Some of the oil boom has hit this area. There derricks growing in fields and pastures and occasionally they morph into pumps. Most of it has been on state land or railroad land. Few individuals have wells on their property. It sure does touch off the conversations though. Hear lots of envy and jealousy and the greedy ones get real mouthy.
Was watching an old show other day. It was about them getting an oil well and maybe more on their land. It was old, oil was $12.00 a barrel. They were talking about their well being 1000 barrels a day. Compute that times $12.00…… whoa…. whole bunch of money. Then they said there should be 5 more wells…. $12.00 X 1000 X 5 =…. mega bucks…. per day of $60,000.00 a day. Now what the cost is to produce that is, I have no idea but I doubt it is over 50%.
The banks get real excited over numbers like that and lend money big time. The greed crawls out in capitol letters.
Now re do the numbers for today. A low producing well, 100 barrels a day at $65.00 a barrel = $6500 a day. Makes a real nice cash flow yet one can see why the oil biz is so big.
Yet the question begs, why is gas so expensive? Lots has to do with our attitude and the way we consume. We drive way to fast most of the time, like jack rabbits and we also drive big ol boats that get poor mileage plus our toys, just go riding and ATV to the joy of it or cruising on a boat. We consume lots of gas just for the pleasure of it.
There is also the other uses of petroleum products beside gasoline. Plastics is a big user, fertilizers, herbicides and pesticides. Plastics are petroleum based as is some synthetic materials. All the new techie toys are plastic cases and lens. Beverage bottles are plastic.
We consume ourselves into higher prices, in part.
When I see new wells pumping, I see plastic bags floating, plastic bottles floating, plastic machines whirring and plastic phones ringing.
So if you think there is a bit of conspiracy in price gouging, there is a bit of accuracy. There is also lots of over consumption and market demand for convenience.
Now how do I find an oil well for myself. Oh I have to work, get some money, buy some land with oil buried on it. Sounds pretty easy, just go out in the back yard and dig up some cans of money.