Another GOP Oil-Drilling Myth Is Born!

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Road Dawg

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Another GOP Oil-Drilling Myth Is Born!

By Eric Kleefeld - July 21, 2008, 4:39PM
As you know, we've been posting here regularly about the GOP's frequent pushing of the myth that China is drilling for oil off American shores.
Well here's another outlandish oil-drilling line: If not for the Dems in Congress, gas would cost two bucks a gallon!
Here's what Republican Congresswoman Michele Bachmann of Minnesota had to say in an op-ed for National Review, promoting drilling in ANWR:
The fact of the matter is that Congress is standing in the way of $2-a-gallon gas. It is Speaker Pelosi and the House Democrats who are refusing to let commonsense energy legislation come to the floor.​
That's right: Bachmann says that we can cut the price of gas from over four dollars down to two, a change of more than 50%, by just opening up some new drilling. What wonderful news!
The problem, however, is that this just isn't true when you're working on the scale of a vast global marketplace.
In the case of ANWR, a Department of Energy study this past May found that drilling there could potentially lower the price of a barrel of oil by a mere 75 cents -- only enough to lower the price of a gallon of gas by about two cents, and it would take until the year 2025. Proposed offshore drilling plans for other areas have yielded similar numbers, too.
Oh well. Lowering the price by two dollars, or two cents -- what's the difference?
We'll be hearing a lot more of this line over the next few months.



http://tpmelectioncentral.talkingpointsmemo.com/2008/07/another_oildrilling_myth_is_bo.php
 
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RealDeal

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Re: Another GOP Oil-Drilling Myth Is Born!

How can we say it isn't true if it hasn't been tried.
Democrats are fighting like mad right now to pass
laws to stop oil speculation in the US. They want
this because the Dems say it has increased the
cost of oil. So with supply and demand.......
if we open anwar and offshore drilling, wouldn't the
price start dropping. If I was a speculator, I would be
selling knowing that more oil may be coming on line.
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

I love these experts that have perfect knowledge of the mechanism of price psychology - the price of oil is down almost $20 in the last 2 weeks. There must have been some enormous oil finds to lower the price that much!
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
Read the DOE's report.
Click to expand...
Dont have time - will they issue a report on why the price is falling so much currently? lets see if anwar (roughly 8 billion bbls) might lower the price by 75 cents, and the price is down $20, that means an oil field approx 25 times the size of anwar has been found and is being developed, right?
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

mr merlin said:
Dont have time - will they issue a report on why the price is falling so much currently? lets see if anwar (roughly 8 billion bbls) might lower the price by 75 cents, and the price is down $20, that means an oil field approx 25 times the size of anwar has been found and is being developed, right?
Click to expand...

It has?!?!?! Where?!?!?!?!
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
It has?!?!?! Where?!?!?!?!
Click to expand...
Well, apparently it's all an equation? how else could someone put out a report that states a large oil field of unknown size would move gas prices by exactly 2 cents if and when it is developed?
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

mr merlin said:
Well, apparently it's all an equation? how else could someone put out a report that states a large oil field of unknown size would move gas prices by exactly 2 cents if and when it is developed?
Click to expand...


You tell me... It's Bush's DOE that issued the report.
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
You tell me... It's Bush's DOE that issued the report.
Click to expand...
And when obama is president those exact same people will be putting out reports and they will then be "obamas doe", what exactly is your point when it comes to anwar dawg? Of course I already know that you don't have one.
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

With respect to the world oil price impact, projected ANWR oil production constitutes between 0.4 and 1.2 percent of total world oil consumption in 2030, based on the low and high resource cases, respectively.1 Consequently, ANWR oil production is not projected to have a large impact on world oil prices. Relative to the AEO2008 reference case, ANWR oil production is projected to have its largest oil price reduction impacts as follows: a reduction in low-sulfur, light (LSL) crude oil2 prices of $0.41 per barrel (2006 dollars) in 2026 in the low oil resource case, $0.75 per barrel in 2025 in the mean oil resource case, and $1.44 per barrel in 2027 in the high oil resource case. Assuming that world oil markets continue to work as they do today, theOrganization of Petroleum Exporting Countries (OPEC) could neutralize any potential price impact of ANWR oil production by reducing its oil exports by an equal amount.

