Do people think that if we just made drilling everywhere legal that oil companies would drill in the US?

Do oil companies do any kind of cost/benefit analysis and drill at the place that will likely produce the most oil for the investment? I have read that there are only 590 rigs running world wide. Is that true?Do people think that if we just made drilling everywhere legal that oil companies would drill in the US?
Yes, they do a cost/benefit analysis, and they have an average production cost target, and all the other usual corporate metrics.





Your rig count is off by many magnitudes:





North American Rotary Rig Counts


The U.S. rotary rig count was up 15 at 1,901 for the week of June 13, 2008 and is 7.2 percent higher than last year.





The number of rotary rigs drilling for oil is up 4 at 389. The number of rigs targeting oil is 104 greater than last year's level of activity. Rigs currently drilling for oil represent 36.5% percent of total drilling activity.





Rigs directed toward natural gas were up 11 at 1,503. The number of rigs currently drilling for gas is 20 greater than last year's level of 1,484.





Year-over-year oil exploration in the US is up 36.5 percent. Gas exploration is up 1.3 percent. The weekly average of crude oil spot prices is 101.1% percent higher than last year and natural gas spot prices are 68.1 percent higher. Daily crude oil and natural gas futures and spot prices are available on our site.





Canadian rig activity* was up 12 at 230 for the week of June 13, 2008 and is 21 less than last year's rig count. Canadian drilling falls rapidly in the spring to avoid environmental damage during the spring thaw and rainy season.





*The Canadian drilling industry experiences wide seasonal swings and even year over year comparisons can lead to incorrect conclusions.


North American Rig CountDo people think that if we just made drilling everywhere legal that oil companies would drill in the US?
Like any business venture, oil companies do a cost analysis before they start drilling. Supposedly, the real problem isn't that we are running out of oil, it's that oil production has slowed. Why?


Naturally because oil near the surface of the earth is easier to extract, and as the levels in that particular area drop, it becomes more costly to drill to deeper levels.


So, in short, oil companies can drill at one place for a while with a relatively small investment, and just move on to another area when the level drops. It's actually cheaper to build (or move if it's offshore) a rig than to dig deeper.





I'm unsure of the 590 rig figure, though.
There has been a lot of drilling happening in the US.


Just not in protected areas.


You can check the BLM, and Forest Service and source how many oil and gas well permits have been issued, and opened.





Not that it matters because if we extracted all of the oil it would only meet a very short period of time.


Better to expend the effort on something that will resolve the energy issue in the long run in my humble opinion.
I don't know about that, my guess would be no. They are a business and they want to make money like every other business does. But we need to seriously look into alternatives. It's really time. I know they wouldn't be fast, and I don't know crap about engines, but why can't we have cars that run on batteries? There HAS to be a way to make that work. Of course we would still need oil for other modes of transportation, but I would drive a battery powered car as long as it would go at least 60.
They screwed up the economy so much that they want to drill on American citizens. And they say WE are ';addicted to oil';. I would say THEY are.





They've been selling off America's natural resources for 8 years.





It's a sign of abject desperation and I wouldn't help them.





Plus, it's polluting.





Let them come up with some other alternatives. I'll ride a bicycle in the meantime.
Catwoman - there are a lot of reasons for hiding info from people who have not been invited into your Contacts. People that have a desire to create havoc for you can do so by accessing your answers and posting them in a situation that you did not intend, etc.





There's nothing sinister about hiding your answers/contacts from the general public.
There are thousands of drilling rigs in the US alone. There are fewer rigs that can do deep sea drilling. Maybe that is what you read.





Oil companies do a considerable amount of analysis befoe they drill. It's very costly to drill dry holes.
US oil companies already have access to 68 MILLION ACRES that they can be drilling in.





So, don't know why they need more...
Your a very educated man, and I would say if you claim to have read it, it must be true!!!!!
I've seen more ';rigs'; (pumps) than that just in south Arkansas.
I think we should go for alternative fuel because we just wont have enough to make for the supply n demand
Why do you hide your info. and ask questions with not so simple answers?