Sunday, March 9, 2008

Actual Gulf of Mexico rig count is down from last year.

Rising crude oil prices are bolstering Gulf of Mexico drilling activity, even though a key indicator says otherwise. This week crude closed above $105 a barrel for the first time, capping a months-long stretch in which oil prices have marched steadily higher. Louisiana energy companies say the up tick in prices leaves them with more cash on hand and more of an incentive to drill. Though industry leaders say oil prices have stoked interest in Gulf drilling, the number of rigs actively working in the Gulf has actually declined in the past year. As of Friday, 60 rigs were working in the Gulf, down from 87 one year ago. "There are a number of things people have suggested" as causes for the decline, Shiels said. New regulations implemented by the U.S. Minerals Management Services after the 2005 hurricane season might have discouraged some activity in the Gulf. And the rig count tends to more closely track natural gas exploration as opposed to oil. In addition, certain rigs are leaving the Gulf of Mexico for foreign markets where they command higher rents, he said. By Kimberly Quillen. T.P. Business writer.

In one year we lost a third of our oil rigs in the Gulf of Mexico. Where did they go? Well certain rigs left for foreign markets. They left for other countries where the governments don't try and tell them how to run their businesses and try to take their profits. Hillary Clinton said she will take their profits if she is president so now the oil companies, which are now global, are moving to greener pastures.

The green people are happy.
They think they are saving the earth by stopping the drilling in the U.S. What they don't understand is that they might slow it down here and hurt our economy, but it is going strong through the rest of the world. Just ask the Chinese how many Americans are over there helping them drill for oil. There are countries begging for our expertise and our rigs so they can go and drill oil for themselves. The green people will not stop them.

Just a note. Oil is what makes the world go round. If you stop the flow of oil in the U.S. you will stop the U.S. economy. If you stop the flow of blood in your body, you die.

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