Oil uh oh

When I first heard McCain come out for drilling offshore for Oil, I knew something must have shifted in public opinion over the matter, especially when FL Gov Crist came out for it:

A veteran of Florida politics who is not tied to Crist says the gas price-driven poll numbers justify the drilling flip-flop (justify in the political sense, that is):

"[After many years working in the state], I would have told you that it was the single issue that would never, ever, ever change. Ev-uh," says the source.

But "somewhere between $3.00 and $4.00, the [poll] number literally flipped upside down."

Rasmussen has more on the polling, in FL, in OH, and nationally.

...The Florida survey also found that McCain currently leads Obama in the state by a 47% to 39% margin. Six percent (6%) said they would vote for some other candidate while 8% are undecided. However, after voters were told that McCain favored offshore drilling and Obama opposed it, McCain's lead increased to eleven points, 49% to 38%.

...Seventy-one percent (71%) of Ohio voters agree with McCain's position that the ban on offshore drilling should be lifted, while 18% disagree.

...67% of voters believe that drilling should be allowed off the coasts of California, Florida and other states. Only 18% disagree and 15% are undecided.

The politics have changed, and I don't see the principle that guides Democrats to be unequivocally against offshore drilling for oil at this point. We are stuck on oil for a long time. Congressional Dems should adopt the position, include some safeguards, and alongside billions in funding for finding alternative fuel solutions, make it part of a long-term solution.

Update [2008-6-19 11:47:58 by Jerome Armstrong]: First of all, I don't care if you word it differently, the poll numbers in Ohio (71 - 18) are not going to change the outcome that much by changing the wording. Second, we're talking about leveraging the short-term solution that Bush has offered up as a means to get a long-term solution in place, not about whether drilling for oil offshore is legitimate as a solution. Third, the ideological purity position of there being an environmental/aesthetic argument against it is exactly the position the Republicans want us to adopt.



Display:


Re: Oil uh oh (2.00 / 6)

I have to disagree Jerome.

First, Obama has historical precident, we have had this ban for decades.

Second, The republicans are so associated to oil all Obama has to do is frame it as a deflection to raising CAFE standards and the war in Iraq (which Rupert Murdoch guaranteed would net 20$/barrel oil)

Third, We are a nation of low/no information voters, all we have to do is convince them that this gimmick will not effect prices for years.
They believed the gas tax holiday was a gimmick, this is even easier.

Fourth, unlike many nations we do NOT have nationalized energy,
SO,  who profits from this offshore drilling, our buddies in Texas and Dubai.

Fifth, Obama is rising in the polls at a time when McCain is running on and losing hard on his "perceived" strengths.

Iraq, War, Oil, Constitution, Economy, Civil rights?

Bring it McCain,
PLEASE!!!


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:04:27 AM EST

Re: Oil uh oh (2.00 / 7)

Sixth, since when do Progressives let swing state public option polls determine our countrie's long term energy and environmental policy.

Sounds like a recipe for smog filled cities and clear cut forests.  


by JoeCoaster on Thu Jun 19, 2008 at 11:26:20 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Since gutless wonders like Schumer, Emmanuel and assorted DNC morans have been in charge.

Like forever.

'Bama man don't nip this bullshit in the bud CA goes in play for McSame.

No one our hear will support any drilling. The dumfucks of Ohio can go back to sleep.

This will be a critical test for Mr. Magic.


by Pericles on Thu Jun 19, 2008 at 12:12:34 PM EST
[ Parent ]

Disagree with Jerome (2.00 / 6)

the politics have changed because of low information about underexploited leases, the danger of oil spills from oil platforms, and the lack of exposure on the problem of unregulated oil speculation.

And why tap into energy that will worsen global warming.  It's backwards thinking.


by magster on Thu Jun 19, 2008 at 11:27:14 AM EST
[ Parent ]

Re: Disagree with Jerome (none / 0)

Ok the thing thats going on in Florida, is that the offshore waters on the gulf side, near Tampa/St. Petersburg area, if Fla. can get their lines extended, would provide emminent domain to a 5 billion barrel dome they discovered two years ago beneath the gulf of Mexico.

Which is to say, Florida will likely vote for it even though most of the other Governors, like California, etc. will not.

This thing may simply - not have the votes, right now. The states should be able to decide, true enough - but the Fed has a role to play as well regulating it all for safety and EPA concern so in my view this is a tricky one.