Page 11.
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
With respect to the world oil price impact, projected ANWR oil production constitutes between 0.4 and 1.2 percent of total world oil consumption in 2030, based on the low and high resource cases, respectively.1 Consequently, ANWR oil production is not projected to have a large impact on world oil prices. Relative to the AEO2008 reference case, ANWR oil production is projected to have its largest oil price reduction impacts as follows: a reduction in low-sulfur, light (LSL) crude oil2 prices of $0.41 per barrel (2006 dollars) in 2026 in the low oil resource case, $0.75 per barrel in 2025 in the mean oil resource case, and $1.44 per barrel in 2027 in the high oil resource case. Assuming that world oil markets continue to work as they do today, theOrganization of Petroleum Exporting Countries (OPEC) could neutralize any potential price impact of ANWR oil production by reducing its oil exports by an equal amount.

Page 11.
Click to expand...
Excellent, it is an equation then. The price is dropping, therfore we must be flooded with oil - good news.
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

Ok , Ill play along. Before I go get the one with the worst breadth, what is your reason for not signing this ?
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

RealDeal said:
Whats your reasoning for not signing it?
Click to expand...

As noted in the article I posted, the Department Of Energy states that drilling for oil will have a negligible, at best, effect on the price of gas in about 20 years. I see no reason to wreck the environment further at this time. Especially when the government is more than willing to invade and conquer any nation that has oil.

My position will always be to develop renewable energy sources and ween ourselves off of fossils fuels sooner than later. Drilling for more oil is like giving a drunk more alcohol.
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

You deserve the Bear

What makes you think we will ruin the environment? Do you really think that we will drill through the caribou's heads?

Would you rather have other countries drill in our backyard?

They seem to think that its a good idea.

Who do you think is going to care more?

The reason it may take so long, is because of all the environmental wack jobs stopping it from progressing more quickly. It will not take 20 years , you are incorrect.

I am all for all out massive action on all new technologies. You want to ween off fossil fuels, super!

The problem is that may take 30 years!!!



It is a matter of national security that we take on this issue head on, and take control.

Lets start! Do you think "Big Oil" would waste THEIR capital , if they thought that there would be no market for this oil anytime soon? Give me a break


Here are some facts, educate yourself

MYTH: Drilling will not provide any short-term relief in the price of oil because it will take many years before new drilling will lead to new supplies.
FACT: This same argument has been used for the past several decades to prevent us from using more of our American oil, leading to our current dependence on foreign oil and the supply crunch we are currently experiencing. Does this mean critics of greater American energy exploration were wrong 10 years ago, 20 years ago, and 30 years ago but are suddenly right today now?
Drilling more now will increase supplies in the future. And higher supplies lead to lower prices. Currently, the world is operating at or near full capacity, so there is very little slack in the system, and any disruption causes spike in price. This is partly why commodities and other investors have invested so heavily in oil, driving up prices. They recognize demand will continue to increase and that current supply has artificial limits, especially in the United States.
Opening up new oil fields in the U.S., even if new supplies won?t actually reach our gas tank for several years, would immediately impact the amount of upward speculation on long-term commodity investment in oil. Oil speculators will see a greater supply ahead and will see that the future of oil is less constrained on the supply side. Moreover, fears of Middle Eastern turmoil or South American unrest that could disrupt supply shipments will be much less of a reason to drive up the price of crude if a stable U.S. can supply millions of barrels of additional oil. Which represents a more stable source of oil, Colorado or Caracas?
Finally, nobody is suggesting that our nation?s energy strategy should be solely dependent on domestic production of oil. We all recognize that alternative energy sources ? such as wind and solar - need to be developed. But more American oil must be a part of an American energy solution.
 
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RealDeal

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Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
As noted in the article I posted, the Department Of Energy states that drilling for oil will have a negligible, at best, effect on the price of gas in about 20 years. I see no reason to wreck the environment further at this time. Especially when the government is more than willing to invade and conquer any nation that has oil.

