Quote:
Originally Posted by ptlyon
Yes I apparently am, and the second part has not been explained. So be it.
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Upstream
Mid stream
Downstream
To produce energy is a whole host of companies before it gets to your car. They don’t pump gas out of the ground good to go. Hell very few oils come out of the ground good to go.
You have to find it $$$
You have to develop it $$$$$$$
You have to produce it $$$$$
You have to refine it $$$$
You have to transport it $$$$$
It’s very complex, and that’s why any policy that touches finding/development/production sends a huge ripple through the rest of it. Because it’s sunk cost.
Lease sales being stopped then started hurts. Because even if you buy the rights to xyz land you have to FIND oil on that land. Then if your lucky and do, you have to develop that lease (drill etc) which is very painful. Then you have to PRODUCE on that land.
Before it even gets to the refinery there is a shit load of cost associated.