Posted on 01/27/2008 6:57:51 AM PST by Mo1
The Truth About Leasing on the Outer Continental Shelf
Capitol Hill’s opponents of domestic energy production took to the stage yesterday to decry “Big Oil” again, not for its profits, but for “stockpiling” energy leases instead of producing them. In reality, it’s the government that is stockpiling leases.
This group of politicians stated that oil companies hold the rights to millions of acres of federal leases that are not currently producing energy. This is certainly true, but not because of the sinister reasons they would have you believe. The following may help provide the insights the Members of Congress neglected to provide yesterday.
The Claim: “Increased domestic drilling activity has not led to lower gasoline costs”This may sound compelling at first, but “drilling activity” has nothing to do with the price at the pump. Supply - or actual energy production - is what influences the price at the pump. While it’s true that exploratory and development drilling has increased across the board since 2000, the important fact is that actual domestic energy production has fallen to levels not seen since 1947 during the same period.
The Claim: “Energy companies are not using federal lands already open to energy development”Some lawmakers state that oil companies currently hold millions of acres of leases that are not producing. This is true, but not for the reasons politicians would have you believe. It seems the lawmakers would have us believe that oil and gas exist beneath every acre of every lease the government issues; that obtaining a lease was a virtual guarantee that the lease holder would strike oil and gas, or both. Obviously, that’s absurd. If it weren’t, I’d be on line at the Department of Interior trying to buy an acre or two for myself.
Unfortunately, there are no guarantees. Oil and gas might be found during the exploration phase of the lease, or it might not. This process, and those that involve satisfying all of the government requirements, defending against frivolous environmental lawsuits, and preparing to drill if energy is found can take a long as a decade.
The Truth & The Laws
Energy companies cannot “stockpile” leases (even the ones that are found to contain no oil or gas) in order to drive up prices:
The Mineral Leasing Act (for onshore production): Section 17(e) stipulates that an oil company must have a producing well within 10 years or surrender the leases. Source: 30 U.S.C. 226(e)The Outer Continental Shelf Lands Act: (for offshore production): Stipulates that an oil company must produce energy between 5 to 10 years (in the government’s discretion) or surrender the lease. Source: 43 U.S.C. 1337(b)
The Hard Facts:
97 percent of Federal offshore areas are not leased.
94 percent of Federal onshore areas are not leased
Getting Blood From a Turnip
After the offshore drilling moratorium was implemented in 1982 the Department of Interior could only issue leases for areas that had already been offered/leased before, or those areas with little or no economic energy potential. The exception was when Congress provided incentives to invest in Ultra Deep Waters in 1995 to stimulate production in areas that were previously too deep for our technology to reach.
As the charts to the right illustrate, interest in American energy leasing declined after the moratorium. It remains low for the same reasons. If Congress were to open new areas to production, leasing would increase and so would domestic supplies of energy. Until then, the U.S. will simply be continuing its attempt to squeeze blood from a turnip.
See a Huge Moon Illusion Wednesday
As the full moon rises this Wednesday evening, June 18, many people will be tricked into thinking it's unusually large
The moon illusion, as it's known, is a trick in our minds that makes the moon seem bigger when it's near the horizon. The effect is most pronounced at full moon. Many people swear it's real, suggesting that perhaps Earth's atmosphere magnifies the moon.
But it really is all in our minds. The moon is not bigger at the horizon than when overhead.
The illusion will be particularly noticeable at this "solstice moon," coming just two days before summer starts in the Northern Hemisphere. The reason, according to NASA, lies in lunar mechanics: The sun and full moon are like kids on a see-saw; when one is high, the other is low. This week's high solstice sun gives us a low, horizon-hugging moon and a strong, long-lasting version of the illusion.
If it's any consolation, space station astronauts report the same effect.
Here's how it works: Your mind believes things on the horizon are farther away than things overhead, because you are used to seeing clouds just a few miles above, but the clouds on the horizon can indeed be hundreds of miles away. So if we think something (such as the moon) is farther away, and it's not, then it seems larger.
If you remain doubtful, test the idea yourself. Go out at moonrise with a small object, perhaps a pencil eraser. Hold it at arm's length as the moon rises and compare the sizes of the moon and the eraser, then repeat the experiment an hour or two later when the moon is high in the sky. A rolled up tube of paper works well, too.
