Originally posted by Donkey_Dean
reply to post by RRconservative
If the MSM starts reporting on rising gas then they drive it even higher. It is pure speculation that drives the oil prices. The last thing we want is another situation were oil seems like the best investment on earth.
There is and has not been any oil shortage.
[edit on 7-6-2009 by Donkey_Dean]
This is true. There are thousands of well projects in the planning right now. I live in a small town in West Texas, and we only have a few small time drilling operations here. But here is what is happening in Big Spring right now:
Patterson Drilling (they are really from Midland, the mecca of US oil business) - 220 rigs unstacked and sent to Pennsylvania to drill new wells
JB Hunt - 130 wells contracted in the next 3 months.
Robinson Drilling - 200 wells contracted in the next 3 months.
Unfortunately, we lost Big Dog drilling (from Midland) in the recent bust. They were over extended and not prepared to weather the storm (many believe they were just in it for the quick buck in the first place, hence their horrible safety record).
The catalyst for all this: oil has to be above 70 a barrel to make any money drilling it in the US. There is no oil shortage...just a shortage of oil costing less than 70 bucks a barrel.
I will say that Key Energy is cutting back hours, and Paul Musslewhite is closing a yard, and Basic Energy laid off a few folks. This is more due to chemical well pumping, and a lack for the need for hot oil truck drivers. But i don't think the chemical wells will work long term...we will see.
[edit on 7-6-2009 by bigfatfurrytexan]



?) Oil companies: High gas prices are Bush's fault 