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Does anyone know why the oil companies will not drill the land they already have


Xnex
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I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

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xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

its simple........MONEY all these " conservatives" who keep talking about the dems ruining things........... if we allow the offshore drilling its just going to give the oil companies more of their RECORDS they have been getting........... profit. while not really doing anything for the consumer.

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xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

Democrats use this arguement to keep preventing drilling in ANWR and off the coast. The truth is there is no oil there. Do you not think if there was they would not be drilling it. Considering how greedy dems say they are.

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me51 (7/20/2008)
xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

Democrats use this arguement to keep preventing drilling in ANWR and off the coast. The truth is there is no oil there. Do you not think if there was they would not be drilling it. Considering how greedy dems say they are.

So you are saying the oil companies are paying money to hold leases on land where there is NO oil? Makes sense.

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pencilpusher (7/20/2008)
me51 (7/20/2008)
xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

Democrats use this arguement to keep preventing drilling in ANWR and off the coast. The truth is there is no oil there. Do you not think if there was they would not be drilling it. Considering how greedy dems say they are.

So you are saying the oil companies are paying money to hold leases on land where there is NO oil? Makes sense.

Ever leased an apartment or a car, it hard to get out once your in.

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me51 (7/20/2008)
pencilpusher (7/20/2008)
me51 (7/20/2008)
xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

Democrats use this arguement to keep preventing drilling in ANWR and off the coast. The truth is there is no oil there. Do you not think if there was they would not be drilling it. Considering how greedy dems say they are.

So you are saying the oil companies are paying money to hold leases on land where there is NO oil? Makes sense.

Ever leased an apartment or a car, it hard to get out once your in.

 

Then how come the oil companies were all up in arms last week when congress proposed that if the oil companies were not going to use the land they already have leased then they should lose the lease?

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joremari (7/20/2008)
me51 (7/20/2008)
pencilpusher (7/20/2008)
me51 (7/20/2008)
xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

Democrats use this arguement to keep preventing drilling in ANWR and off the coast. The truth is there is no oil there. Do you not think if there was they would not be drilling it. Considering how greedy dems say they are.

So you are saying the oil companies are paying money to hold leases on land where there is NO oil? Makes sense.

Ever leased an apartment or a car, it hard to get out once your in.

Then how come the oil companies were all up in arms last week when congress proposed that if the oil companies were not going to use the land they already have leased then they should lose the lease?

You took my answer.:P

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me51 (7/20/2008)
pencilpusher (7/20/2008)
me51 (7/20/2008)
xnex (7/20/2008)
I keep hearing so much about freeing up protected areas for drilling, but I have also heard that the oil companies have huge areas of land under lease they have not even attempted to drill. Why do they refuse to drill the land they already have while also begging for the restrictions on protected areas to be lifted?

Democrats use this arguement to keep preventing drilling in ANWR and off the coast. The truth is there is no oil there. Do you not think if there was they would not be drilling it. Considering how greedy dems say they are.

So you are saying the oil companies are paying money to hold leases on land where there is NO oil? Makes sense.

Ever leased an apartment or a car, it hard to get out once your in.

umm no they are not hard to get out of most lease's have some of opt out or buy out built into them. You may have to pay more but you CAN get out of them.............

head + sand= you

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The land probably has oil it just can cost too much to get the oil out.  The oil companies know this and know that its not a good business investment, so they dont drill.  For example, drilling is allowed in the outer continental shelf but the sea can be 7000 feet deep and oil can be another 20,000 feet under the surface.  The cost to drill is this environment doesnt make business sense to oil companies.  Oil companies produce profits not oil and will only drill if they can make profits.  Just like any other business.

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Kevin Grear (7/20/2008)
The land probably has oil it just can cost too much to get the oil out.  The oil companies know this and know that its not a good business investment, so they dont drill.  For example, drilling is allowed in the outer continental shelf but the sea can be 7000 feet deep and oil can be another 20,000 feet under the surface.  The cost to drill is this environment doesnt make business sense to oil companies.  Oil companies produce profits not oil and will only drill if they can make profits.  Just like any other business.

