Norsk Hydro Announces 6.6% Cut In Oil Reserves - AP

[hatrack]

OSLO, Norway (AP) -- "The Norsk Hydro ASA group on Tuesday announced a 6.6 percent reduction in its overall recoverable petroleum reserves, mainly reflecting a 30-percent cut at the Ormen Lange field.

The Oslo-based petroleum and light metals group said it made the adjustments after talks with the U.S. Securities and Exchange Commission about its reserve estimates, notably how to best satisfy the regulator's definition of proven undeveloped reserves.

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Norsk Hydro holds an 18 percent stake and oversees development of the massive Ormen Lange field in the Norwegian Sea. Norway's parliament approved development of the second-biggest natural gas field in Norwegian waters in April. The group said it reduced estimates of its share of recoverable Ormen Lange reserves by 102 million barrels of oil, equivalent to 234 million barrels. Oil equivalents measure the energy content of petroleum, instead of its volume.

Norsk Hydro said a review of reserves using the SEC definition, along with the sale of a smaller stake to Statoil in another field earlier this year, resulted in a reduction to its estimates by an equivalent of 59 million barrels of oil."

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[phantom power]

1. imagine this scenario

It's hard for me to believe that the oil companies wouldn't have seen these downgrades coming for a while now. Understanding oil sources, geology, etc, is their entire life.

So: imagine the possible topic of discussion at a certain infamous secret energy-policy meeting with a certain potty-mouthed Vice President, circa spring, 2001.

A bunch of oil-barons around the table with the VP, and they are all talking very seriously about Peak Oil, and how maybe it's a lot closer than the general public is aware of.

The President and VP also happen to be oil-barons. The culture of Big Oil literally runs in the family of these two. They are incapable of thinking outside the box. Any alternative to Oil is just the ravings of tree-huggers smoking marajuana in their minds. What's the only possible answer?

In their world, the only possible answer is for America to somehow establish control over as much oil-producing territory as possible.