Capping Oil Wells

[Sourdough]

With the price of oil going for all time highs, why is British Petroleum capping oil wells on the north slope?  The men that I know that work on the slope are coming back and telling us that BP has had them capping off oil wells.  So far they have capped over 90 wells.  These wells are not dry, BP has elected to stop production.

The thing is they (BP) are not satisfied with their record profits, they want more.  They are trying to force the state of Alaska to stop taxing them on oil production so they can make more and higher profits.  Also by creating a shortage of oil they are forcing the price up world wide.  Then after the price is at an acceptable level they will uncap the wells and start pumping again.

The British are putting the screws to us again.

[jh45gun]

Damn Muzzies are slowing production too just to raise the price.   

[deltecs]

With all the lies, deceit, and corruption surrounding the oil companies and its corporate management, it is my opinion that I don't care if they never come back for oil.  Yes, I realize we are dependent on it.  Yes, it has brought great economy to Alaska.  No, it hasn't all been for the betterment.  I have no problem with the tax revision supported by Gov Palin.  I think the oil companies in general have gotten away with too much over the last 30 years anyway.  This resource is owned by the people of the State of Alaska and I think they should share in the profits above the revenue generated by taxation.  I'd gladly support a user (sales) tax instead of using oil revenues to fund state projects, if this tax would get rid of the oil companies.  There is not a state in the union with large oil reserves that the oil companies have not corrupted politically to greater or lesser extent. I'm including Texas, Ok, Louisiana, Penn, and of course, Alaska.  When have the oil companies ever really kept its promises?  BP and Exxon go home and take your bat with you.  We would spend less money in a user tax than paying for the increase in fuel costs.

[billy_56081]

I'm kinda hoping that we cap all our wells and burn up all the muzzies oil and starve them. I would love to see America sitting on the only oil reserve left in the world. And by that time we will have a pretty good handle on renewable energy also.

[jh45gun]

I'm kinda hoping that we cap all our wells and burn up all the muzzies oil and starve them. I would love to see America sitting on the only oil reserve left in the world. And by that time we will have a pretty good handle on renewable energy also.

The SOB's know they only have so much oil and time  left and they are acting accordingly to milk it for what they can and for as long as they can. to them we may be the Great Satan but we are still good enough to keep the money flowing to the goat ropers. 

[copilot001]

I'm kinda hoping that we cap all our wells and burn up all the muzzies oil and starve them. I would love to see America sitting on the only oil reserve left in the world. And by that time we will have a pretty good handle on renewable energy also.

The SOB's know they only have so much oil and time  left and they are acting accordingly to milk it for what they can and for as long as they can. to them we may be the Great Satan but we are still good enough to keep the money flowing to the goat ropers. 

The  politicians in Washington are so busy bashing the other party, they have no time for the nation,s business.....
A capped oil well should be deemed abandoned and revert to the state....meaning the people... that will put an end to capping and playing "oil company games"
I can understand a fair return on an investment...but what the oil companies are doing is an obscenity...I read in the paper that the oil companies are richer than half the nations on this planet put together.......Robber barons?......when will they have enough?...when we are broke?

[copilot001]

Not surprising. You people in Alaska got to learn to knuckle under, and seems like your government has merged with the corporcrats.   

...TM7

There was a time  when a ceder rail, a bucket of tar, and a bag of chicken feathers was all it took to get a politician in line....Or an oil company executive for that matter.
I seem to have read somewhere that the Alaskan politicians are in the pocket of anyone with money.

[~Ace~]

NOT defending the Oil Companies... but thats how it works.  Most wells are Drilled, Flow Tested and Capped. All the science in the world can't tell you how much oil is obtainabe in a given area, so they drill and test to find out if it's worth drilling more wells in the area.  It costs a Bunch to actually connect a well to a Production Platform and produce with it. And like having more then one straw in a cup, often wells are drawing on the same deposit. Drilling is UP when profits are High... and when it crashes again (Always Does) drilling slows and they concentrate on production. It's Not unusual to spend 500 Million to drill a worthless hole...

