Gas Prices Dropping....

[alfsauve]

One commentator said that falling gas prices can be blamed on oBH.   Prices are falling because the economy is in the tank (pun intended).   So demand is low and production is up which is driving prices down.

[deepwater]

could it be because we can drill in the gulf again? it would affect prices because the people selling the oil can no longer cite lack of supply (which, of course, is bs.) and the consumers do take notice if the price doesn't come back down.

http://gcaptain.com/proof-positive-central-lease/

HOUSTON–U.S. Interior Secretary Ken Salazar said Wednesday that the first lease sale in the central U.S. Gulf of Mexico since the Deepwater Horizon oil spill drew $1.7 billion in winning bids from energy companies.

The central area of the Gulf is considered the most promising by the oil and gas industry, and has yielded a huge bounty of oil in the past two decades. It is also where in 2010, a well blow-out destroyed the Deepwater Horizon rig, killed 11 and unleashed the largest offshore spill in U.S. history.

The high demand for drilling leases in the central region underscores both its potential and the eagerness of oil and gas companies to ramp up activities in the area after months of acrimonious exchanges with U.S. authorities over tough revisions of drilling regulations.

The sum of winning bids is the fourth largest raised in a lease sale for the central Gulf, which includes waters off the coast of Louisiana, Mississippi and western Alabama. It is also the largest amount in bids in a sale held after the Deepwater Horizon incident. In December, a lease sale in the less developed western part of the Gulf raised $337 million.

Mr. Salazar, who called the sale “record-breaking,” said the interest is “proof positive” that the oil and gas industry is confident it can meet new drilling rules put in place following the 2010 accident.





I know and you know that this oil is mostly exported, but it does influence how much they charge at the pump.
deepwater

[tombogan03884]

Getting the lease, and actually being able to drill on it are 2 different matters. 

[deepwater]

Getting the lease, and actually being able to drill on it are 2 different matters. 

I doubt they would go for the lease if they didn't already have something in the works. especially at that price! wow! a lot of the gulf is already leased out and has been for a long time. the oil companies just sit on them until they can drill and produce. we drilled a well in 2000 that was so deep that the oil company did not have the capability of producing it. too deep, too far from shore. lots of oil in it, but no way to get to it yet. I'm sure they have a plan though. big money brings out the best engineers. 

[jnevis]

The other thing to remember is the production facilities taken out by Katrina et al are coming back online, increasing production, while the overall price of crude has dropped considerably in the same period.

[Sponsor]

[tombogan03884]

The other thing to remember is the production facilities taken out by Katrina et al are coming back online, increasing production, while the overall price of crude has dropped considerably in the same period.

Just now ?
 I realize it takes time but it's been 7 years ?
Seabrook Nuke plant went up faster than that   

[deepwater]

The other thing to remember is the production facilities taken out by Katrina et al are coming back online, increasing production, while the overall price of crude has dropped considerably in the same period.

refineries were not all that bad off. it was used as an excuse to jack gas prices. there were tankers offloading at the LOOP just offshore during the hurricane. the biggest problem with Katrina was her storm surge. I went up the Mississippi river two days after it was opened back up and most oil related facilities were back up or moving VERY fast to fix everything that had gone wrong. mostly stuff that had been blown over or damaged by debris flying through the air. this trip cross country I made with the wife was right past sulfur and some of the other big refinery areas and they looked like all was business as usual.

deepwater