Wednesday, June 25, 2008

Drilling more oil wells

"Iraq is underexplored, with only 2,000 oil wells versus more than 1 million in Texas."


"Overall Saudi production has been falling since 2005, yet the number of rigs in use has tripled since 2004. Why is that? Some analysts believe the increased rigs are intended to compensate for declining production from Gwahar. Others argue that the Saudis are operating strategically, shutting their most productive wells as prices rose and opening smaller wells to better manage supply."source

This is something I wish more people would remember. Drilling more wells does not really mean more oil if there is not enough oil in the ground. We cannot just drill our way out of the problems in oil production.

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