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Brent Batten: Idle chat part of oil debate
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Idle hands are the devil’s workshop.
Idle leases are the purview of politicians.
As the debate over offshore oil exploration heats up, the subject of idle leases is getting more and more attention.
Politicians as prominent as House Speaker Nancy Pelosi and presidential candidate Barack Obama have raised the topic in recent days as they argue against expanding the area in which oil companies can drill.
Both cite the figure of 68 million acres currently under lease to oil companies but not being used.
The companies should drill in these areas before being granted any new leases under the “use it or lose it” mantra both espouse.
But the politicians aren’t telling the whole story behind the idle leases, according to the oil industry.
Idle leases generally fall into two categories, according to Bill Bush, a spokesman for the American Petroleum Institute.
Many lease areas aren’t producing oil because getting the permits to do so can take years. The seven to 10 years it takes to bring a new lease into production is a function of the regulatory process, Bush said.
You need a permit to do the seismic tests that give you a sense of whether oil is likely to be found in a specific spot. Then you need a permit to drill an exploratory well. If the tests prove promising you need another permit to drill delineation wells, which show the physical extent of the underground reserves. Finally, you need permits to build production facilities.
Lawsuits can further delay the process. “It takes a long time, there’s an elaborate process, before you produce,” Bush said. “Companies can be doing and are doing things on leases to put them in a position to drill. That’s not an indication they’re not doing anything. That’s misleading.”
Then there are leases that aren’t being used because there’s nothing there. “Not every lease includes oil in large enough quantities to drill and produce,” Bush said.
“It’s not unusual for a company to spend in excess of $100 million only to drill a dry hole. A company usually has only limited knowledge of resource potential when it buys a lease,” according to an API position paper on idle leases.
The argument is that oil companies are sitting on millions of acres of drillable leases while holding out for more leases in an effort to drive up prices and secure more resources for the future.
That’s just not the case, according to Bush and the API. “Companies want to produce every barrel of oil they can produce, especially when the price is sky high. They’re in business to produce oil and natural gas,” Bush said.
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Speaking of Barack Obama, his organization, Campaign for Change, opens an office in Naples Tuesday. The opening is scheduled for 5 p.m. at 932 Fifth Ave. N. That’s in addition to the Democratic Party’s office on Fifth Avenue South.
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E-mail Brent Batten at bebatten@naplesnews.com
Comments
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I think Mr. Batten should disclose the specifics of his 401k and any other pertinent investments he no doubt has in the oil industry, else he should move on.
#1 Posted by greathornedlizard on August 4, 2008 at 10 p.m. (Suggest removal)
America's dependency, addiction, and oil boys leadership will lead this great country into the dust bins of history similar to that of the great Roman empire 2 thousand years ago unless American does sometime dramatic.
The 70's oil embargo was strike one.
The 2000's run up on oil prices per barrel is strike two.
Strike three and America is out.
GOP says drill drill drill.
and only thinks about today and next week.
No mention of the future oil outlook of our kids and grandkids.
Ask yourself: "If I'm alive in 20 years will America still have it's oil addiction problem??"
Again ask yourself: "If I'm still alive in 40 years will America have it's oil addiction problem??"
#2 Posted by bicoastal on August 5, 2008 at 12:47 a.m. (Suggest removal)
Kudos to Mr. Batten for printing common sense truth and facing the inevitable opprobrium of those who hate progress, detest oil, and have no answers beyond pious moralizing and junk science.
For over thirty years Luddite car-haters gassed off at us about "No nukes, No Drilling, Go Solar, Go wind, Gas Rationing, Windfall Profits, Mass Transit, Carpooling. Yeah. Right.
So where's their 'alternative energy'? Have they produced anything besides cranial halitosis? No, they haven't.
"Addicted to oil"? Catchy, eh? But catchy doesn't answer much, does it?
OK. Kick the oil habit. Now what, dear solar & windies? No iPod, Blackberry, or SUV, that's what. Swelter in summer. Freeze in winter. Stink alone in the dark. Having fun yet? Good.
Spoiled food and infrequent baths can't make eco-Jack any duller, but they'll surely make him a walking Petri Dish. Enjoy new diseases! Visit doctor? On mass transit? Do you sit next to vomit-shirt, mucus face, or Vince Guang Li, Canada's alleged head cutter with a penchant for bus riders? You choose.
Addicted to oil? Next time your hybrid that can't go a mile on electricity needs gas, don't visit BigOil. Just chant into the fill pipe, "Addicted to oil".
How's that for a Green Mile?
Paul Vincent Zecchino
Manacetane Key, Florida
05 August, 2008
#3 Posted by paul_vincent_zecchino on August 5, 2008 at 3:17 a.m. (Suggest removal)
I have until now resisted the impulse to respond to the obtuse rantings of our late-of-Marco filosopher, but no more.
