Oil Price Increases After Biden Shuts Down Drilling Permits Again

[glenn walker]

Where have you been. CA has had a ban on trucks with engines mfg prior to 2006 for 10 years. The new ban moves that to engines mfg prior to 2010

He has been in Nando Land -Ever notice unless something may effect him personally he has no interest in it.

 

[Terrel L. Shields]

The big oil companies had the capital money to survive when oil price fell that much. The small time oil fracking is who went bankrupt. You take a $100 barrel price to $30 oil price on fracking.


That's a huge drop. The small time fracking just shut the oil wells down and declared bankruptcy. I don't know how many wells are vacant now. I have heard as much as 2,000. I could be way off. It may be way more.

I would really like to know what the F you are babbling about. You don't know "fracking" from making jello. "Vacant" wells... WTF are you talking about? 2,000 WHAT???? An oil well does not last forever. There are hundreds of thousands of wells drilled in the past that are plugged and abandoned. They are (at least since the 40s) plugged under the direction of the state. The situation in Colorado has nothing to do with wells that are "vacant"...geez what an airhead. There is a fight between the state and the oil company and the state seized the wells - and will be in court over it I have no doubt.

Actually the companies that went bankrupt were middle sized independents like Chesapeake - which is back running as if nothing happened. Almost all these companies were funded by hedge funds and "energy banks". They simply filed bankruptcy, then went right on running. No one had to "shut down" any wells. The production simply declined. About half the oil in a horizontal well is produced in the first 18 months and the second half may take up to 30 years until it reaches its economic limits. The decline curve of a well is steep, so you have to keep drilling to keep the production up. When prices collapsed in 2020, so did drilling. That has not recovered entirely. High prices means it is but proposing, permitting, finding a rig, drilling, completing then running a pipeline to a transport pipeline takes time - months. In the case of government leases usually years.

We have as much sustained drilling as it possible. Those rigs are not setting out there like cars on a car lot ready to go at any moment. It takes months to get them going. As for bankruptcy, far more small drilling companies and service companies went under than did oil companies. As for "big" oil, they are primarily refiners, distributors, petrochemical companies and transporters of oil. Exxon drills very few wells in a year - 433 in 21. And those were mostly in-fill wells in existing fields. Chesapeake OTOH, a much smaller company, drilled about half that number as did Devon, Frontier, and EOG each drilling from 100-200 wells in a typical year.
EXXONMOBIL from their annual report

 

[Zoe]

I would really like to know what the F you are babbling about. You don't know "fracking" from making jello. "Vacant" wells... WTF are you talking about? 2,000 WHAT???? An oil well does not last forever. There are hundreds of thousands of wells drilled in the past that are plugged and abandoned. They are (at least since the 40s) plugged under the direction of the state. The situation in Colorado has nothing to do with wells that are "vacant"...geez what an airhead. There is a fight between the state and the oil company and the state seized the wells - and will be in court over it I have no doubt.

Actually the companies that went bankrupt were middle sized independents like Chesapeake - which is back running as if nothing happened. Almost all these companies were funded by hedge funds and "energy banks". They simply filed bankruptcy, then went right on running. No one had to "shut down" any wells. The production simply declined. About half the oil in a horizontal well is produced in the first 18 months and the second half may take up to 30 years until it reaches its economic limits. The decline curve of a well is steep, so you have to keep drilling to keep the production up. When prices collapsed in 2020, so did drilling. That has not recovered entirely. High prices means it is but proposing, permitting, finding a rig, drilling, completing then running a pipeline to a transport pipeline takes time - months. In the case of government leases usually years.

We have as much sustained drilling as it possible. Those rigs are not setting out there like cars on a car lot ready to go at any moment. It takes months to get them going. As for bankruptcy, far more small drilling companies and service companies went under than did oil companies. As for "big" oil, they are primarily refiners, distributors, petrochemical companies and transporters of oil. Exxon drills very few wells in a year - 433 in 21. And those were mostly in-fill wells in existing fields. Chesapeake OTOH, a much smaller company, drilled about half that number as did Devon, Frontier, and EOG each drilling from 100-200 wells in a typical year.
EXXONMOBIL from their annual report
View attachment 64940

Okay, but when oil fell from $100 a barrel to $30, it put many wells out of business.

It is simple economics. They went bankrupt.

 

[Zoe]

I do wonder if Biden is giving any wells incentives to reopen or new wells to open. Something is driving the oil price down. Gas buddy is saying it could drop another $0.50/gallon on gas soon.

Idk. Biden could have made a deal with opec.

 

[glenn walker]

I do wonder if Biden is giving any wells incentives to reopen or new wells to open. Something is driving the oil price down. Gas buddy is saying it could drop another $0.50/gallon soon.

Idk. Biden could have made a deal with opec.

