think again. While Bush was in Riyadh urging the Saudis to pump more oil, congressional Democrats were busy undercutting him, threatening to halt arms sales to our Mideast ally.

It was a politically peevish move with consequences both for U.S. energy security and the balance of power. If we don't sell arms to Saudi Arabia, Russia will. The result would be a loss of American leverage with the Saudis, who, like many, feel threatened by a nuclear Iran and the menace of al-Qaida.

At least Bush convinced the Saudis to boost output 300,000 barrels a day. That helps. But we still have to do more ourselves.

The U.S. uses about 21 million barrels of oil a day. But only 8 million come from our own sources. That leaves a 13-million-barrel-a-day deficit that, at $126 a barrel, will cost us $600 billion to plug this year. That's more than two-thirds of our total trade deficit.

Congress could reduce much of our oil shortfall by drilling for more on our own territory. This would lower prices and increase security. Yet, Congress seems dead set on doing the opposite.

Energy: In their ongoing war against U.S. oil producers, Senate Democrats say they'll slap Big Oil with a windfall profits tax and take away $17 billion in tax breaks, among other punishments. This is an energy plan?

The planned 25% tax on windfall profits would be imposed on oil company earnings above what the Senate's wise members decided was "reasonable." Never mind that what's "reasonable" to one person might be punitive to another.

Senators also want to impose steep penalties on "price gouging" — despite the fact that some 17 separate studies have found it doesn't exist. The plan amounts to little more than an attempt to impose price controls — a socialist tool dressed up in populist garb.

Democrats hailed their new measure as an attack on "the root causes of high gas prices." That's one of the more laughable comments to emerge from the Senate in some time.

As any student who's taken Econ 101 at the local junior college can tell you, higher taxes don't encourage production; they discourage it. But Senate Democrats apparently played hooky the day taxes were discussed. They should at least have read the report from their own nonpartisan Congressional Research Service in 2006.

It shows that from 1980 to 1986, the last time the U.S. had a windfall profits tax on oil companies, the results were disappointing. As the chart shows, oil companies were hit hard by the tax. And in line with basic economic theory, they produced less oil, not more.

"Over the entire 1980-1986 period," the study said, "the (windfall profits tax) reduced domestic oil production from between 320 million barrels . . . and 1,268 million barrels."

The study also concluded: "The effect of reducing domestic oil production was to increase the level of imported oil."

At the time, the U.S. imported about 30% of its oil; today, we import about 60%. In part, that jump in oil dependency was due to the huge tax advantage we gave foreign oil companies in the 1980s — and to the continuing advantage we give them today by refusing to let our oil companies produce more crude from our own reserves.

The Democratic Party's bad energy policies in the 1970s hit poor Americans hardest, while delivering our energy future into the hands of OPEC's unelected poobahs. Now they want to do it again.

By the way, if they try to sell you on the idea that this will be a deficit-cutting move, don't believe it. Revenues from the windfall tax were far less than expected, because producers pumped less and nontaxed imports flooded our market. Compared with a forecast of $393 billion in windfall tax revenues from 1980 to 1988, Congress got a mere $80 billion.

In short, the windfall profits tax is a loser — on every level.

Likewise, the Senate's proposals for new penalties on "price gouging" are also fated to fail. This we know because when Jimmy Carter tried price controls, they resulted in massive shortages, blocklong lines at gas stations and, ultimately, gasoline rationing.

Perhaps the worst lie uttered in defense of price controls and higher taxes is that the less well-off will benefit. Don't believe it.

Even as Democrats mouth pieties about "bringing down the price of gasoline" for the poor, they will in fact be hitting working Americans with a big tax hike. "A windfall profits tax on big oil companies may sound good in theory," the nonpartisan Tax Foundation said last week, "but it will be paid by individuals." Big Oil doesn't pay the tax; you do.

House Speaker Nancy Pelosi criticized President Bush for offering "two ways of dealing with the energy crisis — drill and veto." But that's a far better plan than anything the Democrats have offered.

Tapping the hundreds of billions of barrels of oil that we have on land and offshore makes sense. It would add supply and lower the price. Every Democratic plan now on the board — every one — would do the opposite.