Why aren't oil companies drilling in places where they have leases to drill?

Because they're too greedy. They want us to give them MORE public land!





I don't buy the ';environmental restrictions are too expensive'; crap from a company that made $40 BILLIION in pure profit last year (Exxon/Mobil), not to mention the oil companies get Billions in subsidies from the government specifically for gas/oil exploration!





Why are the oil companies selling Alaskan crude oil to China instead of bringing it home where we could us it? Because they're greedy.





It's all greed.Why aren't oil companies drilling in places where they have leases to drill?
Well, there are several reasons.


1. They are still in the process of exploration. When they buy a lease, they don't know if the land has oil or not. They buy these leases in large volumes in hopes that a small percentage may have oil.





2. There is no oil. There have been a high percentage of exploration efforts that have turned up dry holes. Hell, that's what Bush's oil company was known for, not being able to find any oil. Mainly because he was an idiot.





Most people don't realize that by law, oil companies have to find and drill oil within 10 years of their lease, otherwise, they lose the lease. On average, it takes between 3 to 6 years to go through the process of exploration (geologists, seismologists, etc) all the way to actually drilling oil (if any exist). This costs a minimum of $800K per hole they drill.





This idea of sitting on the land until oil prices go up makes for a good conspiracy theory, however, it doesn't make for good business practice. They only have 10 years to drill for oil before their lease expires. Oil is higher than it has ever been. Right now would be the time to drill, not in some unknown future.





The War in Iraq is the biggest cause for our oil price spike. While supply and demand typically control much of the oil price, speculation (think OPEC), is the driving factor in the recent price spike. If we are attacking OPEC nations, don't you think that OPEC will increase the price of oil in order to adjust for the rise in risk to them?Why aren't oil companies drilling in places where they have leases to drill?
Congressional Democrats last week introduced a bill to compel oil companies to begin utilizing federal land they already lease.





';Oil companies are sitting on 68 million acres they have already leased from the American people for the purpose of oil and natural gas production,'; said Sen. Bob Menendez, D-New Jersey.





';It is about time they use these resources already at their disposal instead of waiting for more federal handouts and pushing to drill in the Arctic National Wildlife Refuge or up and down our coasts,'; he added.
To maintain the artificial shortage, thereby driving the price up. Their stooges, our politicians, are preventing anyone other than the big oil companies from competing with them.





Does this not fit the description of conspiracy? Don't believe the lies about ';speculators'; driving up the price. How could speculators drive up the price of a commodity unless they pay for it? That's not the way the market works. No money is made on speculated prices. It's a case of put up, or shut up; money talks. Unless the speculators are ready to buy, the price is based on supply and demand.





This is just another lie our politicians are telling us. Just like rising prices and wages do not create inflation (it's the other way around), speculation does not affect wholesale and retail prices.





What is driving the price of oil up, is supply and demand. Our politicians help the big oil companies to maintain reduced supply. A reduction in supply without a corresponding reduction in demand equals higher prices.
Actually, the question should be ';Why are we still focusing SO much on oil?';


We live in a country of invention! Lets get away from OIL and invent OTHER alternative fuels or vehicles that don't run on gas!!!


I read about a man that retro-fit his car to run off of water. Another engineer designed a car that will go about 200 miles on 2 tablespoons on water!!!! Lets focus MORE on that and STOP being dependent on people that want to kill us!
Ron Paul. we need you !!!!!! When will the American people realize we are being duped by 'politicians' who are in government only to make big $$$. They get in office, (McCain, Clinton, Obama) not too wealthy, and then leave with millions. makes you wonder who are the oil speculators driving up the market.
They are using it as an opportunity to help themselves to more public assets. They have no more intention of developing any new leases anytime soon either. They just want to get their hands on them while the gettin's good.
Remember the one about the guy who was looking for his wallet under the streetlamp?





Leases = streetlamp
Because the restrictions on the areas they are leasing make it significantly less expensive to simply buy foreign oil and refine it.
LOL I was waiting for this question to pop up. Because the enivornmental restrictions are far too many and too expensive to get around.
Why? They are waiting until the price of crude oil is high enough to make more money. Why drill and sell for less when they can wait a bit longer and make mega-billions more?
Because they want the price to raise. Why else would they be holding on to these leases for five years. It's called Greed
Please provide the areas where the oil companies have their leases and are not drilling.
Because they don't know for sure if there is oil present. Cost alot to drill.
I agree. They have a lease to drill me but haven't in a long time.
They are, where do you think the oil we have comes from?
They should try my back yerd, I been fixin to go to Beverly Hills...
More supply will drive down the price of oil which is bad for their profits
Good question
just because they have a lease doesnt mean theres oil...
My guess would be, no oil there! Just a guess.
greed