Why Off-shore drilling is a scam

[Jim C]

First off, I'm all for off-shore drilling, if it's necessary. After allot of meetings at work about the price of oil(we're in the oil biz) and some pondering, I've come to the conclusion that off-shore drilling is even more of a scam than global warming. LOL



1. First off. I'm sick of hearing from Joe blow to congress, to Bush that this is OUR oil. We are going to do this and that with it. Not sell it overseas, etc. Sorry America, but the U.S. Government isn't in the oil business. Those areas would be leases to the same big oil companies that are screwing us already. With their record of compassion for us, I can only assume they will show just as much compassion in this venture. Their only compassion is for the bottom line for the stockholders. That means selling it on the open market.



2. The open market. I don't know if anyone checked lately, but refining capacity in the U.S. is sitting around 75%, down from the low 90's even after Katrina. Why? BECAUSE WE DON'T NEED THAT MUCH GAS!!!!! The refiners even say it's because domestically, the demand isn't there. We're refining more domestically than we can consume already. The damand is overseas.



3. Overseas demand. Worldwide, there is more oil on the market than the world consumes already. Why is OPEC holding or reducing production? Again, there's a surplus in the market. Not as big as the U.S. surplus, but still well-supplied.



So, I come to my point. All this rah-rah pandering about how we're going to keep this oil here and lower U.S. prices. BULL-BLEEP!!! You actually think Exxon is going to sit on oil they can't sell here out of the goodness of their hearts? Sorry, that oil is going on the open market. So, what happens when that new stream of oil hits the well-supplied market? The ole concept of supply and demand kicks in. OPEC isn't sitting on oil they can't sell on the world market, so they cut production to match demand, keeping the prices basically where they are or will be. Net outcome: not a damn thing changes significantly at the pump. The only change is to Exxon and the other oil companies bottom line. New record profits for them and the speculators!

 

[Bryan McDonough]

I will respectfully disagree.



1. Sure its our Oil and, But I'm not sure who your listening to but I don'think anyone has said it our oil and will stay here. Obviously its a global market. But we can use our oil to help control the global prices.



2. Refining capacity has been hanging round 85%, course that depend what report you look at. By the way Gasoline dropped by 6 million barrells last week. Oil gained about 8 million. And we are sitting at average inventories right now. Also as prices drop demand will rise, citzens forget very quickly, including me.



3. You may be correct about worldwide demand currently, but please don't for a second think that picture would not change when prices fall.



Oil is a complex commodity, supply and demand are not the only things that control prices. If we look at now and make future decision based on now, we are making a big mistake. So Drill now for stability in oil markets of the future, Drill Oil for the Economy. Use Oil to put some steam in our economy.



Its going to happen anyways, The government has sold lease rights this year to the tune of hundreds of millions of dollars.



Not bashing just my point of view.

 

[Jim C]

Problem is that we cannot match the middle east in pumping to flood the market vs what they can cut in pumping and still be VERY profitable to affect the price really at all. We can put all we can pump onto the market and OPEC can cut production by even more without blinking an eye and the speculators would only act on the cuts and further raise prices.



I agree, in the meantime, we should pump what we can responsibly and take advantage of the market while it's still here. But force the oil companies to pump existing leases on dry land first, then go offshore if necessary and charge them up the whazooo for the leases so the American public will see some real $$$. Of course our politicians WILL squander it though. :huh: We're going to give them all these offshore leases for dirt cheap because we're in a crisis the helped create???, then when we go alternative and they keep raping our land and waters for oil at our expense with no benefit to us? That's also a longterm factor we need to look at.

 

[Greg Meyer]

Right now 70% of our oil consumed is from foreign sources. That means that 70 % of the money spent leaves our country. That means the dollar is weaker and weaker. So, domestic production is not just about consumption and pricing; it is about helping the health of our economy.



