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Originally published at BunkBlog. You can comment here or there.

The oil industry in the USA isn’t using most of the oil fields they have leases for, but they’re begging for more? I don’t understand.  The USA uses 21 million barrels of oil per day, and produces 8; the oil fields they have access to which they are not using could be worth 5 million barrels a day. Meanwhile, the proposals to open up more offshore drilling, combined with the proposals to drill in the Arctic National Wildlife Refuge, could lead to 2 million barrels a day. So, they’re begging for the ability to get half of what they already have available which they aren’t using. I honestly don’t understand economics, but that just doesn’t sound kosher to me.

I understand the investment to exploit the open fields would be substantial, and the leases they are asking for would be cheaper to exploit. But, still - makes you wonder about the rhetoric about who is patriotic, eh?

Comments

( 4 comments — Leave a comment )
daddygod
Jun. 25th, 2008 12:12 am (UTC)
I think half the problem is that all the working rigs are drilling already. There aren't anymore to drill new holes until the wells these are on get finished first.
andysocial
Jun. 25th, 2008 02:31 am (UTC)
That makes sense. You are the only oilman I know, so I've got to assume you know more about this stuff than I do.

But, still - why beg for more rights if you can't exploit what you have? Is it really that they want to get rights to EASIER (read: cheaper) fields? That's obvious, but I'm simple. :-)
daddygod
Jun. 25th, 2008 02:33 am (UTC)
You hit it on the nose. The easier it is to get out, the more profit the oil companies make along with lower prices at the pump.
beatsoul
Jul. 24th, 2008 11:45 pm (UTC)
But, Gary!!
You said you were combing your hair!

You get the ankles, I'll get the rest.
( 4 comments — Leave a comment )