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markm

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Well, today (Sunday) sitting on an oil well location, sleeping in my truck for the last 3 days, trying to complete a well so that we can have energy in this country, I just read a bunch of Smart A$$ comments on how this is all a joke, and gas is too high, fat cats screwing the little guy, can't drill a water well cause there is too much oil........ What a bunch of BS. Save your hats, it's too late for your boots. This well cost 2.45 million to drill, and right now the competion cost is up to 1.33 million, and this is the last gasp to get any thing out of the ground. So 3.78 million dollars and maybe there may be oil, maybe not. This is not a conspiracy. If this zone has any oil, then the company will spend another 300k to set the production equipment and hook the well to a pipeline.

So lets assume the well makes 100 bbl of oil a day, at 70.00/bbl, minus production cost of 10.00/bbl for a net of 60.00/bbl X 100 = 6,000/ day........ 4,000,000/6,000 = 666 days to break even if you don't do anything else at all to the well... Doesn't happen. there is always maintaince, recompletions to different zones, acid/frac jobs, plug backs, ect..... What, 200 bbl /day? OK pay off is about a year on this one, maybe. I can throw rocks and hit another one that didn't make a drop.

BTW I was working in the oil business in Califronia in the 80's and they literally ran us out of town. (thats another rant)

Now normally, I'd be feeling better getting this off my chest, but not today. I'm reading a letter from my insurance company how my Hurricane Katrina settlement is still not finalized, and now I only have another week to file suit or I'm screwed. I don't know $hit about the insurance business, except one of my best friends is an independent agent, My cousin is a agent, and my mom is an office manager for an agent. I think the profits for these yo yo's it too high, and they should pay their claims when it is justified. If I did not have insurance, the govt will give me .66 on the dollar. But because I have insurance, I get bent over. ???????????????????? Why isn't some jerk *** Senator calling for hearings and bringing the highly compensated CEO's before the cameras and ask them some questions?? Not Sexy enough.

Lets see, how about prescriptions? Beer? Don't even get me started on bottled water..you know how much that cost per gallon? Movie actors, can you believe those over paid jerks and the return studios make on movies? Hell, popcorn and cokes in the theater.....

Get my point.......... Who is the next target, over priced happy meals. too much for office products, milk too high, school supplies?

People in glass houses shouldn't throw rocks.

Maybe I'm taking this too serious, maybe not. Guess the best thing is to take a break for a while.

AMF to BEF

Mark

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Excellent points Mark. As I mentioned in another thread, gasoline costs ten times what it did 30 or 40 years ago, and, so does everything else. The problem from most people's point of view may be that as gas prices rise dramatically, the major oil companies announce record profits. Bad timing.

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The problem from most people's point of view may be that as gas prices rise dramatically, the major oil companies announce record profits. Bad timing.

The problem there is really how its reported, though. Record number of dollars, sure. What about as a percentage of gross sales? The number I've read is less than 10%. That's fairly modest for an industry that's supposedly gouging us, wouldn't you say?? I'd expect 25-50% to show up from that behavior. Costs move up in raw dollar amounts (ie, inflation), populations grow and use more fuel. It would be odd if they weren't posting "record" profits in sheer dollar numbers, given all that...

Mark, hope your legal stuff gets worked out, and you get that well finished up :)

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That IS a great rant. Especially when insurance companies are on my Pet Peeves 'n Ripoffs list...!

However, I really AM paying twice for gas what I was just a few months back, and my OTHER expenses have scarcely budged at all. So, then, WTF...? Somewhere in the chain of the fuel issue SOMEONE'S being a jerk. And it isn't me. :angry:

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Seen the Insurance thing in 1979 when a tornado came through here and wiped out a quarter of the Town and After "deprecation" and all other things homeowner got $10,000 for a $75,000 house what are you soppuse to do with 1/7 of what it cost to buy/build. RIP OFF! Figured it out if I did not have homeowners I would have saved as much as they would give me.

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