Jamie Dupree, Big Oil

[Mojava]

 Jamie Dupree, a regular on the Neal Boortz show, and a very credible journalist, had a very interesting piece on Big Oil.  Makes you wonder what's really going on.http://wsbradio.com/blogs/jamie_dupree/2008/06/democrats-keep-bullseye-on-big.html

[ZetaNine]

:WHOOSH:

[Kaw1000]

Very Intresting....Very Intresting!!!!

[ZetaNine]

if you are dying of thirst & lost in the wilderness...and I take you to my farm with a fresh water lake......the only source or water within one thousand miles...and tell you that you can drink as much as you want......but the caveat is that you have to tie your hands behind your back and tape your mouth shut......I would imagine you may still be a tad bit thirsty.

[Charon]

From the article:

Two years ago, Congress voted to open 8.3 million acres in the Gulf of Mexico to new drilling, with the Gulf of Mexico Energy Security Act of 2006.

Parts of that have been leased for drilling, but so far no wells have been drilled there.

Reality:

Two years isn't a hell of a lot of time to get an oil field up and running. Particularly an offshore oil field.

There is no standard answer to this question, but as a rule of thumb it can take 3-10 years from the decision to explore, through to discovery, testing, development and the delivery of oil from a new field.

The time required depends on where the oil is and thus how difficult it is to discover, test and develop.

For instance, an offshore oil field in deep water can take much longer to discover and test, due to the challenging technical requirements. Drilling in deep water is also difficult and can be very expensive, so the explorers need time to raise the necessary money as well as meet the new technical challenges
http://www.opec.org/library/FAQs/PetrolIndustry/q10.htm

Offshore production generally requires a lead time of 8-10 years.

The Sierra Club doesn't like it either:

On August 1, the Senate passed this offshore drilling bill 71-25.  It limited in scope to 8 million acres in the Gulf of Mexico, but it's a move that will just add to the billions in profits already being made by Big Oil, do nothing to lower gas prices for American families or energy costs for American business, and will keep our nation dangerously dependent on oil.

From the article:

Then there is the National Petroleum Reserve Alaska, which is just to the west of Prudhoe Bay (the area known as ANWR is just to the east of Prudhoe.)

A report from the US Geological Survey in 2002 says, "A new USGS assessment concludes that NPRA holds signicantly greater petroleum resources than previously estimated....between 5.9 and 13.2 billion barrels,

ANWR is estimated to hold between 5.7 and 16 billion barrels of oil.

The difference is that the NPRA is open for drilling, but little or no activity is going on there now.  I found a BLM report that says one exploratory well was drilled there this year.

The reality:

On May 16th, the U.S. Geological Survey (USGS) released its re-assessment of the undiscovered oil and natural gas resources within the National Petroleum Reserve in Alaska (NPRA). The last assessment was completed in 1980 and reported that the technically recoverable oil in the area on federal lands totaled between 0.3 and 5.4 billion barrels of oil (BBO). According to the new assessment, which includes an economic analysis of the technically recoverable resources, there is between 1.3 and 5.6 BBO that are considered economically recoverable at market prices between $22 and $30 per barrel.http://www.agiweb.org/gap/legis107/npra.html

Not much oil, and at an extraction cost far above that in the Middle East. in 2000 OPEC had made the agressive decision to raise prices after the oil glut of the 1990s to the $22-$24 per bbl range which offered substantial profits. A lot has happend since 2000 to push thouse prices higher, but a lot of people, including the investment community, do not trust that the era of $100 or $60 or even $40 per bbl oil (where oil shale and tar sands and deep gulf oil start to come into play) is really here to stay. Hard to justify $30 bbl oil production if the market is seeing $20 or less. Also, oil development in NPRA has faced strong environmental resistance including various lawsuits.

 

[Yeager]

You, Me and Dupree 

[lazs2]

with Bush's recent announcement to open up drilling offshore and anwar.....

This put the liberal democrats right in the spotlight of just who is on the wrong side of this issue.. the scrambling to excuse the democrat position is huge..  NPR and every liberal news agency is excusing the liberal democrat position that keeps us from being less dependent on foreign oil.   

Forcing the democrats to admit their position of no new oil is a smart thing to do.. the soccer moms will use the "changing the hope" guy and algore's faces for traction to get out to the drilling rigs and bring hot lunches to the guys doing the drilling.

lazs

[john9001]

if the democrats do not ok the drilling , they will lose the white house and control of congress.

[Yeager]

Heres the two points dems were making yesterday in reponse to the bush:

a) But it wont help prices "right away"

b) But the bad guys (oil) already have 97 million acres leased already and they are doing  nothing with it so why open up the coastal shelfs and the pristine lands up north? 

As per usual...all the seashore states governers were saying "not in my backyard"

I keep asking myself how any of that helps wean us off foreign supplies?  Plus they (dems) did not answer about building new refineries only saying we should take over the existing refineries and federalize them?  wtf?

same old bs

[ZetaNine]

Heres the two points dems were making yesterday in reponse to the bush:

a) But it wont help prices "right away"

b) But the bad guys (oil) already have 97 million acres leased already and they are doing  nothing with it so why open up the coastal shelfs and the pristine lands up north? 

As per usual...all the seashore states governers were saying "not in my backyard"

I keep asking myself how any of that helps wean us off foreign supplies?  Plus they (dems) did not answer about building new refineries only saying we should take over the existing refineries and federalize them?  wtf?

same old bs

the 97 million acre thing was explained in this thread.  florida's governor is re-thinking it as we speak.  he'll come out in favor of it...and several new refinery projects.......or so my sources tell me.

[Yeager]

I wondered lightly why the dems kept saying "it wont help right away"...as if it was a coordinated effort to pump the same phrase out from all corners of demdom.  Dont the bastards ever think about ten years down the road?  then it occured to me, they dont want anything to even remotely lower fuel prices until Bush is gone.  Not even the idea of a thing.  Scew all of us.

I cant help but think obama is using the same tactics.

[AKIron]

Apparently the democrats are saying more drilling won't make us energy independent but rather only alternative energy sources will. Is this typical democrat blather or what? Somehow unproven or undeveloped alternative sources of energy are going to liberate us quicker than proven methods like the glut of oil in our backyard? Don't get me wrong, I'd love to see continued development of solar, wind, and other energy sources and we should pursue those greedily. However, we can become energy independent simply by drilling and pumping the oil in our own country. The democrats don't want more drilling plain and simple and it's going to hit us all where it hurts, the pocketbook.

[Shamus]

if the democrats do not ok the drilling , they will lose the white house and control of congress.

Yup, lets face it, the republicans cant be wrong about everything.

New supplies are a no brainier as long as we use the time to wean ourselves from imported oil and oil in general, but alas that wont happen.

This is dejavu for some of us.

I remember many experts proclaiming in the mid 70's that we would be out of oil in 30 years, well they were talking about $3.00 oil, and they were right.

Anybody who clings to more drilling as a long term solution to the energy problem in this country is a fool.

shamus   

[Yeager]

Anybody who clings to more drilling as a long term solution to the energy problem in this country is a fool.
shamus   

anybody who denies developing more regional oil sources is a smart thing to do is a fool.

[Shamus]

anybody who denies developing more regional oil sources is a smart thing to do is a fool.

New supplies are a no brainier as long as we use the time to wean ourselves from imported oil and oil in general, but alas that wont happen.


^^^^^I guess you missed that part.

shamus