2011: Drill Baby, Drill

[Old Rocks]

So we drill, drill, drill. And the increased production goes to the highest bidder. Which may well be China or India. Not only that, the amount we get does not even come close to the amount we use. The Bakken formation is the biggest find recently with perhaps as much as 3.65 billion barrels. That is just about the same amount of oil that we use in a years time here in the US. The next largest recent discovery is only one billion barrels.

The reality is that we do not have enough oil even to begin to make up for the imports.

 

[Mr. H.]

So we drill, drill, drill. And the increased production goes to the highest bidder. Which may well be China or India. Not only that, the amount we get does not even come close to the amount we use. The Bakken formation is the biggest find recently with perhaps as much as 3.65 billion barrels. That is just about the same amount of oil that we use in a years time here in the US. The next largest recent discovery is only one billion barrels.

The reality is that we do not have enough oil even to begin to make up for the imports.

I don't recall anyone asserting that domestic production could ever replace all oil imports. Certaiinly no one in tbe petroleum industry.

It's about American oil and energy and jobs. It's about boosting local economies and increasing tax revenues to treasuries.

And what's that about increased production "going to the highest bidder". I don't understand that comment.

Here's some encouraging news:

RIGZONE - Ohio Braces for Oil Shale Boom

Oil-drilling in Ohio's Utica, along with natural-gas drilling in the Marcellus shale there "could be a godsend" to the hard-scrabble region, Gov. John Kasich said in a written statement.

Drilling in the U.S. is at a 20-year high. That kind of activity requires goods, services, and jobs. And the companies doing this are independents- small businesses- you know, the ones that Obama claims to be supporting. Except of course oil companies. He wants to fuck them out of $43billion so he can stick a million electric cars on the road.
He said so in his SOTU spich.

 

[Samson]

So we drill, drill, drill. And the increased production goes to the highest bidder. Which may well be China or India. Not only that, the amount we get does not even come close to the amount we use. The Bakken formation is the biggest find recently with perhaps as much as 3.65 billion barrels. That is just about the same amount of oil that we use in a years time here in the US. The next largest recent discovery is only one billion barrels.

The reality is that we do not have enough oil even to begin to make up for the imports.

I don't recall anyone asserting that domestic production could ever replace all oil imports. Certaiinly no one in tbe petroleum industry.

It's about American oil and energy and jobs. It's about boosting local economies and increasing tax revenues to treasuries.

And what's that about increased production "going to the highest bidder". I don't understand that comment.

Here's some encouraging news:

RIGZONE - Ohio Braces for Oil Shale Boom

Oil-drilling in Ohio's Utica, along with natural-gas drilling in the Marcellus shale there "could be a godsend" to the hard-scrabble region, Gov. John Kasich said in a written statement.

Drilling in the U.S. is at a 20-year high. That kind of activity requires goods, services, and jobs. And the companies doing this are independents- small businesses- you know, the ones that Obama claims to be supporting. Except of course oil companies. He wants to fuck them out of $43billion so he can stick a million electric cars on the road.
He said so in his SOTU spich.

Where do you get $43 B?

Frankly, I'm not sure the domestic drillers will need any subsidy to be quite profitable for the next 20 years.

But you are quite correct about the employment opportunities: We are having HUGE problems finding guys, and all we want is a clean CDL. One of the difficulties is that drillers pay a low comparative wage ($15/hr) but a good bonus $100/d. The compensation is designed as a buffer so that during the troughs that eventually effect the oil business, drillers may not need to lay-off employees.

 

[Mr. H.]

So we drill, drill, drill. And the increased production goes to the highest bidder. Which may well be China or India. Not only that, the amount we get does not even come close to the amount we use. The Bakken formation is the biggest find recently with perhaps as much as 3.65 billion barrels. That is just about the same amount of oil that we use in a years time here in the US. The next largest recent discovery is only one billion barrels.

The reality is that we do not have enough oil even to begin to make up for the imports.

I don't recall anyone asserting that domestic production could ever replace all oil imports. Certaiinly no one in tbe petroleum industry.

It's about American oil and energy and jobs. It's about boosting local economies and increasing tax revenues to treasuries.