On second thought, I'm going to be strong and ignore him. Perhaps the excercise will help me learn to do the same thing with Brent.
Lord knows they're both highly deserving of just that.
#4 Posted by elnuestros on August 5, 2008 at 7:01 a.m. (Suggest removal)
I had heard about the bureaucratic crap that they have to go through to drill, years ago.
Now let's see what happens.
We blew our chance to move forward with alternatives, before. Maybe this time we can get serious and move forward.
Often I read that most people are opposed to alternatives because it is'nt a 100% fix. It never will be. It will take a multitude of solar, wind, nuclear, and god forbid, oil to fill the required demands.
Or, we can just keep our heads in the sand, like we have done the last 35 years.
;-)
#5 Posted by Optipess on August 5, 2008 at 8:11 a.m. (Suggest removal)
Everyone appears to assume that oil found and extracted off American coast will become part of America's oil supply. Wrong! The resource would be sold on the world market to China and other countries, just like Alaskan oil is now. It won't be "our" oil, but will belong to the private, probably international energy company that sells it to the highest bidder.
#6 Posted by Bramble on August 5, 2008 at 8:46 a.m. (Suggest removal)
What stopped anyone from developing 'energy alternatives'?
Did goons sporting tinted psycho-shades that mobsters wear visit our homes and tell us, "youze bedda not go developin' no wind, and fuggedabout solar!" No. They didn't.
No law, individual or oil company stopped anyone from developing solar, wind, or other 'alternative energy' sources.
Despite their bountiful lectures, why didn't the alternative energy crowd develop wind and solar?
Because they don't want to. Because as Bob Grant said years ago, their true aim is to tear down civilization and replace it with nothing.
Paul Vincent Zecchino
Manasota Key, Florida
05 August, 2008
#7 Posted by paul_vincent_zecchino on August 5, 2008 at 8:56 a.m. (Suggest removal)
Never having been a part of civilization, I doubt that Bob Grant knows what he's talking about.
#8 Posted by greathornedlizard on August 5, 2008 at 9:02 a.m. (Suggest removal)
Good morning Doctor Zuchini!
Let me remind you that the change never happens because it is easier to go back to oil and fuggedaboutit once the prices come down.
If we had listened instead of laughing when Pres. Carter warned us about this 35 yrs. ago it would be done already.
By the way, the Bush thing has removed investment credits for Solar, I wonder if it has anything to do with soaring profits on oil?
#9 Posted by greathornedlizard on August 5, 2008 at 9:07 a.m. (Suggest removal)
I am going to go out on a limb here by saying this. But I feel the next war we go in to will be centered around OIL that's currently over in the middle east.
And I know some of you out there are going to attact me for what I just said. So being it on. Just remember this is just my oppinion.
#10 Posted by chincieone on August 5, 2008 at 9:10 a.m. (Suggest removal)
Did every one miss the news article about the wind farm that a Texas Billonair had told the congress to some something or get out of the way. I have to go back and see if I can find the article and post it.
#11 Posted by chincieone on August 5, 2008 at 9:17 a.m. (Suggest removal)
Hey chincieone,
Why do you think we're in Iraq?
;-)
#12 Posted by Optipess on August 5, 2008 at 9:19 a.m. (Suggest removal)
Actually Dr. Paul,
There are other countries developing the alternatives. Iceland and Holland are way ahead of us. In this country, the tax breaks go to oil companies for research and development.
Remember back in the late 70's when we had tax credits for doing things that made us more energy efficient?
I beleive it was Reagan that did away with those.
#13 Posted by Optipess on August 5, 2008 at 9:26 a.m. (Suggest removal)
Optipess:::I know what you are saying. President claimed it was for 9/11 but I believe it was for the oil.
This is the news one of the news article for the post#11
http://www.cbsnews.com/stories/2008/0...
#14 Posted by chincieone on August 5, 2008 at 9:45 a.m. (Suggest removal)
9/11 ??
The man responsible for 9/11 flip flops between Pakistan and Afghanistan. We know that.
The murderous dictator of Iraq was captured, tried, and executed.
Iraq has had elections.
They have a government.
Now, they are asking us when we will be leaving?
I think we may just be there for the oil.
Just a hunch, tho
;-)
#15 Posted by Optipess on August 5, 2008 at 1:50 p.m. (Suggest removal)
The following is a list of available alternatives to fossil fuels:
#16 Posted by cousinjed on August 5, 2008 at 5:15 p.m. (Suggest removal)
ECOTERROR
You are a complete idiot
go elsewhere
#17 Posted by vivianped on August 6, 2008 at 6:02 p.m. (Suggest removal)
Excuse me.
I forgot other idiots.
greathornedlizard, and
bicoastal.
#18 Posted by vivianped on August 6, 2008 at 6:17 p.m. (Suggest removal)
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