I'd argue the best position is to push it to the states and let them decide. That will give an effective ban on drilling, with a few exceptions.


by Trey Rentz on Thu Jun 19, 2008 at 11:37:27 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 2)

Seventh:  There is no Oil crisis that we can't take care of.

a) only 17% of the leases for oil exploration and extraction offshore are being used.  This new proposal amounts to a land/water/area givaway to big oil companies.

b) we have easily accessible oil in reserves that would be easily extracted with little impact on the environment in northern Alaska.  Please read/see the following video (I know this guy isn't the best speaker but I believe he is sinceer if misguidied).  The book is also available.

http://video.google.com/videoplay?docid= 3340274697167011147

The book (The Energy Non-Crisis):
http://www.sweetliberty.org/issues/envir onment/energy/1.html

c)  There are other sources of (carbon negative due to the method of production)oil such as:

http://www.csrees.usda.gov/newsroom/rese arch/2007/ancient_bacteria.html

http://www.gizmag.com/go/7723/

d) The offshore drilling is nothing more than a Band Aid (non)solution for a problem that is our DEMAND for oil.  The effort will not change anything in the cost of gas at the pump.  What we need is to refocus on alternate

e) Our retirement systems are speculating in oil driving the prices up even higher.  Maybe a ban on government oil speculation would be in order.


by Why Not on Thu Jun 19, 2008 at 12:27:12 PM EST
[ Parent ]

Wow (2.00 / 2)

This is a complete cave-in to the GOP frame on energy.  

But then Jerome also bought into the gax tax gimmick.

Amazing.


by fladem on Thu Jun 19, 2008 at 12:35:34 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

Don't underestimate the importance of not being out of touch with the voters.  I think that coming out in favor of limited access to coastal drilling, as part of a far more extensive energy package mainly focused on increasing alternative energy options might be a way to get more than we are giving up.  I just don't want to see this become a signature difference between the candidates, with Obama on the wrong side.  

Politics is about dealing with reality - and the reality here is that a lot of folks are very concerned about rising energy prices.  I'm with you Jerome.


by tarheel dem on Thu Jun 19, 2008 at 04:10:10 PM EST
[ Parent ]

If you think it's uh oh for oil now, just wait (none / 0)

When gas gets seemingly "expensive" most people in the US will be more than willing to grasp at straws like drilling in sensitive areas, and arguing against it will fall on deaf ears.

But we haven't seen anything yet.  Americans are in for a very rude awakening when it comes to energy.  Next summer when gas is averaging over $5.00, we'll all look back fondly on the summer of 2008 when gas was cheap at just $4.00/gal.  

U.S. gas prices are going rise roughly $1.00/gal PER YEAR for the next several years. By the end of Obama's first term in 2012, oil will likely be $250/barrel and gas will cost $7.00 to $8.00/gallon.

There's a huge upcoming discrepancy between global energy supply and global energy demand.  Oil is only our most immediate problem -- next will come natural gas (in the 2010's) and then coal (in the 2020's or sooner).  We can't build or drill our way out of this.  Energy shortages and rationing by price -- or other forms of rationing -- are going to be issues which dominate the rest of our lives.

As many other posters here have said, increased domestic drilling won't make a whit of difference.  But Americans are desperately going to want to continue Business As Usual at almost any cost.  There's going to be a lot of economic pain.  No matter how little sense drilling makes, I can't see any way that the stance of opposing drilling is going to be anything other than a huge political loser.


by Johnny66 on Thu Jun 19, 2008 at 10:52:53 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Well, Jerome, I guess the healing process has begun for our party.I agree with you %100. I have been saying for ever and a day that we should dril in ANWAR and the Gulf, as long as it was party of a long-term package that included alternative fuels.
Personally, I have always thought that the Dems should frame the alternative fuel issue in the sense of national security, especially after 9/11. Getting off of foreign oil is a security issue, getting off of oil period is the domestic issue. One lead right into the other.

EXCELLENT diary.


A PROUD Hopium user!
by xodus1914 on Thu Jun 19, 2008 at 11:06:02 AM EST

Re: Oil uh oh (2.00 / 3)

Yea lets drill for more oil while remaining just as addicted as the world gets more addicted.

Strength by Obama would be to force the Caffe standards NOW, not in 20 years.


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:10:24 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

Thats hard to do as a candidate...

And as an engineer I can tell you that 4 years from now the problem will largely fix itself via serial hybrid cars and new electric generation.

Wind even domestic homeowner based wind is economically viable now.  Solar is almost there.  45 Nuke plants is a massive step.

Chevy volt comes out in 2010, prius will be plug in by then too, Mitsubishi wants in to that race with a serial plug in too.  Even the hydrogen cars provide the ability to run off electricity in the form of home hydrogen generators.

Let me repeat myself by 2012 this issue will largely be over and who ever is in the white house will own it.

Try and see the forest not the trees.


by dtaylor2 on Thu Jun 19, 2008 at 12:09:01 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

As an engineer you should remember the famous VW Lupo 3L.

As an engineer, would it be hard for USA to have entice VW to sell these small but safe cars here?

This car got 80mpg 6 years ago!  no batteries, no hydrogen etc and under 13K.

The technology has been around for years, hell even the 1991 honda CRX got 50mpg.

Thank god for 5$ gasoline, we mpg'ers have been waiting for years.
Hard to import economic cars when gasoline is less than 2$ a gallon.


by DemsLandslide2008 on Thu Jun 19, 2008 at 12:13:18 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Electrical equivalent gas is $1 a gallon.  That is to say the cost of going 30-40 miles.