It's called Economics -101 supply and demand. Right now in my area many stations are almost empty compared to one or two years ago. This became real--evident at my Friends Exxon/Mobil Station the day after 4th of jury. People are really now watching their driving and not just driving around anymore. As Volume of gallons sold declines prices will drop. This really has nothing to do with new supplies. A this rate its signalling the next phase which I call Demand Destruction where we reverse and prices and profit marginals get thinner and thinner and the we may see businesses closing down and going bankrupt. ** The only thing now to keep High Prices is more war sanctions and shutting down California and Nationwide Truckers and Supply chains.
But based on his-current and past actions he seems to be able to screw up almost anything him or his administration gets near or touches.

 

[Terrel L. Shields]

World oil production is unchanged for the most part. "Sanctions" worthless as they are, didn't really impact the production of oil in Russia. It just changed the buyers. China and India are absorbing all that Russian oil which releases more OPEC oil to be sold to Europe, Asia, etc. The fact Biden allowed SPR oil to be sold to China is a disgrace and I agree with those calling for his impeachment over it...although the Impeachment "problem" is that it is used more to shame someone than to actually remove someone from office for cause.

The next 2plus years are going to be doozies and the R's may want to rethink winning the WH in 2024. Perhaps let the Dems clean up the mess they made.

 

[OSU Beavers]

 

[Terrel L. Shields]

Okay, but when oil fell from $100 a barrel to $30, it put many wells out of business

NO. The 'wells" did not go out of business". They kept producing. Production dropped as the wells produced less. And wells naturally produce less from month to month year to year with rarest exception.

Something is driving the oil price down. Gas buddy is saying it could drop another $0.50/gallon on gas soon.

When things get expensive, people use less of it. People are driving much less. The world likewise has recognized we are still producing a lot of oil. Russia is selling the oil that we pretend we are embargoing to India and China. Then the oil China and India used to buy from others is sold somewhere else. The thing driving oil "down" is supply and demand. Less demand, more supply and lower price. And it is in a trading range well above where it was a year ago. The fact it spiked was people thinking Russia would not be able to sell their oil. They have plenty of oil and Russia has the EU over a barrel (of oil) and a pipeline to boot. Wait until December when Russia toys with Europe mid - winter. They will put the hurt on Europe. And the Germans laughed at Trump for telling them they were too beholden to Putin. So I wonder what the German Defense Minister thinks now.

 

[Fernando]

It's called Economics -101 supply and demand. Right now in my area many stations are almost empty compared to one or two years ago. This became real--evident at my Friends Exxon/Mobil Station the day after 4th of jury. People are really now watching their driving and not just driving around anymore. As Volume of gallons sold declines prices will drop. This really has nothing to do with new supplies. A this rate its signalling the next phase which I call Demand Destruction where we reverse and prices and profit marginals get thinner and thinner and the we may see businesses closing down and going bankrupt. ** The only thing now to keep High Prices is more war sanctions and shutting down California and Nationwide Truckers and Supply chains.
But based on his-current and past actions he seems to be able to screw up almost anything him or his administration gets near or touches.

I'm still driving around. Just came back from cutting my monthly haircut. I drive 30 minutes away to have my favorite haircutter cut my head.
Afterward went to this bakery with a long line. Had to try the buns why people willing to wait for so long. Bought a boxful.
Since I was there, I drove another 10 minutes to check on my new Mexican restaurant tenant which just recently opened.
They work as a family doing the cooking, waitering, remodeling, and such. It saves them lot of money and government regulations of payrolling and contractor fees.
They even had a relative painted the walls with Mexican art work. Nice. More authentic than Chipotle.
Before I wasn't sure of renting to him because in when he was young in Facebook, he looked like a gangbanger.
Seems like he changed having a family to take care of. He's future look bright and hopefully can rent my other vacant space.
I'm glad people can change.

 

[glenn walker]

I'm still driving around. Just came back from cutting my monthly haircut. I drive 30 minutes away to have my favorite haircutter cut my head.
Afterward went to this bakery with a long line. Had to try the buns why people willing to wait for so long. Bought a boxful.
Since I was there, I drove another 10 minutes to check on my new Mexican restaurant tenant which just recently opened.
They work as a family doing the cooking, waitering, remodeling, and such. It saves them lot of money and government regulations of payrolling and contractor fees.
They even had a relative painted the walls with Mexican art work. Nice. More authentic than Chipotle.
Before I wasn't sure of renting to him because in when he was young in Facebook, he looked like a gangbanger.
Seems like he changed having a family to take care of. He's future look bright and hopefully can rent my other vacant space.
I'm glad people can change.

I am so touched tears came to my eyes -Now how much free food did you extort from him and his family or Landlord Discount was applied ? Dont lie you always have an-angle to pretend you are the nice guy but when all the truth comes out its always about you.