U.S. oil industry prepares to boost production — but with a giant warning

[YoursTruly]

On land that Obama controlled production went down...on land that he didn't it increased. Peddle that silly shit somewhere else, Surada! You're embarrassing yourself.

Domestic oil production doubled under Obama, period. Doesn't matter where.

Something that does matter is why 60% of the drilling permits that's already been issued to oil companies, don't have a drilling rig on them. They're permitted and ready to go. Just waiting on the oil companies.

The reason, in case you can't figure it out, is that it's a bust cycle. If the oil companies ramped up productions, pressurized their existing wells, drilled more well (on the land that's already permitted), the oil prices would go down and their overhead would go up. . Meaning a lot less profit.

So from a business stand point, let me ask you a serious question. If you were Exxon, would you:

A. Sit tight and keep making record profits from the high cost of oil and the extremely low overhead.
B. Hire all those drillers, pipeliners, Xray tech and geologist back. Pressurize existing wells. Drill more wells. And ramp up production so the price of oil could come back down to $40 barrel.


Let's do some math, shall we? The US consumes 19,000,000,000 barrels of oil per day. At the moment it's $110. And most of the oil field hands are on lay off.

19 billion X $110 = $2,090,000,000,000 in gross profit. (with much lower overhead)
19 billion X $40 = $760,000,000,000 in gross profit, (with a huge amount of overhead)
That's a daily loss of $1,330,000,000,000 in gross profit, plus the overhead.

Of course those numbers are spread out over all the oil companies. But you get the picture, right? Ramping up production will being the profits down. Way down.
You can sit on that extra monetary gain for as long as you can. Or start losing money right away? Which do you choose?

 

[westwall]

Domestic oil production doubled under Obama, period. Doesn't matter where.

Something that does matter is why 60% of the drilling permits that's already been issued to oil companies, don't have a drilling rig on them. They're permitted and ready to go. Just waiting on the oil companies.

The reason, in case you can't figure it out, is that it's a bust cycle. If the oil companies ramped up productions, pressurized their existing wells, drilled more well (on the land that's already permitted), the oil prices would go down and their overhead would go up. . Meaning a lot less profit.

So from a business stand point, let me ask you a serious question. If you were Exxon, would you:

A. Sit tight and keep making record profits from the high cost of oil and the extremely low overhead.
B. Hire all those drillers, pipeliners, Xray tech and geologist back. Pressurize existing wells. Drill more wells. And ramp up production so the price of oil could come back down to $40 barrel.


Let's do some math, shall we? The US consumes 19,000,000,000 barrels of oil per day. At the moment it's $110. And most of the oil field hands are on lay off.

19 billion X $110 = $2,090,000,000,000 in gross profit. (with much lower overhead)
19 billion X $40 = $760,000,000,000 in gross profit, (with a huge amount of overhead)
That's a daily loss of $1,330,000,000,000 in gross profit, plus the overhead.

Of course those numbers are spread out over all the oil companies. But you get the picture, right? Ramping up production will being the profits down. Way down.
You can sit on that extra monetary gain for as long as you can. Or start losing money right away? Which do you choose?

Yes it does.

Obummer did everything he could to strangle US oil production. The production increased in spite of that cock suckers attempts to kill it.

 

[YoursTruly]

How long does it take when Biden shuts down lease sales?

It could be years, it could be a few months (in a court battle). The 80 million acres Biden shut down in the Gulf, wasn't shut down for long, because it went to court pretty quick, and the Biden team lost.
But as important as that is, let's not forget, there's hundreds of millions of acres that's still leased out. And 60% of that has been permitted with drilling permits. Which means the oil companies could start drilling tomorrow.

BTW, when an oil company get's a drilling permit, this means there's oil there. The geologist reports have been made and there's at least a 5 year supply of oil there. Oil companies aren't going to get a drilling permit if there's not a lot of oil, according to the geologist report.

 

[YoursTruly]

Yes it does.

Obummer did everything he could to strangle US oil production. The production increased in spite of that cock suckers attempts to kill it.

