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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (72154)	6/14/2008 12:06:13 PM
From: Steve Lokness	Respond to of 542122

BP; leases currently granted are more expensive to drill, Then why the heck did they bid on them? The price of oil now is higher than any pundit ever thought it would go just a few months ago. steve

To: Bridge Player who wrote (72154)	6/14/2008 5:30:03 PM
From: Cogito	Respond to of 542122

>>Has it perhaps occurred to you that the leases currently granted are more expensive to drill, because they may be in deeper waters? Perhaps you have also read that costs to drill there have escalated so much as to make the process uneconomic? Or perhaps that there is not as much recoverable oil there as in other more easily accessible locations? All just speculation, you understand. I have no idea whether these speculations are true or not, but believe they should be considered in forming an opinion as to current available leases vs. new locations for drilling. If you have done so and are informed on these issues, you certainly did not make it clear.<< BP - No, I don't have any more information about that than you do. I do note, however, that the oil companies don't seem to be identifying that as the problem. I understand that the question of what it costs to drill somewhere always has to be balanced against the price of the final product. I wonder what price the oil companies are waiting for with some of these oil fields? Meanwhile, I still haven't seen evidence that the oil companies are unable to fill any of their orders, or that orders have fallen significantly, which means that I still don't buy the idea that there is an actual shortage, whatever the purported cause. I'm open to new information. - Allen