And what's that about increased production "going to the highest bidder". I don't understand that comment.

Here's some encouraging news:

RIGZONE - Ohio Braces for Oil Shale Boom

Oil-drilling in Ohio's Utica, along with natural-gas drilling in the Marcellus shale there "could be a godsend" to the hard-scrabble region, Gov. John Kasich said in a written statement.

Drilling in the U.S. is at a 20-year high. That kind of activity requires goods, services, and jobs. And the companies doing this are independents- small businesses- you know, the ones that Obama claims to be supporting. Except of course oil companies. He wants to fuck them out of $43billion so he can stick a million electric cars on the road.
He said so in his SOTU spich.

Where do you get $43 B?

Frankly, I'm not sure the domestic drillers will need any subsidy to be quite profitable for the next 20 years.

But you are quite correct about the employment opportunities: We are having HUGE problems finding guys, and all we want is a clean CDL. One of the difficulties is that drillers pay a low comparative wage ($15/hr) but a good bonus $100/d. The compensation is designed as a buffer so that during the troughs that eventually effect the oil business, drillers may not need to lay-off employees.

Looks like it could be high as $90 billion

Obama proposes $90 billion in energy taxes | Chris Prandoni | Opinion Zone | Washington Examiner

Some random stuff:

Drilling costs are 20 to 35 percent of the capital expenditure budgets of independent producers, meaning without the ability to expense these costs, an independent would have to reduce their drilling budget by as much as one-third almost immediately.



The tired notion that America's oil and natural gas producers are all 'Big Oil' is misleading and outright false. You see, 90 percent of the nation's onshore and offshore oil and natural gas wells are drilled by independent producers. These producers - or small businesses - on average employ only 12 workers.

While the White House, and its allies on Capitol Hill, maintain their plan aims to raise billions of dollars on 'Big Oil', the truth is that this is nothing more than an enormous, job-crushing tax increase on America's small businesses who deliver stable supplies of homegrown, reliable energy to U.S. consumers.

Another view:

New study says proposed energy tax changes could cost 154,000 jobs | MLive.com

 

[Samson]

I don't recall anyone asserting that domestic production could ever replace all oil imports. Certaiinly no one in tbe petroleum industry.

It's about American oil and energy and jobs. It's about boosting local economies and increasing tax revenues to treasuries.

And what's that about increased production "going to the highest bidder". I don't understand that comment.

Here's some encouraging news:

RIGZONE - Ohio Braces for Oil Shale Boom

Oil-drilling in Ohio's Utica, along with natural-gas drilling in the Marcellus shale there "could be a godsend" to the hard-scrabble region, Gov. John Kasich said in a written statement.

Drilling in the U.S. is at a 20-year high. That kind of activity requires goods, services, and jobs. And the companies doing this are independents- small businesses- you know, the ones that Obama claims to be supporting. Except of course oil companies. He wants to fuck them out of $43billion so he can stick a million electric cars on the road.
He said so in his SOTU spich.

Where do you get $43 B?

Frankly, I'm not sure the domestic drillers will need any subsidy to be quite profitable for the next 20 years.

But you are quite correct about the employment opportunities: We are having HUGE problems finding guys, and all we want is a clean CDL. One of the difficulties is that drillers pay a low comparative wage ($15/hr) but a good bonus $100/d. The compensation is designed as a buffer so that during the troughs that eventually effect the oil business, drillers may not need to lay-off employees.

Looks like it could be high as $90 billion

Obama proposes $90 billion in energy taxes | Chris Prandoni | Opinion Zone | Washington Examiner

Some random stuff:

Drilling costs are 20 to 35 percent of the capital expenditure budgets of independent producers, meaning without the ability to expense these costs, an independent would have to reduce their drilling budget by as much as one-third almost immediately.



The tired notion that America's oil and natural gas producers are all 'Big Oil' is misleading and outright false. You see, 90 percent of the nation's onshore and offshore oil and natural gas wells are drilled by independent producers. These producers - or small businesses - on average employ only 12 workers.