No he didn't. FFS, he allowed the Keystone to be completed. What you numbnuts are worried about is only a short cut, that crosses over the US's largest aquifer. It stretches from the Dakota's all the way down to New Mexico and Texas. Millions of people and livestock drink from that one. If it gets contaminated, there's no telling the health risks that would be involved.
Oil is not safe to drink. Just ask the folks in PA who's wells were contaminated from all the fracking going on up there.

 

[Oldestyle]

Domestic oil production doubled under Obama, period. Doesn't matter where.

Something that does matter is why 60% of the drilling permits that's already been issued to oil companies, don't have a drilling rig on them. They're permitted and ready to go. Just waiting on the oil companies.

The reason, in case you can't figure it out, is that it's a bust cycle. If the oil companies ramped up productions, pressurized their existing wells, drilled more well (on the land that's already permitted), the oil prices would go down and their overhead would go up. . Meaning a lot less profit.

So from a business stand point, let me ask you a serious question. If you were Exxon, would you:

A. Sit tight and keep making record profits from the high cost of oil and the extremely low overhead.
B. Hire all those drillers, pipeliners, Xray tech and geologist back. Pressurize existing wells. Drill more wells. And ramp up production so the price of oil could come back down to $40 barrel.


Let's do some math, shall we? The US consumes 19,000,000,000 barrels of oil per day. At the moment it's $110. And most of the oil field hands are on lay off.

19 billion X $110 = $2,090,000,000,000 in gross profit. (with much lower overhead)
19 billion X $40 = $760,000,000,000 in gross profit, (with a huge amount of overhead)
That's a daily loss of $1,330,000,000,000 in gross profit, plus the overhead.

Of course those numbers are spread out over all the oil companies. But you get the picture, right? Ramping up production will being the profits down. Way down.
You can sit on that extra monetary gain for as long as you can. Or start losing money right away? Which do you choose?

Doesn't matter? Yeah, actually it does. It shows quite clearly that the left wanted to kneecap big oil and gas under Obama and learned how to do it better under Joe Biden. You on the left did this deliberately but now it's slowly dawning on you that most of the entire country is pissed about what everything now costs and they know you did it! You can spin this as much as you want but that won't change what's coming in November. Enjoy...

 

[YoursTruly]

Doesn't matter? Yeah, actually it does. It shows quite clearly that the left wanted to kneecap big oil and gas under Obama and learned how to do it better under Joe Biden. You on the left did this deliberately but now it's slowly dawning on you that most of the entire country is pissed about what everything now costs and they know you did it! You can spin this as much as you want but that won't change what's coming in November. Enjoy...

Oil companies are making record profits. Is that point flying right over your head? It means that the Biden administration isn't hamstringing the oil companies. Biden is helping them.

This is easy economics 101 with easy math.

 

[westwall]

No he didn't. FFS, he allowed the Keystone to be completed. What you numbnuts are worried about is only a short cut, that crosses over the US's largest aquifer. It stretches from the Dakota's all the way down to New Mexico and Texas. Millions of people and livestock drink from that one. If it gets contaminated, there's no telling the health risks that would be involved.
Oil is not safe to drink. Just ask the folks in PA who's wells were contaminated from all the fracking going on up there.

He couldn't kill keystone for political reasons. Everything else he did was designed to make oil production more difficult.

No one with a brain believes your propaganda.

 

[Big Bend Texas]

It could be years, it could be a few months (in a court battle). The 80 million acres Biden shut down in the Gulf, wasn't shut down for long, because it went to court pretty quick, and the Biden team lost.
But as important as that is, let's not forget, there's hundreds of millions of acres that's still leased out. And 60% of that has been permitted with drilling permits. Which means the oil companies could start drilling tomorrow.

BTW, when an oil company get's a drilling permit, this means there's oil there. The geologist reports have been made and there's at least a 5 year supply of oil there. Oil companies aren't going to get a drilling permit if there's not a lot of oil, according to the geologist report.

They just cancelled another major lease sale and are slow walking permits on exiting leases.

I know a whole lot about the oil business because I'm in it on the producer end and my family has been for a hundred years.

