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Of the 2,206 active leases in the Gulf of Mexico, only a fifth are producing oil, according to records from the Bureau of Ocean Energy Management, which regulates offshore drilling. Oil industry executives and analysts say the current number of 448 oil-producing leases is unlikely to grow significantly, even if Trump makes good on promises to expand leasing opportunities and expedite drilling permits.
The market is saturated with oil, making companies reluctant to spend more money drilling because the added product will likely push prices down, cutting into profits.
“It’s not the regulations that are getting in the way, it’s the economics,” said Hugh Daigle, a professor of petroleum engineering at the University of Texas in Austin. “It’s true that there are a bunch of undeveloped leases in the Gulf, and it’ll stay that way if we continue to see low or stagnant oil prices.”
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Gulf of Mexico
worth repeating every time until the message is crystal clear
(looking at you Google you absolute boot licking assholes)
At least they designated America as a sensitive country. I find that funny.
Tbh, it’s not Googles place to take sides in border disputes.
The mockery and criticism should be directed at the US government. Google is doing what they have always done.i don’t necessarily disagree with how they’ve chosen to proceed in the US: personally, on this single issue ignoring all others I probably wouldn’t make the same decision but i don’t think it’s cut and dry (for Google)
what i think is completely fucked is they’ve stated they’re making the change for the entire world (last time i heard)… fuck you google: the world isn’t ruled by the US government… we, unlike the US, tend to follow global standards: metric, borders, place names… we have organisations that determine those. we don’t want to be part of the US (hi canada, hi greenland), we don’t want to follow you everywhere
When does that go into effect?
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He only likes drilling because as a rapist he gets off on violent penetrations.
So we should start calling him “orange duck” now?
From the article, it doesn’t sound like the market is saturated with oil at all. If the oil companies are afraid that more drilling will drive prices down, it sure seems like they’re colluding to restrict the amount of oil in the market so they have some cover for their price fixing. That said, the focus should really be on switching to renewables, but that won’t be happening anytime soon.
it sure seems like they’re colluding to restrict the amount of oil in the market
Um…
Yes? 100% always has been, they literally have meetings and what is essentially a corporate union specifically to do it. And they’re not subtle about it.
Is this really news to some people?
It’s not news to me, but it sure seems to be news to the article author, given the way it’s presented.
They want to keep oil prices around $80 a barrel (in general). It’s the “sweet spot” for profitability and gas prices essentially…
it sure seems like they’re colluding to restrict the amount of oil in the market so they have some cover for their price fixing.
They absolutely are.
If the market is saturated with oil, oil prices go negative. Its happened before.
It happened less than 5 years ago even. It was funny.
it’ll stay that way if we continue to see low or stagnant oil prices.
The 90s kid in me who watched my parents absolutely losing their shit over $1.20/gallon gas in ~2003 is fucking bamboozled by this statement.
Just to add some context, inflation would make that $2.05 per gallon today.
I got my license in 1997 and gas was 98 cents/gallon
His supporters don’t know that though. Fox News doesn’t report that part.
Fox Entertainment doesn’t post all the facts? Colour me shocked
You mean the Gulf of America? Does that mean the leases are void now?
No, that doesn’t exist.
I literally just left the pump and was like “hm, gas went up again?”.
Guess I know why now.
Does he understand that that will drive the cost down?
No
Well yeah, considering the exponential growth of renewable energy installations, fossil fuel consumption might drop to close to zero in 2040, and since oil fields typically have a lifetime of ~20 years, fossil fuel companies have less and less of an economic incentive to invest into the exploration of new oil fields.
Not if say Russia is taken out of the global oil market, which looks rather likely.
It’s not. Russia will continue to sell oil through India and China.
Though if prices go too low, Russia’s oil goes unprofitable before e.g Saudi oil. Trump could accidentally put the squeeze on Putin by drilling more oil lol
Most of Russias oil exports go through ports in the European part of Russia. Those are currently being attacked by Ukraine. For example Ukraine managed to hit an oil pumping station shutting down the oil port of Ust-Luga, which handles 20% of Russian oil exports.
