Palone's Comments


Palone's Comments, Comments on Energy Issues and other issues of interest.

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Bill Palone

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Thanks for giving me some of your time.  Hopefully, I will have caused you to think about a subject more or maybe even motivated you to become vocal yourself about the subject.

Wed, 28 Oct 2009

Is It Time To Be Investing In Oil?

Exploration should continue and should even probably escalate. Why? Well, Mohammed Al-Qahtani, the executive director, petroleum engineering and development of Saudi Aramco, states that the world will need an additional 90 million barrels a day production to offset production declines and demand growth by 2030. (Source: Oil & Gas Journal, October 12, 2009, Volume 107.38, page 10.)

This is coming from the country that everyone believes can just turn on the spout to meet the world's energy needs. I think it should be a wake up call to the rest of the world. Oil is not going to be cheap any more, as demand will be outstripping supply just as soon as the world economy starts to pick back up. I eluded to this in an earlier post.

So, yes it is time. One should be engaging in exploration, exploitation and buying of production. Yes, we will be moving away from oil, but is years off and the Unites States Government is not leading the way. They are just going to make the whole transition more painful and less efficient. Every barrel counts, and the United States needs to wake up and be encouraging the Mom and Pop producers that produce most of the domestic oil. Most of our oil is produced from stripper wells that make less than 10 barrels a day, most of them make considerably less.

Now, we need to keep after our congressmen to not penalize the industry out of existence. The current Administration and the current majority seem to believe that we are all evil and should be put out of business. So, it is more important than ever to educate the public about our industry.

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