U.S. DOE considers paying drillers not to drill

[James Regan + 1,776]

U.S. DOE considers paying drillers not to drill. In the latest scheme to prop up indebted shale drillers, the U.S. Department of Energy is reportedly considering paying oil and gas companies to keep their reserves undrilled. The idea seems farfetched, and is based on the notion that undeveloped projects would act as “storage.” The reserves could be drilled later and sold later, with proceeds going to the government. The proposal would require appropriations from Congress.

https://oilprice.com/Energy/Energy-General/Storage-Fears-Drive-Oil-Below-18.html

Surely this is going against every morale fibre that we have been told in engrained into the American Free Market- Its outrageous if you compare this to the Offshore market, will they pay the offshore companies to keep the rigs on location or stacked and keep full crews onboard, will they keep the crews paid on the land rigs? Will the contractors rehire all the guys they have already dumped?

Will they keep paying the corporate lounge lizards and speculators who made fortunes on the worse business model the oilfield has seen. Loans all leveraged on the oil that was already in the ground awaiting to be extracted, paid for oil still in the ground and now we are going watch them being rewarded for a failed model and better still no need to continue failing we will pay you to remained failed.

Bewildering Hippocratic behaviour which is basically making the US Shale industry a state owned Industry no different to PDVSA etc and OPEC, OPEC+ or OPEC++ - Just join OPEC be done with it and lets get back to work.

[wrs + 893]

there is a thread on this already.

 

 

[James Regan + 1,776]

8 minutes ago, wrs said:

there is a thread on this already.

 

 

This deserves ten threads if it goes ahead.... thanks for the heads up @wrs👍

[wrs + 893]

23 minutes ago, James Regan said:

This deserves ten threads if it goes ahead.... thanks for the heads up @wrs👍

My title wasn't very illustrative.