[gypsyman]

When the mob starts to gather with the pitch forks and the flaming torch's and blowing up company gas stations because of the recession/depression the economy will be in will the big company's start to listen. By then it'll be to late! gypsyman

[jhm]

ALL the oil in the world isnt a salution, we really need more refineries, if you go out into the Gulf of Mexico you will see tankers lined up waiting to get into the refineries to unload, Natural Gas has taken off in this area like a wildfire in August, they are paying up to $600.00 per acre just to lease your Mineral Rights and all they have to do is drill in your section and you recieve royalties depending on the amt. of land you own in that section, I know a lady whos first Royalty Ck. was $868,000.00 and I believe she said she was recieving something in the $8 grand figure Monthly, and the sad part of this is I used to date her, Oh Well.   JIM

[rockbilly]

I agree with jhm, a shortage of, and outdated refiners are responsible, to a large degree for our oil prices.

Having invested in a few "holes," I think Ace is a little off in his comment about "it not being unusual for an oil company to invest 500 Million in a hole."  That may ring true for a field of holes, of for off shore drilling, but a single hole can cost as little as 200K, some even cheaper.  I know of one such well, when drilled it cost a group of 10 investors $3,800. each.  The well hit, it's beginning production was 278 barrels a day, after regulated back by government rules, it stabilized at 220 barrel a day.  It has been pumping for several years now.  I had an opportunity to invest in this one, but didn't........what do they say about hind site?

All wells drilled do not produce, or the production is so low that it is not cost effective to pump the oil.  In any oil field, there are always wells that produce natural gas, but no oil.  Many of these are capped for future reserve.  I know of several wells that were drilled in the 50s and capped because they only produced 20 barrels a day, at that time it was not cost effective to pump them,  so they were capped off.  In the mid-eighties they were opened up and pumping begin.  Keep in mind, when a well is being pumped a large percentage of what comes out of the ground is water.  The well may appear to be money-maker, but after the oil is separated from the water it may not be worth the cost.

Many things influence production, and without knowing the details and history of a well, or field, if is awful hard to second guess management for stopping production.  I am not standing up for the oil companies, just attempting to clarify the situation.

[deltecs]

With the price of oil going for all time highs, why is British Petroleum capping oil wells on the north slope?  The men that I know that work on the slope are coming back and telling us that BP has had them capping off oil wells.  So far they have capped over 90 wells.  These wells are not dry, BP has elected to stop production.

The thing is they (BP) are not satisfied with their record profits, they want more.  They are trying to force the state of Alaska to stop taxing them on oil production so they can make more and higher profits.  Also by creating a shortage of oil they are forcing the price up world wide.  Then after the price is at an acceptable level they will uncap the wells and start pumping again.

The British are putting the screws to us again.

Not surprising. You people in Alaska got to learn to knuckle under, and seems like your government has merged with the corporcrats.  

...TM7

I thought Sourdough stated clearly in his post that the wells were capped to stop production.  He is well situated to determine the veracity of this statement, contrary to the rest of these posts in attempts to clarify possible reasons for the capping.  We in Alaska are qualified to ponder this question and reasons for the oil companies decisions.  Most of us understand the cost of drilling and the reasons wells are capped.  I came from oil country in Pa. before oil production was reduced and know whereof I speak.  Alaska's minerals are not owned by the surface property owner anywhere.  All subterranean minerals are the property of the State, not surface owner.  As to corruption by our politicians in league with the oil companies, one only needs look at the news to see that they are being invested thoroughly.  At least these same politicians are conservative and extremely pro firearms.  I wonder how many other States can say the same .  Alaska has a new Gov, who campaigned on investing this corruption and effects of oil tax legislation derived from it and she is doing just that.  As to the statement that Alaskans' have to knuckle under, confine your political and game management opinions to yourself and your state, not ours.  We are not knuckling under here, so I take this comment understanding the ignorance of outsiders. 