My position will always be to develop renewable energy sources and ween ourselves off of fossils fuels sooner than later. Drilling for more oil is like giving a drunk more alcohol.
Click to expand...
are those guys at the DOE economist?
we already have oil wells all over the country, is the environment wrecked because of those?
 
R

Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

brucefan said:
You deserve the Bear

What makes you think we will ruin the environment? Do you really think that we will drill through the caribou's heads?
Click to expand...

Don't really care about the caribou. I do care about tar balls washing up on the beaches.

brucefan said:
Would you rather have other countries drill in our backyard?

They seem to think that its a good idea.
Click to expand...

So who is doing this?

brucefan said:
The reason it may take so long, is because of all the environmental wack jobs stopping it from progressing more quickly. It will not take 20 years , you are incorrect.
Click to expand...

It's not me that said it, its the Department Of Energy. Do you refute them?

brucefan said:
I am all for all out massive action on all new technologies. You want to ween off fossil fuels, super!

The problem is that may take 30 years!!!
Click to expand...

So 30 years for new oil or 30 years for a clean, renewable source... take your pick.


brucefan said:
It is a matter of national security that we take on this issue head on, and take control.
Click to expand...

Hence the invasions.

brucefan said:
Lets start! Do you think "Big Oil" would waste THEIR capital , if they thought that there would be no market for this oil anytime soon? Give me a break
Click to expand...

How come they are not already drilling on the 68 million acres they have already leased?
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

RealDeal said:
are those guys at the DOE economist?
we already have oil wells all over the country, is the environment wrecked because of those?
Click to expand...

You certainly can't say that human beings have actually improved the environment since we started walking around this planet.

Oil wells in the ocean leak. Oil Tankers leak. There is no way around this.

America would be much better served by finding and developing a renewable source of energy.
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

If you are nt concerned about Carabou or polar bears then Alaska should be ok, right? Not really a beach issue there?

Can I ask you a ?, what if we put all our efforts now into other sources, and we dont drill , and these other sources dont develop as quickly or is as effective as we think, Do you know what kind of massive shift it would be to get our country completely off of oil? Get serious, we need oil for the forseeable future, like it or not. Or do you just want to ride pony's to work?
 
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RealDeal

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Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
America would be much better served by finding and developing a renewable source of energy.
Click to expand...

yes you are 100% right
but in the meantime lets sit on our ass and send all our money to
the middle east.
name me one politician that is truly pushing alternative energy.

talk is cheap but I see no action so drill to fill until corporate America
comes up with what the government can't do.
We should abolish the department of energy along with the department of
education as both are worthless.
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

uh..duh... if drilling for oil in anwar will only lower gas by 2 cents, I guess we better not do it. Hmmm, wait a second, if anwar has 8-10 maybe 15 billion bbls of oil at $150(soon to be $300) a bbl, why thats 2-3 TRILLION dollars of oil, right here in the USA - just think how many children we can help with that money... yea, we better drill.
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

Why does a politician have to "push" alternative energy? We all have to get off this Govt. please help us all attitude. Get the govt and the lawyers for the crazy environmentalists out of the way, and this problem gets solved in record time. Its called capitalism, and whoever gets behind the right answer long term will get rich. Its pretty simple

Politicians are clueless and have their own agenda
The Answer to the Energy & Economy Crisis: More Entrepreneurship, Less Government!
Monday, July 14, 2008, 02:00 PM


http://rootforamerica.com/blog/
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

You just cant win with these nutjobs

This bill says DO IT ALL, and they still protest

GOP leaders unveil new energy bill that calls for some of everything and lots of drilling
Environmentalists rally against House GOP energy bill 2348ji23e

http://gristmill.grist.org/story/2008/7/23/144037/318/

Is PELOSI on drugs? Does she live on our planet?

House Speaker Nancy Pelosi put out a statement today saying the new bill "largely rehashes failed ideas on domestic drilling." She said that Democrats are planning a vote tomorrow on a bill that would release some oil from the Strategic Petroleum Reserve in hopes of quickly driving down oil prices.
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

brucefan said:
Can I ask you a ?, what if we put all our efforts now into other sources, and we dont drill , and these other sources dont develop as quickly or is as effective as we think, Do you know what kind of massive shift it would be to get our country completely off of oil?
Click to expand...

