CGX Energy Inc V.OYL

Oil people please explain

[a2bman]

Can anyone with drilling oil background explain this 

 "hydrocarbon bearing sands"

Is that like alberta shiite?  

[SheDrills]

That's called a conventional reservoir and it's what you want...this is typical of sedimentary hydrocarbon basins and the most common offshore reservoir globally.

[a2bman]

Good, thanks SD.  We need to send this stock over to WallStreetBets on reddit

[Kelvin]

It all depends on the API gravity of the oil. API gravity less than 10 means that the oil is denser than water. Its viscosity is very high and will not flow without a lot of pressure behind it pushing it. Like trying to blow tar through a straw. The higher the API gravity, the less dense that it is, the lower the viscosity that it has and the easier it is to blow out of a straw. Exxon found light

[Mat1791]

Thanks Kelvin, very well explained

[a2bman]

Thanks Kelvin, do they have the data to determine API Gravity and whatever else they need without that thing that broke in the hole? Or maybe I should ask what data won't the get from that broken thing that would be needed

[Kelvin]

a2bman, Yeah that broken MDT thingy. I don't know cause I'm not an earth scientist yet I have been told that if the conversion from kerogen into hydrocarbons are the same as in Kawa then it's the same oil as in Kawa. They found light, sweet crude there with no MDT. The mud loggers probably found it in the cuttings samples coming over the shaker while drilling. But I know zero about

[a2bman]

Thanks kelvin makes a lot of sense

[mrbb]

i wouldn't worry about Wei-1 hitting a heavy oil ( < 22 API) reservoir given kawa and exxon wells are all light oil variety What u said about API oil viscosity is correct, at 25C.  However, at 20,500 feet (6,248 m, Kawa is 6685 m, or some 64 to 76% deeper than the titanic wreck), we are not dealing with room temperature but a very high temperature. I couldn't find Santonian

[Kelvin]

OK great mrbb! I stand corrected with great clarification. I didn't realize that shale oil was so low in the necessary octane for transportation fuels even though it has a high API and a low viscoity at 25 C. So light, sweet crude with high octane content is what refiners in the US prefer. Is that what Exxon is exporting from Guyana?

[mrbb]

it's not what the general public think. US refiners prefer medium and heavy oil for refining. It's buy low sell high. With light oil, refiners buy high and sell slightly higher. Which kind of oil input would US refiners prefer if business objective is to maximize profit?

[ljmorin]

Much less refining and transportation costs with light sweet oil. As no dilliluent requirements and higher octane and low Sulzer content. Light sweet is preferred.

[mrbb]

medium and most heavy oil don't require diluent  Condensates having API 45 to 60 API, thinner than water, why no one put condensates into their gas tank?

[Kelvin]

I don't know mrbb. I don't know mid or downstream at all.

[ljmorin]

Just to follow up, refineries that accept heavy oil and you are correct they make their money on the spread are specifically tooled for that. You would not normally refine light sweet in a heavy refinery when you just have to touch it up a bit and send it to the gas  station.