Re: Scouted: U.S. to collapse in next two years?
- Surely Canada & Australia are both far less densely populated than the
> The US is far less densely populated than any other developed country, its_______________________________________________
> air and water suppliers are far less polluted than 40 years ago, and
> has fallen to the point where we've been able to elect a black president.
> And yet, you sing we're on the eve of destruction?
> Dan M.
> -----Original Message-----You know, the one that Schlumberger, Baker Hughes, Halliburton, Weatherford,
> From: brin-l-bounces@... [mailto:brin-l-bounces@...] On
> Behalf Of Chris Frandsen
> Sent: Friday, January 23, 2009 7:56 PM
> To: Killer Bs (David Brin et al) Discussion
> Subject: Re: Which oil patch?
> Which oil patch are you talking about?
Pathfinder, Phoenix, Ryan, Tucker, Great Guns Logging, and a number of other
smaller wireline and MWD companies log in.
>Offshore drilling is not feasible at the 60-80 dollar rangeWhen oil was $9.80/barrel back in '98, I developed tools that were running
>as was proven by the fact that over 66 million acres under lease have not
offshore on oil rigs. I know folks who had to bid projects, and who were
told what range the field had to make money at. For example, back in '00,
when prices went back over $20 barrel, any new field had to be justified at
$15/barrel. And, a number of them were offshore.
>I believe the lastIf it was a rank wildcat, that's possible. But, the US has been developing
> dry hole offshore in Alaska cost $150 million.
offshore fields for longer than I've been in the business (25+ years).
>My wife's small shareThat's a real old field. In traditional Texas fields, yields are low.
> of oil rights in west Texas were not opened up until we hit the 80+
> range and at least one of those wells was depleted in six months.
Reopening old wells is a iffy business. Once a well is shut in, it tends to
restart at a much lower production rate and be much easier to go dry
> Can we agree that the price of oil is being manipulated?There is no data that suggest that. The biggest player in the marker (OPEC
at 40% market share) has watched helplessly as oil prices hit the floor
several times during supply gluts. The oil field has had downturns that no
other industry I'm familiar with has. I've been through 50%, 80% and 50%
layoffs during three downturns.
It's true that there are fields that are profitable at $150/barrel that are
not profitable at $80/barrel. But, anyone who has lived through the ups and
downs of oil prices over the last 25 years knows that spikes are followed by
troughs. Remember, it takes a long time to develop a field. From seismic
to a developed field can take 10 years. No one in their right mind would
authorize a field that is only profitable if the latest spike holds. That's
stupid beyond belief.