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The “use it or lose it” bill would have required energy companies to make use of existing leases for exploration on federal land or face a threat of losing the leases or paying fines that would increase over time.

http://www.nytimes.com/2008/06/27/washington/27energy.html

U.S. oil companies that favor new exploration in Alaska and off America's coasts already sit on 68 million acres of federal oil leases — suggesting big oil is trying to leverage new leases and greater profits. "I say they should use it or lose it,” said Boxer, D-Calif.

http://newsok.com/drill-bits-distortions-keep-u.s.-energy-on-shelf/article/3262726/

Obama Would Collect on Idle Oil Leases

Word Count: 534

Sen. Barack Obama said rather than opening more federal land to drilling, he would dun oil companies for the leased lands they aren't using and would use the money for sustainable-energy projects.

http://online.wsj.com/article/SB121436588642802619.html

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Stocks I am looking at, which are up 200% or more this year:

This Year's Winners

Symbol Company Name % Price Change YTD Prev Day's Mkt Capitalization Previous Day's Closing Price
RDRN Rodman & Renshaw Capital Group Inc 1,125.50 69.2 Mil 6.25
MXC Mexco Energy Corp 950.30 73.46 Mil 41.80
PDO Pyramid Oil Co 917.90 127.6 Mil 34.10
IOMI Iomai Corp 530.40 165.9 Mil 6.48
JNEXF Junex Inc 521.30 195.8 Mil 3.75
WXJXF Western Canadian Coal Ord Shs 512.50 1.074 Bil 9.18
FPP FieldPoint Petroleum Corp 462.50 60.14 Mil 6.75
ROYL Royale Energy Inc 447.20 101 Mil 12.75
JRCC James River Coal Co 394.30 1.399 Bil 55.26
ENT Enterra Energy Units 278.50 273 Mil 4.39
PCX Patriot Coal Corp 249.00 3.897 Bil 145.65
CWEI Clayton Williams Energy Inc 241.70 1.289 Bil 106.47
HUSA Houston American Energy Corp 238.40 288.1 Mil 10.32
MBRK MiddleBrook Pharmaceuticals Inc 220.80 215.6 Mil 3.85
GDP Goodrich Petro Ord Shs 215.00 2.376 Bil 71.25
GCLMF Global Coal Management Plc 207.90 304.7 Mil 5.85
GOEG Golden Elephant Glass Technology Inc 200.00 93.76 Mil 3.75
NCEN Nacel Energy Corp 200.00 64.2 Mil 3.00
ANR Alpha Natural Resources Inc 191.80 6.662 Bil 94.76
GTE Gran Tierra Energy Inc

Look at their chart pattern. Be sure to put stop loss orders underneath their support levels to protect yourself from a drop. Plan to get out in days, weeks and months. If you don’t know what a stop loss order or support level, then this is not for you.

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U.S. oil companies that favor new exploration in Alaska and off America's coasts already sit on 68 million acres of federal oil leases — suggesting big oil is trying to leverage new leases and greater profits. "I say they should use it or lose it,” said Boxer, D-Calif.

I could be mistaken, but as far as I'm aware, most oil leases have a term limit. It's typically 5 years, but could be any length of time. Oil companies also pay a bonus at the beginning of the lease, so it is in their best interest to drill a well (assuming they believe anything is there) before the lease is up.

I also wonder what percentage of those leases are in areas of known shale oil, or are in "mature" fully developed conventional oil areas? Drilling wells in developed oil patches may not be economic if the well produces less than 100 barrels a day. This country is full of mature producing wells that produce less than 10. Digging addtional holes in these areas is taking a lot of risk. Shale oil also has its problems. It's very difficult and slow to extract (not to mention expensive). In some cases it requires different drilling equipment and infrastructure. I know drilling in the Bakken formation (North Dakota shale oil) is going on at a feverish pace. Oil & Gas companies are tripping over each other trying to drill holes. Oil production there is climbing, but at a very modest pace.

Conventional, "untapped", oil reserves have the highest potential pay off. Since drilling is a very risky business, I can understand why oil companies would be more interested in a "sure thing". I personally can't hold that against them.

dbspl

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I think we need to use less AND drill for more. Gotta move the demand curve to the left and the supply curve to the right to achieve the most price reduction.

This would appear to be a logical statement.To not drill for more is insane,tie your own hands?only America could be so kooky.

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Don't solve a problem, give the OIL ADDICTS more product ..................... We voted on drilling before, and it was voted down to preserve the environment. Wake up guys, the price will not go down by drilling for more ........ wake up, pay the price, and be on with life ... it is what it is !!!!!!

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Our deposits of oil shale are enormous. Estimates are between 1.2 and 1.8 trillion barrels of oil in shale deposits in the Green River Formation. If only about half could be recovered, that would provide all of the oil the US needs (assuming usage at the current rate) for the next 100 or so years. They used to say that it was not economical to produce and require the price of crude to go to around $40.00 per barrel to make it profitable.

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On the same subject there is a small extraction facility in that area that sends probes down into the shale then heat it and extract the oil and the gas. The oil that is extracted is clear and clean and the oil people are going gaga over the results. The biggest drawback is using too much water and finding a way to freeze the perimiter to prevent oil contamination in the water aquifiers. My suggestion for water is in another thread about the "sixth great lake". I figure about a 500 billion project to get them the water and the use of eminent domain by the feds to get the oil shale lands. Right now everybody is thinking "small" instead of out of the box. If I was President I would ram this project through no matter who got hurt---ala George Patten.

JJK

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I like your moxie JJ. The Romans found a way to move water a long way using aqueducts. We should be able to do something similar especially now that we have pump and pipeline technology. I used to sit around and talk about this with my uncle. The rights of way are already there for pipelines, right? We should be able to engineer a way to get surplus water to areas of sparseness.

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Interesting you brought that up, Bob. Larry King had Chevron's CEO on the night before last. The discussion of shale came up. He said it is promising but that we should expect something like maybe 10? years before we really can make a serious go of it.

For OB: Don't those caribou look threatened?

Caribouandoil.jpg

saveanwr.org

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For OB: Don't those caribou look threatened?

Is that YOUR BACKYARD ??? ................ The Caribou look fine, but people who want to drill, don't live near the drilling !!!

.... unless they own a royalty interest, that is! But your point is well-taken. That's part of the freeloader problem we have. "I want metro rail, but not in front of my house." "We need to build new jails, but not near my house." On and on..... That does not mean I am not sympathetic to the person who pays a bit of a sacrifice.

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