I like your rational thinking.

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Kevin Grear (7/20/2008)
The land probably has oil it just can cost too much to get the oil out.  The oil companies know this and know that its not a good business investment, so they dont drill.  For example, drilling is allowed in the outer continental shelf but the sea can be 7000 feet deep and oil can be another 20,000 feet under the surface.  The cost to drill is this environment doesnt make business sense to oil companies.  Oil companies produce profits not oil and will only drill if they can make profits.  Just like any other business.

Then they shouldn't be that worked up about giving up the land I would think. If they are so interested in profits, then why would they continue to hold onto and pay for land that isn't feasible to drill in? There's two sides to the profit equation; income and expenses. If there is no income to be had, then they shouldn't be so willing to incur the expense associated with the land IMO.

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When I got out of the Army I worked for ChevronTexaco in Carthage, TX and here is some of the reason they don't

We found a huge pocket of natural gas on a huge area of land owened by a man, last name Williams - CT then leased all of his land and it was a few hundred acres and we popped test wells al over and there was nothing but salt water so they don't drill but they still have that land leased

that happens alot

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xnex (7/20/2008)
Kevin Grear (7/20/2008)
The land probably has oil it just can cost too much to get the oil out.  The oil companies know this and know that its not a good business investment, so they dont drill.  For example, drilling is allowed in the outer continental shelf but the sea can be 7000 feet deep and oil can be another 20,000 feet under the surface.  The cost to drill is this environment doesnt make business sense to oil companies.  Oil companies produce profits not oil and will only drill if they can make profits.  Just like any other business.

Then they shouldn't be that worked up about giving up the land I would think. If they are so interested in profits, then why would they continue to hold onto and pay for land that isn't feasible to drill in? There's two sides to the profit equation; income and expenses. If there is no income to be had, then they shouldn't be so willing to incur the expense associated with the land IMO.

You may be right, my example was the outer continental shelf, which I'm not sure is even being leased by the oil companies. They are allowed by law to drill there and in some cases are choosing not too.  I'm not sure about lands they are leasing, but I would guess they are doing what they beleive makes the most financial sense(short and long term).  My only hope is that they come to the conclusion that they can see a larger return upon investing in alternative energy sources.

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Kevin Grear (7/20/2008)
The land probably has oil it just can cost too much to get the oil out. The oil companies know this and know that its not a good business investment, so they dont drill. For example,drilling is allowedin the outer continental shelf but the seacan be7000 feet deep and oil can be another20,000 feet under the surface. The cost to drill is this environment doesntmake business senseto oil companies. Oil companies produce profits not oil and will only drill if they can make profits. Just like any other business.

so then why pay the lease on the lands if you aren't getting any money out of it?

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and even if we allowed them to drill in the outer continental shelf... how would that help?

you either:

A. Force the oil companies to keep the oil domestic at a price that is lower then the global market price (zomg Socializmz!)

or

B. Let the oil go to the global community where the oil companies get a fair price for it and the price of a barrel of oil comes down very little since the extra oil provided, a decade from now, is but a drop in the bucket compared to the world's oil production.

this fighting over drilling in the OCS is nothing more then political grandstanding and oneupmanship at the expense of the american people.

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joremari (7/20/2008)
and even if we allowed them to drill in the outer continental shelf... how would that help?

you either:

A. Force the oil companies to keep the oil domestic at a price that is lower then the global market price (zomg Socializmz!)

or

B. Let the oil go to the global community where the oil companies get a fair price for it and the price of a barrel of oil comes down very little since the extra oil provided, a decade from now, is but a drop in the bucket compared to the world's oil production.

this fighting over drilling in the OCS is nothing more then political grandstanding and oneupmanship at the expense of the american people.

Oil is kept domestic already. The only oil "exported" is to Puerto Rico, which is a US territory, of course...

