jujuman13

My oh my, how the worms turn!
Link:
Top Democrat may back new offshore drilling: report | Politics | Reuters

winston53660

Hmm I'd like to see that happen. I'd also like to see past due royalties paid as well.

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obvious Child

Dubin's statements seems like a scam. "To get new drilling rights, you have to drill on what you already have."

Huh.

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winston53660

Oil companies have several leases in reserve that hey drill on today. That is what he is talking about. Why don't they just go ahead and drill them?

obvious Child

Good question. And the article cites that big oil drills on a tiny portion of the land they lease. It could be that it's more profitable in the banned areas compared to the areas they can drill. But that's just speculation.

winston53660

I honestly think that is speculation. I don't see how drilling in 200 ft of water could be more profitable than drilling on dry land unless someone is getting hood winked.

I'm talking about proven reserves.

GottaHurt

Perhaps you could provide us a source to these "proven reserves".

This is from the OP's link:

Democrats say energy companies are producing oil and gas from only about a quarter of the 91.5 million acres currently leased from the government.

Makes you wonder why oil companies aren't investing millions of dollars to drill on such a vast amount of land.

I'm going to go out on a limb and say not enough return on the investment.

These stats in the link below are a couple years old, but scroll to the bottom, there's two charts, production costs per gallon, and profit margins compared to other US companies.

Oil Industry Statistics from Gibson Consulting

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Navy Pride

They read the polls where 76% up from 41% say drill now, drill everywhere, and drill often............

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chevydriver1123

At least some of them are getting the picture.

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obvious Child

It could be the type of oil. The land based could be shale or other heavy, sour type while the ocean based is light sweet crude. I don't know, but the type of oil seems to be an important factor most people don't address. The US government trades and sells the sour heavy oil it gets as royalty for sweet, light crude from the Middle East and Canada.

But I'm not a geologist. But I do know several.