Moonrise times vary by location. On Wednesday, it will come up at these local times at these locations, according to NASA: New York City, 8:58 p.m.; Miami, 8:35 p.m.; Seattle, 9:51 p.m.
The moon rises about 50 minutes earlier Tuesday night, when the effect will also be noticeable because the moon will be nearly full. Oh, and that raises another fallacy: There's no such thing as a full moon.
More at See more at link
I was there.
I compared liters to liters, gallons to gallons, to imperial to imperial, ccs to ccs.
I do not compare apple to oranges.
Ahem, then surely you must know that we buy gas by the gallon in this country and not by imperial gallons or liters as they do in Europe and the UK. BTW, was does a liter of gas go for in your neighborhood?
If you don't understand this time I will have to hire out.
I don't need you or anyone else to explain conversions for me. I, too, spend time on both sides of the Atlantic. While I prefer to use a car and driver, I do occasionally drive when I'm out in the countryside. I knew what I was talking about when I made my first statement and I stand by that. Screaming insults won't change my position.
I was polite when you misunderstood the first time. Three times I get frustrated. Now I’m done.
Good.
Great photo...this should be on a greeting card.
Hey there cg, Good to see you. I’m glad you like it, I did, too.
That illusion is so great I can't see it here tonight.....
Think it has anything to do with the clouds?
:-)
Hiya CG, how goes it?
Hay everyone...it has been a rough ride around here. Last Feb The Great One (Ozzie) had a minor stroke..It is the kind related to hypertension called a lacunar ( sp) stroke. It didn’t present like you would think..he had no visual disturbance or drooping..just when he got up to walk his leg felt funny and wobbly..but with diabetic neuropathy we just thought it was related to that..but in the morning he was having a hard time walking so I took him to the hospital and after 2 days of intense testing it was a tiny stroke. He has recovered from that. The only tell tale sign is his handwriting is smaller. He is now on insulin too and tetting that regulated was a challenge but he is getting the hang of it with better readings.
We were to go to Italy last year but he had femoral bypass surgery so that trip got canced..but next month if all continues to go well we are off to Iceland. The kids who have property there are taking us to see their cabins north of the artcic circle..That should be good for photos!
Valerie and you photo techies will have to teach me how to post pictures..I got a digital camera for my birthday last year..a nice Nikon D80 and I just added an Nikon D300 to the pack with my 6 lenses..the only problem with so many neat lenses is you want to use them all at once sometime...But I don’t know how to post pictures..
Taco the cat..who survived fibrosarcoma cancer 5.6 years ago is now 19..he is a little slower but still a real Romeo..and quite the alarm clock with his 0500 kitty kisses in the morning.
It is hot here on the central coast..in SLO county it is over 100 today and still really hot and for those who don’t know it, we don’t have AC here.
I must pop in here more than I have lately..
Be back so keep pinging.
I have been lurking, but not posting as I've had so much to do. Today will be planting flowers day, etc. We've had some rainy, cool weather, so we've been hanging new window treatments with other inside work.
Good to see you again CG. I hope things go well for you and your husband. What a great and unusual trip you two have planned. Keep in touch, and make sure you learn how to post the pics you take.
Will try to post later, with my dirt filled nails. (I hate gloves, and looove the feel of dirt...lol.)
Sheeeeeeeeeesh, I wonder if I know how to post anymore, ;)
Yowch!
May things improve, and the excitement merely be over popcorn and wrassling matches.
Oh, how beautiful. I absolutely love peonies. They’re so lush, creamy and dense. My grandmother had them all over her garden. She had a knack for growing them and several other big-headed bloomers but I think the peonies were her favorites.
Aaaaw, too bad. :( It was fabulous here last night :)
Well, God love ya. Both of ya :) I sure hate to hear all that about The Great One but he is clearly a fighter as are you. Hang in there, cg and please try to stop by more often. You are missed. :)
Gran, you know how we all are about needing to see pictures and how we love being able to follow the decorating and landscaping progress at your new homes with your pictures :) LOL
In honor of Obamafunday, click and enjoy: http://michellemalkin.com/2008/06/19/the-obamapooh-photoshop-collection/
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