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Title: So why can't we drill for our own oil??????
Source:
American Thinker
URL Source: http://www.americanthinker.com/2011 ... nly_way_out_for_the_ameri.html
Published: Mar 5, 2011
Author: Steve Mc Cann
Post Date: 2011-03-05 15:35:28 by CZ82
Keywords: None
Views: 64884
Comments: 70
Economic despair reigns in America, as stagnation and mounting debt make our future look hopeless. Yet America is uniquely positioned to rebound and recover our economic preeminence. All that is necessary is a political decision to reverse our energy policy and stimulate domestic production of hydrocarbons. From that would flow a true economic stimulus that would mend many of our ills. The United States is again, for the second time in less than three years, being reminded of its absurd dependence of foreign sources of energy, most notably, oil. The upheavals in the Middle East have driven up the cost of a barrel of oil into triple digits as it was in 2008. The increasing demands of countries such as China and India and the deliberate devaluation of the dollar by the Federal Reserve and the Obama administration are steadily pushing up oil prices in dollars. The country's dependence of foreign sources has increased to 52% of the daily requirement as compared to 45% just 15 years ago. Over half of that amount comes from countries that are inherently unstable or ruled by despotic regimes whose interest it is to de-stabilize the United States. Yet the United States is sitting on the world's largest untapped oil reserve. A natural resource that would not only mitigate the over $400 Billion sent overseas to other countries but could create untold millions of jobs and put the country on a sound financial footing. The untapped reserves are estimated up to 2.3 Trillion barrels, nearly three times the reserves held by the OPEC countries and sufficient to meet 300 years of demand, at today's levels -- for auto, truck, aircraft, heating and industrial fuel, without importing a single barrel of oil. The US could become the single largest exporter of oil and oil related products in the world, thus potentially eliminating its trade deficit, and increasing the national standard of living as well as making a massive dent in the national debt. Here is a look at some of the largest untapped reserves: The Bakken Fields in North and South Dakota. New drilling and oil recovery technology is making the capture of this oil feasible and some development is now underway. It is estimated that there is at least 200 Billion barrels of oil in this region. At a price of $100 per barrel the value of this find is $20 Trillion. The Outer Continental shelf. It is estimated that around 90 billion barrels of oil sit beneath the ocean bed 50 to 100 miles off the shore of the Atlantic, Pacific and Gulf coasts. The value: $9 Trillion. The Alaska National Wildlife Refuge. About 10 billion barrels are locked up here with a current value of $1 Trillion. Tar Sands: Around 75 Billion barrels of oil could come from these areas which are similar to the Canadian tar sand fields and which now produce about 2 million barrels per day. The value: $7.5 Trillion Oil Shale. This is the most massive area of potential oil production in the world with an estimated 1.5 Trillion barrel potential. The technology necessary to extract this oil is now in place and being operated on a pilot project basis. The value of this resource: $150 Trillion There also the very real potential that further finds will be discovered as technology continues to improve. In total the value of the potential oil reserves of the United States listed above exceeds $187 Trillion. The current national debt is $14.2 Trillion or less than 8%. Despite the protestation of President Obama and the environmentalists the world and particularly the United States is not running out of oil. Their foolish tilting at windmills and solar will never produce energy sufficient to operate a $14Trillion and hopefully growing economy. It will be decades if not the rest of the 21st Century before any meaningful substitute for fossil fuels will be developed and additional time and investment will then be necessary to distribute the product. Mankind's ingenuity has and will continue to develop technology to safely extract, process and market fossil fuels (which is a naturally occurring resource). But the United States must begin now to open the areas for exploration, and permit the construction of refineries and pipelines. It is beyond absurd that a country sitting on so much natural wealth refuses to exploit it for the benefit of its citizens and instead deliberately puts the nation in the position of being subjected to the whims of others and face national insolvency. It almost appears to be deliberate.
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Begin Trace Mode for Comment # 51.
#2. To: CZ82 (#0)
(Edited)
Why can't we drill for our own oil? For the same reason we can't build our own nuclear power plants. The environmental kooks on the lunatic left are hell-bent on shutting down progress and returning us to the stone age.
we could drill everywhere there's oil in the U.S. and still not have enough to meet our needs. (See: seattletim es.nwsource.com...0009_newdrillingop10.html And, the companies drilling for that oil are free to sell it on the open market to the highest bidder. So as China continues to increase it's demand for oil the oil companies can continue to keep prices high and improve profits. Surely you aren't suggesting that the government mandate that oil companies operating in the U.S. sell oil to U.S. consumers, right? BTW, how much did we spend this year to subsidize oil companies in the U.S. this year? Oh, and if you really want to reduce dependence on foreign oil, raise mandatory MPG rates for automobiles.
