Posted on 05/30/2020 8:07:26 AM PDT by rktman
The coronavirus won't destroy America's energy industry. But Democrats might.
Progressive lawmakers like Senator Bernie Sanders have long called for a nationwide ban on fracking. But even Joe Biden, the "moderate" Democratic apparent nominee, recently seemed to embrace this radical idea.
The oil and gas industry has already taken a big blow to the gut. Because of reduced demand caused by lockdown orders nationwide and a price war between Saudi Arabia and Russia, the unthinkable happened in April when an oil futures contract sank into negative territory. In my home state of Colorado, hundreds of wells have been abandoned and many small operators are struggling to stay afloat.
Already shattered by COVID-19 lockdowns, our economy can't afford another shock. But that's precisely what a fracking ban would deliver in the form of mass layoffs and skyrocketing energy costs.
(Excerpt) Read more at townhall.com ...
“In my home state of Colorado, hundreds of wells have been abandoned”
If they were in the process of drilling they can stop and let them sit.
If they have been finished and are in production, they simply can not stop pumping some of those wells or they will loose the pressure and wont be able to bring that well back into production.
For those pressure wells its pump no matter what.
Who considers Joe Biden a “moderate”? The guy was caught quoting Neil Kinnock! And that was decades ago.
Here in Pennsylvania, our corrupt, incompetent Democratic governor, Wolf, wants to raise taxes on fracking to make it even less profitable.
You see, our oil/gas industry has increased their efficiency many times over during the last 10 years. Solar/Wind have barely doubled their efficiency over the last 30 years.
Low oil prices will not destroy our industry. They can compete on the world stage. So, Democrats now want to raise the costs (via taxes) to make them less competitive against Saudi and Russian oil.
There's that, and also the fact that any money flow is a temptation to tap via taxation.
Obama couldn’t get that done, and he tried. He could only stop production on govt land, and energy producers and investors like me made out great.
Bob is a pretty good guy, a dairy farmer with a sharp business head. I had some dealings with him in the past. I don’t think the Dems can get such a ban passed, but if they do, I will make out again.
The poor and many in the middle class will be damaged. I don’t see it passing.
I remember the early late 1970s when the oil embargoes sent the price of oil sky high! The government decided the oil companies could not charge the higher price than what the oil well originally produced.
As a result, the oil well was shut down, and a new well drilled beside it in which they could charge the higher price as it was a “new” well.
Oh hell! That isnt uncommon as I understand.
I stay at a guys place while I am away at work and he used to work on a drilling crew..being he is from OK. Anyway, he watched them obliterate a well that came in and would have been a high producer. The head guy showed up and told them the plug it. End of story for it.
So there is plenty of blame to go around about the production of oil.
There can be multiple reasons for such an action on a single well. Really doesn’t mean anything by itself.
Never heard of that one. No one, repeat no one plugs a potential productive well unless it is offshore and needs to wait on production facilities. Just because a well has a “show” does not mean it is commercial.
Never heard of that one. No one, repeat no one plugs a potential productive well unless it is offshore and needs to wait on production facilities. Just because a well has a “show” does not mean it is commercial.
They hate the idea of energy independence.
It won’t pass. Even the Demonrats know that destroying America’s energy industry would produce riots that would make the troubles in Minneapolis look like a scuffle between schoolboys in comparison. I give them credit for having a basic instinct of self-preservation. They’re just blowing hot air to get the greenies to show up in November. Kind of like some GOPers who talk about the sanctity of life but never actually do anything about abortion because they have nothing else to campaign on.
I heard the plugging one well and drilling another to get a higher price from several Roughnecks I worked with in other jobs.
Usually, when a well ceases to produce, it has depleted the reservoir. The only time someone would drill a well next to it is if it had a mechanical failure and there were still reserves left in the ground.
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