This is the headline: BP To Invest $4 Billion In The Gulf of Mexico This Year
The Gulf is a huge geographic area.
The scuttlebutt: the oil industry is investing $4 billion in the Bakken every month!
200 rigs in the Bakken; 200+ wells being drilled each month; each well, $10 million -- just in drilling: 200 x $10 million --> $2 billion. The support services, the housing, everything else, another $1 billion to $2 billion/month. ONEOK natural gas gathering is just part of that. Pipeline activity. Crude-by-rail activity. Incredible.
So, when you see a $4 billion investment headline in the Gulf, think of that amount of money going into a few counties in western North Dakota.
Now that is impressive!! Thanks for putting it into perspective.
ReplyDeleteYou bring up a very good point Bruce. It is incredible how little wow there is in onshore oil and gas development. Probably this has to do with politics and the insane fux-environmentalist movement.
ReplyDeleteDo you know the difference in average cost for the extraction of oil per barrel between offshore and onshore?
I don't know the difference. I'll keep my eyes peeled for that statistic. Another reader might know.
DeleteI know if a deep off-shore well goes badly, it gets very, very expensive, very quickly.