While the White House, and its allies on Capitol Hill, maintain their plan aims to raise billions of dollars on 'Big Oil', the truth is that this is nothing more than an enormous, job-crushing tax increase on America's small businesses who deliver stable supplies of homegrown, reliable energy to U.S. consumers.

Another view:

New study says proposed energy tax changes could cost 154,000 jobs | MLive.com

I cannot see that the Job loss study is objective, and the 154K jobs are not necessarily in the energy sector.

It appears to me that the Obama administration's efforts to close tax loopholes that energy producers regularly use, and use the increased revenue to subsidize alternative fuel R&D will only increase the cost of doing business for small domestics UNLESS the price of oil remains low (which is unlikely, as now it's $100/bbl).

Ironically, LARGER Multinational producers are the same entities who are receiving grants and subsidies for alternative NRG R&D; However, Obama looks good to his Greenie, Left-of-Center constituants moving money around (and skimming a little to pay for pet Dem social engineering programs)

 

[logical4u]

Jobs. Millions of jobs. Billions in revenues for local, state, and federal coffers. Increased domestic production of American energy.

What's wrong with that. Nuttin', honey.

An economist for the Treasury Department said in 2009 that a study had found that oil prices and potential profits were so high that eliminating the subsidies would decrease American output by less than half of one percent.

“We’re giving tax breaks to highly profitable companies to do what they would be doing anyway,” said Sima J. Gandhi, a policy analyst at the Center for American Progress, a liberal research organization. “That’s not an incentive; that’s a giveaway.”

Some of the tax breaks date back nearly a century, when they were intended to encourage exploration in an era of rudimentary technology, when costly investments frequently produced only dry holes.

http://www.nytimes.com/2010/07/04/business/04bptax.html

Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi. Exxon has tens of billions in earnings permanently reinvested overseas. Likewise, GE has $84 billion in overseas income parked indefinitely outside the U.S.

Though Exxon's financial statement's don't show any net income tax liability owed to Uncle Sam, a company spokesman insists that once its final tax bill is figured, Exxon will owe a "substantial 2009 tax liability." How substantial? "That's not something we're required to disclose, nor do we."

What The Top U.S. Companies Pay In Taxes - Forbes.com

Oh, I get it, "We can't say". "Can't?" or "Won't?"

You do realize these "subsidies" are simply, not an additional tax passed on to anyone using petroleum products in the USA (that would be all of us)? If these "breaks" were eliminated, the cost for transportation, shipping of products, petroleum products would rise for all of us (it would just be another tax passed to the citizens).

 

[Mr. H.]

Drilling activity relies heavily on outside investment. Especially since 90% of wells drilled in the U.S. is done so by independent companies. In order to attract that kind of investment it's necessary that the petroleum industry not be singled out for punishment under the tax code.

Why isn't the hammer coming down on other industries? Why is oil and gas being singled out?
Why do we continue to lay ourselves at the feet of the almighty farmer?

Petroleum is a base industry- one that is relied upon by a host of economic generators for fuel, lubricants, plastics, etc etc.

It wasn't that long ago that gasoline was $1/gallon and oil $10/barrel (1999). That day will come again.
Let's hope that when it does, we have a petroleum industry left, and not one that has been beaten to oblivion by repressive, targeted, and unfairly administered tax laws.

 

[signelect]

Besides Obama, look at the nut cases who are ruining our country. The whole middle east is a disaster and we have know it for years but looked the other way and now we are saying oh my gosh what is happening. Libya has been a trash dump for 30 years and Qdaffy is going to kill everyone, go figure, we asked for it. We should have taken him out when we had the chance.

 

[Samson]

Drilling activity relies heavily on outside investment. Especially since 90% of wells drilled in the U.S. is done so by independent companies. In order to attract that kind of investment it's necessary that the petroleum industry not be singled out for punishment under the tax code.

Why isn't the hammer coming down on other industries? Why is oil and gas being singled out?
Why do we continue to lay ourselves at the feet of the almighty farmer?

Petroleum is a base industry- one that is relied upon by a host of economic generators for fuel, lubricants, plastics, etc etc.

It wasn't that long ago that gasoline was $1/gallon and oil $10/barrel (1999). That day will come again.
Let's hope that when it does, we have a petroleum industry left, and not one that has been beaten to oblivion by repressive, targeted, and unfairly administered tax laws.