 

[Big Bend Texas]

No he didn't. FFS, he allowed the Keystone to be completed. What you numbnuts are worried about is only a short cut, that crosses over the US's largest aquifer. It stretches from the Dakota's all the way down to New Mexico and Texas. Millions of people and livestock drink from that one. If it gets contaminated, there's no telling the health risks that would be involved.
Oil is not safe to drink. Just ask the folks in PA who's wells were contaminated from all the fracking going on up there.

He didn't allow shit, all of his objections were overruled by the courts.

 

[Big Bend Texas]

No he didn't. FFS, he allowed the Keystone to be completed. What you numbnuts are worried about is only a short cut, that crosses over the US's largest aquifer. It stretches from the Dakota's all the way down to New Mexico and Texas. Millions of people and livestock drink from that one. If it gets contaminated, there's no telling the health risks that would be involved.
Oil is not safe to drink. Just ask the folks in PA who's wells were contaminated from all the fracking going on up there.

A geography lesson would be very helpful.

We have pipelines transiting every major aquifer in the US.

Nobody this ignorant and uninformed should ever speak so authoritatively on anything.

 

[Delldude]

Domestic oil production doubled under Obama.

Obama's Misleading Oil Boast - FactCheck.org

 

[surada]

Obama's Misleading Oil Boast - FactCheck.org

He wasn't boasting. He was pleased that domestic oil production doubled while he was president.

 

[Delldude]

He wasn't boasting. He was pleased that domestic oil production doubled while he was president.

LOL...no kidding?

The fact check says differently.

 

[surada]

LOL...no kidding?

The fact check says differently.

I saw the interview. He was pleased that it happened while he was president. A little tongue in cheek.

 

[Delldude]

I saw the interview. He was pleased that it happened while he was president. A little tongue in cheek.

A little cranial inflation.
He likes to boast.....same guy who made Seat Team Six public knowledge in a security breach.
Fact check says different.

 

[Oldestyle]

He wasn't boasting. He was pleased that domestic oil production doubled while he was president.

He wasn't boasting. He was pleased that domestic oil production doubled while he was president.

He took credit for that production...which he claimed as one of his "accomplishments"...something that's laughable since the surge in production happened because of fracking on privately held land and Barry opposed fracking!
The fact that you're here touting THAT as an Obama accomplishment simply underscores how few successes Barry had to brag about!
Obama had terrible energy policies. Biden's are far worse. Both tried to increase the price of oil. Obama failed. Biden has succeeded. He OWNS this runaway inflation.

 

[surada]

He took credit for that production...which he claimed as one of his "accomplishments"...something that's laughable since the surge in production happened because of fracking on privately held land and Barry opposed fracking!
The fact that you're here touting THAT as an Obama accomplishment simply underscores how few successes Barry had to brag about!
Obama had terrible energy policies. Biden's are far worse. Both tried to increase the price of oil. Obama failed. Biden has succeeded. He OWNS this runaway inflation.

If the ppb wasn't high the oil companies would not have invested in increased capacity.

 

[westwall]

If the ppb wasn't high the oil companies would not have invested in increased capacity.

That is the most ridiculous attempt to take credit for the hard work of others, that I have ever seen on this board.

 

[YoursTruly]

He couldn't kill keystone for political reasons. Everything else he did was designed to make oil production more difficult.

No one with a brain believes your propaganda.

He could've killed the Keystone for any reason he wanted to.

 

[YoursTruly]

He took credit for that production...which he claimed as one of his "accomplishments"...something that's laughable since the surge in production happened because of fracking on privately held land and Barry opposed fracking!
The fact that you're here touting THAT as an Obama accomplishment simply underscores how few successes Barry had to brag about!
Obama had terrible energy policies. Biden's are far worse. Both tried to increase the price of oil. Obama failed. Biden has succeeded. He OWNS this runaway inflation.

He took credit for not getting in the way.

And the ONLY fracking he opposed was that around areas that would cause health risks to humans and livestock. Which is extremely likely in some areas, because of the water wells and aquafers that people have to drink from.

Infecting a whole community(s) with petroleum polluted drinking water isn't worth the oil companies make money from that particular area.