Now, about "alternatives"... Right now, wind and solar generate about 5 or 6% of our domestic electricity needs. So, we would need a 10 fold increase in those two sources just to get to 50% of our electricity needs. And, electricity is about 35-40% of our total energy consumption. To effect oil demand we would have to shift from gas to plug in hybrids. To reduce oil, natural gas and coal produced electricity we would need that 10 fold increase. That is not going to happen overnight... So, don't sqwack back about domestic drilling not having any effect for 7 to 10 years... Alternatives won't either. So, we need to do it all... drill wherever we can... Oil shale... concentrate of developing "clean" coal uses. If we can figure that one out... there is a 200 year supply of coal to produce (replace) every killowatt, brake horsepower and therm that we currently use... oh, and thst is just the coal here in Illinois! Alternatives... how about nuclear... We've come a long way baby... we can do it cleanly, safely and cheaply.



McCain's energy policy is just that... do it all. Let the scientists, entrpreneurs, and politicians work together to develop the energy our country will need to thrive tomorrow and into the next decades and the next centuries.

 

[Jim C]

I'm all for coal and nuclear. My favorite fishing spot is a coal plant's hot water discharge. Another is the Fermi nuke plant hot water area.



Bottom line is that Iagree with you Greg, I'm only pointing out that the "spin" of us saving $$$ at the pump is an absolute complete unequivocal load of bull!!! We won't see significant cost reduction for the 7-10 years as you point out, If that's accompanied with alternatives, IF EVER. Our politicians will just sell us out to the next commodities market(s). So everyone shouldn't be so gung-ho to drill, drill, drill, that only benefits big oil in the long run, and doubtfully us at all. You notice Exxon and such are putting up advertising campaigns for offshore and ANWR drilling? Wonder why? Seems most companies only spend advertising $$$ to increase revenue. Remember, they all spent somewhere around 10x more in advertising, telling us they were exploring than they actually spent doing it! :wacko: Think that farse is going to change? You still won't touch on why we shouldn't FORCE them to drill the ground oil first that they already have leases on!!!!!! SOMEONE, ANYONE please tell me why they should be let off the hook by not drilling for CHEAP oil first??? If this whole campaign is for US, then drill the cheap stuff first that can be lifted in half the time of offshore. PLEASE GREG, tell me why!!!!!!!!! Don't let Exxon and the others sit on the easy to lift oil until they can pull profit margins in the 1000's/barrel later down the road.



Too bad if you asked McCain what his energy policy was, he can't remember. LOLOLOL Have to check with his staff on that one. Can you say senile???

 

[William H. (Bill) Barham]

Well, I don't know if John McCain is senile or not but I would hope he does check with someone more authoritative than he on the subject. That's what makes good leaders. Who's the anti-christ going to check with? His vice-president running mate who only a few months ago said Obama wasn't fit to be president?:wacko: Plus Obama is campaigning for "Change" and he enlists a running mate who has been in Washington for 36 years? It just looks to me that Biden is the new Monica Lewinski. Maybe he can ask her how to get the stains out of his suits?:lol:



Uncle Billy

 

[Bill McElroy]

LMAO @ Uncle Billy,....no kiddin'....Obama has been spewing his "CHANGE" doctrine since he hit the spot-light,...yet he asks a "CAREER Politician" with BAD hair plugs to be his running mate??....puuhhlllease!! He would've been more in true character to ask someone who's equally as unqualified to step-in as he is......but then again..there ISN'T anybody more un-qualified than him!:blink::wacko:



Oh well...until we build more refineries and more nuke plants, we'll continue to pay out the nose for foreign oil,....as long as the "speculators" keep pushing the prices up!:angry:

 

[Gilbert Scales2]

Uncle Billy said it all. Obama's first major decision, isn't very good.



Bubby

 

[Randy Walls]

Uncle Billy, do you listen to George Carlin tapes? That was pointed and funny!



Randy!

 

[Gene B]

We will always need power plants of some kind. Wind and solar farms may help, but they won't replace power plants. Solar panels are not very effective at night and the winds die down at night also. I don't think most people will want to sit in the dark waiting for the grid to power up in the morning. Besides, we'll need overnight power to recharge all the electric vehicles they're trying to push on us.



