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Why is the US oil industry sitting on a stockpile of unused drilling license?

It's not like they don't use some leases and make gobs of money.

So when they lie and say that it's about money it's not about money because they would make more money.

So all you guys that think that government is the problem, turn your focus to the oil companies. There are the ones balking. They didn't do it under the Trump administration and they're still not doing it under the Biden administration.

They have tons of leases. They simply don't use them.
It keeps profits high and allows them to keep up the false narrative that its the government's fault they are.
 
Spinning up there 1st ever drill was expensive as well. And so was the 2nd. And so was the 3rd.

It was expensive for all those companies that went bankrupt when oil went to zero a few years ago too, and all the banks that lent them money.

The spiking oil prices will get them back in the game though, it just takes some time.
 
Why does it even matter when the oil companies are stating openly that their focus is on share holder value not expanding drilling. See post #2 and# 3
I read those posts. They don't address the prospective energy available in the leases. Further, the notion that our government might open areas of proven reserves for extraction only to close them again in relatively short order leaves energy companies in the lurch financially. This has happened, and unless guarantees are given, I can understand why energy companies are reluctant.
 
It's not like they don't use some leases and make gobs of money.

So when they lie and say that it's about money it's not about money because they would make more money.

So all you guys that think that government is the problem, turn your focus to the oil companies. There are the ones balking. They didn't do it under the Trump administration and they're still not doing it under the Biden administration.

They have tons of leases. They simply don't use them.
manipulating the consumers .........????
 
i'm gonna have to give Fox/Republicans credit again. they've convinced the dumbasses that Gov is standing in the way of Oil Companies drilling on land they already own (have a lease for).

that's MASTERFUL brainwashing.
The pathetic part is they swallow it all unquestionably and never put any effort into learning what the real issues are.
 
The pathetic part is they swallow it all unquestionably and never put any effort into learning what the real issues are.
Alternate reality.
 
and if there isn't oil why in the hell would these oil companies buy the leases.
They were cheap, it's a volitile market, and they are for 10 years. Many areas of proven reserves are off limits, and restricting fracking hasn't helped. The US is sitting on huge energy reserves. If energy is a strategic weapon - and it is - then we should use it as best as we responsibly can. Clearly, we aren't.
 
They were cheap, it's a volitile market, and they are for 10 years. Many areas of proven reserves are off limits, and restricting fracking hasn't helped. The US is sitting on huge energy reserves. If energy is a strategic weapon - and it is - then we should use it as best as we responsibly can. Clearly, we aren't.
So is it your suggestion the oil companies should be forced to expand drilling against their will?
 
The pathetic part is they swallow it all unquestionably and never put any effort into learning what the real issues are.

On the one had they want regulations on oil companies cut.
On the other hand they want Biden to tell the refiners they can't buy Russian oil
 
On the one had they want regulations on oil companies cut.
On the other hand they want Biden to tell the refiners they can't buy Russian oil
Yes, to the first one not that it will make a difference
No, to sec8nd....they are just yammering
 
Nope
Cost to produce vs sell price

Oil prices are very volatile. Drilling is a risky business. Just ask the frackers what happened when oil prices dropped.

US shale industry expected to shrink sharply as oil price falls​

Producers forced to shut rigs as demand slumps and US market drops below $18 a barrel

The US shale industry is expected to shrink by more than 2m barrels a day following a collapse in global oil prices which has forced oil producers to shut down their fracking rigs.
The US oil market slumped to fresh 18-year lows and below $18 a barrel on Friday following one of the biggest hikes in US oil stocks on record as demand for oil continues to fall and storage facilities near their limits. The international benchmark oil price fell to $28 a barrel.
I don't see how a collapse in energy prices establishes provable reserves. All the above means is that it was simply not cost effective to exploit the resource. That's not the situation now. Given the government's energy policy changes with thr arrival of the Biden administration, I don't blame the energy industry for not hanging their financial asses out there. Some guarantees would be required.
 
I don't see how a collapse in energy prices establishes provable reserves. All the above means is that it was simply not cost effective to exploit the resource. That's not the situation now. Given the government's energy policy changes with thr arrival of the Biden administration, I don't blame the energy industry for not hanging their financial asses out there. Some guarantees would be required.

Can you guarantee oil prices won't drop again?

Last time it bankrupted a bunch of businesses in the fracking business.
 
They were cheap, it's a volitile market, and they are for 10 years. Many areas of proven reserves are off limits, and restricting fracking hasn't helped. The US is sitting on huge energy reserves. If energy is a strategic weapon - and it is - then we should use it as best as we responsibly can. Clearly, we aren't.
Or the oil companies could "drill baby drill!!!!"
 
I wouldn't disagree, the problem is that ramping up drilling is expensive and up until now the banks weren't happy to dole out loans to get a glut of production that ended in bankruptcy's and insolvency.

It's also not just a light switch you turn on.

The companies that I follow closely supply materials for fracking and up until the last few months they were running at half capacity because they couldn't run the rest of their operation at a profit. The CEO said in his conference call that to restart the plants they would need demand which is ramping up slowly and they would need workers that don't just fall out of the sky.

So, the sudden, unexpected supply decrease from Russia, would take time to fill in for even under the best conditions, reliable demand and with an interested banking sector.


How did Devon Energy repurchase ONE BILLIONS dollars in shares? Money from a bank?
 
Can you guarantee oil prices won't drop again?

Last time it bankrupted a bunch of businesses in the fracking business.


LMAO... Are there any other industries you feel we should guarantee profits or just the oil industry? Some people might call a system like you seem to want socialism... :ROFLMAO:
 
So is it your suggestion the oil companies should be forced to expand drilling against their will?
Nope. My suggestion is that the government allow energy companies to extract reserves without undue impediment. That doesn't mean abandonment of environmental concerns. Given world demand, a price collapse is not on the horizon.
 
Once burned twice shy
So it's about $$$$ not national security or punishing Russia.

Maybe we should nationalize our oil industry.
 
Can you guarantee oil prices won't drop again?

Last time it bankrupted a bunch of businesses in the fracking business.
Of course I can't guarantee such a thing. I don't know what will happen this afternoon. Energy production is inherently risky. Given world demand, however, prices aren't going to drop anytime soon. If we're going to play footsie with OPEC, we have to bring something to the table. Substantial energy production would be that "thing".
 
Nope. My suggestion is that the government allow energy companies to extract reserves without undue impediment. That doesn't mean abandonment of environmental concerns. Given world demand, a price collapse is not on the horizon.
Except increased drilling is NOT I their business plans and it has zero to do with impediments . It's to do with a focus on shareholder value not expansion of supply


Please read post 2 & 3.
 
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