[Sourdough]

We don't have to knuckle under to no one.  In fact we've got the natural gas up here, lots of it.  The lower 48 is running out.  Also looks like Canada won't let us ship it to the lower 48 through Canada, they want to sell you their gas first.  Since you folks don't want to buck Canada,as Governor Palin said we will keep it up here and use it for Alaskaian well being.  It's our gas, it does not belong to the oil companies.  Also looks like heating oil is going to be $4.00 a gallon before Christmas.  Think what gasoline will be.

[muskeg13]

We will soon see how well the big oil players are committed to getting our gas to market.  Maybe it's time for a really bold approach, and Sarah may be the one to lead us.  If the big 3 balk, maybe we should invest some of the permanent fund money and build us a gas pipeline of our own, on our own.  We could have plenty of gas at reasonable rates for Alaskan homes and industries and export the excess as LNG.  I just filled my heating oil tank for a mere $2.85 per gallon.  I cringe now every time the furnace kicks in, but my wife won't let me set the thermostat any lower than 62, and I'm hoarding the firewood for when it really gets cold.  If the oil companies try to string us along any longer, it's time to tell them to take a hike.  They aren't here because they are our friends.  It's all dollars and cents to the oil companies, and it should be exactly the same for the State of Alaska in our dealings with them.

All of these slick ads that clog my mailbox make me sick.  With corruption so evident (now) in the legislature at the time they set the tax rates, the rates have to be reviewed.  I was ticked off last time around when the bill that would prohibit the oil companies from writing off the cost of deferred maintenance was stalled.  Hopefully they'll get it right this time.

I miss Old Joe, and I wish that Wally was 20 years younger.  Best regards, Muskeg in Houston (the one between Willow and Wasilla)

[deltecs]

We will soon see how well the big oil players are committed to getting our gas to market.  Maybe it's time for a really bold approach, and Sarah may be the one to lead us.  If the big 3 balk, maybe we should invest some of the permanent fund money and build us a gas pipeline of our own, on our own.  We could have plenty of gas at reasonable rates for Alaskan homes and industries and export the excess as LNG.  I just filled my heating oil tank for a mere $2.85 per gallon.  I cringe now every time the furnace kicks in, but my wife won't let me set the thermostat any lower than 62, and I'm hoarding the firewood for when it really gets cold.  If the oil companies try to string us along any longer, it's time to tell them to take a hike.  They aren't here because they are our friends.  It's all dollars and cents to the oil companies, and it should be exactly the same for the State of Alaska in our dealings with them.

All of these slick ads that clog my mailbox make me sick.  With corruption so evident (now) in the legislature at the time they set the tax rates, the rates have to be reviewed.  I was ticked off last time around when the bill that would prohibit the oil companies from writing off the cost of deferred maintenance was stalled.  Hopefully they'll get it right this time.

I miss Old Joe, and I wish that Wally was 20 years younger.  Best regards, Muskeg in Houston (the one between Willow and Wasilla)

Right on.  I don't care how they do it outside.  Wally may have been on the right track when he proposed to barge fresh water to the lower 48 in reusable rubber tanks.  With all the droughts and water consumption on the west coast, this idea was ahead of its time.  The permanent fund could and maybe should construct a gas line.  A LLC with external investment may just be feasible.  The concept has been considered.  Investment using permanent funds checks could give every Alaskan not only the opportunity to reap benefits from the gas proceeds, but also the profits from sales.  As long as the Permanent Fund was designated as the majority stockholder, Alaskans could vote on major issues of administration or market.  When the Alaska Railroad was taken over by the State and operated under a board, it has been in the black ink nearly every year.  I'm not a greeny by nature just conservationist, and Alaska is prime for some areas of wind generation for alternative energy.  Susitna River still has enormous potential for hydro.  We don't have to use our gas reserves just for heating and electrical generation.  New advances in tidal could be used to great advantage.  We Alaskans must wean ourselves from oil dependency by loosening the permit process for micro alternative energy uses.  Many places in Alaska still use diesel generation as the cost of permit application and approval for alternative energy sources are cost prohibitive.  That could be rectified.  We need to get rid of the oil companies stranglehold on our livelihood, State operating expenses, and consumption by users.  I realize we cannot be totally free from oil products for energy, but we sure can make a hell of a dent.