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North Dakota Hits One Million Barrels a Day!!
- Thread starter laatsch55
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- Joined
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Does not matter how many barrels of oil we produce here in the states. The gas prices are still not falling at all so what's the point of producing all this oil that we as consumers don't benefit.
Put this one in the agreeing with Lee column. That is happening way too much lately.
Oh I can imagine but still... That don't explain a 2$ a gallon price hike in the last few years. From what I understand the US has more oil than the Middle East . If that's the cases why do we even need there shit... Nvr mind back to gov and big business . With you awnser lee you could b a politician... Lmfao
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We use 16 million barrels a day. We produce 9 million.....We do not have the refining capacity to refine all we produce and all we inport. In fact we import quite a bit of refined products from South America and the middle East. There has not been a new refinery built in the United States since 1974...
The average cost to drill and equip a 10,000 ft deep and 8,000 foot sideways well has gone from 2 million to 6 million dollars. Production from those wells can vary from 60 BBLS a day to over 2,000 BBLS day. They often decline 30-50 % the first year and follow an ever declining curve from there. Some wells will never pay out, and some support a drilling program. When you buy a gallon of gas you are not just paying for the oil and the cost to produce it, you are also paying for the pipelines, the refineries, the infrastructure, the roads, bridges, the BLM laws and regulations, the acquisition of new leases and the up front costs to bring those new leases to the point of drilling them. There is a misconception that producing oil is all gravy, and while some folks do indeed get lucky and make good wells in their first few it often involves a lot of dry holes and the oil business does not get to write off a lot of their costs of production like a normal business. If you drill on a federal lease 12.5% of oil produced goes to the feds at no cost to them. Then the state of Wyoming gets 6% ad valorum and 4% severance tax...so right off the top you are payin 100% of the bills with 78.5% of the revenue, plus the taxable costs of production counts as another 5%. Then on the retail side there is the state gas tax and the ederal gas tax that accounts for 70 centas a gallon.
To drill the type of wells that are now drilled it takes an oil company with a lot of engineering staff of geologists, geophysists, resevoir engineers, drilling engineers, completion engineers, mud engineers, electrical engineer, and that's just onshore. The infrastructure requirements and up front costs on a medium deep offshore well could ron into the 100's of million dollars, with the average 20 well production platform coming in at 2 BILLION dollars. Anything used in the oilfield is not cheap, and getting more expensiv everday with the EPA and BLM inventing and promulgating new rules and regulations at will ....it is not as good a deal as it looks from the outside and the general public doesn't have a clue as to what's involved and have no time to counter the bad press THAT THEY"VE ALWAYS GOTTEN..
The average cost to drill and equip a 10,000 ft deep and 8,000 foot sideways well has gone from 2 million to 6 million dollars. Production from those wells can vary from 60 BBLS a day to over 2,000 BBLS day. They often decline 30-50 % the first year and follow an ever declining curve from there. Some wells will never pay out, and some support a drilling program. When you buy a gallon of gas you are not just paying for the oil and the cost to produce it, you are also paying for the pipelines, the refineries, the infrastructure, the roads, bridges, the BLM laws and regulations, the acquisition of new leases and the up front costs to bring those new leases to the point of drilling them. There is a misconception that producing oil is all gravy, and while some folks do indeed get lucky and make good wells in their first few it often involves a lot of dry holes and the oil business does not get to write off a lot of their costs of production like a normal business. If you drill on a federal lease 12.5% of oil produced goes to the feds at no cost to them. Then the state of Wyoming gets 6% ad valorum and 4% severance tax...so right off the top you are payin 100% of the bills with 78.5% of the revenue, plus the taxable costs of production counts as another 5%. Then on the retail side there is the state gas tax and the ederal gas tax that accounts for 70 centas a gallon.
To drill the type of wells that are now drilled it takes an oil company with a lot of engineering staff of geologists, geophysists, resevoir engineers, drilling engineers, completion engineers, mud engineers, electrical engineer, and that's just onshore. The infrastructure requirements and up front costs on a medium deep offshore well could ron into the 100's of million dollars, with the average 20 well production platform coming in at 2 BILLION dollars. Anything used in the oilfield is not cheap, and getting more expensiv everday with the EPA and BLM inventing and promulgating new rules and regulations at will ....it is not as good a deal as it looks from the outside and the general public doesn't have a clue as to what's involved and have no time to counter the bad press THAT THEY"VE ALWAYS GOTTEN..
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YES SIR! And the best part is "Get the EPA and BLM out of the way! That is the reason the prices have skyrocketed and continue to go up. That and our illustrious president's policies foreign and domestic. Where is Reagan when we need him the most??? Not Republican, not Democrat, not Independent or Progressive or???...where is a constitutional conservative LEADER? Obama wants to remake America. That requires UNMAKING America, and I'm not comfortable with that.
Rant over.
Rant over.
another one with a rant
http://ozziesaffa.blogspot.ca/2014/06/i-bet-she-regrets-asking-her-question.html
http://ozziesaffa.blogspot.ca/2014/06/i-bet-she-regrets-asking-her-question.html
Lee, nailed it pretty well, I especially liked the part about the clueless public.
One other big item not mentioned thus far is that the value of the US dollar is in the sewer. When your dollar is worth less you have to pay more of them for the same item. We can thank the idiots in DC for printing $'s..... Hold on folks because it's going to get much worst shortly.
If the US public would flush the DC idiots, demand the end of the useless regulations, open federal lands, and stop printing money the prices would far greatly over night.
Robert
One other big item not mentioned thus far is that the value of the US dollar is in the sewer. When your dollar is worth less you have to pay more of them for the same item. We can thank the idiots in DC for printing $'s..... Hold on folks because it's going to get much worst shortly.
If the US public would flush the DC idiots, demand the end of the useless regulations, open federal lands, and stop printing money the prices would far greatly over night.
Robert
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