The rise in oil price needs measurement to clamp down

It is reported that New England Fuel Institute and the Petroleum Marketers Association of America (as part of an association of over 250 groups) has introduced new legislation to solidly clamp down on the potential risk for excessive speculation in the oil markets.

As noted by NEFI, the federal agency tasked with regulating the commodity derivatives already has broad authority to impose speculation limits under last year’s new Wall Street Reform Law. The CFTC is expected to vote on a final rule on October 4, after eight months of delay, but a leaked draft of the proposed rules shows them to be watered down and regulators do not plan on imposing aggregate limits on speculation as a class of trader – a major priority for NEFI.

On Sept. 21st, Bill Nelson (D-FL) and U.S. Rep Peter Welch (D-VT) and a handful of other lawmakers filed a legislation that aims to drastically limit the ability of speculators to artificially drive up energy prices. Nelson was joined by Sens. Jay Rockefeller (D-WV), Bernard Sanders (I-VT) and Richard Blumenthal (D-CT) who co-sponsored the Senate version of the bill. U.S. Rep. Rosa DeLauro (D-CT) joined Welch on the House version.

Under the legislation, no single investor could hold more than 5 percent of the oil futures market thereby greatly reducing speculators ability to manipulate prices. And because more speculators have jumped into the oil flipping business, the bill caps the overall level of speculation in the market at its average over the most recent 25 years. The lawmakers say that could reduce present day levels of speculation by more than half.

Besides the oil price rise resulting from speculation, there is another factor influencing the oil price. It is the cost of oil drilling, including the cost of drilling fluids.Drilling fluid maintenance cost, clean up, and disposal cost as well as the overall cost of boring can be reduced dramatically when proper solids control techniques are utilized. These facts were recognized in the oil industry in the late 19th century when open earthen pits were used to separate the cuttings from the borehole. This was accomplished by a series of weirs and settling pits that allowed the solids to naturally settle out by using gravity. The clean mud then flowed into a suction pit to be re-pumped down the hole. This was the first solids control technique ever used.

So how to effectively control the drilling fluids cost comes down to the oil drilling fluids solids control equipment.

oil drilling solids control equipment

In China solids control, OGEM is capable of providing customers with such four series as oil & gas drilling solids control equipment, centrifuge, drilling waste management equipment and drilling security equipment, including 25 categories of products, and can also customize packaged design and matching products of oil & gas drilling rigs for drilling contractors. The products provided by OGEM are extensively used in oil & gas drilling and workover, coalbed methane drilling, shale gas drilling, water well, geothermal well drilling, trenchless horizontal directional crossing projects, mine gravel staged treatment, tailings treatment, rive dredging works, municipal environment-friendly sewage treatment, industrial wastewater treatment, fruit juice purification, waste oil recovery and purification treatment, etc.

Tangshan Aojie Petroleum Machinery Equipment Make Co., Ltd (Short for: 

OGEM Solids Control)

Address: NO.2 Jingxi Road,Lunan District,Tangshan city,Hebei 

province,China

Tel: 86-315-8676484

Fax: 86-315-2648099

Zip Code: 063000

Email: ogem2@ogemsolidscontrol.com

Website: http://www.ogemsolidscontrol.com/

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OGEM solids control is main professional manufacturer of solids control system in China, OGEM  is a vital part of the world hydrocarbon exploration and production industry, as well as one of top three solids control equipment suppliers in China, which offers its products for CNPC, CNOOC ,HH, Gazprom, RG, etc . If you want to know more information about solids control system and oil drilling solids control equipment  shale shaker,you can contact us online.

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