JohnDB
Diamond Member
- Jun 16, 2021
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I will, (but just a tiny bit)Only one of the usual suspects would complain about something that lowers oil prices.
Because the price of oil is low....
It makes certain deposits not viable to drill and develop...meaning that the price of oil is limited to current wells.
Like Venezuelan oil currently is not viable to refine or upgrade. It's practically worthless costing more to pump, refine, and ship than it's worth. Oil companies Trump is strong arming are balking...but if they ignore the opportunity someone else will get it.
So it ties up a huge chunk of their investment money for a while there until petroleum comes up in price. (I'm not going to feel bad for them....I'm all about free market and smaller companies getting the drop on larger ones.
But it also makes the drilling and exploitation of petroleum more difficult for smaller roughnecks to make a stake. Not a lot of cheap to discover and exploit deposits left out there. Most of your wells on land pump out maybe 5 barrels a week. Others do maybe a barrel a week and get a route truck to pump out a holding tank. Those wells might get ignored for a while till the price comes up.