The status quo will remain. America will continue to import the vast majority of it's oil.

I guess since it's too hard to get off of oil, then we shouldn't do it. What a defeatist attitude that is.

brucefan said:
Get serious, we need oil for the forseeable future, like it or not. Or do you just want to ride pony's to work?
Click to expand...

To be honest with you, currently I drive about 150 miles a day with my commute to and from home and the driving I do in and around base. Gas hurts, but I'm not dying. I won't support new drilling.
 
R

Road Dawg

2
Re: Another GOP Oil-Drilling Myth Is Born!

RealDeal said:
yes you are 100% right
but in the meantime lets sit on our ass and send all our money to
the middle east.
Click to expand...

I don't see developing alternative sources as "sitting on our asses". I see it as working for something better.

RealDeal said:
name me one politician that is truly pushing alternative energy.
Click to expand...

There is your inherent problem. " name me one politician that is truly pushing alternative energy". It's not those jackasses that should be pushing it. The Constitution begins with WE THE PEOPLE... That is who should be pushing it.
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
The status quo will remain. America will continue to import the vast majority of it's oil.

I guess since it's too hard to get off of oil, then we shouldn't do it. What a defeatist attitude that is.



To be honest with you, currently I drive about 150 miles a day with my commute to and from home and the driving I do in and around base. Gas hurts, but I'm not dying. I won't support new drilling.
Click to expand...
'

I am not sure why you made this comment? Everyone wants to get off of foreign oil. The issue is how. Thats the whole reason we need to develop our own resources here at home, responsibly. It can be done

Its defeatist to give in to the radical left saying we cant do it fast enough, find enough of it, or do it without hurting the environment.

When you allow the free market to work, there are planty of incentives to find lots of oil fast!


 
4625

4625

2
Re: Another GOP Oil-Drilling Myth Is Born!

If big oil were truly interested in the "market" they would develop the millions of acres of untapped domestic leases they already have. What we are seeing now is the rush by big oil to lock up additional domestic leases at sweetheart prices from their friends in the current regime. With control of an even higher percentage of domestic resources still in-ground, they will be able to more effectively control the supply of raw crude, hence the "market" price of raw crude. Or do you really think that big oil is unhappy with the current price of oil!!!
 
gopherbob

gopherbob

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

the only way that i would be for drilling in anwr or the coastal shelf is that the oil has to be used domestically or be subject to a 90% tax.
 
R

Road Dawg

2
Re: Another GOP Oil-Drilling Myth Is Born!

brucefan said:
'

I am not sure why you made this comment? Everyone wants to get off of foreign oil. The issue is how. Thats the whole reason we need to develop our own resources here at home, responsibly. It can be done

Its defeatist to give in to the radical left saying we cant do it fast enough, find enough of it, or do it without hurting the environment.

When you allow the free market to work, there are planty of incentives to find lots of oil fast!
Click to expand...

As 4625 stated in his post. When Big Oil starts drilling in the 68 MILLION acres they have already leased and begins to produce oil, then I will reconsider my opposition to new drilling.
 
brucefan

brucefan

EOG Dedicated
Re: Another GOP Oil-Drilling Myth Is Born!

More crazy left wing propaganda. Its real sad how these people are stopping AMERICA from moving forward.


Do you really think that these companies would not drill in these areas if they felt it would be profitable?



MYTH: Oil companies currently have 68 million acres of leased public lands that contain large amounts of economically recoverable oil available. Drilling in these areas could generate 4.8 million barrels a day so opening up more land is not necessary.
FACT: The estimates on the amount of oil available in those 68 million acres have been derived by assuming that the unused acres can produce the same amount as those acres being used. However, much of the land leased to oil companies has already been explored and determined not to carry enough recoverable oil to justify drilling. This is in stark contrast to the other 97% of currently banned offshore resources and areas with shale oil, where enormous quantities are known to exist.
That opponents to greater U.S. exploration believe they understand better than petroleum engineers how we obtain oil from drilling is absolutely ridiculous.


