Oil Drilling Deemed Unprofitable In US - Crisis or Boon?
@colaandtwinkies (129)
United States
March 17, 2009 3:32pm CST
The great American drilling boom is over, experts are saying. The New York Times have detailed exactly why.
Mainly, it just isn't worth it at this point. With oil prices plummeting - two thirds since last summer - it costs more to drill for oil than the oil actually makes. Oil companies are cutting their rigs, in some cases leaving over 20 rigs unmanned and not drilling.
This is both a good thing and a bad thing.
The good is obvious. Less drilling is much better for the environment. I don't think I even need to explain why.
The bad news, however, is dependency on foreign suppliers. This could lead to more spikes in gas prices.
But there is the side that few people are seeing: this potential oil crisis could very well lead to more funding and research, as well as more wide availability, of alternate fuel sources. There have been so many advancements in renewable fuels that it's time we started looking at them a lot more seriously.
Dependency on oil, either through foreign exporters or destroying our own country, don't have to be our only options.
1 response
@okkidokitokki (1736)
• United States
17 Mar 09
Actually it is called a "bust," and while it is good for the environment it will be worse for the economy. The only areas in the country that are not yet struggling are where gas and oil is drilled.
You might be amazed at how many people are about to loose their jobs because oil production is stopping. I know of over 100 rigs that have shut down in the Texas New Mexico area and I am not that well informed about it.
I would not consider it a crisis though, the oil is still there, it is just not being pumped up. There is no shortage of US oil just a shortage of working rigs.
I think it would be great if we could have alternative furd sources but that will not change the need for oil, there are to many things made with petroleum that people have not done with out since it started being used.
@colaandtwinkies (129)
• United States
17 Mar 09
The economy could go either way. With research and funding for alternative, renewable fuel sources, more jobs could be opened up. This is, of course, an ideal view. But it has been looking more and more likely that green jobs will be in abundance in the next few years. Which is good for both the environment and the economy.
@okkidokitokki (1736)
• United States
17 Mar 09
Your right it will encourage research, but the economy in the areas that have these wells is going to get much worse before it getts better. This is not the first time it has happened.
I am excited to see what will come out of it though.
@colaandtwinkies (129)
• United States
17 Mar 09
With the carbon cap system that Obama's looking to implement, and the carbon permit trade that's already been instituted, there are a lot more funds going to green research, especially in the renewable fuel and alternate energy departments. I know the current carbon permit auction program isn't doing too much to encourage businesses to give funding, but they have been able to raise a sizable amount of money for green research just on the permit sales.
It's going to be, at the very least, interesting to watch all of this as it unfolds.
