Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (81150)	12/9/2000 2:27:38 AM
From: Douglas V. Fant	Respond to of 95453

Roebear, Here's the current day ahead California Power Exchange prices: calpx.com I call it the "flat-lined pegged out at the max- feel the pain" $250/megawatt hour price chart. California faces some tough strategic questions. They need to make a choice as to whether they want more environmental protection or a higher standard of living- What is their priority? I'll illustrate with an anecdote. Just offshore Santa Barbara is an oil field called the "Coal Oil Point Oil Field". ARCO owned the field 50/50 with Mobil and operated the Field. ARCO tried for years to devlop the Field beyond the single platform that was there and met heavy and consistent environmental opposition from the Santa Barbara area, and also lots of environemntal groups and less than helpful California agencies. Finally in 1993 ARCO said "to hell with it" and notifed us at Mobil that they intended to abandon the Field. It currently produced 5,000 bbls/day of oil and asociated gas, but they just wanted out. They just said to us-"Mobil if you want it, take it, it's yours". Well ol' Douger himself went to Mobil's E&P Management and said "Hey it's worth a try". The Field had lots of upside potential particularly in natural gas reserves. The whole area around the Field has been designated a marine sanctuary but the Coal Oil Point Lease existed as a grandfathered oil & gas development. We hatched a plan caled the "Clearview Plan" in Mobil's OBO Division to use new slant drilling technology whereby we'd drill new wells ONSHORE (not offshore) from a location in a tank farm. So if there was an oil spill, well then none would hit the water. In addition we would remove the current offshore platform. Second we proposed that we give Santa Barbara County a royalty interest in the development and earmark all royalties to go into the County's Worker Retraining and Endagered Species Funds and fund about three major projects for Kit Foxes and restoration of dry stream beds etc.- A pretty darn responsible approach I thought. We figured that we could up production from then 5,000 bbls/day to a total of 45,000 bbls/day of BOE oil/gas. Royalties we estimated to the County would have been about $US 500mm dollars over ten years-a pretty good chunk of change which of course at today's prices would be double to triple that amount. Well we took the plan to the California Lands Commission and they liked it and said that they would back us. The local reps in the California Senate and House said the same as it got rid of an offshore platform. All we needed was the University of Calfornia at Santa Barbara's permission to drill slant wells from pad in the existing tank farm which was on University lands. Well the usual godless left wing pond scum that seems to control California politics these days came out of the woodwork and had a field day attacking us. They decried possible H2S problems, noise problems, anti carbon-base fuel demonstrators etc., etc. Well the local political reps then took a step back- the same guys/gals that said they would back our proposed project at the permit hearings, hmmm, just seemed to melt into the woodwork and disappear and left us out there on the firing line by ourselves. Well we banged our heads against walls for two years until until 1995 and the said like ARCO "forget this". Too bad because our drilling program would have brought on nice-sized gas fields that could be serving Californias natural gas markets as we speak. This is just one little example of the problems facing California as its basic industry infrastructure deteriorates and disappears. You can't run semiconductor chip factories on hot air. They need structural support and it appears that the California Government/people are not addressing these structural problems....