Chevron hits oil in major Gulf of Mexico well

[Peter Miami 0]

No, supply and demand!

Of course the big oil companies will make more profits! But it is better to have more supply and prices will decrease in time. Plus we have been using our reserves to try and keep the prices lower through the last six months.

Peter Miami

[type2negative 0]

No, supply and demand!

Of course the big oil companies will make more profits! But it is better to have more supply and prices will decrease in time. Plus we have been using our reserves to try and keep the prices lower through the last six months.

Peter Miami

"supply and demand"..... Wow.l.. With imperative intonation..... I guess its gonna be my slogan!

[one...two...tree 2,762]

Three oil companies, led by Chevron Corp., have successfully drilled for oil in the Gulf of Mexico's deep waters, suggesting there may be more oil in the region that already provides a quarter of U.S. output, the companies said on Tuesday.

During the test, at record depths and pressure, the Jack No. 2 well flowed at a rate of more than 6,000 barrels of crude per day, Chevron said. That puts it on a par with discoveries in exploration hot spots such as the waters off Angola.

With U.S. oil output in decline, big new fields are increasingly rare and oil companies are widening their search to more difficult places. Chevron, the No. 2 U.S. oil company, did not give an estimate of the field's reserves.

[...]

Mike Wittner of investment bank Calyon cautioned that until the size of the field is known, it will be difficult to draw conclusions.

He added, "It seems to be a significant find and there is still life left in the deepwater Gulf of Mexico, particularly as you move into ultra-deep water."

http://ca.today.reuters.com/news/newsArtic...CHEVRON-COL.XML

America spends more than $200,000 per minute on foreign oil -- $13 million per hour. More than $25 billion a year goes for Persian Gulf imports alone.

........

Today's oil use outpaces new oil discoveries, with the world using about 12 billion more barrels per year than it finds.8 The growing imbalance between supply and demand means record high crude prices and the threat of more skyrocketing costs caused by even mild supply disruptions.

The only real solution is to reduce our demand for oil and therefore the economic and security risks of dependence on imports.

http://www.nrdc.org/air/transportation/aoilpolicy2.asp

[Marc and Olga 0]

No, supply and demand!

Of course the big oil companies will make more profits! But it is better to have more supply and prices will decrease in time. Plus we have been using our reserves to try and keep the prices lower through the last six months.

Peter Miami

On January 6, 2003, gas prices were $1.06 here in Tucson.

Anyone know what happened since then?

There is no such thing as supply and demand in the oil industry, it's all about profits. Bush gave them the best excuse to jack the prices up and increase the profits and we give them the profits by using so much gas. Nature gave them another excuse to raise prices with Katrina.

But alas look at this:

ExxonMobil's earnings announcement that profits rose 75 percent from last year followed a BP announcement of $6.5 billion in profits, up 34 percent and ConocoPhillips reporting its income grew to $3.8 billion, up 89 percent.

source

Or this from THIS year:

Exxon Mobil, the world's biggest oil company, said that its net income rose 36 percent from a year earlier to $10.4 billion. Shell, ranked third after BP, said that its profit jumped 40 percent to $7.32 billion. Both companies exceeded analysts' expectations.

source

Anyone think it is a coincidence that oil companies are getting record profits with record prices at the pump?

[isleta521 5]

Actually has nothing to do with Bush, sorry. No, I am not supporting him. It is a lot bigger than USA and it is supply and demand. China with its industrial monster to feed and other countries are buying oil at record levels and problems in Nigeria does not help. Drilling companies are now at a frenzy building drilling rigs. The market has gone haywire right now for drilling equipment and also for competent petroleum engineers and operators. I know because my work is directly related to oil and gas and no I dont work for Bush or Cheney (nor do I want to).

[Fuzzness 2]

can we use this as an excuse to lower gas prices now?

[Marc and Olga 0]

can we use this as an excuse to lower gas prices now?

According to the source, no, it is ONLY a "test" well.