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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (58587)	12/2/2009 6:54:29 PM
From: Snowshoe	Read Replies (1) \| Respond to of 217735

The problem involves oil production volume, viscosity, and temperature. When the pipeline flow volume falls too low, the oil cools down and congeals before it gets to Valdez. Then all you have is a 1,000-mile long wax candle. So the danger is that Big Oil gives up on new development due to the high tax rates, and announces that the pipeline will shut down in about ten years when the production from existing wells falls too low. Your idea of reselling the leases won't work because in the future there won't be a critical mass of oil production to support continued pipeline operation. No one will take over the leases on a piece meal basis if there's not an overall plan to keep the pipeline functioning.