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If Congress Lifts the Offshore Oil Drilling Moratorium, What Happens Next?
usnews.com ^ | August 15, 2008 | Kent Garber

Posted on 08/16/2008 10:52:36 AM PDT by kellynla

If Congress bows to pressure from Republicans and decides to lift its restrictions on offshore oil drilling, it is unclear exactly what would happen next. Such a move would take the country into uncharted waters, and there is no guarantee that a substantial amount of new drilling would take place at all.

The frequent "drill here, drill now" refrain of Sen. John McCain and his fellow proponents of offshore drilling that has become part of this year's presidential debate suggests that removing the congressional moratorium would throw open the nation's waters to a spree of new drilling—and, eventually, new oil.

But there are major obstacles that are rarely addressed. New drilling, if it does happen, won't take place willy-nilly. The most likely scenario, if Congress were to relax restrictions on drilling in federal waters, is that individual states would get the authority to approve or reject new drilling.

Yet even that issue is, technically, undecided. "There's no historical precedent here for this sort of action," says Eileen Angelico of the Minerals Management Service, the Interior Department office that handles offshore drilling in federal waters. "It all depends on what Congress decides to do."

One hint may come from a recent proposal by the so-called "Gang of 10," a bipartisan group of senators led by Democrat Kent Conrad of North Dakota and Republican Saxby Chambliss of Georgia. Earlier this month, just before Congress took its August recess, the group announced a compromise energy plan to open up the eastern Gulf of Mexico and give four states—Virginia, North Carolina, South Carolina, and Georgia—the right to "opt in" to new leasing. Chambliss said that it would be up to the state legislatures to approve new drilling under the proposal.

(Excerpt) Read more at usnews.com ...


TOPICS: Business/Economy; Extended News; Government; Politics/Elections
KEYWORDS: 110th; congress; drillheredrillnow; drilling; energy; gangof10; next; oil
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To: Huck
new oil would be thrown in with the rest of the world market. This would likely result in lower prices, which is good.

It will increase the net supply in the marketplace. It turns out that contrary to popular myth, over 95% of Alaskan oil is used right here in the US and not "shipped to Japan" or some other paranoid plot. The effect on the world market of new oil being produced and consumed here is that we buy less "out there," thus lowering demand and softening the price the Opeckers et al. can command.

Everybody pays the hostile varmints less for their oil, and we get the oil we need without sending (potentially) hundreds of billions of dollars abroad.

21 posted on 08/16/2008 12:39:47 PM PDT by hinckley buzzard
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To: weezel

Nope, they’ll cut back on their production of Oil to keep prices where they want it.


22 posted on 08/16/2008 12:40:40 PM PDT by Philly Nomad
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To: kellynla

We drill!


23 posted on 08/16/2008 12:42:26 PM PDT by wastedyears (Show me your precious darlings, and I will crush them all)
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To: hinckley buzzard

Actually, the about 5% of Alaskan North Slope Oil shipped to Asia was only from 1996 to 2000. Prior to that it was illegal to export. The ban was removed due to a glut of oil on the West Coast at the time. But since June 2000, 100% of the Alaskan North Slope Oil remains in the US.


24 posted on 08/16/2008 1:07:13 PM PDT by thackney (life is fragile, handle with prayer)
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To: Nik Naym
The price of oil will fall immediately>>>>>>>>>>>

It already has partly on the influence of "Drill here. drill now" om Oil Futures. Oil futuures get increasingly risky because no one knows which member of OPEC is gonna break first and start pumping more oil in order to undercut the "drill here, drill now" political movement. This is excellent.

Of course we need to drill, and the sooner the present law sunsets, and a leasing process is begun, which is BONA FIDE, and not a way to nickle and dime the Oil Companies, or to allow China invasion platforms just off our coast, I am all for it!!!

25 posted on 08/16/2008 1:12:20 PM PDT by Candor7 (Fascism? All it takes is for good men to say nothing, (Ridicule Obama))
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To: NoGrayZone
However need to consider:

Oil companies will drill where it is most profitable for them. If it is cheaper to drill overseas than in the US, the oil companies will drill overseas first.

The environuts can prevent drilling for years as they glut the courts with lawsuits challenging each and every well.

Where will new raw oil be refined ? Again environuts through the EPA and courts have another effective tool to delay new oil production. In retrospect, it may have been easier to land a man on the moon than it will to be gain energy independence for the US.

26 posted on 08/16/2008 1:24:14 PM PDT by buckalfa (confused and bewildered)
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To: kellynla
If Congress bows to pressure from Republicans and decides to lift its restrictions on offshore oil drilling, it is unclear exactly what would happen next.

Oh, hardly unclear: the next thing is that the oil companies would show up at Congress hat-in-hand and lobby for a drilling subsidy.

27 posted on 08/16/2008 1:59:37 PM PDT by Grut
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To: kellynla

“If Congress Lifts the Offshore Oil Drilling Moratorium, What Happens Next?”

10,000 lawsuits by Environazis. Liberal judges overule the people. Democracy? We don’t need no stinkin’ democracy. We’re liberals.


28 posted on 08/16/2008 7:42:29 PM PDT by JewishRighter
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To: kellynla
If Congress bows to pressure from Republicans and decides to lift its restrictions on offshore oil drilling, it is unclear exactly what would happen next.

Uhhh...try Billions upon billions of dollars are routed from offshore accounts that are quite possibly supporting terrorist activities to onshore accounts that support creating jobs. For every land based oil well, imagine about 40-60 supporting jobs associated to planning, construction and continued maintenance. For every offshore oil well, imagine about 300 new jobs. For every nuclear power plant there's 1,000. Suddenly there's a boom in the number of middle-class income Americans. Billions of Petro-dollars reverse course and flow into our nation, into our infrastructure and economy. Investors make loads of ROI, and roll that into continued future speculation/projects. A new American renaissance begins based on fuel production.

Nah...this scenario wouldn't lead to our destruction and the creation of a socialist state. Democrats won't let it happen...

29 posted on 08/17/2008 7:43:41 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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