Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Snowshoe who wrote (69667)	6/16/2008 10:32:45 PM
From: Elroy Jetson	Read Replies (4) of 74559

A President's authority only extends so far. I think you'll need much higher prices to make offshore California drilling a reality. Hypothetically, if Chevron got a green light today, it would take four to six years to produce the offshore fields. There are existing offshore support facilities in Santa Barbara, but Chevron would prefer something closer to Morro Bay which would greatly reduce the transport time. This site got a resounding no when I tried, and I'm pretty good at obtaining approvals - although I could see the answer would be no before hand. As you mentioned it's very high quality oil. Is it a significant size? Yes very much so in terms of the US. But is it enough to fix the world market? No. To fix the imbalance, China and India (and perhaps some others) need to build more $3 billion each heavy/sour crude refineries. Are US oil firms lining up to do so? Absolutely not. It's better economically if someone else does it. Chevron built Pascagoula during the last oil crisis and I don't think you'll see them lining up again to do that. .

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