Posted on 07/06/2008 12:13:17 PM PDT by Donald Rumsfeld Fan
• "Even if drilling works, it'll take a decade or more for the oil to flow."
This is quite an argument coming from the Democratic Party, which has made keeping oil off the market a linchpin of its energy policy for decades.
If President Clinton hadn't vetoed the idea of drilling in ANWR back in 1995, we'd have that oil on the market today. Ditto if Congress had approved ANWR drilling in 2002, when President Bush requested it.
Even so, the larger point is false anyway. New oil will be flowing in some cases within three to four years, according to industry estimates. But the impact on prices will be immediate. Why? Because markets would suddenly have to discount future oil prices for the expected gain in oil supply. That would cause oil prices, especially in futures markets, to drop.
By the way, this isn't just conjecture. President Reagan, within a week of his inaugural in 1981, removed domestic controls on oil. Energy prices began tumbling almost immediately, with oil falling from $34 a barrel in early 1981 to just $11 by 1986.
It worked before, and it'll work again
(Excerpt) Read more at investors.com ...
I don't give a dam about the conspiratorial aspects of Gull Island, the controversy or any of that shi_.
Just is there oil there or not!! And are 4 major league wells now capped there that could produce lots of oil.That's all I want to know. Screw the rest.
Every time I see the reference to “capped wells” at this forum, I cringe.
That’s not the terminology in the oil business. Unused wells are either “plugged” or “temporarily abandoned”.
Plugged usually means pumping a few tons of concrete into them, while temporarily abandoned means setting bridge plugs at various depths. Most states limit the amount of time you can keep a well temporarily abandoned.
The notion that there are thousands of “capped” wells which would magically produce a bunch of oil if only they were “uncapped” is simply wrong. While it is certainly possible to re-enter an abandoned well and attempt something new, there are limitations depending on well design and the condition of the downhole equipment.
No oil company is keeping a “capped” well capable of producing oil in anticipation of the White House suggesting that they “uncap” it.
pitchforks might be useful now.
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There is a clear moral imperative to drilling now and drilling here. People are dying because of the left's policies. Act now!
Only a certified moron would even begin to believe a business doesn’t pass on every cent of any tax it is forced to pay.
Actually the information is easily available so next time I am just gonna tell you to do your own homework. But here is a hint!
G-O-O-G-L-E ... S-E-A-R-C-H
Check into it, ok?
That being said, apparently there are about 400,000 capped wells in the US.
Here is an excerpt...
"It will also give new life to the capped wells in the U.S., which number approximately 400,000. Just think about the possibilities: there is an estimated 40 years of oil in capped wells in the U.S. at 21,000,000 barrels a day in usage."
And for being such a smartazz I'm gonna make you block and copy. No handy links for you!
http://findarticles.com/p/articles/mi_m5CNK/is_2006_Dec_4/ai_n24996550
http://www.npr.org/templates/story/story.php?storyId=5147602
http://www.presstelegram.com/business/ci_8672275
Perhaps not automatically but a company must be profitable or in the end it dies. If taxes are increased 10% then either the company eats the increase in expenses by cutting their bottom line or else sheds employees, charges them more for their medical, fore goes raises or something else to make up for the attack on profits caused by an increase in taxes. In that way the taxes ARE passed along to the consumer in one way or another.
Most of the info is based on numbers from 2006. That is when the new technology was viable. At todays prices, Whoo Hoo!
Try coming up with an explanation why Atlantic Richfield would drill into the largest “pool of oil” in the world and then leave it.
Yep. At least that many.
10 barrels is the criteria that was used to stop production and cap the well. That 10 a day is with 30 year old technology and pricing. New production methods can at least double that and what with the $100 + prices? We need to make a REALLY big deal out of this as it blows away the "why bother to drill / no results for 10 years" krap argument from the communists.
I find that hard to believe. Got a source?
“In that way the taxes ARE passed along to the consumer in one way or another.”
That scenario passed the increase along to the company’s employees in the form of compensation or benefits reductions. You pass increases along to the consumer mostly in terms of price increases, or providing less for the same price of packaged goods, as so many food producers have done over the years.
But a company simply cannot pass all increases in costs along to the consumer. That’s a myth in a competitive environment. Consumers can forgo the price increase and find other suppliers, or find substitutes for the product that increased in price to cover increased taxes or other costs. The consumer has choices.
I’ve heard Boortz say this for years and he’s wrong. One caller began presenting this explanation to him and Neal just cut the caller off and wouldn’t discuss it.
Of course the amounts will be somewhat less than that due to all 240,000 capped wells will not come back online at the same time, many of them are down a day or two a month for maintenance, etc.
Still, it is a significant number both for actual supply and for psychological value.
let me guess.......fiction
Thus, a 10 bbl/day may still not be economical, and a 1 bbl may have become so. The number of "stripper wells" can be looked up, but IIRC it has been in the hundreds of thousands. The 240K figure, is probably someone's account of the difference of how many producing at that level at some past time, and today.
Also, some have gone completely dry -- that's why production stopped.
IN short, the price will do a fine job of reopening the ones that are economical, but don't expect a huge gusher from it -- look at the total national figures -- production has picked up a couple of hundred thousand bbls /day, I think.
Google "monthly energy review" + petroleum
As a general rule, you can only get about 50% of the oil
out of the ground. When it costs more to pump than the oil, what there is, is worth, you stop. EROEI
I find that hard to believe. Got a source?
Barrels per day at $140 sounds pretty good to me. That's $511,000 annual income from one well. Not bad.
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