Ernie - 2/16/2010 14:16

are the bad boy in the closet .

Yes we have lots of oil . But it will not compete with cheap foriegn imports .

When Oil prices spike over $100 all sorts of activitey starts up in this old Kevin / Sunburst field.

When it drops to the 60$ level , the activiy ceases .

Old wells producing 3 to 10 barrels a day were shut down years back as un economic .

They are called stripper wells . Produce more water than oil .

The cost to bring back on line shut down wells is not cheap .

Pulling rig guys are making good money . Pulling old pumps , cleaning out wells , some fracing . but when oil drops so does any new work on old wells.

Same thing here in Michigan. When oil got cheap, wells were shut down. When it goes up, they will start them up. These were never big producers, just a few barrels a day.

New exploration along the "Front" is very promising but , cost of production is high.

The Oil cartel and our Big Oil companies know to the $ when it is more economic to import rather than to produce
from "tight formations" . We will never be free from foriegn oil till this country has the will and resolve to "Pay the Piper " so to speak.

Cheap energy is gone , moderate costs are here . High prices will cure foreign dependence but no one wants to pay the price.
Plus , when other areas production drops off , and prices increase , We know where to look .