When the Chevy volt and the other serial hybrids with real batteries that allow people reduce a gallon a day using only $1 of electricity we will see the something like 8 barrels of oil per car per year reduction in consumption vs status quo

Factor in the hydrogen cars fueled from water and electricity and you have long commuters who can go completely gas less.  For a professional driver who may go through 10 gallons of gas a day this will save 80 barrels of oil per car per year.

And sometime between now and 2012 algae diesel and algae jet fuel will come on line and there will be a MASSIVE ramp up and each barrel of that reduces consumption by a barrel roughly.

The next president will get credit for all that...


by dtaylor2 on Thu Jun 19, 2008 at 12:39:52 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

But by then we will already have given the land/water away to oil companies.  If what you say is true and our dependence on oil has decreased that doesn't mean that the rest of the world will follow suit (and certainly not as quickly).  So the oil companies will begin exporting oil from the off-shore refineries.  It will be much harder to ban it again once we've taken away the environmental protections.

I think we'd be stuck with this decision longer than you realize.


by Tenafly Viper on Thu Jun 19, 2008 at 02:52:07 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Yea, we have a bunch of ideologues that would ban oil right now if they could, to covert first, into understanding that compromise is gonna be necessary to get a solution.


by Jerome Armstrong on Thu Jun 19, 2008 at 11:31:20 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

I am the most liberal person I know, I even studied environmental science in college, and we need oil. It's a fact. I would love if we could move off oil right now. We cannot. People going around saying "we deserve this" are mostly right, but seriously look how elitist that sounds. It makes Democrats look like we do not care about the 'little person'. Last time I checked we are the only political party who does. Obama may be correct on the issue, but we will need the oil anyway. The purity wing is definitely out and I am afraid they don't see Obama's flaws at all.

Tie the offshore drilling to CAFE standards, give it a try. The Democratic congress needs to do something in conjunction with the Obama campaign or we look really weak on this issue, when we should be kicking ass on economic issues!


Philly Liberal
by Airb330 on Thu Jun 19, 2008 at 11:42:07 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Bringing it in with higher CAFE standards is a great idea.


by Jerome Armstrong on Thu Jun 19, 2008 at 12:07:17 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 2)

Wrong.

Read this:

Solar Grand Plan

...spend the 500 billion it calls for and everybody will be driving plug-ins in 20 years.

Yes, we will still need oil for the chemical industry for a while but the American public is so brainwashed that they are unaware of the reality of the situation.

I can buy an all-electric Indian car, being sold out of a BK Cadillac dealership, today.

The Solar Grand Plan will work.

All we need is some gotdamned leadership.

We sure don't' need low-info morans from Ohio telling us what to do.


by Pericles on Thu Jun 19, 2008 at 12:17:48 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Solar will work

but it will be called algae diesel

and we will all use liquid fuel.

There is talk that the can even make normal gas out of the algae if so we will all drive our same cars guilt free and carbon neutral...

Thats a pretty easy sell.


by dtaylor2 on Thu Jun 19, 2008 at 12:42:54 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

I am also one of the more liberal/progressive people around -- ask anyone who knows me.

One of the precepts of being a progressive for me is caring about and understanding people -- little, big, in-between.

One thing I know and can see is that people are suffering because of high gas prices. People have to get to work, food has to get to tables, other commodities need to be brought to consumers. All are affected by the price of oil. That will not change unless we do something about it in the short run as well as the long run. It is a matter of the urgency of now.

If it would alleviate people's suffering and anxiety, if it would make it easier for people to get to work, buy food, etc. Then I am all for drilling in ANWAR, off-shore drilling, and whatever else will make life easier.

Make it part of a long-term, comprehensive plan which includes research and funding for alternatives. Fine.

But oil needs have got to be addressed now.

How selfish is it to say that people deserve this crisis? How little compassion do you have? Are you so removed from your fellow human beings that you don't really care about their lives? Instead you care more for your ideology, your sense of purity, your imagined high-ground position.

And, if your ideology also has a global component, then tell me: why is it only the US that should be spared the supposed environmental horrors of drilling? Aren't all environments worthy of protection?

I'm afraid that there is a lot of selfishness, ideological self-delusion, lack of compassion, and an inability to understand compromise and reality going around and we need more than that right now.


by cuppajoe on Thu Jun 19, 2008 at 03:29:49 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Well that was directed at me, at quite unfortunate.

I think the high prices are terrible, but nothing suprising.

At the end of the day I feel fear for businesses because Diesel is over-inflated because of distilation issues.

But I stick with what I said, we deserve this crisis.

We built our society on the idea gas would be 1$ a gallon for ever.  When it went to 1.70$ pandemonium nearly broke out.

What price drove Clinton to release the reserves?

Call me a purist all you want, but when you saw the looks on the faces of my friends in europe, when I told them in 2003 that I was paying 25 CENTS a liter, and they were paying 1.20 a liter they responded very hatefull towards me and my country.

To them, the exploding Iraq war and America having fuel 5x cheaper than them spoke volumes.

