Drill Baby Drill
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Plans in the works to sell offshore drilling lease . First time since the 80’s
What is the first time since the 80s? There are typically multiple lease sales every year (the last one was in August). Opening up lease areas will be great but there's no guarantee that some of these areas are going to see much exploration and development for some time, if ever for a number of reasons -- but primarily because they are less attractive geological plays and because all of the significant oil companies that would go after offshore plays have been cutting CAPEX in the wake of lower prices and are in no hurry to ramp spending back up. Some more uplift in commodity price and a little more time might change things, but right now companies can still feel the sting of 2015-2016.
Refineries are running at about 85-90% utilization right now in the US. There's plenty of capacity if needed. Your gas prices did not rise because of refining capacity.
In my neck of the woods, we take a $12 - $14 hit off of WTI price. So $60 oil in Midland sells for right around $48 for us.
Article says last time 80’’s It was quoting Reuters for that info
"Refineries are running at about 85-90% utilization right now in the US. There's plenty of capacity if needed."
Typically full capacity (OOE) of a machine or system or is 80-85%. That takes into account unexpected shut downs, maintenance, etc...... In other words those refineries are running at full capacity. We always shoot for 80-85% OOE in hi speed automation.
Dear president Trump,
I would like exploration to begin about 20 miles off of Boca Grande. Couple rigs every three or four miles would be fine. That's the perfect range for me to inspect them daily with my boat.
Thanks
We need some money in our Oregon economy (weed sales don’t count) to generate jobs and growth. God knows we can’t cut our timber or fish the waters anymore. If we can pump some oil let’s go!
ITV is right. Because of what bowbender said. Bigeasyliberal is too. No one with the capital is standing inline to build a refinery simply to lower profit margins for the future. It will take sometime. But, within the next three years, I’m willing to bet Trump policies change that. You gotta love it. All the talk about Trump being in corporate pockets. He’s about to make them setup and once again compete for their earnings. That’s when consumers win. Liberals hate it but are too ignorant to see it. Wasn’t that long ago when the big liberal was predicting market doom due to Trumps election. Everyone is waiting on the correction. And, it will come. But, it’s going to be a while. That’s what it’s going to be too. But, with Trump focusing so much on America’s energy sector, you can bet it’s effects are going to be consumer favorable. God Bless men
I missed that line huntcell, saw it the second time I read it. They were referring to the areas off the east coast and west coast of the country.
You can try to paint me as “liberal” all you want WV, but I’ll wager I know more about offshore exploration and production than anyone on this board.
Those aren’t attractive plays. There are much better areas to spend your money if you’re an oil company. And capital is finite - we (as someone who helps makes these decisions) can’t invest in everything out there. You can call me liberal all you want but it doesn’t change any of those things.
You should since that is very close to your field of employment. However, I'm rather certain that your left leaning ideology on any subject takes a bit of knowledge from you by default alone. :^)
