Posted: June 10, 2012
For many years now there has been talk of peak oil and whether we have reached that point already or if it will be reached in just a handful of years. Concerns about peak oil and maintaining an energy supply that will support growth in the world got good news recently with the announcement of the Bazhenov-Neocomian oil shale deposits in Siberia. The Bazhenov is estimated to be roughly 80 times larger than the Bakken shale deposits of North Dakota and Montana. Oil in Siberia is nothing new; there have been large producing fields for many years. It is now realized that these wells are tapping what is essentially leakage from the shale. Some experts now think that with proper development the Bazhenov could be producing one million barrels per day in less than ten years. If high end estimates are correct, the Bazhenov could produce five million barrels per day for one thousand years.
That sounds like a lot of production, both in how quickly the fields can be brought online and how long they will last. But it may not be a pipe dream; much of the area that contains the Bazhenov has already been developed for conventional drilling, and there are plenty of existing pipelines that would allow gas and oil from the Bazhenov to be brought online faster than the average new play. Development of the Bazhenov warrants watching, not just how it will affect gas pricing and development in North America but also for the geopolitical ramifications resulting from Russia greatly expanding its role as a leading global energy producer.