Six Dollar Gas?

KTRH ^ | June 26, 2008 | John Labus

[thackney]

By some estimates, oil prices could hit 200-dollars a barrel. If you do the math, that translates to $6.64 a gallon for gas! Meanwhile, Congress can't agree on a course of action. Democrats are looking at new regulations on speculators, while others -- like Woodlands Republican Kevin Brady -- want to increase drilling:

"...And while Congress is eager to place the blame elsewhere, whether it's OPEC or Big Oil or Big Autos, the fact of the matter is we ought to take a square look in the mirror. We need more American-made energy, and this Congress has resisted it."

Oil economist Karr Ingham disagrees with other analysts who see prices continuing to spiral out of control. He says rather than penalize the speculators, the free market should be left alone: "That's the economic system under which we operate. And ultimately, it's market forces that solve our problems for us."

Ingham says it's because of the current market that we're using more ethanol, and expanding research into other areas: "We would not be embarking on any of this if crude oil were still 20-dollars a barrel. So, it's rising prices for crude oil - relative to other sources of energy - that are going to spark the development of alternative energy."

Ingham says the current economic environment is actually more favorable to a drop in oil prices, which would bring prices down.

[Gaffer]

Thank you.

[thackney]

and the failure of the oil companies to exploit it.

Oil companies have been leasing and exploring is some of it. Most of it has not been available for lease.

thought the drillers were prohibited from leasing or exploring.

Don't confuse ANWR with NPRA.

They have been playing a different game in NPRA. While I was still in Alaska, I was on the design team for the first ever well pad to be built in NPRA, a satelitte field for the Alpine Processing Unit.

This was a relatively small pad and essentially no processing equipment. The oil/gas/water mix would be sent to the main Alpine unit for separation and reinjection of the gas and water.

However a significant river lies between the two. Permits have been held up for years to build the bridge between the two by envirnomentalists and Natives. (The main Native complaint was the road wasn't going to extend down to the Nuiqsit Village to provide them access to jobs with ability to sleep at home at night.

So the government sold them the lease, issued the drilling permits and for years has prevented the production. It has really slowed down on other people wanting to invest in NPRA.

This is a link to the Main Alpine Processing Unit.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.343987,-150.927515&spn=0.013107,0.052872&t=h&z=14

I was a project lead for the design team of two new satelitte well pads that did get built, however to the East of the NPRA border. A previous satelitte well pad exists slightly to the West of the main Unit.

CD-3, a wellpad built without road access, they use hovercraft and planes to travel from Alpine.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.418569,-150.90168&spn=0.01306,0.052872&t=h&z=14

CD-4, the second site connected by road to Alpine.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.291953,-150.989785&spn=0.003285,0.013218&t=h&z=16

Nuiqsut, which is provided by free Natural Gas by ConocoPhillips and Anadarko which own the Alpine Unit.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.219116,-151.015835&spn=0.026375,0.105743&t=h&z=13

[thackney]

and the failure of the oil companies to exploit it.

Oil companies have been leasing and exploring is some of it. Most of it has not been available for lease.

thought the drillers were prohibited from leasing or exploring.

Don't confuse ANWR with NPRA.

They have been playing a different game in NPRA. While I was still in Alaska, I was on the design team for the first ever well pad to be built in NPRA, a satelitte field for the Alpine Processing Unit.

This was a relatively small pad and essentially no processing equipment. The oil/gas/water mix would be sent to the main Alpine unit for separation and reinjection of the gas and water.

However a significant river lies between the two. Permits have been held up for years to build the bridge between the two by envirnomentalists and Natives. (The main Native complaint was the road wasn't going to extend down to the Nuiqsut Village to provide them access to jobs with ability to sleep at home at night.

So the government sold them the lease, issued the drilling permits and for years has prevented the production. It has really slowed down on other people wanting to invest in NPRA.

This is a link to the Main Alpine Processing Unit.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.343987,-150.927515&spn=0.013107,0.052872&t=h&z=14

I was a project lead for the design team of two new satelitte well pads that did get built, however to the East of the NPRA border. A previous satelitte well pad exists slightly to the West of the main Unit.

CD-3, a wellpad built without road access, they use hovercraft and planes to travel from Alpine.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.418569,-150.90168&spn=0.01306,0.052872&t=h&z=14

CD-4, the second site connected by road to Alpine.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.291953,-150.989785&spn=0.003285,0.013218&t=h&z=16

Nuiqsut, which is provided by free Natural Gas by ConocoPhillips and Anadarko which own the Alpine Unit.
http://maps.google.com/maps?f=q&hl=en&q=Prudhoe+Bay,+North+Slope,+Alaska,+United+States&ie=UTF8&cd=1&geocode=0,70.307640,-148.614700&ll=70.219116,-151.015835&spn=0.026375,0.105743&t=h&z=13

[bert]

........Oil companies have been leasing and exploring is some of it.....

It appears that your work is evidence of leasing and exploring. It seems that other miscellaneous stumbling blocks are preventing drilling/production.

Anyway, Congress man Yarmouth was being somewhat disengenuous in his remarks. There was enough truth to support the bigger lie.

[thackney]

It appears that your work is evidence of leasing and exploring.

Some real data to back that up.

Exploration Activity (Wells Drilled) in the National Petroleum Reserve-Alaska
http://www.blm.gov/ak/st/en/prog/energy/oil_gas/npra/npra_oilandgasactivity.html

Pending Applications for Permit to Drill (APDs) and Notices of Staking (NOSs)
http://www.blm.gov/ak/st/en/prog/energy/oil_gas/npra/npra_pendingapdsandnoss.html

More at:
BLM>Alaska>Programs>Energy>Oil and Gas>National Petroleum Reserve - Alaska
http://www.blm.gov/ak/st/en/prog/energy/oil_gas/npra.html

You can also find here the vast amounts of land BLM has in Alaska that it does NOT offer up for exploration.

[bert]

You could get a job on Fox news as a presenter to Neil Cavuto. I’ll bet they would interview you on each one of those topics.

You have single handedly provided more indepth truth than the entire fox network.

Thanks for your effort.

[dougherty]

Very informative post.

[DeaconRed]

"The opposition party had the House 12 years, Senate 6 years, and White House 7 years, and they didn't do such a stellar job."

Exactly right.
That is why I WILL NOT Give one dime to the republican party until they show some back bone and get rid of all the RINOS. (Mclaim, Spector . . . . . )