I am happy we have high fuel, I proved everyone wrong who called me a hippy for buying a VW TDI that got near 50mpg and now the financial incentive is there to force Americans to change.

Maybe now we will stop raising the AC just because we like to wear sweaters in the summer.

It might sound harsh, but the decadency of rome didn't last forever, nor will it here.


by DemsLandslide2008 on Thu Jun 19, 2008 at 05:06:05 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

I hadn't exactly directed it you when I first posted. But rather at anyone with similar attitudes.

Of course, your follow-up post proves my point. There are real people suffering and all you can do is gloat over the fact that perhaps you had a point. (Which you didn't then and don't now.)

I know people who use cars that get good mileage; they don't live extravagantly; they don't use AC much. But they are having a lot of difficulty paying for the gas they need to get to work and do other necessary things.

You're attitudes are awfully dismissive of real people and real problems. And I have no respect for that.


by cuppajoe on Thu Jun 19, 2008 at 05:21:08 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 5)

Aren't you a big environmental guy?  I thought that was how you got into politics in the first place.  

If so, this is a terrible idea that won't have ANY impact on gas prices for years to come.  In other words, it's nothing but another gimmick.  


by HSTruman on Thu Jun 19, 2008 at 11:06:38 AM EST

Re: Oil uh oh (none / 0)

Yea, but I know its gonna be hard to get out of this mess. It's not a gimmick, quit fooling yourself. We need oil.


by Jerome Armstrong on Thu Jun 19, 2008 at 11:26:56 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 7)

Do you think it is right our government allows CAFE to be completely ineffectual?

Doesnt it make you mad that the police here drive V-8 Crown Vics and the police in Germany drive 45mpg Diesel BMW's?

Jerome, you know oil is a global product, what you are proposing is adding more oil to the international market, because if our refineries our at max capacity, more available crude will just be exported.


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:32:24 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

What jerome is saying is that the amount of time it will take to get off oil, should require us to tap other sources - the price of gas will go so high there will be voter unrest if the fed doesnt score some relief, somehow.

And the price of gas skyrocketing will take care of what years of environmental nudging couldn't - which is to say, you'd better believe people are going to be backing alternatives at this point.

My mom bought a new hybrid. She lurves it. The Hummer is now going out of production. Poof. Just like that. People are moving very, very rapidly to a green economy.

The drilling Jerome's talking about might just help us when we will need it most. Its a finite resource, everyone knows that.


by Trey Rentz on Thu Jun 19, 2008 at 11:40:50 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

VW is also bringing back the TDI model this September.

Will get 140hp/240lbs tq and 48 mpg.

I have a 2002 TDI, which stock was 90hp/170 and after 2500$ in engine upgrades makes 137/235.

Point is the newest CommonRail technology coming out is just as economic, and just as fast as my tuned to the max ALH TDI motor.

Also to all the haters, TDI's do not lose economy as they are tuned.  Our cars burn a fixed ammount of fuel, tuning just allows your foot to tell the care to inject that fuel faster.

And for all you car nerds, I got 15.5 on the 1/4 mile last week (went to a redneck race track for kicks)


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:50:45 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

if anything, your argument backs up the assertion that new drilling should not be done.

the environmental movement is being helped by the high price of crude. It's changing how people travel and giving us a greener nation.

So, we can open up the Gulf Coast and ANWR to more drilling, and then we can see the Middle East increase production even more then the 1/2 million barrels a day Saudi Arabia is about to add to the market.


!
by alex100 on Thu Jun 19, 2008 at 12:07:57 PM EST
[ Parent ]

It will have zero (2.00 / 2)

impact on the current price of oil.

Zero.  

It will take at least 10 years for this oil to come online.


by fladem on Thu Jun 19, 2008 at 12:54:58 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Thank you. It seems the purity wing of the Democratic Party is out in force. Seriously, this is a MAJOR losing issue with us. I am 100% against ANWR, though I'd have to say the public is probably going to start backing that too. Offshore drilling, however, provides jobs and oil, which we need and to the public...seems less disruptive than ANWR. I'd love to not need it, but lets be realistic.


Philly Liberal
by Airb330 on Thu Jun 19, 2008 at 11:34:02 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

First, I am proud to be a "purity" Democrat, whatever that means.

So do you think a compromise of nationalizing this offshore drilling so only the government and government employees benefit is a good idea?


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:39:03 AM EST
[ Parent ]

Why is driling 100 miles (none / 0)

from the everglades and beaches that are the lifeblood of an economy LESS disruptive than drilling in ANWAR?


by fladem on Thu Jun 19, 2008 at 12:56:18 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

We have oil, we're just finally starting to pay more for it, like the rest of the world.  I'm concerned about gas prices, because that hurts people who need to get to work every day and heat their homes.  But no one claims that these measures will actually reduce gas prices this decade.  Plus there are plenty of other ways to help people address those economic pressures.  Like, for example, a middle class tax cut.  Given that, I really don't see any policy argument in favor of this action.  

