Thursday, February 24, 2011

Gas Prices

With the turmoil in the Middle East, gas prices jumped a dime yesterday in my little town. Libya is a damned mess and Saudi Arabia is surrounded by countries in turmoil.

I notice that the moratorium on drilling in the Gulf is still in place. Oil reached $100 a barrel yesterday and there's not telling where it's going today and tomorrow.

We're still not out of the recession that began with the collapse of the financial institutions and inflation is beginning to rear its ugly head. For lots of families money is tight. An increase in gas prices isn't going to help anyone.

We can lay this one directly at our President's feet. With the mid East in turmoil and the drilling suspended in the Gulf, it's easy to see that supplies are going to be stretched and prices will increase. The President should have called this one months ago. He's certainly got better briefings every day than I do. We should be drilling everywhere that we've got oil. Drill the Gulf, drill the Pacific, drill off Florida.

The problem is, if he released the permits today, we'd still be months away from production. We should have been drilling these places six months ago. America needs to be energy independent and that's going to take time and effort. Our President has shut down much of what we need so that we can continue to move forward. The problems in the Middle East might not be his fault, but the moratorium on drilling is his fault.

When you pay that extra dime at the pumps, know that our President is only doing what's best for America.


J said...

Maybe, just maybe, the president doesn't want another Macondo-like disaster on his watch--maybe off Florida next time. After all, almost nothing has changed in drilling procedures. And they still don't know exactly who and what caused the Macondo blowout. Yes, they're paying more attention to mud and mud engineers now, and they're much more willing to push the "KILL" button. But the overall cause of Macondo is still there--greed. I for one want to balance greed against more government regulations. And so does the president.

Termite said...

There have been over 1000 deepwater wells drilled and completed in the GoM. There has been ONE blowout.
Yes, it was bad. Yes, it should not have happened. But shutting down an entire industry for one act of stupidity is......also stupid.
And it's not just deepwater drilling permits that the DOI is "sitting on, it's shelf permits too.
The new requirements are in place, the drilling and energy companies are junping thru the hoops, but DOI is not issuing the permits. That's why Vitter put a hold the nomination of Daniel Ashe to head US Fish and Wildlife. And Senator Mary Landrieu, a Democrat, agrees and supports Vitter's action.

I have over 20 yrs in the GoM oilfield. I've seen offshore oil companies do some dumbass things. Samedan(now Noble Energy) was one of the worst. And when oil companies either deliberately or thru gross negligence "screw the pooch", they should get hammered.
But what is happening now with the refusal to issue drilling permits after the requirements have been met is inexcusable.

J said...

Termite, "stupid" would be allowing deep water drilling to resume without fixing whatever caused the Macondo blowout. The president is right on this one.

Termite said...

J said...
Termite, "stupid" would be allowing deep water drilling to resume without fixing whatever caused the Macondo blowout.

We pretty much know what caused the Macondo blowout. It was faulty BOPs, combined with milling thru a tubing plug without fulling equalizing the pressures.

There were three plugs set in the tubing. SOP called for milling out the first plug, equalizing to known bottom hole pressure, then milling out the two remaining plugs. Instead, to save time, they milled the first plug, and immediately milled the second plug. The plan was to then equalize the pressure and mill out the remaining plug. However, unknown to the crew was the fact that the third plug had already let go, so when they milled thru the second plug without pressuring up first, the high bottom hole pressure blew up the tubing and the faulty BOPs could not contain it.

On paper the deepwater drilling moratoriam has been lifted. But in practical terms, what is happening is the DOI is "sitting" on the applications, even though they were properly submitted, complete with all the new requirements. That is why Vitter did what he did.

The POTUS is getting bad info from his advisors. While I appreciate his concern for the Gulf coast environment, he needs to listen to people other than those who will only "tickle his ears".

Old NFO said...

Pres. Unicorn doesn't WANT drilling, he wants gas at $5/gal so he can push through all the 'alternative' sources (of which not a single one is actually viable in large scale operation)...

JimB said...

Hell... We should be drilling in Central Park if that's whre the oil is. Obambi is just trying to create his socialist utopia one chrisis at a time.