We’re doing everything we can here to get the crude to market, pipelines, unit trains, etc. and not keeping up. As for the high oil prices, I’m sort of glad to see that because it makes drilling domestically more likely. These wells cost a fortune to drill, $5million+. If the price drops too low, exploration and drilling will cease.
Got friends working in the oil industry in ND .... no jobs for them here (VA).
“These wells cost a fortune to drill, $5million+.”
Are you sure? That seems extremely low to me, but I am not in the oil industry. I am a buyer tho and deal with capital costs and variable costs for 60 hours a week. My “off the top of my head” guestimate for an oil rig would have been 10x higher than your number. Is a rig really that cheap? Now you have my curiosity gland working overtime...
The price of gas is not going to decrease with the pipeline, it is going to increase because the crude will finally be able to make its way to the refineries, where it can be sold on the overseas market. With the Iranian situation, and the other disturbances in the M.E., that is a very good thing.
Obama does not want to help free the world of dependency on M.E. oil. It would throw a monkey wrench into his foreign policy. Think about Europe being dependent on the US for its oil. They would have no excuse for not supporting sanctions on Iran or any other M. E. country. They would have no excuse for not supporting Israel, if we told them to.