Quote:
Originally Posted by kermitology
Cold means more heating requirements, thus more oil used. More oil used means more profits. Not that much more of a problem for getting it out of the ground though.
At least that's what I would think.
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Actually, the colder it is, the more frozen and hard the ground is. If it's a mild winter, a lot of the larger rigs can't get onto location because of the softer ground. Really really hurts business. You may have heard about "spring breakup" in the oil industry. It's that time of the year the ground thaws and all the rigs are moved off site before they are stuck there. The slowest time of the year for drilling companies.
I guess what you said can apply towards the downstream companies, the ones that sell the product. But for the upstream, like drilling companies, the cold affects them the other way.