If you want to argue its the right political action, then fine.  You're a political pro, so I'll readily concede you may be correct in that assessment.  But I don't see how you can call this anything but a gimmick.  And I think it's unfair to label anyone that disagrees with you an ideologue.  


by HSTruman on Thu Jun 19, 2008 at 11:47:04 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

Solar Grand Plan

We do not.

Please educate yourself and stop buying off on the idiocy of oil.

Every hear of 'Peak Oil'.

It's real and we've got to get off The Road to Olduvai Gorge....

Before it's too late.


by Pericles on Thu Jun 19, 2008 at 12:20:05 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

The solar plan is much easier now at $4 a watt than in the 70s at $100 a watt.

If we delay with oil it may end up $1 a watt and will just happen.

Or we may find bio-diesel or algae diesel wins and photovoltaic never happens....

But I will add an interesting aspect that you may not have thought about.

Photovoltaic solar acts as an air conditioner to the outside.  Every kilowatt of electricity that you generate is a kilowatt of heat that would have existed.  

I did a very rough estimate that for 105 billion worth of solar panels at $8 a watt installed in the CITY of Los Angeles would be enough to cover 10% of the land with 10% panels and reduce effective solar radiation by 1% and that is about a ~5 degree F change.

Math is space is 3 degrees Kelvin, LA is ~30 degree C or 303 degree kelvin for 300 kelvin difference from space and solar heating is major cause for temp and 1% reduction is 3 kelvin or 3 celsius or 5 Farenheight.  

I know when you are serious about physics its more complicated that that due to heat radiation not being first order (its 3rd order) but the reduction in heat also reduces the need for AC which produces heat and the panels would likely be 13% so small 2nd order and 3rd order terms need merely be smaller than 3-4% of the linear term.

297^3 is 97% of 300^3 so the higher order error from nonlinearity for radiation is ~2% from the expected 99% that linear would predict.  Thus the simple math produces the correct numbers.

Now in practice the surrounding areas would blow hot wind into LA and the above would only work in areas that are the hottest area surrounded by cooler areas.  But it would work in those areas.


by dtaylor2 on Thu Jun 19, 2008 at 01:04:28 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

To some extent, yes, but let's not shortchange our potential to do things right.

In 1961, Kennedy decided to put a man on the Moon.  The Eagle landed in 1969.  If begun today, right now, drilling in ANWR or off-coast Florida wouldn't likely have an impact on gas prices for a decade.  With some agressive initiatives, we could significantly reduce our oil dependance in a relatively short time.  

Trouble is, we didn't have a hard-wired multi-gazillion dollar industry whose interests were AGAINST lunar landings intertwined with the federal government in the 60s.

Despite that, and given the very real environmental risks, neither ANWR or offshore drilling are particularly good solutions, even in the short term.


I'm as strong as a bull moose, and you can use me to the limit. - Teddy Roosevelt
by fogiv on Thu Jun 19, 2008 at 12:24:19 PM EST
[ Parent ]

No one who cares about the environment (2.00 / 2)

would run the risks that offshore drilling entails.

And for oil that won't be available for 10 years, and for amounts that will make no difference.


by fladem on Thu Jun 19, 2008 at 12:38:23 PM EST
[ Parent ]

Re: Oil uh oh (2.00 / 7)

I read somewhere that abortion is unpopular with 51% of the country.  Perhaps we should let the states decide whether a woman can pick what to do with her own body?

Wasn't it here that I read a study posted on the front page saying that if we were to get all that oil, it would lower prices by about $5 a barrel- in 10 years???


John McCain wants to stay in Iraq.
by ihaveseenenough on Thu Jun 19, 2008 at 11:08:04 AM EST

Re: Oil uh oh (2.00 / 5)

Obama has already come out against it, he can't switch now.  What he needs to do is beat McCain over the head with the fact that he flipped his position from 3 weeks ago at the  behest of his political operatives.


by Mr Sifter on Thu Jun 19, 2008 at 11:09:29 AM EST

Re: Oil uh oh (none / 0)

This isn't really about Obama, but congress and their battle with Bush, right now.


by Jerome Armstrong on Thu Jun 19, 2008 at 11:27:56 AM EST
[ Parent ]

How 'bout this? (none / 0)


RICHMOND, June 18 -- Senate candidate Mark R. Warner said Wednesday that the U.S. government needs to get tougher with OPEC and better regulate investors speculating in the oil market to drive down gas prices.

Warner (D) unveiled his energy policy the same day that President Bush called for Congress to remove the federal ban on offshore drilling, including areas off the Virginia coastline. Warner said he supports offshore exploration for oil and natural gas but stopped short of endorsing drilling, expressing environmental concerns and saying it would have no immediate impact on gas prices.

[...]

Warner hit back at Gilmore on Wednesday, calling his solution shortsighted and unrealistic. Warner instead unveiled a multifaceted proposal that seeks to reduce the U.S. reliance on oil.

