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Drill Baby Drill!!!!!!!!!!!!!

Old 09-02-2009, 06:44 PM
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Default Drill Baby Drill!!!!!!!!!!!!!

Oil major BP Plc said it has made an oil discovery in the Gulf of Mexico, which analysts believe could contain over 1 billion barrels of recoverable reserves, reaffirming the Gulf's strategic importance to the industry.

BP said in a statement on Wednesday that it had made the "giant" find at its Tiber Prospect in the Keathley Canyon block 102, by drilling one of the deepest wells ever sunk by the industry.

http://finance.yahoo.com/news/articl...gulf-of-mexico
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Old 09-02-2009, 07:04 PM
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Damn, you gota just hate that news. Wasn't it the Brits that released the Lockerbie Bomber?

And now they own a huge chunk of our oil?
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Old 09-02-2009, 07:20 PM
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BP has a 62 percent working interest in the Tiber well. Petrobras owns 20 percent while ConocoPhillips (American company) owns 18 percent.

Despite the find, it is reported that oil prices need to be $70-$75/barrel for the project to be economically viable. The cost to get oil out of the ground is very expensive.
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Old 09-02-2009, 07:40 PM
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Originally Posted by PROFINITY View Post
Despite the find, it is reported that oil prices need to be $70-$75/barrel for the project to be economically viable. The cost to get oil out of the ground is very expensive.
I don’t know, but to me that sounds like a precursor to higher prices.
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Old 09-03-2009, 04:22 AM
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I still wonder what our plans are for the north slope??? Keep it there until all of the other sources in the world are dried up and we own the last big pool???
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Old 09-03-2009, 07:36 AM
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Didn't they make a similar deep water Gulf find in 2006? Anybody put a straw in that shake yet?

Estimates of recoverable reserves range from around 20 percent of oil in place.
"Assuming reserves in place of 4 billion barrels and a 35 percent recovery rate, BP's proven reserves .. would rise by 868 million barrels -- equivalent to 4.8 percent of the group's 18.14 billion barrels of proven reserves," Aymeric De-Villaret, oil analyst at Societe Generale said in a research note.
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Old 09-03-2009, 07:58 AM
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The tupi oil field should become productive shortly as well..I doubt oil prices will be affected by that, either:

http://www.bloomberg.com/apps/news?p...d=arYFojM6udEI
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Old 09-03-2009, 08:00 AM
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"Tiber Prospect in the Keathley Canyon block 102"

where is this located??
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Old 09-03-2009, 08:11 AM
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Originally Posted by bulldogbozo View Post
"Tiber Prospect in the Keathley Canyon block 102"

where is this located??

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Old 09-03-2009, 08:20 AM
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They find new places to drill every few years or so, but the real issue is none of this is sustainable. Drilling wont make your Viking burn less non-renewable fuel. We need to invest in different sources and alternative sources. Oil will not hold up forever, and we'll always be dependent on other nations for something that could cripple out economy if not properly regulated.

BTW: drilling for oil takes tons of money, time, paperwork, and legal approval before anything is actually done. Dont hold your breath on this one.
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Old 09-03-2009, 10:11 AM
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thanks ludicrous
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Old 09-03-2009, 10:16 AM
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Great picture, Ludi..almost as good as the toe nail fungus....

I venture to guess all the red and green are oil and gas rigs and lines??
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Old 09-03-2009, 10:43 AM
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Originally Posted by dickiedoo View Post
They find new places to drill every few years or so, but the real issue is none of this is sustainable. Drilling wont make your Viking burn less non-renewable fuel. We need to invest in different sources and alternative sources. Oil will not hold up forever, and we'll always be dependent on other nations for something that could cripple out economy if not properly regulated.

BTW: drilling for oil takes tons of money, time, paperwork, and legal approval before anything is actually done. Dont hold your breath on this one.
Yeah, scientists have been telling us since what 1920 that we will be running out of oil any day now.

BTW, developing alternative sources takes tons of money, time, paperwork, and legal approval before anything is actually done. Don't hold your breath on that one.

BTW, was it it not our own government, some time ago, that established a department of energy to lessen our dependence on oil and find these alternative sources? How has that worked out so far?
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Old 09-03-2009, 11:01 AM
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Another failed gubmint initiative and intrusion into private enterprise? Say it ain't so...