I'm not so certain there is any industry that is not singled out: Oil and Gas is simply the first (and easiest to target).

 

[Samson]

Besides Obama, look at the nut cases who are ruining our country. The whole middle east is a disaster and we have know it for years but looked the other way and now we are saying oh my gosh what is happening. Libya has been a trash dump for 30 years and Qdaffy is going to kill everyone, go figure, we asked for it. We should have taken him out when we had the chance.

Speaking of nut cases...........

Find a thread about the subject matter about which you'd like to debate/discuss instead of appearing to be a blithering idiot.

 

[boedicca]

Besides Obama, look at the nut cases who are ruining our country. The whole middle east is a disaster and we have know it for years but looked the other way and now we are saying oh my gosh what is happening. Libya has been a trash dump for 30 years and Qdaffy is going to kill everyone, go figure, we asked for it. We should have taken him out when we had the chance.

Speaking of nut cases...........

Find a thread about the subject matter about which you'd like to debate/discuss instead of appearing to be a blithering idiot.

That's task would be above his pay grade.

 

[Samson]

Besides Obama, look at the nut cases who are ruining our country. The whole middle east is a disaster and we have know it for years but looked the other way and now we are saying oh my gosh what is happening. Libya has been a trash dump for 30 years and Qdaffy is going to kill everyone, go figure, we asked for it. We should have taken him out when we had the chance.

Speaking of nut cases...........

Find a thread about the subject matter about which you'd like to debate/discuss instead of appearing to be a blithering idiot.

That's task would be above his pay grade.

He needs to get back to his lemonade stand.

 

[Foxfyre]

Oil patch kid here.

In less attractive parts of the country, entry level oil rig jobs can start at $25/hour or something like $50k/year or so. That is high end though. Few low end oil field workers will make $60k to start. Those with the skills to move up the ladder into the more technical or supervisory positions can do a whole lot better and the oil fields provide lucrative employment for many thousands. It is hard labor though and dangerous--many more injuries than in most occupations and work comp rates are off the charts.

Each land based rig will employ up to 24 or so people plus clerical and office personnel--8 guys usually work a shift on a rig.

The off shore rigs use experienced personnel only--you don't get an entry level off shore job--the pay is a lot better and each drilling platform will employ up to 125 people.

Those oil companies contracting with other countries though usually don't take many Americans with them. Most of those contracts require the companies to use mostly local personnel on the rigs.

And why is Obama attacking the oil companies? Because he is a leftwing wacko when it comes to the environment and he is determined that his legacy will be the President who crushed evil oil and ushered in the era of clean, green energy. And he has some huge financial backers urging him on not the least of which are George Soros, General Electric, and other international types who stand to gain hugely if he is the least bit successful.

 

[Mr. H.]

I drilled a 3,000' wildcat several years ago in southern Illinois. At the end of each 8 hour tour, there were about a half-dozen lunch buckets waiting at the gate to see who got fired the previous shift.
The labor's there if you can weed out the dopers and parolees.
Yup it's damned hard physical labor. Except my job wasn't. But I was the one with the ulcers.

 

[Foxfyre]

I drilled a 3,000' wildcat several years ago in southern Illinois. At the end of each 8 hour tour, there were about a half-dozen lunch buckets waiting at the gate to see who got fired the previous shift.
The labor's there if you can weed out the dopers and parolees.
Yup it's damned hard physical labor. Except my job wasn't. But I was the one with the ulcers.

For sure it is a job few people grow old doing. But you're right about the dopers. In New Mexico they allow the insurance companies to reduce work comp benefits by 10% or more if the injured worker tests under the influence of any controlled substance. (Some states would deny the claim outright.) The only exception would be if the injury was in no way the injured employee's fault. At least half of the oil field injuries I worked as a work comp adjuster included that penalty.

 

[Mr. H.]

It's like I remind folks- 100% of all oilfield accidents happen in the oilfield.

 

[Samson]

It's like I remind folks- 100% of all oilfield accidents happen in the oilfield.

***waiting for Old Rocks to argue your point***