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Old 09-03-2009, 01:58 PM
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Default Re: BP makes "giant" oil find in Gulf of Mexico

Quote:
Originally Posted by faithful_servant View Post
Does anyone else find it amazing how we keep finding more and more oil fields?? Personally, I think that there's a whole lot more oil out there than anyone ever imagined, it's just a matter of getting it out of the ground and into production. Every time I hear the panic-stricken cries of "we're running out of oil", I hear the commodities brokers cackling in glee.
I had the opportunity to talk to an exec from one of the big oil companies many years ago (I was filling in for vacations at a related company). Big mouthed me asked him the question of why we were so interested in foreign oil when we had plenty. He replied that believe-it-or-not, it was vastly cheaper to get it over there and transport it here than to go so far under the ocean in the Gulf.
Now we have better technology, but you still have to get it up to the surface. That means pipe and mud. Tons of mud, pumped. Transported with boats. And all the equipment that goes along has to be first transported to the rig site. The site has to have round the clock crews coming and going 2 weeks on and two weeks off so there are fresh crews at all times.
I'm wondering if the cost of transportation is going to take a big chunk out of profits this time.
The oil in the middle east is virtually right underneath the ground. Now there are pipe lines all over Europe. So the thing that makes me happy is there might be local boat captains and crews, rig workers, and engineers, cooks, etcetera who make some decent money for the duration of the job.
BUt don't let that boom 5 years from now fool you. We need alternative resources. And we need them yesterday.
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