Oil Companies Sitting On Already Leased Land: Why?

[ICU 812]

Oil Companies Sitting On Already Leased Land: Why?

It has been reported that oil companies, major international corporations and little outfits alike, are “sitting on” federal land that they already hold the mineral lights to. They have been blamed for high oil prices because they haven’t explored for or produced petroleum from these lands.

Why would they do this when crude oil prices are at record highs on the international market?

Now, lets do a non-oil business thought experiment: I Suppose that a home builder has bought up individual lots with the intention to build houses for sale. Thy\en the federal government decrees that its policy is to reclassify all neighborhoods zoned for single family dwellings exclusively for apartments. Will the developer build house? Well no. tot exactly a parallel with the oil industry but it makes the point.

In the oil business, just holding the subsurface mineral rights to a piece of land is just the first step. Every additional step to explore for oil and then produce it requires regulatory delay and obstruction. The liberal-Left has long publicly announced their desire to eliminate the oil industry and all fossil fuels. Now there are jurisdictions that have mandated the elimination of internal combustion engines by dates certain beginning in 2030. That is not too far off now.

So why would any oil company, large or small, invest millions or billions to explore for and produce oil and gas, knowing that the publicly stated policy of the powers that be is to eliminate their entire industry?

[1blackman1]

The answer is simple. The oil doesn’t leap from the ground into barrels. It costs money to make use of those leases and, more importantly, time to get it out. Just because oil prices are high today that doesn’t mean it’ll be high when the oil is extracted and ready for sale.

Oil companies don’t want to sink millions into getting oil outta the ground and then have to sell it later at a lower price. Exxon just posted the largest profit in 10 years or something like that, without drill baby drill. They are doing great from the oil they are already poised to pull out of the ground. From their view it doesn’t make sense to invest in new wells and lose that profit they are currently banking.

[ahab11]

LOL wow amazing how many people have no idea how expensive it is in the US to drill and operate a rig.

In Saudi it does literally jump out of the ground and into the barrel as they can make money at $30 a barrel.

It requires infrastructure to drill on the sites and yes they will do an extensive geo survey before drilling.

Now we have investors who will not invest in Banks that finance fossil fuels further complicating the situation.

Drilling in the US is expensive and risky just the opposite of Saudi so unless you want to suck and kiss Saudi ass better be prepared to pay at the pump.

Right now Biden has made it clear he will suck Saudi Dick and swallow every drop and they are still telling him to fuck off.

[WTF]

Originally Posted by ahab11

LOL wow amazing how many people have no idea how expensive it is in the US to drill and operate a rig.

In Saudi it does literally jump out of the ground and into the barrel as they can make money at $30 a barrel.

It requires infrastructure to drill on the sites and yes they will do an extensive geo survey before drilling.

Now we have investors who will not invest in Banks that finance fossil fuels further complicating the situation.

Drilling in the US is expensive and risky just the opposite of Saudi so unless you want to suck and kiss Saudi ass better be prepared to pay at the pump.

Right now Biden has made it clear he will suck Saudi Dick and swallow every drop and they are still telling him to fuck off.

Your ignorance on the Realpolitik (for Tiny) in Saudi Arabia is showing.

Sure they can pull it out for a fraction of the cost as our energy companies but they have a much higher break even point than just that cost. They finance their budget on oil. So not factoring in that cost is naive.

I've posted a link about how our banks are back to lending to energy companies because of the energy companies discipline in drilling.

So not only are you only looking at the smaller picture, your presenting an outdated one.

[royamcr]

One fun fact I ran across recently is the scarcity of oil field equipment. The big oil companies are also buying up new oil field equipment and destroying it instead of using it.

[Tiny]

Originally Posted by ICU 812

Oil Companies Sitting On Already Leased Land: Why?

It has been reported that oil companies, major international corporations and little outfits alike, are “sitting on” federal land that they already hold the mineral lights to. They have been blamed for high oil prices because they haven’t explored for or produced petroleum from these lands.

Why would they do this when crude oil prices are at record highs on the international market?

Now, lets do a non-oil business thought experiment: I Suppose that a home builder has bought up individual lots with the intention to build houses for sale. Thy\en the federal government decrees that its policy is to reclassify all neighborhoods zoned for single family dwellings exclusively for apartments. Will the developer build house? Well no. tot exactly a parallel with the oil industry but it makes the point.

In the oil business, just holding the subsurface mineral rights to a piece of land is just the first step. Every additional step to explore for oil and then produce it requires regulatory delay and obstruction. The liberal-Left has long publicly announced their desire to eliminate the oil industry and all fossil fuels. Now there are jurisdictions that have mandated the elimination of internal combustion engines by dates certain beginning in 2030. That is not too far off now.