"The Bush-Cheney energy policies not only sound like they were written by Big Oil, they were written by Big Oil, and we are paying at the pumps," Warner said in a speech at the Science Museum of Virginia in Richmond. "My opponent in this race, who was the biggest proponent of sound-bite solutions, is now advocating the continuation of those very policies right now. I hope this becomes one of the defining issues of this Senate race."

Tim Craig - Gas Prices Energizing Va. Senate Race Washington Post 19 Jun 08


by Shaun Appleby on Thu Jun 19, 2008 at 07:19:55 PM EST
[ Parent ]

Re: How 'bout this? (none / 0)

"Warner said he supports offshore exploration for oil and natural gas but stopped short of endorsing drilling"

He's a smart man, no doubt, capable of making the exact sort of solution I point toward.


by Jerome Armstrong on Thu Jun 19, 2008 at 08:41:44 PM EST
[ Parent ]

Re: How 'bout this? (none / 0)

I'm basically agreeing, but note he is keeping faith with the platform, while sticking it to the opposition on the issues.  I like the way he is saying it much better.


by Shaun Appleby on Thu Jun 19, 2008 at 10:47:19 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

...and make sure that everyone knows that McCain's policy is Bush's policy...


It profits a PUMA nothing to give their soul for the whole world... but for McCain? --Sir Thomas More (if he were here now)
by LordMike on Thu Jun 19, 2008 at 02:01:05 PM EST
[ Parent ]

Because its stupid as hell? (2.00 / 4)

The politics have changed, and I don't see the principle that guides Democrats to be unequivocally against offshore drilling for oil at this point

How about its dumb in that it won't change oil prices for the next 20 years by which we should have largely weaned ourselves from oil as a major energy source, but will do environmental (and aesthetic) damage now?  
McCain = Iraq. John McCain = overturn Roe.
by PantsB on Thu Jun 19, 2008 at 11:11:04 AM EST

And what's your solution? (none / 0)

Read the rest.

Obviously, you don't understand that its part of a larger solution.


by Jerome Armstrong on Thu Jun 19, 2008 at 11:34:04 AM EST
[ Parent ]

Its not a solution (2.00 / 4)

Its pandering.

And "Solution" to what?  It doesn't solve anything.  Our oil dependence isn't going to be solved by gimmicks and the US isn't dumb enough to think it will be.  Pandering to the Republican position - reactive strategy - instead of pointing out McCain's "flip-flop" and that its a foolish placebo that just tries to hide the real problems we have - a proactive strategy - is the kind of thinking that leads to Republican-lite, losing Dems.

Sticking to your guns, especially when you're right, is something Americans admire and its one trait Obama needs to not sacrifice, especially to simply react to Republican attempts to set the topic on an issue (enviromental/gas prices)  Obama will win in November, at the cost of his image as a genuine agent for a change in both the way politics work and the policies of Bush.


McCain = Iraq. John McCain = overturn Roe.
by PantsB on Thu Jun 19, 2008 at 11:47:01 AM EST
[ Parent ]

On the Update (2.00 / 1)

Second, we're talking about leveraging the short-term solution that Bush has offered up as a means to get a long-term solution in place, not about whether drilling for oil offshore is legitimate as a solution. Third, the ideological purity position of there being an environmental/aesthetic argument against it is exactly the position the Republicans want us to adopt.

How does Obama need "leverage"?  A campaign issue isn't about "leverage" and if he gains the WH he'll have Democratic majorities in both Houses and a political mandate to put into place superior alternatives.  This is only a central issue(offshore drilling) if Obama agrees to make it so and if he's simply going to agree that McCain is right there's no reason to.

Second, who cares what the big bad Republicans want?  We don't react to them anymore.  They react to us.  They aren't all knowing chess masters, they're the ones who have less than 200 Members of Congress.  


McCain = Iraq. John McCain = overturn Roe.
by PantsB on Thu Jun 19, 2008 at 11:57:44 AM EST
[ Parent ]

Re: On the Update (2.00 / 1)

amen.

it's sad how easily one would capitulate to such a bad proposition.

The Middle East very well knows the pressures the U.S. is facing with gas prices and is one reason why the Saudis will be increasing production by 1/2 million barrels per day. It's in their best interests for prices to stay low so that alternative fuels don't get a foothold in this country.

Its bad policy and no amount of GOP framing on the issue (they call it "safe, environmentally-friendly oil drilling") would sway my mind on the issue.


!
by alex100 on Thu Jun 19, 2008 at 12:36:11 PM EST
[ Parent ]

Actually (2.00 / 1)

this post and your prior support for the gas tax holiday suggest you don't know anything about this issue.

This is not a short term solution.  It will have no impact on the price of oil.  No one knows how much there is, and the oil compaines aren't even drilling where they are currently allowed to drill in the gulf.

Frankly, your support is based on ignorance.


by fladem on Thu Jun 19, 2008 at 12:58:37 PM EST
[ Parent ]

Re: Actually (2.00 / 1)

There's no reason for you to lie about my position in order to make childish name-calling a habit.

