To drill or not to drill?
Technical Article Contributor
Joined: Dec 2006
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From: Sask. Canada
According to the DOE Report, in Alaska, it would take 9 years to get oil flowing, and 21 years before it reached it's full potential.
Senior Member
Joined: Dec 2006
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From: Kentucky
They probably do, but, I think that if the oil company's were given the go ahead they would do anything that they could to get the oil flowing as fast as possible b/c that is money in their pockets. I read the report from the DOE and the best that I can tell they are using an average time line for every stage of the oil exploration and production. I didnt see anywhere that took into consideration that the oil company's would or could step up the time frame for exploration/production.
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Joined: Sep 1999
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From: Ventura, California
They probably do, but, I think that if the oil company's were given the go ahead they would do anything that they could to get the oil flowing as fast as possible b/c that is money in their pockets. I read the report from the DOE and the best that I can tell they are using an average time line for every stage of the oil exploration and production. I didnt see anywhere that took into consideration that the oil company's would or could step up the time frame for exploration/production.
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Joined: Jan 2006
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From: Bismarck, ND
I don't know where you guys are getting your figures from for your 5, 10, 20 years to produce oil. I work the drilling rigs and have for some time. Right now my rig is punching ~2000 meter horizontal (6000 feet) wells in about 8 days. From the time the rig hits the lease the well is paid for within 90 days. Each well costs about $1,000,000 just to drill, then the service rig comes on for about 4 days and then they set up the pump jack and it starts producing within 2 weeks and its paid for within that 90 days so I have no idea where you guys are getting your 5-10-20 years to start producing. I haven't worked offshore but there is no way that it would not take 5 years for that well to start producing, the oil patch don't F U C K around.
Ok, now there are alot of different speculations on how long it would take to get oil out. Now I agree with Gotts2Bme, in the fact that we don't mess around. Once drilling starts, wells can be on line and producing in a matter of a couple months. The main problem isn't drilling, or even transporting it to refineries. The biggest problem we have is, there aren't any more offshore drilling rigs. So the estimates that say it will take 10 years to see a return start to look good, since most offshore rigs are booked for years and years in advance. But they also assume that no more will be made. If and when we finally get to drill offshore in these area's, there will be a mad rush to get in and start drilling. Orders will be made to make more rigs (and they are making more, just not many right now) and we'll be in there drilling in just 2-3 years (my guess).
We also need money ... which is being burned away in Iraq.
And re: your "magic wand" comment, what about going to the moon? If you'd told people in the 1940s that we'd be on the moon I'm sure they would've laughed at you. Same for airplanes, and the a-bomb. But we did it.
And re: your "magic wand" comment, what about going to the moon? If you'd told people in the 1940s that we'd be on the moon I'm sure they would've laughed at you. Same for airplanes, and the a-bomb. But we did it.
Oh... and for those who don't think letting us drill there would have an impact. How much has oil dropped, just since Bush announced he'd lift the Executive ban? If that isn't a clear indication that the market is driven by speculators, I don't know what is. Lets not fool around and give the speculators time to artificially drive up the price again.
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From: Ventura, California
Oh... and for those who don't think letting us drill there would have an impact. How much has oil dropped, just since Bush announced he'd lift the Executive ban? If that isn't a clear indication that the market is driven by speculators, I don't know what is. Lets not fool around and give the speculators time to artificially drive up the price again.
In explaining the fall, some analysts cited concerns that weakening economies would cut into global oil demand.
"We have strong concerns about the sharp rise in oil prices," the Group of 8 countries said in a statement from their summit in Japan. "The world economy is now facing uncertainty and downside risk persists."
Other reasons for the price slump include a rebounding dollar, a reduced threat to U.S. production from Hurricane Bertha and an easing of tensions over Iran's nuclear enrichment program.
Fallout from high fuel prices prompted the Energy Department to lower by a third its U.S. demand projection for 2008. The agency said in a report Tuesday that the high prices and a weak economy would cut the nation's consumption for fuel and petroleum by about 400,000 barrels a day for the year.
"We have strong concerns about the sharp rise in oil prices," the Group of 8 countries said in a statement from their summit in Japan. "The world economy is now facing uncertainty and downside risk persists."
Other reasons for the price slump include a rebounding dollar, a reduced threat to U.S. production from Hurricane Bertha and an easing of tensions over Iran's nuclear enrichment program.
Fallout from high fuel prices prompted the Energy Department to lower by a third its U.S. demand projection for 2008. The agency said in a report Tuesday that the high prices and a weak economy would cut the nation's consumption for fuel and petroleum by about 400,000 barrels a day for the year.