Pelosi blocks offshore drilling

[Maverick]

Gunns,

They were talking about refineries not wells. Those are not offshore hence folks like to make sure they don't have one in their backyard to affect their property values.

That's why I say build a couple refineries in NO. There is lots of vacant land that no one wants and I'd bet that the oil companies would take particular care with building dikes around them.

[FrodeMk3]

I would like to make a couple of points here.  Newt Gingrich made some statements on FOX NEWS last night that gives the lie to the argument that new drilling would have no effect on the price of oil in the short term.  He stated that the mere fact of Congress voting to allow such drilling would have a stimulating effect on the market, and a drop in the market price would certainly follow.

Another point was that ten years ago, Bill Clinton vetoed a measure that would have allowed offshore drilling, using as his justification, that it would take ten years for it to lower prices.  So, here we sit, ten years later, and the democratic leadership in Congress is making that same argument to justify another ten year delay.

Are these the people we actually want to make such decisions?

They could get the produced oil to market faster than 10 years' if they did so desire. The 10 year thing is probably bogus, I'll admit; However, If we'd already drilled it 10 years' ago, we would have 10 years' less reserves left, when you think of it that way.

[Maverick]

Nope if they drilled it 10 years ago, by their time table, it would be just getting to market now. No loss in reserves as it wouldn't have been used in the last 10 years.

[FrodeMk3]

Nope if they drilled it 10 years ago, by their time table, it would be just getting to market now. No loss in reserves as it wouldn't have been used in the last 10 years.

True-for offshore platforms, It's slower to get going, due to platform construction, and depending on the actual depth under the seabed of the oil deposits' they are looking for, the actual drilling of a well could go from as little as a week to months.

[Nashwan]

We need to be self-sufficient oil producers. We need to STOP refining and buying from the world oil market. We can do this by drilling and pumping our own resources

The US currently produces something over 5 million barrels of oil a day. It uses about 20 million.

There is no reputable source that claims US oil production can quadruple. In fact, reputable sources claim that using oil from the areas that are currently off limits would add about 1 million barrels a day.

As to refineries, the oil companies have been expanding capacity for years. The US now has refining capacity for about 18 million barrels of oil a day, more than 3 times US oil production.

[Maverick]

True that may be over the US only production but they are definitely not capable of 3 times the DEMAND of the finished product, no matter what the source of the crude.

[moot]

The "Not in my backyard" barriers are what is keeping any more refineries from being built. 

It's not just nimby anymore, it's banana: build absolutely nothing anywhere near anything.

[Baitman]

It's not just nimby anymore, it's banana: build absolutely nothing anywhere near anything.

[alskahawk]

 Not a Nancy fan in anyway, but the idea that off shore drilling is an answer to our oil problems is a bit far fetched.
  Does anyone really think that the oil companies are going to sell oil at less than market price? They are in business to make money. If OPEC sets the price of oil at $150 a barrel does that mean that a US oil company will sell it at $100? Not a chance.

[Donzo]

Not a Nancy fan in anyway, but the idea that off shore drilling is an answer to our oil problems is a bit far fetched.
  Does anyone really think that the oil companies are going to sell oil at less than market price? They are in business to make money. If OPEC sets the price of oil at $150 a barrel does that mean that a US oil company will sell it at $100? Not a chance.

With more supply on the market the price will fall on its own.

[alskahawk]

 Ya that's the theory but unless its a large supply spike it won't affect the price that much. A few off shore oil wells won't make us independent.

 It was theorized in the 1950s by a MIT(?) professor that oil production would peak domestically around the turn of the century and world wide shortly there after. Domestic production has peaked. That may be an artificial peak though. (IE; shutting down domestic refineries, voluntary lack of production domestically)
  Best (most optimistic) estimates are that world wide production will peak around 2029. Given the rising demand in Asia and falling supply world wide. Looks like any relief will be short lived. We have needed a sound energy policy since the 1970s but it hasn't happened and it probably won't until it's too late.

[Slamfire]

With more supply on the market the price will fall on its own.

Agreed 100%.  In fact just a serious threat of increasing our own supply would bring it down aggressively.  Had that bill gone through, oil prices would have started dropping immediately.

[SkyRock]

Ya that's the theory but unless its a large supply spike it won't affect the price that much. A few off shore oil wells won't make us independent.

 It was theorized in the 1950s by a MIT(?) professor that oil production would peak domestically around the turn of the century and world wide shortly there after. Domestic production has peaked. That may be an artificial peak though. (IE; shutting down domestic refineries, voluntary lack of production domestically)
  Best (most optimistic) estimates are that world wide production will peak around 2029. Given the rising demand in Asia and falling supply world wide. Looks like any relief will be short lived. We have needed a sound energy policy since the 1970s but it hasn't happened and it probably won't until it's too late.

[REP0MAN]

Yes I have. Federal government wins 11:1

Oil companies $0.09/gallon
Feds               $1.16/gallon (currently)

The higher the prices go the more the Feds make while the oil companies profit remains the same.

I wonder where the 38 billion in tax revenue from the evil oil companies 12 billion profit gets put? Maybe on roads, health care, Army supply and pay or, maybe, tax stimulus?

The evil oil company that is out to get you, they pay for all your services but the goberment still comes to you with their hands wide open. Do you get a choice? Nope. You can choose not to buy gas.

Who's evil?

[Holden McGroin]

Upon seeing some photos in the National Enquirer of Senator Ted Kennedy on a boat while in a compromising position with a woman not his wife, Senator Heflin is said to have remarked, "Well, I see that Senator Kennedy has changed his position on offshore drilling."

And that 11.68 billion in net profit? that's after tax profit?  That's after they paid the effective income tax rate of  49%? that means that the Feds got nearly 11.5 billion income from ExxonMobil?