A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

How does the oil rig directly affect the price of oil?

Best Answers

An oil rig, in and of itself, has no direct link to oil price. It is an expense and, as such, may affect the profit or loss of a well. read more

An oil rig, in and of itself, has no direct link to oil price. It is an expense and, as such, may affect the profit or loss of a well. Rigs are usually contracted in a bit of a complex manner regarding footage drilled and non-drilling time required for completions or waiting on orders. read more

To clarify, an oil rig itself is used to drill to the oilwell, not to pump oil. After the well is drilled, it is fracked, or completed. After which, the well is ready to be produced, the process whereby oil and/or gas flows to the surface of the well. read more

When oil takes up a higher share of the economy, like today with respect the 1990s, it implies that a change in the price of oil could be more harmful than when oil's share was smaller. So, for example, a 1 percent change in the price of oil today could do more damage than a 1 percent increase in 1999. read more

Encyclopedia Research

Wikipedia: