Biden administration cancels Alaska and Gulf of Mexico oil and gas leases

Discussion in 'Tin Foil Hat Lounge' started by enloopious, May 12, 2022.


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  1. Gator 45/70

    Gator 45/70 Monkey+++

    They have to do something first like drill, Complete a well and set a platform and start flowing.
    If it's a dry hole or low flow return 99% of the time they allow a lease to lapse
     
    Gator 45/70, May 13, 2022
    #21
  2. Bandit99

    Bandit99 Monkey+++ Site Supporter+

    Yeah, this doesn't make sense...just what in the hell are they up to? Are there going to blatantly steal numerous elections to maintain control in November or what? Because if they don't do something to right the wrongs they are going to lose and lose big. I don't get it, nothing I come up with makes sense...

    EDIT: Maybe it is to get gas, food and electricity and home heating oil so high that it causes chaos and violence and they think they can use the arm of the government to set things right and do away with opposition, maybe even martial law...nothing makes sense...
     
    Bandit99, May 13, 2022
    #22
    Gator 45/70, enloopious and magicfingers like this.
  3. johnbb

    johnbb Monkey+++

    My understanding these were not existing leases but leases that were going to be up for sale
    "The Biden administration is canceling three oil and gas lease sales scheduled in the Gulf of Mexico and off the coast of Alaska, removing millions of acres from possible drilling as U.S. gas prices reach record highs."
    Makes no sense during record energy prices to take potential new domestic sources off the table and oil companies pay big bucks for these leases so glad the federal government doesn't need the revenue(sarcasm)
     
    johnbb, May 14, 2022
    #23
    Gator 45/70 likes this.
  4. enloopious

    enloopious Rocket Surgeon



    Let me ask you this. If you knew that the United States as it exists today will no longer be around in the next few years how would you change what you do on a day to day basis?
     
    enloopious, May 14, 2022
    #24
  5. Minuteman

    Minuteman Chaplain Moderator Founding Member

    I've been in the oil and gas business for over 40 years so thought I would contribute a little explanation to this subject.
    First it's true that when an oil company acquires a lease they have so many years to drill on it or they lose the lease. I've drilled a lot of "holder" wells. Just sink a well to hold the lease. What Biden stopped was future lease sells. Just as he did on federal lands when he took office.
    He even said that the oil companies had tens of thousands of acres of existing leases to drill on.
    . Well, that's not how it works.
    When you are Drilling exploratory wells you end up spending millions of dollars and coming up with a dry hole, much of the time. It is a gamble. If you do hit oil or gas, at a productive and profitable quantity, then you have to define the boundaries of that field. You start drilling wells out away from the original. It may be that your lease only includes the very edge of a field. So you try to wait and lease the adjoining leases so that you can find the "sweet spot" of the field. In a gas field the gas migrates upwards with the upslope of the formation. You want to determine the slope of the formation you are in. If you are on the downslope of it your well will deplete very fast, especially if another company drills a well upslope from yours and begins producing it. It is much the same for oil but in reverse. Oil will accumulate in the downslope of a formation.
    So, you need to be able to acquire additional leases if and when you make a discovery. If they are not available then you have basically wasted your multimillion dollar investment. Either from not being for sale or if a competitor has them. In that case you would not produce your well and wait until your competitor either loses his lease, and it goes up for sale, which is what Biden is stopping, or your competitor drills a dry hole then you know the field is not going in that direction.
    People forget that the oil and gas business is just that, a business. And a very competitive business.
    By limiting the acreage that is available to lease you are severely restricting the ability for the oil company to make thier investment profitable. You are essentially taking a dart board and blocking off all but the bullseye. And saying "look, you can still play darts, we're not stopping you".
     
    Minuteman, May 14, 2022
    #25
    Bandit99, enloopious, oldawg and 3 others like this.
  6. apache235

    apache235 Monkey+++

    Bidumb is a completely incompetent demented old buffoon, but his handlers are pure evil. I pray that they all may soon find themselves in the everlasting lake of fire.
     
    apache235, May 14, 2022
    #26
    Idahoser, enloopious, johnbb and 1 other person like this.
  7. Gator 45/70

    Gator 45/70 Monkey+++

    It's like an auction, Companies bid against each other. If nothing is there why bid?
    Alaska is where it's at. OCS outer continental shelf offshore has been seismographs to death.
    Deepwater has lots of potential and work over farther inland.
     
    Gator 45/70, May 14, 2022
    #27
  8. Gator 45/70

    Gator 45/70 Monkey+++

    West Texas is hot along with the central midwest like the dakotas
    Poor old land owners are becoming millionaires overnight.
    FJB
     
    Gator 45/70, May 14, 2022
    #28
    oldawg and johnbb like this.
  9. Minuteman

    Minuteman Chaplain Moderator Founding Member

    Your bid is part of the gamble. All the data available can indicate the potential for deposits but until you actually drill you don't know. I've drilled a lot of wells that the engineers were sure were going to be producers only to have them come up dry.
    There is a saying that Drilling for oil is as much art as science.
     
    Minuteman, May 14, 2022
    #29
    Gator 45/70 likes this.
  10. Gator 45/70

    Gator 45/70 Monkey+++

    If the engineer hits and hits big hes golden,If not he still keeps his job?
     
    Gator 45/70, May 14, 2022
    #30
  11. Minuteman

    Minuteman Chaplain Moderator Founding Member

    Yes. Unless he was consistently wrong. And even then he would most likely be transferred to another department, such as development. Designing development wells in a known field. Kind of hard to miss then.
     
    Minuteman, May 14, 2022
    #31
    VisuTrac and Gator 45/70 like this.
  12. enloopious

    enloopious Rocket Surgeon

    Thank you for that.

    The other side of the coin is public perception. The stock market and oil futures rely heavily on what people perceive as the future. If you are doing research to buy or sell a stock as an investor and you see the news story that Biden has just shut down these leases, you are going to make decisions that will affect oil prices immediately, not at some future date. This means that even if Biden had no affect on how much oil we get the gas prices would still go up just because of the story. That's bad for the whole country. Inept leadership. A real president would know better. This wouldn't have happened back when people had common sense.
     
    enloopious, May 15, 2022
    #32
    Gator 45/70, BTPost and Minuteman like this.
  13. Gator 45/70

    Gator 45/70 Monkey+++

    Gator 45/70, May 16, 2022
    #33
  14. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Saw a number of pump jacks operating along a few back roads in Kentucky.
    Oil isn't dead yet.
     
    VisuTrac, May 16, 2022
    #34
    Gator 45/70 likes this.
  15. enloopious

    enloopious Rocket Surgeon

    Looks like the diesel fuel shortages will hit first.

     
    enloopious, May 16, 2022
    #35
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