The gas tax, coupled with the profit tax, was a winning issue. You can refer to the IN results, where Obama would have otherwise won, for confirmation.


by Jerome Armstrong on Thu Jun 19, 2008 at 02:09:24 PM EST
[ Parent ]

Re: Actually (none / 0)

She was polling 6-12 points ahead of Obama days before the election...She won by less than 1%....It wasn't a winning issue for her in Indiana.


Toot, thank you for raising such a terrific person...You done good and we will have you in our hearts.
by hootie4170 on Thu Jun 19, 2008 at 03:41:16 PM EST
[ Parent ]

Re: Actually (none / 0)

bs, look at Obama's own projections, they thought they'd win the state. Everyone, post-Iowa, had Obama up in the state. Clinton made it the issue the week prior to the election. She closed the gap and went up.


by Jerome Armstrong on Thu Jun 19, 2008 at 04:35:55 PM EST
[ Parent ]

Re: Actually (none / 0)

Hey I'm just going by RCP and their polls...Check them out, she was up by much more 2 weeks out...Something made that number go down, my guess was the gas-tax pandering....BTW, thanks for my rec/rate privs back...


Toot, thank you for raising such a terrific person...You done good and we will have you in our hearts.
by hootie4170 on Thu Jun 19, 2008 at 06:07:05 PM EST
[ Parent ]

Re: Actually (none / 0)

No you are not:
http://www.realclearpolitics.com/epolls/ 2008/president/in/indiana_democratic_pri mary-639.html

The issue became full boar the last week of April and first few days of May. That's when Clinton overtook Obama.


by Jerome Armstrong on Thu Jun 19, 2008 at 08:47:52 PM EST
[ Parent ]

Re: Actually (none / 0)

Well we disagree...I love mydd though...

Jerome, I never read your book...Can it be ordered on mydd?


Toot, thank you for raising such a terrific person...You done good and we will have you in our hearts.
by hootie4170 on Thu Jun 19, 2008 at 09:33:20 PM EST
[ Parent ]

I was referring to the public (none / 0)

merits of the gas tax holiday.  Which were non-existent.


by fladem on Thu Jun 19, 2008 at 04:56:32 PM EST
[ Parent ]

Re: I was referring to the public (none / 0)

The merits were to win the election in IN, and looks like that's what it did for Clinton.

You know, sorta like the NAFTA bashing that Obama engaged in, before droppping it by the wayside...


by Jerome Armstrong on Thu Jun 19, 2008 at 08:59:21 PM EST
[ Parent ]

Re: Because its stupid as hell? (2.00 / 1)

Well to the general public, they want action. Obama comes off as elitist and uncaring. I definitely think Obama can turn this into an issue about "flip-flopping". People do not want to hear statistics and 20 years this and that. Have we not learned this already from 2004, where we though Bush was dumb...that turned out amazingly well.


Philly Liberal
by Airb330 on Thu Jun 19, 2008 at 11:36:02 AM EST
[ Parent ]

Thats what they said about the gas tax holiday (2.00 / 1)

The "public" isn't as dumb as people think.  "Flip-flopping" is what Obama would be doing if he compromised on his right and correct position because of some very short term polling (especially in that it contradicts long term trends in Florida and CA).


McCain = Iraq. John McCain = overturn Roe.
by PantsB on Thu Jun 19, 2008 at 11:39:29 AM EST
[ Parent ]

Re: Thats what they said about the gas tax holiday (none / 0)

Excuse me, but if John Q Public thinks gas prices are related to supply problems and that drilling for oil that may not be available for 7 to 10 years will lower prices, yes they are that dumb.
(But I agree with you about Obama)
"Who are you for? That is the wrong question. It should be who is for you?" HRC
by skohayes on Thu Jun 19, 2008 at 12:27:20 PM EST
[ Parent ]

Good news!! (2.00 / 3)

The Democrats aren't unequivocally against off shore drilling.  As Pelosi said yesterday, the oil companies need to exploit the offshore fields they currently lease before we should lease them more.  LINK


Consider that everything which happens, happens justly, and if thou observest carefully, thou wilt find it to be so. -Marcus Aurelius
by Blue Neponset on Thu Jun 19, 2008 at 11:14:14 AM EST

Re: Good news!! (2.00 / 2)

well to tell the truth, prices at the pump could drop by as much as 40 to 90 cents if the oil companies would simply bring their additional refining capacity online. they short that capacity to keep prices high. And there are in fact, only a few of them actually operating in the US. What. Seven of them?


by Trey Rentz on Thu Jun 19, 2008 at 11:42:49 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 4)

I disagree I dont care what people in Wyoming think of ofshore drilling, no one is lining up to see how the voters of Colorado will take it.

I want to really see what the people of Florida think, I do not think the politics have changed, and I think THOSE voters would be the first to know that they wont get much for 20 years

and why has EVERYONE seemed to have forgotten its not the oil thats the problem its the refinerines, so how does increasing oil but still not increasing refineries solve anything?


