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Oil-Drilling Boom Under Way
The Wall Street Jouranl via YahooFinance ^ | February 10, 2011 | Ryan Dezember and Matt Day

Posted on 02/10/2011 8:45:33 AM PST by NRG1973

Oil-drilling activity in the U.S. has accelerated to a pace not seen in a generation as energy companies, oilfield contractors and landowners rush to exploit newly profitable sources of crude.

The number of rigs aiming for oil in the U.S. is the highest since at least 1987, according to Baker Hughes Inc. The 818 rigs tallied by the oilfield-service company last week are nearly double last year's count and about 10 times the number that were drilling for oil in the late 1990s.

While the drilling surge is unlikely to yield enough crude to alter the global oil-supply picture, analysts say the new activity, centered on so-called unconventional reservoirs, could greatly boost domestic oil production and help offset declining output in Alaska and the Gulf of Mexico.

These reservoirs, trapped in tight shale-rock formations, were deemed too hard to crack a decade ago. But in the past two years, breakthroughs in drilling technology, combined with the resilience of high oil prices, have led companies like Chesapeake Energy Corp. (NYSE: CHK - News) and Petrohawk Energy Corp. (NYSE: HK - News) to switch rigs formerly devoted to drilling for natural gas to emerging oilfields like the Eagle Ford shale formation, which stretches from the outskirts of Houston and San Antonio, Texas, south into Mexico.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: boom; drilling; energy; gas; oil
I wonder how long it is before the 0bama administration, and the environazis find a way to shut this down.
1 posted on 02/10/2011 8:45:36 AM PST by NRG1973
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To: NRG1973

A lot of future billionaires. Ahead of the coming oil crisis.


2 posted on 02/10/2011 8:50:30 AM PST by Marty62 (Marty 60)
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To: NRG1973
They are already trying.

Not the article I was looking for, but this covers it as well.

3 posted on 02/10/2011 8:51:02 AM PST by Michael.SF. (Going to Charlotte for the barbecue is like going to Minneapolis for the gumbo - John Reed)
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To: NRG1973
could greatly boost domestic oil production and help offset declining output in Alaska and the Gulf of Mexico.

Declining only because Obama, Dems in Congress, and the enviroweenies have shut down new drilling in these areas.

4 posted on 02/10/2011 8:53:41 AM PST by CedarDave (What is DADT? Obama's response when inquiries are made about his birth certificate.)
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To: NRG1973

I’m not sure I beleive this.


5 posted on 02/10/2011 8:56:30 AM PST by Josephat
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To: NRG1973; Mrs. B.S. Roberts

How about someone saying, “The hell with the world supply of oil, what matters to the United States of America should be the availability of oil to the United States of America”?
The biggest problem the USA has had and still has is the GOVERNMENT of the USA.


6 posted on 02/10/2011 9:01:33 AM PST by CaptainAmiigaf ( NY Times: We print the news as it fits our views.)
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To: Josephat

I’m not sure I beleive this.


Same here.


7 posted on 02/10/2011 9:04:29 AM PST by unkus
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To: Josephat; Smokin' Joe

There have been posts on this here for years. Google Bakken. That’s the formation in ND that started it all. The new technology developed here is revolutionizing the oil patch.

smokin’ joe ping


8 posted on 02/10/2011 9:11:27 AM PST by saganite (What happens to taglines? Is there a termination date?)
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To: Josephat
Believe it. One of my customers has been trying to get a rig for three months. Can't get one a premium prices.
9 posted on 02/10/2011 9:13:43 AM PST by mad_as_he$$ ( "Hokahey, today is a good day to die!" Crazy Horse, Lakota Sioux)
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To: mad_as_he$$

One of my customers was contacted last month regarding the drilling rites his father bought in ND 35 years ago. They want to do exporitory drilling on his area.


10 posted on 02/10/2011 9:18:25 AM PST by woodbutcher1963
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To: NRG1973

They were not deemed “too hard to crack” a decade ago, nor at any time since the mid 1970s. They were deemed “unprofitable at under $50 a barrel” which is not the same thing.


11 posted on 02/10/2011 9:18:44 AM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.8)
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To: NRG1973

It’s time for the newly empowered GOP House of Reps to declare the restrictions on US oil exploration and drilling to be henceforth null and void. Open up the Alaskan fields and the Gulf of Mexico again! Can Congress put pressure upon Obama, or can Obama’s bureaucrats continue to act like dictators?

While we’re at it, let’s also allow more coal mining and natural gas exploration.

In northern Minnesota, our stupid new governor, Mark Dayton, needs to allow the mining of copper and nickel as well, and create some much needed jobs to the beleagered, jobless men up on the Iron range.

I am offended by the bullying that the environmentalists perpetrate upon the American people!!!!!! :>(


12 posted on 02/10/2011 9:22:11 AM PST by Gumdrop (proud to be an American citizen)
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To: NRG1973

Obama Administration Blocking 103 Gulf Drilling Permits

http://www.freerepublic.com/focus/f-news/2668165/posts

Judge Holds Interior Dept. in Contempt Over Ban

http://www.freerepublic.com/focus/f-news/2667719/posts


13 posted on 02/10/2011 9:33:06 AM PST by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: Josephat

It’s true. I have a (modest) interest in several wells, both in production and ready to drill, and the constant delays in getting rigs and service contractors to the sites is aggravating, for sure. BJ Services, Halliburton, Baker-Hughes; everyone is booked out months in advance.


14 posted on 02/10/2011 9:33:37 AM PST by pingman (Price is what you pay, value is what you get.)
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To: Josephat

Believe it.

Makers of industrial diamonds are at full capacity right now, supplying the drilling industry. The Rocky Mtn states are quietly poking a whole lot of holes in the ground and tapping into quite a bit of energy.


15 posted on 02/10/2011 9:33:45 AM PST by lurk
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To: CedarDave

without adding more refineries, what good is more drilling?


16 posted on 02/10/2011 9:35:54 AM PST by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: mad_as_he$$

Not necessarily saying this is a bit of a stretch, but from all I’ve seen Chesapeak and other shalers are drilling for gas not oil. Not to say can’t find one with the other, it just hasn’t been talked up much.


17 posted on 02/10/2011 9:38:54 AM PST by dusttoyou ("Progressives" are wee-weeing all over themselves, Foc nobama)
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To: unkus

Add me to the “not so sure” column.


18 posted on 02/10/2011 9:45:33 AM PST by bbernard
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To: NRG1973

I believe this. The company I work for makes parts for a company that makes rigging equipment for the oil industry, and they’ve been ordering from us at an unprecedented rate in the last couple of months.


19 posted on 02/10/2011 10:27:46 AM PST by Disambiguator
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To: woodbutcher1963

Good for him!!!!


20 posted on 02/10/2011 11:19:43 AM PST by mad_as_he$$ ( "Hokahey, today is a good day to die!" Crazy Horse, Lakota Sioux)
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To: NRG1973

Interesting that the numbers only refer to rigs drilling for oil (818), while there are a total of 1739 including gas rigs, which is still off the peak of over 2000 rigs in 2008. The sad part is if you look at the number of offshore rigs it has been dropping steadily for the last ten years. That is where the giant fields are left in the US.

Lots of good graphs here:

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm


21 posted on 02/10/2011 2:10:18 PM PST by epithermal
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; ColdOne; Convert from ECUSA; Delacon; ...

Thanks NRG1973. fear, uncertainty, doubt being sown:
22 posted on 02/10/2011 8:16:21 PM PST by SunkenCiv (The 2nd Amendment follows right behind the 1st because some people are hard of hearing.)
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