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Permalink Reply by Parkdota on May 1, 2010 at 15:53

Great question. This article talks about it.

http://www.reuters.com/article/idUSTRE6401A320100501?feedType=RSS&a...

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Permalink Reply by kittycatmama on May 1, 2010 at 19:24

Good article

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Permalink Reply by Parkdota on May 17, 2010 at 11:00

I recently read that there is a moratorium on drilling permits in the Gulf. I am wondering now that we are nearly one month into this disaster if the cease of permits going to cause an issue with regards to natgas pricing? This question was put to bed with the article posted in this post but now that the permits have stopped I believe it stands to be an issue once again. Does anyone have an idea what the cease of permits will do? The moratorium is suppose to end May 28 and be lifted unless the feds extend it. I would imagine one month of stopped new drilling would have an effect.

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Permalink Reply by P.G. on May 17, 2010 at 11:29

Hasn't had much of an effect on Petroleum prices. Oil prices have dropped quite a bit.
I wonder when Gasoline prices are going to follow?

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Permalink Reply by Parkdota on May 17, 2010 at 11:38

I read that the drop in oil prices was due in part to European economic conerns, our weak economy, unemployment, etc. Basically it was ironic that prices dropped. I would imagine that they'll go the other way in the near future.

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Permalink Reply by Henry on May 17, 2010 at 11:45

PG,
The drop in oil price is the result of a strong dollar. When the dollar is strong, all that oil from overseas is cheap. And yes, gaoline prices are falling, and expected to fall to $2.75 by Memorial Day.

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Permalink Reply by P.G. on May 17, 2010 at 16:04

They rose to that when oil was selling for around $85 brl..

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Permalink Reply by Kat Bloomfield on May 18, 2010 at 3:02

I had this same question. Profits on the part of the large E&P companies, such as Exxon & BP, have been and are ginormous--numbers beyond the every man everyday comprehension. They have steadily risen percentage wise over the years . . . and I ask why? How have their profits steadily increased year after year, despite the costs and taxes (which the companies seem to whine are so high)? Is it because costs were lowered through less stringent regulations?
No matter what, it seems this disaster is going to cause a rebirth of interest in regulations, real regulations. That will increase costs. Will that spread to all E&P operations, including onshore?

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Permalink Reply by Kat Bloomfield on May 18, 2010 at 3:43

Should we emphasize the "British" in BP?!
Another thought I had was this: in order to survive, smaller operators may have to join forces. But, aren't we all against the behemooth too big to fail type company? Or, is O&G E&P such that it takes a behemooth? If so, then it will just become an industry oligopoly that will require significant and substantial regulation and oversight---which we just don't do right now.
Perhaps a birth of bonding/insurance companies for the smaller operators--a small operator pool so to speak.

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Permalink Reply by Dorcheated A1 on May 18, 2010 at 7:13

Funny how Transocean won a safety award last year. Makes you wonder what the government was thinking? If they were thinking?

http://www.salon.com/news/louisiana_oil_spill/index.html?story=/pol...

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Permalink Reply by P.G. on May 18, 2010 at 8:24

Sounds like more taxes and regulation could be a benefit to the major oil companies. Just like big tobacco companies. The more taxes and regulation on cigarettes and tobacco, the more the big tobacco companies profited. Sounds like the same could go for the big Oil industry, huh?

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