About Those Oil Prices

[Bruzilla]

http://news.yahoo.com/s/ap/20050720/ap_on_bi_ge/oil_prices_45

"Oil prices fell by more than $1 a barrel on Wednesday after new government data showed rising U.S. supplies of diesel and heating oil and only a smaller-than-expected decline in crude oil inventories."

Can you just imagine how far the prices would fall if the US said "We're starting to drill in the arctic refuge and in the Gulf of Mexico, and we expect to increase domestic oil production by 30%"?

 

[FromTexas]

We heavily drill in the Gulf of Mexico.

 

[Bruzilla]

We're barely tapping the reserves in the Gulf.

 

[FromTexas]

The Gulf of Mexico has only been mostly limited by technology up to now and the ability to drill in deep water. That isn't something that will change over night by saying, "Hey! Lets use it!"

I just found one study that said in the mid to late 80s they only had about a 37% success rate for strikes during exploration in the Gulf of Mexico. Its only been recently that technology has allowed those expensive explorations to achieve a 50+% rate. So, its a matter of money to fund those explorations, 50/50 chances on that exploration money, and technology to extract that oil efficiently enough from deeper waters (expensive rigs).

The Alaskan oil is different because its something we know where it is generally and we can get to it fairly easily, we just don't have permission. Even if we were drilling that Alaskan oil, that isn't the real problem. The real problem is refinement. We need more refinery capacity. Again, IMHO, I believe oil prices are mostly fear based. I am no oil expert though.

 

[rraley]

http://news.yahoo.com/s/ap/20050720/ap_on_bi_ge/oil_prices_45

"Oil prices fell by more than $1 a barrel on Wednesday after new government data showed rising U.S. supplies of diesel and heating oil and only a smaller-than-expected decline in crude oil inventories."

Can you just imagine how far the prices would fall if the US said "We're starting to drill in the arctic refuge and in the Gulf of Mexico, and we expect to increase domestic oil production by 30%"?

First of all, there is no drilling in the Gulf of Mexico because Governor Jeb Bush of Florida believes that drilling there would harm the state's tourism industry. Secondly, most independent reports suggest that the benefits of drilling in ANWR will only materalize after at least five years and up to twenty years.

 

[dems4me]

First of all, there is no drilling in the Gulf of Mexico because Governor Jeb Bush of Florida believes that drilling there would harm the state's tourism industry. Secondly, most independent reports suggest that the benefits of drilling in ANWR will only materalize after at least five years and up to twenty years.

There's all sorts of drilling in the Gulf and even more proposed. Alaska, last I heard - there's no proof of how much gas is even there, all the studies were inconclusive and thereby a risk to the environement (ANWR). The Gulf is more of a shore shot and as expected, there will be more continued and added drilling in the gulf. Also, if memory serves me correctly, everyone is in a hold up on the Deep Water Port Authority ACT (DWPA) Amendments to pass through congress so that they continue their Alaska gas endeavors for oil.

 

[ylexot]

There's all sorts of drilling in the Gulf and even more proposed. Alaska, last I heard - there's no proof of how much gas is even there, all the studies were inconclusive and thereby a risk to the environement (ANWR). The Gulf is more of a shore shot and as expected, there will be more continued and added drilling in the gulf. Also, if memory serves me correctly, everyone is in a hold up on the Deep Water Port Authority ACT (DWPA) Amendments to pass through congress so that they continue their Alaska gas endeavors for oil.

I don't see drilling in ANWR as a "risk to the environment". Have you seen the size of the proposed development area? ANWR Map

http://www.anwr.org

 

[alex]

IF they every drill in ANWR what guarantee is there that any oil they find will be for use by the US? I remember hearing that most of the current drilling for oil in Alaska is going to places like Japan and not the US.

