how low can ndo go?, page-12

Hi Sandybeaches,

To be honest I like everyone else have no idea what is going on as we are not being told, but for some reason or another production has dropped to only 14,000 bbls per day as opposed to the 20,000 bbls that was expected. It should be noted that the Phillipines Dept of Energy stated that they were expecting to get 20,000 bbls per day in the first 90 days of commercial production. It later states that they were expecting to reach 20,000 bbls within the first couple of weeks and to then average about 17,000 bbls per day for the rest of 2008. For some reason those figures appear as though they will not be achieved.

Whilst I joked about turning the valve off, or forgetting to turn it off.....lol, I do not believe it would be in any companies interest to preserve their reserves. The real money is in the growth of the company and to do that they need to bring in the revenue. As for peak oil, I am old enough to remember the similar fears during the price peaks in the 70's and 80's but I was working on a Texaco oil refinary in the UK where there were many with industry knowledge who were quite willing to dispell the myths. So if a company were to slow down production to preserve their reserves for a better price then how long would they have to wait until that price range is acheived given that they do not have control of the market?

Back to Galoc. Given that the current production rate is 14,000 bbles per day then the second cargo of oil has to have been dispatched without it having been announced to the market as the FPSO is now full to the brim. Either that or it is overflowing....lol.

Waiting for the big one :)