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Old 09-03-2009, 11:14 AM
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Oil prices are undoubtedly headed higher despite new discoveries. The cost to drill has become ridiculously expensive. Drilling was always expensive but the cost has increased more than 50% over the last 7-10 years. This is because of the cost of labor, workers comp., insurance, equipment, etc. The cost of everything associated with oil production has jumped substantially. It used to be you could lease acreage for minimal money as a mineral owner was in most cases happy to have a producing well so as to receive a royalty. You used to be able to pay a small amount of money per acre and if a commercially producing well was put into production the royalty owner received an eighth over-riding royalty. The land owner, not necessarily the mineral owner would receive a fee for surface damages. The arrangement could be a general fee or a price paid per tree or acre of corn or bean crop, etc. Landowners now want considerable money for surface damages. Mineral owners want considerable money to grant an operator a lease and also want a handsome royalty. It used to be an oil producer was doing the mineral and land owner a favor. The attitude has shifted and the opinion is the mineral and/or land owner feels they are doing the oil producer a favor.

Everything has become so expensive that cheap oil just does not justify someone taking a huge risk to drill for oil particularly when a return on investment and the associated BS an operator has to put up with. The environmental laws and enforcement are out of control. The fines for minor issues, which do occur as they are a part of the business, are out of control. Imagine telling a surgeon that if you get any blood or bodily fluid on the operating table or your gloves then you will be fined $1500 per incident. If this was the scenario then there likely would not be any more surgeons to perform operations. This is what is happening in the oilfield.

Trucking/hauling equipment and water has become very expensive. The cost of chemicals (descaling and paraffin agents, etc.) has jumped considerably. The cost of pipe alone has gone absolutely nuts. There have been situations where operators could not even obtain pipe when they needed it. Some folks have drilled a well and were happy to learn they discovered some oil/gas and when they called the pipe supply house they were told they did not have any casing and/or tubing. This meant that the drilling rig had to stay on location and and were paid many hundred dollars per hour on stand-by time to just circulate in the hole until the operator was able to obtain pipe and have it delivered to the location. Now the present government administration is talking about taxing individual people who make over $200 and something k/yr., at a higher rate and couples who make over $350k/yr., at a higher rate. This is NOT conducive to drill baby drill and is in FACT conducive for oil prices to only go higher. The major oil companies have sold most of their land based production as it simply has not become economically feasible for them to operate such a lease and deal with such restrictions. Many land based leases have become a huge liability despite producing oil. The public complains constantly about the price at the pump or what they pay for heating oil or a utility bill however are now not tolerant of oil production near where they live. The public is at the ready to sue oil producers because oil production typically has a smell to it and communities are getting together and suing oil operators. Almost anything that happens in an area that the public does not like and where there exists oil production becomes the oil producer’s problem. Oil producers are more and more becoming a dying breed and for good reason. The result is going to be less domestically produced oil and higher oil prices. I believe oil prices today are one day going to look cheap.
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Old 09-03-2009, 12:57 PM
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Originally Posted by RI Builder View Post
Yeah, scientists have been telling us since what 1920 that we will be running out of oil any day now.
So then do you think that there's an endless supply of oil out there?
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Old 09-03-2009, 01:06 PM
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Lets see we use 15,000,000 barrels a day. That find is going to produce 250,000 barrels a day in 2018. Yeah big deal.
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Old 09-03-2009, 01:07 PM
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Originally Posted by Hydro View Post
So then do you think that there's an endless supply of oil out there?
A really pessimistic guy I used to work with, would come into the office every morning and proclaim that a certain stock in my sector was garbage. I discarded this man's opinion, as he was universally thought of as the office idiot. After 1.5 years of this, the company in question had a bad q, followed by a really bad press release around their product. The stock tanked by 12% in a day. The guy in question came in the office and was boasting his own cause, telling us how right he was all along. What he failed to realize is that nobody took him seriously because over that 1.5 years, the stock gained 63%.

The moral of that story answers your question.
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Old 09-03-2009, 01:28 PM
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Originally Posted by RI Builder View Post
A really pessimistic guy I used to work with, would come into the office every morning and proclaim that a certain stock in my sector was garbage. I discarded this man's opinion, as he was universally thought of as the office idiot. After 1.5 years of this, the company in question had a bad q, followed by a really bad press release around their product. The stock tanked by 12% in a day. The guy in question came in the office and was boasting his own cause, telling us how right he was all along. What he failed to realize is that nobody took him seriously because over that 1.5 years, the stock gained 63%.

The moral of that story answers your question.
No it doesn't. Do you think that there's an endless supply of fossil fuels on our planet?
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Old 09-03-2009, 01:31 PM
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Yes it does. Pretty funny that you, of all posters, should comment on someone not answering a question - thanks, I got a good laugh out of that.
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