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Everybody blames Oil Companies for having so much non-producing leased land. These are the reasons:
1. The marginal leases may prove profitable if the oil price gets high enough, so Oil Companies hang on to the marginal leases.
2. It takes time to get all the permits to drill test holes. They need to satisfy all the ecology requirements ect. During that time the lease is non-producing.
3. Leases are only for the mineral rights so the land can be used for purposes the owner wants. So the cost is only $2 to $3 per acre. The land is not tied up like some people say.
4. The Oil Companies are in the business to make a profit. Dry holes are expensive. They only drill where they have a good chance of striking oil or natural gas. Why would they lease land that did not have some potential to make a profit. The more land they lease, the more chance to find productive oil wells. It all take time.
We have high price oil because there is not enough of it. We need to let the oil companies drill where they are most likely to strike large oil deposits !!!! The Democrats/Liberals have stopped new drilling, oil refineries and Nuclear Plants for more than 20 years. I want to stop sending Billions of dollars to Saudi Arabia and other countries who hate us. |
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