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joremari (7/20/2008)
and even if we allowed them to drill in the outer continental shelf... how would that help?

you either:

A. Force the oil companies to keep the oil domestic at a price that is lower then the global market price (zomg Socializmz!)

or

B. Let the oil go to the global community where the oil companies get a fair price for it and the price of a barrel of oil comes down very little since the extra oil provided, a decade from now, is but a drop in the bucket compared to the world's oil production.

this fighting over drilling in the OCS is nothing more then political grandstanding and oneupmanship at the expense of the american people.

That's what I don't get. The decry anything remotely socialist as bad, yet they want the government to force the oil companies to sell oil only domestically at reduced prices. Because putting it on the world market won't do jack for supply or prices.

So guys, what's it gonna be?

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capologist (7/20/2008)
joremari (7/20/2008)
and even if we allowed them to drill in the outer continental shelf... how would that help?

you either:

A. Force the oil companies to keep the oil domestic at a price that is lower then the global market price (zomg Socializmz!)

or

B. Let the oil go to the global community where the oil companies get a fair price for it and the price of a barrel of oil comes down very little since the extra oil provided, a decade from now, is but a drop in the bucket compared to the world's oil production.

this fighting over drilling in the OCS is nothing more then political grandstanding and oneupmanship at the expense of the american people.

Oil is kept domestic already. The only oil "exported" is to Puerto Rico, which is a US territory, of course...

is it kept here at an artificially lowered price compared to the global market?

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Same Ol Falcons (7/20/2008)
joremari (7/20/2008)

so then why pay the lease on the lands if you aren't getting any money out of it?

Texaco will doa 10 year lease minimum and that's just to pop test wells if those only produce salt water or condensate they will leave it alone and it will stay under lease to them

so if they can't get anything out of it then they should have no problem with the drill act of last week, right?

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joremari (7/20/2008)
Same Ol Falcons (7/20/2008)
joremari (7/20/2008)

so then why pay the lease on the lands if you aren't getting any money out of it?

Texaco will doa 10 year lease minimum and that's just to pop test wells if those only produce salt water or condensate they will leave it alone and it will stay under lease to them

so if they can't get anything out of it then they should have no problem with the drill act of last week, right?

If they could get some of these lands off their hands they would be happy - some of these lands even if not a drop of natural or oil is found, they must still maintain it for the 10 years

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Same Ol Falcons (7/20/2008)
joremari (7/20/2008)
Same Ol Falcons (7/20/2008)
joremari (7/20/2008)

so then why pay the lease on the lands if you aren't getting any money out of it?

Texaco will doa 10 year lease minimum and that's just to pop test wells if those only produce salt water or condensate they will leave it alone and it will stay under lease to them

so if they can't get anything out of it then they should have no problem with the drill act of last week, right?

If they could get some of these lands off their hands they would be happy - some of these lands even if not a drop of natural or oil is found, they must still maintain it for the 10 years

so what's up with the right attacking this bill then?

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capologist (7/21/2008)
joremari (7/20/2008)

is it kept here at an artificially lowered price compared to the global market?

No, we just aren't producing enough to meet demand.

And the few drops in the barrel compared to the rest of the world's oil production will help with the fact that we have had a 1400% increase in the price of a barrel of oil in the last 10 years? in 1998 it was 10.00 a barrel. If it shows the same rate of growth over the next 10 years it will be about $2000/barrel. Now obviously it's not going to get that high, but just think about how ridiculous the price of a barrel of oil has shot up.

The only way it would help, and I'm not even sure that it would help much, is if forced the oil companies to keep the oil here in america at a price that is substantially lower then the global market price, an idea that is completely out of line with traditional conservative values. Which has me wonder then, why is the right pushing it then? The talking heads on the right know that drilling in the OCS really will not help much at all to meet our supply, but they also know that since it may take up to 10 years to start using anything out of the OCS they have basically no responsibility on this issue in anything they say. No one is going to remember in 10 years when it does very little to help our problem now. The right seems like they finally realized how far out of touch they have gotten compared to the american people and are desperately trying to find something to connect with them (hello stimulus package) to lessen the whipping they are going to get in a few months. And you know what, good, they deserve it for how they have abandoned their roots.

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