Sunday, January 4, 2009

Local Oil News

Lease sales hit 4-year low. Companies have been accumulating leases without drilling them for a while. Now that drilling rig rates have dropped, companies are going to drill some of their existing leases. Everyone is running around like the sky is falling for the state, but as long as the oil service companies (who employ FAR more people than the oil companies themselves) stay busy, I think the state will make out OK. The drop in oil prices mostly effects greedy state legislators who will have to get serious about the budget for the first time in years.

An ROV was cutting into an (empty) pipeline off the coast and a crab walked by:

PHI loses a helo full of oil workers. The copter crashed shortly after takeoff from Amelia. Sounds like a smaller helo. Never like reading stories like this.

First FLNG platform nears approval. As one of the largest outfitters of oil platforms, this could be a huge opportunity for the state over the next 30+ years. Most oil platforms are build in 2 sections: hulls are built overseas (generally, Norway, Italy, or Korea) and then towed elsewhere for topside construction. The hull is just the part that floats. Topsides includes all drilling equipment, housing, processing equipment, etc. Most of the value in a platform is in the topsides. FLNG could be HUGE for the state...

1 comment:

JohnnyB said...

That's why the legislators wanted the raise when they did...I'm sure the price will go back up to some extent, but it will be a while before we see $140/bbl again.