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Originally Posted by Cobrabill
When i read this-Billy Mays came to mind....
David-how in the hell can there be no demand for drilling?This is absurd.  |
Economics is my guess......people are using less gas, so they lower the price to sell more and now people are still using less gas at lower prices (paid $2.25 gal. today here)......No need to make more than you can sell,
oil companies don't have the storage facilities for large volumes of gas........
My buddy who is a chemist at the EXXON refinery in Baton Rouge (for the last 22+ years) told me the other day they have shut down 90% of their "chemicals division". Chemicals other than fuel, mostly chemicals for paints and plastic manufactering, little to no sales for the stuff, no need to make something you can't sell......
Many other chemical plants closing here or cutting back drastically, ie: Dupont and a few other major players in the paint industry.
he also told me prior to all this mess, they ran the gas refining part of the plant 24/7 at 100% capacity for the prior 10 years and never had more than a 3 day supply of gas on hand, sometimes the tanker trucks were lined up waiting for the reifned gas to come down the line to haul it off......now they have most all the storage facilities full of gas, there are probably running at 75% capacity, something he has not seen in 15 years!!!!!!!!!!!!!!!!!!!
I know of at least 2 dozen guys that worked in the
oil drilling/
oil field industry that were laid off in the last month and I'm from small town America,pop. 5,000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Like I said, it ain't good and no one expects much of a turnaround for at least another year, just hope these folks can hold out and make it another year.
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I can`t speak for LA , but a friend of mine in TX said almost all land based rigs and exploration are/is being shut down . Per Jerry , the current cost of oil is too low to support any exploration etc . Believe it or not , oil needs to be up in the $70 to $80/barrel range minimum . ... boy how things have changed . When I was involved with that industry , I can remember $20/barrel oil ... and it was a disaster back then .
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Zacctly, small land wells out in the boondocks are being "shut-in", price of oil is too low to make it profitable to get this oil to market and it's not the best grade crude to start with and these little wells don't produce that many barrels per day.
David