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.
“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?
And what is the deal?? Republicans shouldn’t be striking any deals with the Rats on this. This is a losing issue for the Democrats.
All we get from drilling is a royalty paid to the federal government for each barrel of oil they extract. It's the same as stumpage fees for lumber, royalties for minerals mined.
The oil is sold by these oil companies on the world market, not directly to us.
It is then refined by the oil refineries who buy it, who then sell these petroleum products to us and industry that uses it to make other products to sell to us.
Boy, I can hardly wait for all those foreign owned oil companies- (many of them Arab)France, Russian, Chavez's Chevron, Bp. Japan, Chicom, etc. to come drill "our oil" and sell it to us.
There is no viable alternative that is really suitable. There are lots of things to skier investors and zealots.
Only nuclear will do the job. The question, the real honest to God question is....Is T Boone Piclens a sucker or a suckee?
I bet he’s loving all that money he’s making...Good for him!!!!!
I have no problem w/alternatives, but we need to drill until we can develop them.
If you like $5/gal, Thank Congress. If you want $10, Vote Oblack.
Pray for W and Our Troops
I think it will be China, Japan, Chevron, BP, Petro-Fina,- the usual big oil gangs- that will be drilling and taking that 10 billion barrels worth of oil. Of course California (maybe) and the Fed's will get their royalty fee's. But we (or the oil refineries on our soil rather) will be buying that oil on the world market, just like we (they) do now.
I have been saying for months that just by opening up the drilling, the speculators would RUN to get out of the marketplace and prices would drop immediately. I have had an ongoing argument with my senator (democRAT) McCaskill from Mo. and her arguments are nothing more than party talking points.
Many Democrats from oil and gas producing areas — including those opposing “use-it-or-lose-it” — agree with Republicans on opening up areas for drilling.
Mary Landrieu, D-La
Jim Costa, D-Calif
Neil Abercrombie, D-Hawaii
Gene Green, D-Texas
John Peterson, R-Pa.,
Are there any up-to-date polls on what Americans think about drilling???
Inquiring minds want to know ;-)
Peterson and Abercrombie are already co-sponsors of a bill that would remove restrictions on offshore natural gas drilling. The royalty money would go to the states, the federal treasury, and to renewable energy and environmental programs. The bill has 170 co-sponsors, and Abercrombie spokesman Dave Helfert said it would be part of the group’s effort.
They announced a new package of legislation Thursday that would push for more drilling in the Arctic National Wildlife Refuge, and require the oil to be sold in the United States. It would also push for completion of Alaskan oil and gas pipelines.
Peterson and Abercrombie are already co-sponsors of a bill that would remove restrictions on offshore natural gas drilling. The royalty money would go to the states, the federal treasury, and to renewable energy and environmental programs. The bill has 170 co-sponsors, and Abercrombie spokesman Dave Helfert said it would be part of the group’s effort.
They announced a new package of legislation Thursday that would push for more drilling in the Arctic National Wildlife Refuge, and require the oil to be sold in the United States. It would also push for completion of Alaskan oil and gas pipelines.
Nonsense. Perhaps you should update your outdated understanding of the industry. The only thing from 1973 being drug out is the argument against these alternatives. There are plenty of viable alternatives, many which have come online and are producing power, as well as sustainable solutions for alternative fuels that have been developed over the last couple years alone.
Bio oil plants for example, which are capable of supplying all the fuel needs of an urban center using many what we throw in the garbage currently, are, and can be built in every urban center, eliminating the need for pipelines criss crossing the country.
All you have to do is keep up with the business to undertand what's going on, rather than recycling old outdated arguments from the 70's.
http://www.biomassmagazine.com/
Honesty would compel you to admit that Bush is pushing the marxists toward harvesting more domestic supply. The smart folks know that domestic drilling is going to happen sooner rather than later. They also know that America has large reserves of oil, NG and shale that are going to change the supply equation in the future.
No surprise that both supply and demand prospects affect the price of futures.
If that is true, then good. But if the oil is required to be sold only to the USA at anything but world market prices, good luck finding any oil companies willing to drill there.
Pushing a pipeline through Canada is another hurtle, especially through native land.
They’re talking about 10 billion barrels worth off the coast of California.
lol. double-llollll.....
The explorations off the coast of CA were done during R-Pete Wilson's time as Governor. And had the Democrats not done their usual "stupid", CA'd be in economic prime, with rigs producing oil.
HOWEVER, The body politic of CA has asserted they are going to do the "alternative energy" thingees. They are adamant about NO DRILLING off the CA Coastline. So... everyone across America DYING over the high price of gasoline, looks at CA and says, "what?"
In the meantime, drilling can be done off coast of NC, for example, and this also means, well, gas might just be cheaper here. CA's still going to be paying through the nose for Gasoline.
Sometimes, just sometimes, things work out just about right, politically.
This NO DRILLING off CA coast is going to backfire and boomerang very much on Democrats in CA. So be it. Nancy and her fellow Democrats in CA can propose subsidizing mopeds and Hugos for their constituents. And probably will.
I hope Arnold will hold Dems to their "no drill" position, for a while at least. At least until the Bay Area Casinos get built, or the Bay Bridge actually finished, or Vallejo's bankruptcy resolved, or...... (grin) more studies on Brain Stem Research of Liberals is more advanced......
I just can't afford much more of this wild-catting venture.
There are 26 oil and gas drilling platforms off the Southern California coast and 1,500 active wells. Those in federal waters have produced more than 1 billion barrels of oil and 1.5 trillion cubic feet of natural gas since the 1960s, says John Romero of the Minerals Management Service.
Since the 1969 spill, he says, they’ve spilled only 852 barrels of oil, the result of better technology and regulatory vigilance.
And once you get that crude into the USA, who’s going to refine it? Our refineries are already at capacity. Good luck getting more of those built in the next 10 years.
Senator John McCain Connect the dots!!!
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