The 68 Million Acres Of Non-Producing Leased Land Myth

@gewcew23 (8011)
United States
August 17, 2008 6:37pm CST
If you have listen to at least one liberal last month you have heard the the oil companies are setting on 68 million acres and not producing any oil on it. Basically the argument is to stop anyone form arguing for new domestic drilling. Here is what your "friendly" liberal did not tell you. The truth is, finding oil is not the easy. It starts with an idea about what kinds of geologic structures are likely to hold this vital resource. Based on that idea companies purchase leases, yes I said they purchase these lease, then they test their ideas, and hopefully find oil and gas from leased land. Using expensive initial analysis concludes that the likelihood is too small to justify drilling an exploratory well, since the cost of a single well can run $1-5 million onshore, and $25-100 million in deep offshore waters. Only one out of three onshore wells finds oil or gas in sufficient quantities to produce it profitably and in deep water only one out of five wells is successful. If the acre does not have any oil under it, the oil companies will still have to pay for the rest of the lease.
1 person likes this
5 responses
@jonesy123 (3950)
• United States
17 Aug 08
True, they drill to find oil and have more misses than hits in that regard. Where they think there is an oil field, there may not even be one. Either way, oil is not a reliable energy source anymore. It's sooner rather than later that we will run out of it. We should make the search for viable alternatives our priority. Something tells me, the search for that would cost as significantly less than to keep on drilling...
3 people like this
• United States
18 Aug 08
You are correct Gewcew, this is a very costly process, and it also takes years to go through. This is another reason why I say that the oil companies don't want to drill, they just want us to find someone else to blame for the price of oil. The American people have finally been informed as to the OPEC myth (you know, that OPEC controls all of the worlds oil supply, and they are all evil terrorist that want to destroy America, who is their number 1 customer), so now the oil companies need another scape goat. Enter the Democatic party. Democrats and the oil companies don't get along as it is, and the oil companies have allies in the republican party, so you throw afew million to Gingrich, and give the RNC some talking points, and you have a great way to raise money. Now the oil companies aren't stupid, they also know that his will help the DNC raise money from the Enviromental wackos, so really everyone is happy. Even if we lifted the ban on drilling it still will not happen any time soon. First off there is a shortage of men that know how to opperate rigs, then there is the fact that we don't have any rigs to use on the new land. All of our rigs are old, and being used, and the new ones are all on the way to the middle east. Have you looked at the price of steel lately? Your prices will be doubled in the next three months if the market stays the same. Top that all off with the fact that it doesn't make business sense to drill. See it will cost you millions just to find out if it makes sense to drill there, then you have to spend tens of millions on rigs, and men to start to drill. Lets say you find oil and start to get it out of the ground, well transportation cost have gone up dramticly because of the price of fuel. Then the most expensive part of the process: Your new find has just add supply into the chain, and now the price of oil has gone down. So why would anyone drill today? They wouldn't, that is why no one has bothered to lift the ban.
@suspenseful (40314)
• Canada
18 Aug 08
I did not take geology at school - did not go to University, but I do know that you have to drill to see if there is oil. So there is not a whole lot of oil just swimming around. It would also be silly for the oil companies to sit on oil producing land and not do any drilling on it. I mean they would lose money that way. Now the question comes, do you keep on trying or do you assume there is no oil and just import it from elsewhere? That leaves a problem. If you keep on importing oil you will have to pay through the nose, but if you drill, you will have to pay through the nose. So no matter what you do, oil will still be expensive. But I would go on drilling.
1 person likes this
@Destiny007 (5820)
• United States
18 Aug 08
When you take these facts and couple them with the idea that simply deciding to allow domestic drilling would immediately cause oil prices to drop on the futures market, then thye price at the pump would drop too. A popular argument of the socialists is that it will take ten years to see any benefit. This of course is a lie, and Congress has also forbidden the use of shale oil and that sand tar stuff that Canada has so much of. While the oil companies do have their share of responsibility in this, if Congress would deregulate the industry then the oil companies would have no easy excuse for not producing and drilling instead of importing foreign oil. As it stands, that foreign oil represents billions in lost revenue to terrorist nations who are supplying us the oil, and millions if not billions in payrolls that could be made by American oil workers if we were producing our own oil. There is now data that suggests that the Peak Oil Theory is wrong and that the Earth naturally produces oil on a constant basis... so it would really benefit us to produce our own oil, while also using alternatives for energy production such as nuclear power and clean burning coal. We have the failed policies of Congress for the last 30 r 40 years to thank for the high oil prices and our dependence on foreign oil. I say drill and drill now.... and to hell with the envirofascists.
1 person likes this
@clrumfelt (5439)
• United States
18 Aug 08
Everyone has been saying that Obama's math doesn't add up. More examples of this keep surfacing. Of course it is not only Obama who objects to new domestic drilling, it is most of the left wing politicians. It is not good politics to insist on drilling where there is not enough oil to justify the cost of drilling for it. It would be a waste of land and money and not do the USA any good. I'm tired of politicians pandering to the special interest groups who oppose the drilling in places where it would actually do some good. It is ludicrous, in my opinion, to waste our tax dollars and resources that way.