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Politics : Formerly About Advanced Micro Devices

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To: tejek who wrote (184605)	3/16/2004 5:53:19 PM
From: TimF	Read Replies (1) of 1574796

I don't think they do. If it would cost half to drill offshore than what OPEC charges for oil, there would be a great deal of exploration and drilling happening in known offshore oil fields. In fact, there has been little increase in offshore drilling inspite of the huge spike in oil prices this past year. Ted (and John also if your reading this). If the cost to produce oil offshore was not significantly less then the world price for oil then there wouldn't be any off shore exploration and drilling. The oil companies are in business to make a profit. Oil is a fungible resource. Oil companies can't sell it for more then the world price just because it comes from offshore wells. They often have a smaller gross margin on the offshore wells because the cost of production per barrel is typically larger, often much larger then wells in a large well situated on shore field, but they still have a positive margin on most of offshore wells which means the typical offshore well has to have production costs per barrel that are much lower then the world price, and total costs (including exploration and initial drilling costs) that are at least somewhat lower then the world price. All of this doesn't address the larger issue of the total oil supply reaching its peak. Offshore oil wells have their limits as well. BTW we should probably expect some sort of terrorist attack on the order of the Atocha Massacre prior to the November elections. I think its the goal of al Qaeda to keep Bush in power much like they are trying to keep the conservatives in power in Spain [Spain's national elections are on Sunday]. It serves them to keep the animosity brewing between the Western and the ME nations. I don't think Al Qaeda was trying to keep the conservatives in power in Spain or would want to keep Bush in power in the US. If the attack in Spain was to influence the elections I think it was done to push the conservatives our of power and cause a setback for Bush which would be seen as a victory of sorts of Al Qaeda. Tim

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