Myth: "Big oil" is bad
"Big oil" is a favorite expression frequently used in a derogatory manner by many in the media, and others who, for various reasons wish to turn the public against oil producers. The myth is that somehow "big oil" is bad.
Reality:
It is true that worldwide oil production is becoming a bigger and bigger business. The reason is that the easy to find, shallow oil has been found. Now, more and more significant discoveries have to be searched for in remote "frontier" areas (arctic, or jungle) or must be sought after in deep water offshore areas which involve very expensive exploration programs. Costly leases must be negotiated with foreign governments, and if the area of interest is offshore, huge drilling platforms which may cost half a billion dollars or more must be built. Oil exploration is being conducted offshore Greenland and in the frequently violently stormy North Sea. These are expensive areas in which to operate. Oil exploration and development in the areas east of the Andes Mountains in Peru, Ecuador, and Colombia means building roads and hauling equipment through difficult terrain. Ultimately pipelines must be built over the mountains. Oil companies must be big to do these things and deliver gasoline to consumers. Individuals, or small companies with small amounts of money cannot do it.
Copyright 1997, Walter L. Youngquist -- Posted with permissionfrom GeoDestinies, by Walter Youngquist PhD & Chair Emeritus,Department of Geology, University of Oregon;National Book Company, 1997; ISBN 0894202995
Reality:
It is true that worldwide oil production is becoming a bigger and bigger business. The reason is that the easy to find, shallow oil has been found. Now, more and more significant discoveries have to be searched for in remote "frontier" areas (arctic, or jungle) or must be sought after in deep water offshore areas which involve very expensive exploration programs. Costly leases must be negotiated with foreign governments, and if the area of interest is offshore, huge drilling platforms which may cost half a billion dollars or more must be built. Oil exploration is being conducted offshore Greenland and in the frequently violently stormy North Sea. These are expensive areas in which to operate. Oil exploration and development in the areas east of the Andes Mountains in Peru, Ecuador, and Colombia means building roads and hauling equipment through difficult terrain. Ultimately pipelines must be built over the mountains. Oil companies must be big to do these things and deliver gasoline to consumers. Individuals, or small companies with small amounts of money cannot do it.
Copyright 1997, Walter L. Youngquist -- Posted with permissionfrom GeoDestinies, by Walter Youngquist PhD & Chair Emeritus,Department of Geology, University of Oregon;National Book Company, 1997; ISBN 0894202995
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