:doh1
 
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Road Dawg

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Re: Another GOP Oil-Drilling Myth Is Born!

68 million acres of land federally leased for drilling: getting the oil another story

The Associated Press
Sunday, July 20, 2008

HOUSTON: The national debate over opening more offshore areas to oil and gas exploration has begged the question: Just what are the companies doing with the tens of millions of acres they're already leasing from the federal government?

In particular, congressional Democrats who oppose President George W. Bush's plan to expand offshore drilling point to 68 million acres (28 million hectares) of federal land and offshore sites now leased by oil companies that sit idle.

It's part of nearly 2 billion acres (0.81 billion hectares) overseen by two federal agencies — the Bureau of Land Management and the Minerals Management Service — that have potential for oil and gas exploration, the bulk of which is strictly off limits.

The acreage includes vast stretches of land that spread out over Nevada and reach north and east over the Rockies, thinning as they stretch toward Canada to disparate specs on the map.

There are smaller and more isolated patches to the east along the mountain ridges of Appalachia and further to the south above the Gulf of Mexico, and huge chunks of northern Alaska and lesser stretches on its southern banks.

A huge chunk of the overall acreage is the U.S. Outer Continental Shelf, the zone of federal waters extending about 200 miles (322 kilometers) offshore.

The 68 million acres (28 million hectares) under lease to oil companies has potential reserves to nearly double U.S. oil production and increase natural gas output by 75 percent, the Democrats claim.

So why the lack of activity, particularly when oil prices are at historic levels?

It depends on your definition of "activity."

An oil company can spend several years after it negotiates a lease securing the permits and other approvals it needs to begin actual production.

Some of the non-producing leases under scrutiny are in thousands of feet of water in the Gulf of Mexico, where a decade can pass between finding and tapping a new reservoir. The winning bid for such leases can encompass tens of thousands of acres and cost $100 million or more.

"I think it gives you a good idea why our leases are arranged in 5-, 8- and 10-year terms," said Randall Luthi, director of the Minerals Management Service, the arm of the Interior Department charged with overseeing offshore drilling in federal waters.

"If a company gets to the end of those terms and they're not making significant progress — and I do mean significant progress toward actually producing — those leases come back and we sell them again," he said.

Leases also can get tied up in court, often over environmental concerns. Or companies can determine that developing a particular tract doesn't make economic sense. Either way, they're listed on the federal government's books as "non-producing."

Shell Oil Co., for example, is involved in a legal dispute in Alaska that prompted it to abandon a proposed course of exploratory drilling in the Beaufort Sea this summer. Shell has said it remains committed to offshore drilling in Alaska, but production is likely as far as 12 years off.

President George W. Bush and those supporting more drilling say the United States is unwisely cutting itself off from new energy sources as the nation brings in most of its oil from abroad.

The Interior Department has estimated 18 billion barrels of oil can be pulled from waters off the U.S. coast that are currently off limits. But almost everyone agrees it would be years before that oil could be retrieved.

http://www.iht.com/bin/printfriendly.php?id=14637605
 
mr merlin

mr merlin

EOG Master
Re: Another GOP Oil-Drilling Myth Is Born!

Road Dawg said:
The status quo will remain. America will continue to import the vast majority of it's oil.

I guess since it's too hard to get off of oil, then we shouldn't do it. What a defeatist attitude that is.



To be honest with you, currently I drive about 150 miles a day with my commute to and from home and the driving I do in and around base. Gas hurts, but I'm not dying. I won't support new drilling.
Click to expand...
Wow, dawg wont support new drilling! I guess thats all she wrote then.:LMAO:LMAO
 
4625

4625

2
Re: Another GOP Oil-Drilling Myth Is Born!

mr merlin said:
You may cancel me out but my legions of followers will soon begin the long march!:+excited-
Click to expand...

Aha!! You have finally been exposed as a "fellow traveler" of the Chairman. . . .Your reference to "The Long March" was a fatal slip in your nefarious commie-inspired conspiracy to cast all God-fearing Republicans in a poor light through your posts. . . .
 
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