Good idea! What do you suggest? 40MPG? 50? 100? Then, after we do that, we can raise the mandatory minimum wage to reduce our dependence on foreign workers! Hey I like your thinking. Hell, why doesn't Congress pass a law to just lower the allowable average maximum temperature to alleviate your (bogus) global warming/climate change?
Do you want to reduce dependency on foreign oil or not? If you do, "drill baby drill" won't give you the results you desire.
It is the solution to the problem as defined by the masters.
I'm waiting for the conservatives to flatly state that oil companies should be forced to sell oil to U.S. consumers at below market rates. The floor is yours Ignore Amos.
The floor is yours Ignore Amos. If you didn't learn basic economic laws like "supply and demand" in school, then I can't help you.
You are the one ignoring those laws - China's oil demand is growing faster than ours. Why wouldn't the oil companies simply sell whatever they produce in the U.S. to the highest bidder, regardless of locale? You still haven't explained how increasing production of U.S. based sources is going to lead to cheaper gas prices for U.S. consumers absent any requirement that the oil be sold to U.S. consumers.
You still haven't explained how increasing production of U.S. based sources is going to lead to cheaper gas prices for U.S. consumers absent any requirement that the oil be sold to U.S. consumers. Right now the supply of oil is maintained at a constant level by the oil producers of the world, mainly OPEC. This has the effect of making oil prices higher when the demand is higher and cheaper when demand is lower. So if more oil is released to the market through increased production then the price of oil will fall. This would benefit every oil purchasing country in the world, not just the USA.... Simple supply and demand Economics 101..... Another thing that would help oil prices is building a few more refinerys. Hurricane Katrina showed the world the falicy of our governments policy of having no back up resources in case of emergency....... Oh and by the way did you notice who currently get the majority of government subsidies...... Ethanol, solar tech and refined coal..... if you add in those subsidized for electrical generation then you get windmills..... All of these are so expensive that can't stand on their own hence the government subsidies. There have also been studies done on cheaper and more ECO friendly ways to produce Ethanol (even though Ethanol is useless). But they aren't pursued because the Democrats don't want to,(unions, farmers and consumer pricing... I.E. votes) and the Republicans won't because they know ethanol is useless......
Only if demand remains constant, and only if U.S. refiners will take U.S. oil versus light-sweet crude which is easier and cheaper to refine. The reality again is that study after study has shown that there simply isn't enough oil within the U.S. to meet growing demand. "Drill baby drill" will not result in lower gas prices, reducing demand will, but Conservatives never want to address the "demand" side of supply and demand. Raise CAFE to 40-50 MPG and you could eliminate the need to import any oil from Saudi Arabia.
But it doesn't, that's why oil prices go up and down. The oil producers don't really care about demand they maintain a constant supply unless they are asked for some special reason to raise it. This helps to keep prices steady from day to day (or at least that's the general idea)... The only reason for them to reduce the supply is if demand is "Drastically" reduced, which never really happens.....
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#7. To: jwpegler (#2)
(Edited)
Why can't we drill for our own oil? For the same reason we can't build our own nuclear power plants. The environmental kooks on the lunatic left are hell-bent on shutting down progress and returning us to the stone age.
#8. To: go65 (#7)
Oh, and if you really want to reduce dependence on foreign oil, raise mandatory MPG rates for automobiles.
#13. To: Ignore Amos (#8)
Good idea! What do you suggest? 40MPG? 50? 100?
#14. To: go65 (#13)
Do you want to reduce dependency on foreign oil or not? If you do, "drill baby drill" won't give you the results you desire.
#18. To: lucysmom, ignore amos (#14)
It is the solution to the problem as defined by the masters.
#30. To: go65 (#18)
I'm waiting for the conservatives to flatly state that oil companies should be forced to sell oil to U.S. consumers at below market rates.
#32. To: Ignore Amos (#30)
If you didn't learn basic economic laws like "supply and demand" in school, then I can't help you.
#34. To: go65 (#32)
You are the one ignoring those laws - China's oil demand is growing faster than ours. Why wouldn't the oil companies simply sell whatever they produce in the U.S. to the highest bidder, regardless of locale?
#35. To: CZ82 (#34)
Right now the supply of oil is maintained at a constant level by the oil producers of the world, mainly OPEC. This has the effect of making oil prices higher when the demand is higher and cheaper when demand is lower. So if more oil is released to the market through increased production then the price of oil will fall. This would benefit every oil purchasing country in the world, not just the USA..
#51. To: go65 (#35)
Only if demand remains constant
Replies to Comment # 51.
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