Posted on 07/15/2008 2:44:18 PM PDT by rob777
In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136.
Now isn’t this interesting?
Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators. And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them.
Traders took a look at a feisty and aggressive George Bush and started selling the market well before a single new drop of oil has been lifted. What does this tell us? Well, if Congress moves to seal the deal, oil prices will probably keep on falling. That’s the way traders work. They discount the future. Psychology and expectations can turn on a dime.
The congressional ban on offshore drilling expires September 30, so that becomes a key date. A new report from Wall Street research house Sanford C. Bernstein says that California actually could start producing new oil within one year if the moratorium were lifted. The California oil is under shallow water and already has been explored. Drilling platforms have been in place since before the moratorium. They’re talking about 10 billion barrels worth off the coast of California.
There’s also a “gang of 10” in the Senate, five Republicans and five Democrats, that is trying to work a compromise deal on lifting the moratorium. So it’s possible a lot of action on this front could occur much sooner than people seem to think.
So I repeat: Drill, drill, drill. Deregulate, decontrol, and unleash the American energy industry. Those hated traders will then keep selling oil as the laws of supply and demand and free markets keep working.
Bravo for Bush. Bravo for the traders.
Well ain’t this fascinating? People with brains have been screaming this for months. That would, by default, preclude any Democrats.
Marie Antoinette Pelosi’s probably has steam comming out of her ears over this news.
I know for a fact there can be oil (or gas or both) coming out of the ground in less than a year and that includes building a road to the spot. Off shore, I don’t know about, or ANWAR either. But on leased land it doesn’t take the 10 years we keep hearing. That is just another democrat talking point.
I just called Harry Reid’s office 202 224 3542 told the gal that answered the phone that I had just heard the Senator say Republicans need to do more and talk less! And I said he was in the leadership position where he could do more! He needs to get off his butt and support drilling ou own oil now! Then I sent a handwritten letter by fax 202 224 7327 saying gas was 2.09 in arkansas when Dems took office today it s up to 4.03. They still have done nothing but talk when they should suspend the federal tax on gas and deisal; start drilling now and make the tax cuts permanent!ccif America can send a man tot the moon then by golly we can drill now and get the oil sooner than that! I ended the letter with get off your butts shut up and drill!
“The congressional ban on offshore drilling expires September 30, so that becomes a key date.”
The ban expires on this date every year. Congress has actually voted to CONTINUE the ban every year since it was inacted. Contact your representatives and demand that they not vote in suport of the ban.
They will.
and the Republicans grow a pair
They won't.
Well, that was THEIR spin on it. The financial press rarely gets it right. They always seem to go "left", instead.
Were you that caller? :) I’m with you...drill here...drill now.
U.S. oil refiners are exporting almost 2 million barrels a day of crude oil, gasoline, diesel, jet fuel and other refined products. The top five destinations for U.S. fuel were Mexico, Canada, the Netherlands, Chile and Singapore.
Hooah!
Bush propaganda working ——
The Bully Pulpit at work!
“There’s also a “gang of 10” in the Senate, five Republicans and five Democrats, that is trying to work a compromise deal on lifting the moratorium. So it’s possible a lot of action on this front could occur much sooner than people seem to think.”
Who are they?
That's the thing about speculation. It isn't based on actual supply and and demand. It's based on a fear of inadequate supply and/or demand. It's a double edged sword.
Prices go up when there is a percieved problem of future supply.
Prices can also go up if there is a percieved problem of a future lack of demand.
When that happens, the excuse for increased prices is that it costs more money to maintain equipment and staff to stand around idle.
There is always a way to screw the consumer.
My son in the Oil Patch up North is working his butt off, and loving every minute of it. 120-hr. weeks are common. Gotta love it. :o)
NEW YORK (CNNMoney.com) — Oil prices plummeted by the second-largest margin on record Tuesday as investors feared a further decline in U.S. demand after hearing comments from Federal Reserve Chairman Ben...
Convoluted News Network. It’s all the sadder that this was put out by their market news organization and not Nancy Grace or Anderson Cooper 180.
mark
What rubbish. There have been numerous 1-day falls of more than five per cent in August crude within the past 17 years. See for yourself at:
Time & Timing -- big down days in NYMEX crude
The percentage change information is in the middle column, in red.
What was that you said, Pelosi & Reid?!!! A hoax?! Really?!
DRILL OR GET OFF THE HILL!
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