It would be 10 years before we would see a drop of oil from offshore drilling, and it would lower the cost of gas only 8 cents per gallon, according to these calculations.
Now you hit a point I can comment on. Here in the Gulf of Thailand from a decision to open a concession to flow of gas/oil is approximately 18 months. We as a company recently completed a well head platform launch it and installed it in less than 1 year and is due to lift oil in the coming month. So the 10 year span is a little out but also the oil company's KNOW where the oil deposits are and they will not drill for them until the stocks around the world are depleted then all of a sudden USA has a very BIG commodity to sell. Hmmmm!
I don't know one way or the other, but yes (a) I'm pretty sure that in and around the costal United States, even though the industry knows where the oil is "in general", they still need to do a bit of studying before they find out exactly where to drill; (b) the Gulf of Mexico drilling (where most offshore oil in The United States is located) is a fair bit deeper than the Gulf of Thailand, which I'm sure has an effect on lead-up time; and (c) the size of the offshore operation is directly proportionate to the amount of oil being brought up, which in the G.O.M. is much larger than in the G.O.T. and of course the amount of time needed to set up a larger installation is more than a smaller one.
Like I said... just guessing on all of the above, but if true, the assertions based on the assumptions would be logical.
EXACTLY MIKE. Once the Arabs are out of Oil, then who the big dog on the block. There are several factors behind the rise in oil. One is the stock market, now all the investment companies have moved over to the oil market, and another one is the oil in the sand in Canada, they have to raise the price so it is profitable to get the oil from there as well. Basically it’s all about greed and us being the peasants’, well we pay the price. Until we up rise (which will never happen) we get what we deserve. I’m all for a free market but you cant get away from the severity of what oil prices do to an economy, something need to be done. There are so many other alternative energy sources out there but the powers that be don’t stand to make the profit off of it so it gets stifled.
Precisely as you stated Dago, the 7 sisters rule the oil world. Is it not strange over the last 50 years innovative technology to reduce the consumption of oil based products disappear as soon as someone announces them... hmmm wonder where they went!!
Now you hit a point I can comment on. Here in the Gulf of Thailand from a decision to open a concession to flow of gas/oil is approximately 18 months. We as a company recently completed a well head platform launch it and installed it in less than 1 year and is due to lift oil in the coming month. So the 10 year span is a little out but also the oil company's KNOW where the oil deposits are and they will not drill for them until the stocks around the world are depleted then all of a sudden USA has a very BIG commodity to sell. Hmmmm!
ReplyDeleteI don't know one way or the other, but yes (a) I'm pretty sure that in and around the costal United States, even though the industry knows where the oil is "in general", they still need to do a bit of studying before they find out exactly where to drill; (b) the Gulf of Mexico drilling (where most offshore oil in The United States is located) is a fair bit deeper than the Gulf of Thailand, which I'm sure has an effect on lead-up time; and (c) the size of the offshore operation is directly proportionate to the amount of oil being brought up, which in the G.O.M. is much larger than in the G.O.T. and of course the amount of time needed to set up a larger installation is more than a smaller one.
ReplyDeleteLike I said... just guessing on all of the above, but if true, the assertions based on the assumptions would be logical.
EXACTLY MIKE. Once the Arabs are out of Oil, then who the big dog on the block. There are several factors behind the rise in oil. One is the stock market, now all the investment companies have moved over to the oil market, and another one is the oil in the sand in Canada, they have to raise the price so it is profitable to get the oil from there as well. Basically it’s all about greed and us being the peasants’, well we pay the price. Until we up rise (which will never happen) we get what we deserve. I’m all for a free market but you cant get away from the severity of what oil prices do to an economy, something need to be done. There are so many other alternative energy sources out there but the powers that be don’t stand to make the profit off of it so it gets stifled.
ReplyDeletePrecisely as you stated Dago, the 7 sisters rule the oil world. Is it not strange over the last 50 years innovative technology to reduce the consumption of oil based products disappear as soon as someone announces them... hmmm wonder where they went!!
ReplyDelete