Comments

You have commented 0 times on Rantburg.

We're sorry, but only human beings are allowed to comment on Rantburg. If you're a human being, please take this simple test to prove it. If you're not, get lost.

Tacky tatoo featuring a monkey's bumhole
Teapot
Some wine is red, some wine is white. Some people drink wine most every night
Hippy bus
Why is this man laughing?

Your Name

Your e-mail (optional)

Website (optional)

	My Original Nic Pic-a-Nic Sorry. Comments have been closed on this article.

Submit your comments on this article

Arabia

The 'politics' behind oil price fall

2014-10-25

[ARABNEWS] It is no longer a issue of whispering in the corridors of the oil industry. It is now part of public debate. Is Soddy Arabia
...a kingdom taking up the bulk of the Arabian peninsula. Its primary economic activity involves exporting oil and soaking Islamic rubes on the annual hajj pilgrimage. The country supports a large number of princes in whatcha might call princely splendor. When the oil runs out the rest of the world is going to kick sand in the Soddy national face...
launching an oil price war in tandem with the US to undermine or at least weaken energy dependent adversaries Russia and Iran?

The latest to join this discussion is the notable New York Times

Posted by:Fred

#3 Yes Glen, someone wants to give me a 10 bpd lease, I'll sit in the dog house reading Zane Greys and pump it myself.

Posted by: Besoeker 2014-10-25 11:08

#2 Don't understand the 5-10,000 bopd stripper well thing either, Besoeker. 0.5 - 10 bopd is more like it. With a million of them out there, it does add up.
We indeed can shut them in if prices get lower than the actual direct lifting costs, and often re-open them later. But not much later - lease terms require sustained production to retain the lease, and regulations require inactive wells be permanently abandoned. 90 - 180 days are common (though not universal) limits on the former and 1-3 years on the latter.

Posted by: Glenmore 2014-10-25 10:59

#1 The disaster was not only in the financial bleeding of those oil producing states, but many of them have what was known as stripper wells that bump between 5, 000 -- 10, 000 bpd. And if such wells are closed because of the low prices, they would never be opened again.

Total bullshi*! Firstly, 5-10k bpd does not fit my definition of a stripper well. Higher oil prices result in increased production (pump jacks going up and down - new drilling, etc, supply/demand thingy) Lower oil prices can result in lower production wells not being pumped, or pumped as often. That does necessarily mean the wells are capped. Farmers also store corn and soybeans in large, galvanized bins when the prices go down.

Posted by: Besoeker 2014-10-25 09:40