One problem about abandoned oil is that 'it's not profitable enough'.
You and I look at the price of oil, and want it to go down, but the oil
companies want the price of oil to go up because, as we all know and
understand, the oil companies are for profit (not a bad thing - just the
way is it). Think of it this way: if the oil companies could double
production and the their result was a 50% decrease in the price of oil,
we'd be happy, but the oil companies would not have got anywhere profit
wise; moreover, they would've used up more of their resource, and thus,
have less resource to make money off of in the future.
Back to that abandoned oil - big oil companies (Exxon & Mobil, Conoco &
Phillips - just to name a few) merged and become huge oil companies, and
for these companies, there's just not enough money in re-entry wells
(think hp dumping the 3k because it was not profitable enough).
However, if we still had enough small 'local' oil companies (and we
don't), then they could likely make a decent profit on the re-entry
since they could have run leaner and would have less logistics to deal
with.
Now, I want to say up front that I understand there is more to this
issue than what I've stated, but in summary, the big oil companies are
not going to spend 1 million dollars, so they can get back the original
million plus one dollar.
-----Original Message-----
From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On
Behalf Of Jerry Fochtman
Sent: Tuesday, July 22, 2008 10:45 AM
To: [log in to unmask]
Subject: Re: [HP3000-L] OT: Oil prices, and is it a conspiracy of sorts?
There's been discussion of that around here (Houston), as many old,
so-called 'stripper' wells, or wells that
may produce <10 barrels a day, were shut-in several years ago. Once
shut-in, most times the well has
to be re-drilled in order to get it to produce again and the return on
the investment to do this is usually better
served by drilling wells in more productive zones.
http://stripperwells.com/
In Texas, when wells stop producing, the state requires they be
shut-in....which happened to a lot of these
low-volumn stripper wells in older fields.
Brice Yokem wrote:
> I would like to hear from someone on what it takes to start up an oil
well
> that has been shut down.
>
> On Tue, 22 Jul 2008 07:28:01 -0500, Denys Beauchemin
> <[log in to unmask]> wrote:
>
>
>> I have done some further research and it seems that the congressional
>> moratorium on offshore drilling off the coast of California expires
this
>> September 30th. Also, because the oil platforms are already there on
site,
>> it would seem that oil could flow from there within a year. This
could have
>> a major near-term effect on oil prices.
>>
>> Let's see what happens in Congress over the next 2 months. BTW, this
is the
>> lowest rated congress, ever. I think that's a fitting accomplishment
for
>> Ms. Pelosi and before she calls somebody a failure, she had better
look in a
>> mirror, this way she doesn't have far to look for failure.
>>
>> Denys
>>
>> -----Original Message-----
>> From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On
>>
> Behalf
>
>> Of Ray Shahan
>> Sent: Monday, July 21, 2008 8:48 AM
>> To: [log in to unmask]
>> Subject: Re: [HP3000-L] OT: Oil prices, and is it a conspiracy of
sorts?
>>
>> LOL, I'm so embarrassed!!!
>>
>>
>>
>> -----Original Message-----
>> From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On
>> Behalf Of James B. Byrne
>> Sent: Friday, July 18, 2008 4:34 PM
>> To: [log in to unmask]
>> Subject: Re: [HP3000-L] OT: Oil prices, and is it a conspiracy of
sorts?
>>
>> On Fri, July 18, 2008 17:10, Ray Shahan wrote:
>>
>>> "An American President once said, perhaps more wisely than he knew,
>>>
>> that
>>
>>> the only thing we need fear, is fear itself."
>>>
>>> I think Winston Churchill, an Englishman, said that...in England.
>>> Nonetheless, the quote still serves its purpose in you reply. 8-)
>>>
>> " ... This great Nation will endure as it has endured, will revive
and
>> will prosper. So, first of all, let me assert my firm belief that the
>> only
>> thing we have to fear is fear itself - nameless, unreasoning,
>> unjustified
>> terror which paralyzes needed efforts to convert retreat into
advance.
>> In
>> every dark hour of our national life a leadership of frankness and
vigor
>> has met with that understanding and support of the people themselves
>> which
>> is essential to victory. I am convinced that you will again give that
>> support to leadership in these critical days."
>>
>> Franklin Delano Roosevelt, inaugural address, March 4, 1933.
>>
>> Regards,
>>
>>
>> --
>> *** E-Mail is NOT a SECURE channel ***
>> James B. Byrne mailto:[log in to unmask]
>> Harte & Lyne Limited http://www.harte-lyne.ca
>> 9 Brockley Drive vox: +1 905 561 1241
>> Hamilton, Ontario fax: +1 905 561 0757
>> Canada L8E 3C3
>>
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>> 9:56 AM
>>
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