 

[dems4me]

I don't see drilling in ANWR as a "risk to the environment". Have you seen the size of the proposed development area? ANWR Map

http://www.anwr.org

yes, I've seen the map, more than anyone in their right mind woudl have to look at... I don't want to go into any more specifics but I believe it is a risk to the ANWR and that is my opinion.

 

[ylexot]

yes, I've seen the map, more than anyone in their right mind woudl have to look at... I don't want to go into any more specifics but I believe it is a risk to the ANWR and that is my opinion.

Ok. Well, I believe you're wrong.

 

[dems4me]

Ok. Well, I believe you're wrong.

If I'm not mistaken the TAPS is the Trans-Alaska Pipeline System that goes to Prudehoe Bay, that's already up and running and has been for some time ... I beileve the proposed areas do have a greater impact on ANWR....

 

[rraley]

There's all sorts of drilling in the Gulf and even more proposed.

You are correct; I was a little overzealous in the previous post. But the Bush Admininstration did turn down proposals to expand Gulf drilling to offshore drilling after requests from Governor Bush.

 

[dems4me]

You are correct; I was a little overzealous .

i'm in love!!!

 

[dems4me]

You are correct; I was a little overzealous in the previous post. But the Bush Admininstration did turn down proposals to expand Gulf drilling to offshore drilling after requests from Governor Bush.

I think the National Energy Policy encompasses more than just Florida for the Gulf on offshore drilling... (the latest version was released on June 15th or June 30th you care to get an 800+ page copy to peruse)... Eitherway, here's something related.

http://www.katc.com/Global/story.asp?S=3613792

 

[FromTexas]

You are correct; I was a little overzealous in the previous post. But the Bush Admininstration did turn down proposals to expand Gulf drilling to offshore drilling after requests from Governor Bush.

There is offshore drilling. What you are referring to has little to do with Jeb, and more to do with politics for 25 years in Florida and other Eastern coastal states. They have fought off offshore rigs closer to their waters for that period of time and the state policies are there to back that up. Its only became an issue with Democrats when Jeb backed it up in an election year with a majority of his constituents against it. They utilized it as an attack tool since ANWR was an issue with his brother. I may be mistaken, but governors are supposed to represent their constituency.

You want to know the further difference? Most Alaskans support ANWR drilling. They have asked for it. Therefore, the consituency isn't at odds with it. Its others.

 

[dems4me]

Bruz, you had mentioned this last week... thought you might be interested to know that the House of Representatives voted 275 - 156 in favor of H.R. 6, the Energy Policy Act of 2005.

 

[Pushrod]

Now because of refinery fires in Texas, the price of a barrel is up over $60.00 again. I just don't think that the prices will ever really go back down, but continue to rise. The Oil Barons just keep getting richer!

 

[dems4me]

Now because of refinery fires in Texas, the price of a barrel is up over $60.00 again. I just don't think that the prices will ever really go back down, but continue to rise. The Oil Barons just keep getting richer!

And yes, you are correct - the price will NEVER go down or even remotely close to what it used to be. :shrug:

 

[Lenny]

The Oil Barons just keep getting richer!

Hmmmmmm. Let me see here. Oil refinery burns down. It'll cost millions to rebuild it (even if I can get the environ-nuts to not oppose all the permits necessary to rebuild). It'll take six years to pay all the permits and taxes to get permission to rebuild. I'll need to pay millions for the engineers to design the refinery that can meet all the gubment standards. Then I have to convince the state of Texas to let me rebuild the refinery. It'll take ten years to rebuild the refinery all the while I have to service the debt and miss out on income from the oil I might have bought and refined. Then I have to sweat out the possibility the Japs might produce a practical electric or hybrid car that eliminates the need for all that gasoline in the fifteen years it take to reconstruct the refinery.

Yeah, you're absolutely correct. The oil barons just keep getting richer.

You stupid cluck!

 

[dustin]

Whatever happened to Jimmy Carter's proposal back in the day? The one in favor of making our own oil? Ball dropped after he was out of office?