Alcoa, Show me the Aluminum Pipes!
July 09, 2012
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Alcoa, Show me the Aluminum Pipes!
I hate "smoke screens" which are journalistic attempts to put up a reasoning for why something isn't selling as well as it used to in hopes people will easily believe in your "smoke screen" so much that hardly anyone will bother second guessing you.
The global economy is bad so therefore Aluminum prices are falling and so are sales.
Right? Sure...Sounds believable....So believable that no one would think to second guess that smoke screen reasoning.
How many of you bother looking up Conduits, Fittings, and Drill Pipes? All boring stuff that is part and parcel what Oil Rigs require. And...Lo and Behold....One area of Alcoa's business is in fact the Oil Rig industry, selling Aluminum products.
http://www.alcoa.com/oil_gas/en/news/releases/OG_News_Drill_Pipe_043010.asp
So, our CEO of the United States of America has been boasting about how many permits have been granted and how many Oil Rigs are producing oil out there that it is just good times to participate in selling Aluminum products to the Oil Industry:
Since oil leak, rigs return to work but few new wells being drilled
http://theadvocate.com/news/business/3108674-123/gulf-of-mexico-drilling-activity
"“The decline in activity in the Gulf of Mexico is not because of Macondo,” Briggs said. “It’s because the Gulf of Mexico is the most expensive place to drill for oil in the world, and a major part of that is because of the regulations and the permits.”"
Got that? Increase in Regulations + tough Permitting process = Struggling recovery in Gulf of Mexico post oil spill for the Oil rig industry.
Many of the 19 oil rigs over there are just drilling pre-existing oil wells, not creating new ones,
and many of which are just 500 feet underwater....Nothing like the infamous BP oil well.
http://www.treesfullofmoney.com/?p=1610
The point I am making here folks in the article above:
"To help speed up the time connecting hundreds of sections of drill pipe together every time you want to lower a drill bit, casing, or other piece of equipment into the well, the drill pipe is stored in the derrick three or for sections at a time. "
Emphasis mine.... Underwater drilling rigs of the likes of the BP oil rig take Hundreds of Drill Pipes to finally reach the oil well. Attached end to end....
The reality....Is we went from 33 DEEPWATER oil rigs in the Gulf of Mexico to just 19 of them today in operation. There has been an overall increase of oil rigs in that area, though, to the total of
46.
But, it is the DEEPWATER oil rigs that of course take up the lions share need of Drill Pipes.
And ALCOA....Sells them. Connect the dots.
Imagine if our CEO of USA decided to open up Deepwater offshore oil drilling by speeding up the permitting process and reducing the regulation expenses?
The KEYSTONE PIPELINE project, if approved, would lead to a total of well something that looks like this:
http://www.alaska-summer-jobs.com/oil_industry_jobs.htm
Alaskan Oil Pipeline: "The Prudhoe Bay oil fields also supply Alaska with thousands of jobs and billions of dollars for capital-improvement programs."
If you talk to the Anti-Keystone types they act like...."The Pipeline has already been built so therefore the jobs died."
They don't understand that increasing the supply of oil decreases the price of oil.....gives tons of people in America that drive vehicles a sudden relief at the pump......results in increased consumer spending for all......and wallah.....The whole debate about 5,000 jobs versus 20,000 jobs created goes away and is replaced with LONG TERM BENEFITS FOR EVERYONE when a major pipeline like KEYSTONE is built and the OIL starts flowing.
Alaska still enjoys being able to supply 15% of America's consumption....and KEYSTONE will do 4%.
Improved Technological achievements continue to make Oil Sand development, that means separating the sand from oil, safer and safer for the Environment. Just look at EXXON MOBIL's technology or BP's...
At a time when America desperately needs jobs...Everyone wants to complain about 5,000 jobs instead of 20,000? What about the long term benefits?
What about ALCOA's aluminum pipes? Aren't you tired of this company generating $2 million quarterly losses?
"Whether it’s engineered forgings and extrusions or super-strong, light weight aluminum alloy drill pipe, Alcoa Oil and Gas offers customized solutions specific to the oil and gas industry."
http://www.alcoa.com/oil_gas/en/info_page/home.asp
CONNECT THE DOTS!
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