I know that when I was in college in the 1980's, one of my "summer jobs" involved working on a pipeline crew that was installing pipelines between drilling platforms, so, we've been drilling there since well before 1980...
Research time...........
Wow... longer than I thought... Looks like the first off-shore wells in the Gulf were drilled in 1947.
The reason I asked was your hear these conflicting reports about it taking 20-30 years to reap the benefits of a deep sea well. I won't even mention the parties that are making that dismal claim.
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RE: Question for Oil Experts and resident posters
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ORIGINAL: oldelkhunter
The reason I asked was your hear these conflicting reports about it taking 20-30 years to reap the benefits of a deep sea well. I won't even mention the parties that are making that dismal claim.
I will have to echo the idea of 20-30 years to start producing. That is as long as we are forced to drill in deep water, trying to squeeze out the minimal resources found there. Now, if we were allowed to drill where the oil and gas is, we could see the influx within a year.
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You know, when the notion of changing the laws about drilling offshore first was bruited about in June the price of oil took a nose dive and has been dropping steadily ever since. Of course, there are lots of other news events which have contributed to this price drop, including some strengthening of the dollar, I think. But what is hard to dispute is that a significant element of the current price of oil is perception. Change perceptions, and the price changes. Even if it takes 10 years to bring the oil to the refineries, the news that offshore drilling is going to be allowed would immediately change the perceptions of oil traders and oil prices would drop.
I find it hard to believe that it takes 10 years to bring the first oil to the market. What do you need to do? (1) run a seismic survey to gather sub-surface geology data, (2) analyze the seismic survey, (3) identify preferred areas to explore, (4) drill some exploratory wells to assess the fields, (5) drill production wells, (6) bring the oil to the refineries by pipeline. I would expect that building the pipelines can be done concurrently while drilling production wells. I would also expect that building pipelines means building an EXTENSION of existing pipelines. It takes about 3 months to drill a deep-hole (+15000 foot) on shore. Suppose it takes 6 months to drill a well offshore. Suppose you spend 18 months drilling exploratory wells before you begin drilling production wells. That is 2 years of drilling to first produced oil. How long does it take to run the seismic survey and analyze the data? Maybe this stuff is already done? I'm guess it has already been done, at least done enough to begin drilling exploratory wells immediately. So, my guess is 2 years to first production oil. If there is a shortage of offshore drilling equipment, this could present a limiting throttle. Labor is not an issue, as that drilling is not a highly skilled activity. I speak as one who worked as a roughneck for a year drilling deep-hole gas wells in Western Oklahoma in 1981-1982. This was my first job out of college -- after completing an English degree. Now that was a tough economic time in the mid-west -- far worse that what cry babies are saying about today.
I know we've had offshore rigs in the Gulf since at least 1960. Probably earlier than that.
I think 20-30 years is more than a bit pessimistic. More like 10-15 years. Right now, the time it takes to get a platform up and producing has more to do with the worldwide shortage of drilling rigs - and having the 'want to' for drilling - than anything else. Now that oil is under $100 a barrel again, I don't know why a company would want to sink hundreds of millions of dollars in a platform unless they can be sure it's going to be a big enough producer long enough to get their money back. Cost vs return.
someone wrote it earlier. drill roight threw the caribou heads and get the oil. Enough of this BS from politicians, tell the repubs you will vote independent if they don't get this through or at least make a big damn loud fighjt for it. Publish every dem or Politic who votes against a common sense bill and get it on. 20-30 years is BS and we have let them do it to us. We have to sit and hope sandmen gives us a break or stay in some hole over there fighting to keep the price down. BS, start drilling now......
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You know, when the notion of changing the laws about drilling offshore first was bruited about in June the price of oil took a nose dive and has been dropping steadily ever since.Â* Of course, there are lots of other news events which have contributed to this price drop, including some strengthening of the dollar, I think.Â* But what is hard to dispute is that a significant element of the current price of oil is perception.Â* Change perceptions, and the price changes.Â* Even if it takes 10 years to bring the oil to the refineries, the news that offshore drilling is going to be allowed would immediately change the perceptions of oil traders and oil prices would drop.
The price of oil has nothing to do with the cost of actually producing oil. The cost of oil is largely a speculative net present value calculation based on the opportunity cost of oil and taking scarcity into account. Currently, certain oil fields are off limits, making oil relatively more scarce than if all fields were available for production. Begin adding fields into available production, and the relative scarcity of oil changes.
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I find it hard to believe that it takes 10 years to bring the first oil to the market.Â* What do you need to do?Â* (1) run a seismic survey to gather sub-surface geology data, (2) analyze the seismic survey, (3) identify preferred areas to explore, (4) drill some exploratory wells to assess the fields, (5) drill production wells, (6) bring the oil to the refineries by pipeline.Â* I would expect that building the pipelines can be done concurrently while drilling production wells.Â* I would also expect that building pipelines means building an EXTENSION of existing pipelines.Â* It takes about 3 months to drill a deep-hole (+15000 foot) on shore.Â* Suppose it takes 6 months to drill a well offshore.Â* Suppose you spend 18 months drilling exploratory wells before you begin drilling production wells.Â* That is 2 years of drilling to first produced oil.Â* How long does it take to run the seismic survey and analyze the data?Â* Maybe this stuff is already done?Â* I'm guess it has already been done, at least done enough to begin drilling exploratory wells immediately.Â* So, my guess is 2 years to first production oil.
Â*
I'd say 10 years would be the quickest at most. Right now it is taking 3-5 years to bring a well into production on land in well-known and heavily-explored fields. It's taking about 18 months after the location and depth have been determined to just get the well drilled and in production.
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If there is a shortage of offshore drilling equipment, this could present a limiting throttle. Labor is not an issue, as that drilling is not a highly skilled activity.
Â*
There is a shortage of oilfield equipment everywhere, largely because the labor is not there to make the equipment. And labor is a huge issue. The supply just is not there. There is a huge shortage of welders. Also a shortage of roughnecks. The jobs are there, but there just aren't enough people willing to work for the money. Walk in the door of any of the drilling, service, manufacturing, trucking, anything-related-to-the-oilfield companies around here today, and you could have a job tomorrow. They are hiring everybody they can find, but they just aren't finding enough people.
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Question for Oil Experts and resident posters