Gene

 

[Bryan McDonough]

Terror Eyes I'm not sure where your information comes from. We are drilling for oil in the US shallow low yield wells are being pumped out. Come to Texas and see it for your own eyes. The offshore wells are the the big vast wells, capable of of making money after millions of dollars in investments.



The goverment sold the rights to explore some of the offshore lands for 400 million this year to various companies.



http://www.cbsnews.com/stories/2008/08/19/ap/cabstatepent/main4364827.shtml





As 70% of the money going into other countires pockets, thats not entirely true, because Oil has to be refined. The Us refines a lot of Oil, not all of it but a good portion of it.



Here is a website for actual refining numbers.

http://tonto.eia.doe.gov/dnav/pet/pet_pnp_wiup_dcu_nus_w.htm



Here is a another good website to confirm us drilling numbers

http://www.ogj.com/display_article/336573/7/ONART/none/DriPr/1/US-drilling-increases/

 

[Edward Lea.]

I found it very interesting when Pelosi was being interviewed on Meet the Press Sunday that she was asked, after she made a comment about switching the country to natural gas, if it was a conflict of interest that her and her husband had teamed with Pickens and invested in natural gas. She tried to shake it off saying it was "only point 03 percent of their investments Tom". He tried to push back saying it still appears to be a conflict of interest when the speaker is trying to push natural gas right after she and her husband invested into natural gas. She shrugged it off and he let her get away with it. I dunno she probably has inside info and perhaps it is a good time to buy into natural gas.



If I may ask a question about pickens plan. Suppose we did switch a major chunk of our vehicles to natural gas, wouldn't that drive the price of natural gas up. You know the stuff we heat and cook with? I know there is the electric windmill part but the houses would have to be converted to electric and there is that cost. Right now Mid America energy is building 76 new electric wind generators along my drive to work that will bring the total in Iowa for Mid America to 800 1.5 Megawatt units. So there is electricity being made available fromt that source.

 

[Eddie Payne]

Terroreyes, not sure what part of the industry you work in, but after 30 years on the service side, oil does not follow traditional supply-demand models. There are numerous articles circulating on reputable industry websites that support this written by people a lot smarter than me. Sure Saudi can pump tons of oil, most of their production is oil. Even without doing the research I can say that a lot of the activity in the US is more natural gas based than drilling for oil, examples are the Piceance area in Colorado(all the Rockies) and the Bartlett around Ft. Worth. I believe the Baker Hughes rig count breaks it down by classification.



Do the research on the cost to drill offshore the US compared to a comparable well in Saudi. Drilling offshore is not cheap, day rates are huge. Take a look at www.rigzone.com for some real numbers.



This argument will not end until someone in Washington puts their own personal interests aside and remembers that we the people voted them in. And maybe if they reviewed their job descriptions for each branch of the government they would have a better idea as well.



I would rather live here than in Saudi, not much fishing there!

 

[William H. (Bill) Barham]

This argument will not end until someone in Washington puts their own personal interests aside and remembers that we the people voted them in. And maybe if they reviewed their job descriptions for each branch of the government they would have a better idea as well.

Well said E5Zero!



Uncle Billy

 

[Berry Lindley]

You have to do it all, Greg said it. Prices won't go down dramatically, but the money will stay here not leave. Whomever is elected will have to do all of these as alternatives to this option is not really an option, regardless of what they are spewing. And get the corn back on the plate and out of the tank. This is bogus fuel program as done now. Ethanol from sugar is a different story, at least it generates positive energy flow. Wind and solar can only supplement the predominant supply due to irregularity of supply plus there are non static energy demand peaks and valleys. Another curious thing not getting much play time is the amount of electricity lost in simple transmission, so plug-in anything has inherent energy conversion loss, each time energy is converted or moved. It isn't as easy as saying we need energy independence and it's done - poof.