Of Presidents and NFL

For the good of the country. 

 

For the good of the American Oilmen. 

Lets get a real president back.  

Enough of the replacement president. 

If the NFL can do it - America can do it too.

Over

Federal Oil Production Vs. Private

This graph says it all.

Is our president really responsible for the
increase in oil production in America?

UH,.....NO.

GAS PRICES AND THE ELECTION

The federal government cannot manipulate the price of gas at the pump, because they cannot do anything about the price of oil.  If this administration could, they would print oil like they print money.   But electronic oil does not run the internal combustion engine.

The only thing that can bring down the price of oil is universal peace on earth and a contraction of the national debt.   Does anyone think either of these two things will see the light of day any time soon?

You see, the price of oil is set on the world stage.  It is too big for the US government to manipulate.   There are two things that this administration can’t do – raise the price of homes in the US and reduce the price of oil.

The home mortgage meltdown that caused the Great Recession led the Fed to inject record amounts of money into the economy.  With home prices falling, the massive increase in money supply has not lead to overall inflation, yet.   But, the inflation that really counts – the things we all have to buy – is going up.

We have to buy food, clothing, health insurance, medicine, schooling, gas, stamps, air travel.   All of these are going up.   Computers and big screen TV’s are not going up.  Big deal.

So, this administration was able to prime the pump and get the stock market to increase in value.   Happy days are here again right?

Wrong.   For every dollar that is printed (or electronically created) all the existing dollars are worth less.  Worth less means it takes more to buy something – when that something is oil – we pay more at the pump and the average guy suffers.

The average guy suffers.   He does not like to suffer and he will get off his butt and try to do something about it.  That something will be vote – vote for whomever is not currently in charge.

Hugo Chavez knows this relationship of oil/gas price and political survival.   That’s why he just makes the price of gas artificially low.  Low gas price = happy people = reelection. 

The question is, will this president try to do something drastic about the price at the pump.  Well, how about the release of the oil in the SPR.  That would be an attempt at a cheap fix and no president would consider putting our energy security ahead of his political ambitions – would he?

THE END OF ACADEMIA IN AMERICAN POLITICS

Why is it that the academic elites are believed to be the answer to everything political? Obama, Geithner, Holder, Bernanke, Chu - they are all Ivy League award winning intellects. What makes them any different than most other college professor types. Long on theory and short on practical application. 

It's as if we in the business world come up with an idea and apply it and see if it works in the real world. The academic elites actually take the real world and see if they can apply it to their theory of how they think things should work. Backwards.

We are in the oil business. I mean, I love my college professors. That doesn't mean I will drill a well that they propose - well, maybe one of them. I would not want one of my college professors to be telling a tool pusher where to set casing in a geopressured well.

So, why do we think the professor types have any of the answers? Well, we don't any more. Two years in the US Senate does not equal experience enough to be prepared for the Oval Office. Everyone knows this now. Even the media - they kind of know that they got it wrong.

We need more people like Herman Cain to get involved in politics. He is a throwback to the business man politician that sacrificed his time for service to his country. Not one of the current guys that sacrifices this great country so it can service him.

Over, Jack

THE BEST KEPT SECRET IN THE OIL BUSINESS

THE BEST OIL PRICE IN THE WORLD
South Louisiana Sweet Crude (SLSC) is the best oil in the world. The world is paying more for SLSC than for any other oil - so it must be the best.
It is also the best kept secret in the oil business. Take a look at the three charts below. The charts are a snapshot of today's price for South Louisiana Sweet, Brent and West Texas. Which oil would you like to be exploring for and selling?

All the talk in the industry is about the spread between Brent and West Texas. All the talk in Louisiana is about the LSU football team. We are not talking about the best kept secret in the oil business.

SHALE PLAYS

The Haynesville shale play of Northwestern Louisiana is the darling of the gas industry. To some, it is the savior of the energy future of America and will lead the energy industry into the next generation.
The measuring stick of a successful well in this play is as follows:

Bad well = 2 BCFG

Good well = 6 BCFG

Are you kidding me? Are they really paying $8 million to $9 million for a well that has reserves of up to 6 BCF and may be as low as 2 BCF?

I am not going to go into the merits of frac stages and the amount of water used and waste created. Not going to mention the hazards of fracing into the shallow fresh water aquifers.

The frac thing I want to talk about is this - just what are you fracing? My belief is that you are fracing, and thereby, interconnecting the small stringers of sand that are interbedded in the shale. This may be why the "sweet spots" of the various shale plays are getting smaller the more they are drilled. It ain't just about shale - it's about the sand. It has always been about the sand. (Sorry limestone, I never really liked you anyway).

Could the future bring us the incredibly shrinking shale play?

Jack

Over

MORATORIUM ON STUPIDITY

Let's call a moratorium on all the stupid things we have been hearing since the BP disaster.

Here are a few of the things that need to be held up to the light of day as incredibly stupid:

1) This is the worst environmental disaster in the history of the world.

This well has been flowing gas and condensate/oil at rates up to 100 mmcf and 50,000 bbls per day. That's a lot of gas and a lot of condensate/oil. The condensate/oil appears to be high gravity, with little or no asphaltenes - basically paraffin based high gravity fluid much like diesel. Exxon's Alaska tanker spill was of heavy asphaltic bunker-like crude that hit very cold water and paved the rocky shoreline with a thick black soup that would not go away. The BP spill is dissipating at contact with the air and a residual orange sludge is making its way to some shores and will be gone in a year.


2) The pristine marsh and wetlands are being destroyed.

The marsh grass has been stained by the residual sludge from the spill and the first few feet of grass is brown and thick with the sludge - in a very few places. This sludged-up grass is acting as mother nature's boom and is preventing further oil from going deeper into the marsh. This oil is decayed organic material - altered by extreme temperatures and pressures - but still organic. Other organisms will eat it and it will be gone in a year.



3) BP finally got a "cap" on the well that is working.

This is not a cap. It is simply a blowout preventer bolted on top of the original seafloor blowout preventer. I have talked to some deepwater engineers, and they all said on day four of this disaster that the way to go was to "bolt on another blowout preventer" and shut the well in. BP has known that this is the way to go from the beginning. The concern was the integrity of the casing and the possibility of an underground or seafloor uncontrolled blowout.



What has now changed that enabled BP to go ahead with the new blowout preventer bolt on? Could it be that the Federal Government has kept them from doing this until now? If so, I hope BP has documentation to that effect - in that case, the bulk of this spill could be on the Feds.



4) How stupid is it to name a bunch of anti-drilling, environmental activists to the president's commission on deep water drilling?

Ok, it as if our president had to fire the military commander of our Afghan war and he chose a bunch of antiwar activists to run the war in his place. Stupid. Or, maybe since he had bomb making experience, our president names Bill Ayers to command the Afghan war instead of Petreaus. This is a drilling safety issue and the commission needs to be heavy on deep water drilling experience.



5) The award for stupid goes to former president Clinton for advocating "blowing up the well" or "nuking the well" as the only solution.

Stupid.



There's more, but this will do for a start.



___________________________________________________





Let's hope that the new "cap" holds until the relief wells do the job.



Let's hope that all displaced workers get to go back to making a living - fishermen, restaurant owners and workers, rig hands, etc........................



Finally, now that the gas/condensate/oil is not flowing into the Gulf, let's not forget the men who lost their lives in the rig explosion. Eleven men died working as American Oilmen. They lay at rest in the Deepwater Horizon rig on the Gulf floor some 1500' away from the well. That is the real tragedy. May God bless their souls. May God bless those they left behind.





Over