Drilling the Tau 2 is inevitable.
The only unknown is the timeline. Will it be before (2024) or after?
The unofficial energy strategy is to depress oil and gas and support renewables and EVs by raising prices and creating shortages. Might work too.
In my vision of future events, the global demand for oil, natural gas, and gasoline will remain much as it is now or increase.
But due to the shortages as a result of curtailing exploration, the global demand for more drilling will increase to the point that fossil fuels will not be denied.
In this scenario, the Tau 2 shines like the pot of gold at the end of the rainbow. It is ready to drill, or will be, without much effort, expense, or delay.
In addition, potential investors will find that the increased BOEM royalty rate, a minimum 16.66% up to maximum of 18.75%, as provided in the Inflation Reduction Act’s Offshore OCS will not apply to the Tau lease which will remain at 12.5%.
Why does this matter? Basically, it means that over the life of the lease, the investors will receive a higher return in the payout. This makes for a more attractive investment and helps dampen the negative effects of fluctuating crude prices.
Further, for all the other reasons we have discussed in our past posts, drilling the Tau 2 will jump to the top of this list.
Right now is the perfect time to make the changes we will need to make if we wish to be first in line to take advantage of future demands.
I support the suggestion to read the MD&A section and I think it is a very good idea.
Apologies for the length of the posts. Regrettably, I lack your talent for conciseness as I have been unsuccessful in finding a way to condense these thoughts down to three or four paragraphs and still be comprehensive. I will understand if posters decide that these remarks take too much time to read. As an aside, they take a long time to write as well.
Mrs. Smith