So why would any oil company, large or small, invest millions or billions to explore for and produce oil and gas, knowing that the publicly stated policy of the powers that be is to eliminate their entire industry?

Good post! Five star thread

[royamcr]

Originally Posted by ICU 812

Oil Companies Sitting On Already Leased Land: Why?

It has been reported that oil companies, major international corporations and little outfits alike, are “sitting on” federal land that they already hold the mineral lights to. They have been blamed for high oil prices because they haven’t explored for or produced petroleum from these lands.

Why would they do this when crude oil prices are at record highs on the international market?

Now, lets do a non-oil business thought experiment: I Suppose that a home builder has bought up individual lots with the intention to build houses for sale. Thy\en the federal government decrees that its policy is to reclassify all neighborhoods zoned for single family dwellings exclusively for apartments. Will the developer build house? Well no. tot exactly a parallel with the oil industry but it makes the point.

In the oil business, just holding the subsurface mineral rights to a piece of land is just the first step. Every additional step to explore for oil and then produce it requires regulatory delay and obstruction. The liberal-Left has long publicly announced their desire to eliminate the oil industry and all fossil fuels. Now there are jurisdictions that have mandated the elimination of internal combustion engines by dates certain beginning in 2030. That is not too far off now.

So why would any oil company, large or small, invest millions or billions to explore for and produce oil and gas, knowing that the publicly stated policy of the powers that be is to eliminate their entire industry?

The oil industry will eliminate itself in 40 to 50 years when there is no more oil to extract. As we move to renewables, this supply will extend out to 100 years or more. It isn't all about gas, oil is used to make plastics. So no new oil, no new plastics. Recycling plastic costs too much right now so it is cheaper to make new from fresh stock in most cases.

[ICU 812]

Originally Posted by royamcr

One fun fact I ran across recently is the scarcity of oil field equipment. The big oil companies are also buying up new oil field equipment and destroying it instead of using it.

Fake news at its best.

[ICU 812]

Big Oil (and little oil too) are reluctant to invest millions or billions in exploring, drilling and producing when they have been told that the goal of the liberal-left is to irradicate that entire segment of the energy industry.

If Henry Ford had been told that only electric cars would be legal to make or buy, he would never have invested the money it took to build the Rouge complex of steel mills and assembly plants that made Detroit an industrial hub.

Same principles of economic planning affect for the oil companies today.

[Why_Yes_I_Do]

Originally Posted by ahab11

...Right now Biden has made it clear he will suck Saudi Dick and swallow every drop and they are still telling him to fuck off.

[1blackman1]

Originally Posted by ICU 812

Big Oil (and little oil too) are reluctant to invest millions or billions in exploring, drilling and producing when they have been told that the goal of the liberal-left is to irradicate that entire segment of the energy industry.

If Henry Ford had been told that only electric cars would be legal to make or buy, he would never have invested the money it took to build the Rouge complex of steel mills and assembly plants that made Detroit an industrial hub.

Same principles of economic planning affect for the oil companies today.

Ridiculous. But keep telling yourself that. The heads of oil companies have already explained why they aren’t using new wells. Massive profits.

You can’t accept that they’re being honest. It’s gotta be because they are hated by the left.

Just silliness.

https://news.yahoo.com/oil-gas-execu...204337317.html

https://www.kcra.com/amp/article/gas...-more/39528197

Profits profits profits.

[Chase7]

The leases Biden and the liberals are talking about are not oil producing locations.
Oil is not located any place you drill.

Biden also has put red tape so hard to get through oil companies can not get permit’s approved in oil producing locations.

[Why_Yes_I_Do]

Q) Why would oil companies not put their peckers on the line to drill for more oil in a highly government regulated (controlled) industry, but instead focus on maximizing profits?

A) FUD
Thinking is easy when you use your head for more than a hat rack.

[WTF]

Originally Posted by Chase7

The leases Biden and the liberals are talking about are not oil producing locations.
Oil is not located any place you drill.

Biden also has put red tape so hard to get through oil companies can not get permit’s approved in oil producing locations.

.

Originally Posted by The_Waco_Kid

[Yssup Rider]

Originally Posted by Why_Yes_I_Do

Q) Why would oil companies not put their peckers on the line to drill for more oil in a highly government regulated (controlled) industry, but instead focus on maximizing profits?

A) FUD
Thinking is easy when you use your head for more than a hat rack.