Dream for tomorrow but fight for it today.
by TruthMatters on Thu Jun 19, 2008 at 11:15:29 AM EST

Re: Oil uh oh (none / 0)

How does driving SEDANS that get less than 30 mpg save anything?

Not to toot my own horn but I have been driving a car that gets 47mpg since 2002 (and its not a silly hybrid).

Americas average MPG is worse than most developing countries.

We have the energy crisis we deserve.


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:19:39 AM EST
[ Parent ]

Why are Hybrds "Silly" (2.00 / 1)

My Prius gets 55 silly miles to the gallon! So hows that compare to your Silly, 47mpg gas guzzler! LOL :-)


by eddieb on Thu Jun 19, 2008 at 11:38:01 AM EST
[ Parent ]

Re: Why are Hybrds "Silly" (2.00 / 1)

Watch it there, I drive the evil VW TDI.

The car not cool enough for the hollywood or Political elite.

I call it silly because it boggles the minds of car enthusiasts world wide how America, and only America was able to latch onto the idea of huge, expensive, bad for the environment batteries with a small engine would be a good idea.

The VW TDI platform has been America for ELEVEN years now.

Also, my TDI is about twice as powerfull as a hybrid gas model, I can use my AC without any loss of power or economy, and I can drive as hard and fast as I want (economy stays the same, nature of diesel combustion)

Not to knock hybrids or the people that buy them but any person who KNOWS automobiles will tell you Diesel is the best clean solution.

If hybrids were so good they would have put a dent in the euro market but they haven't.

Also, VW, MINI, and FORD have all introduced TSI/FSI which is direct injected gasoline.
Basically it burns gasoline the same way a diesel engine does.
This technology is not as efficient as diesel, but is close and makes more power than older tech.

Please check out TDIclub.com for more info.


by DemsLandslide2008 on Thu Jun 19, 2008 at 11:45:01 AM EST
[ Parent ]

Re: Why are Hybrds "Silly" (2.00 / 1)

I take back the word silly, Im sorry, just understand as a TDI owner I supported hybrids back in the day but when you see the media, celebrities, politicians outright ignore a economic solution that is in place RIGHT now (the eu is average 50% diesel cars) it blows the mind.

Anyways, in defense of lithium batteries, VW will be the first German firm to enter the hybrid arena and they will do it victoriously with diesel motor as 1/2 the hybrid system.

IT will get 70 mpg, a 28 increase over the 2.0 TDI

http://www.autobloggreen.com/2008/03/04/ geneva-2008-miserly-vw-golf-tdi-hybrid-c oncept-uses-1-2l-3-cyli/
http://www.autobloggreen.com/2008/03/04/ geneva-2008-miserly-vw-golf-tdi-hybrid-c oncept-uses-1-2l-3-cyli/
http://www.autobloggreen.com/2008/03/04/ geneva-2008-miserly-vw-golf-tdi-hybrid-c oncept-uses-1-2l-3-cyli/


by DemsLandslide2008 on Thu Jun 19, 2008 at 12:06:08 PM EST
[ Parent ]

they were told the drilling would lower $$$ (2.00 / 7)

at the gas pump in the Rasmussen survey. That's why I don't trust the results of this survey, given the leading question.


by slinkerwink on Thu Jun 19, 2008 at 11:15:45 AM EST

Re: they were told the drilling would lower $$$ (2.00 / 4)

Especially since the evidence suggests this wouldn't affect gas prices for a decade or more.  


by HSTruman on Thu Jun 19, 2008 at 11:48:10 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 7)

Changing a policy position based on an outlier poll with misleading questions about the effect drilling would have on gas prices seems like an AWESOME idea.


by Jay R on Thu Jun 19, 2008 at 11:18:02 AM EST

Absolutely wrong. (2.00 / 7)

The best predictions state any offshore oil would not become available for another decade (or three). Furthermore, the oil available at that point would provide an insignificant increase in oil supplies.

Do you really think it's worth further damning up the earth to keep prices at $20.50 instead of $21.00 per gallon for three months in the year 2020? Because that's all this extremely stupid idea would do for us.

We need to move off oil. Period. Full stop. There is no other reality-based answer. Let's stop emulating Republicans in praising non-existent benefits for long-term damage.


should we go outside? / should we break some bread? / are you'nterested?
by Firewall on Thu Jun 19, 2008 at 11:18:09 AM EST

Re: Absolutely wrong. (none / 0)

All the more reason to support this bill halfway. Allow some drilling outside the Alaskan coast like McCain wants, refuse to give in on any rigs anywhere NEAR Florida, and insist that it be tied to matters related to alternative energy and gas prices that we know can work now. Make sure all new cars get lower gas mileage. Give more money to help build up mass transit systems in areas where they are not doing too well (Florida is a great example). Give money to states if they promote and run a good carpooling program.

I saw the tea leaves just like Jerome. I don't think we can get out of it, but I do think we can make it clear that this plan will NOT cut gas prices within the foreseeable future. Our stuff might.


"Hey, check it out. You just had yourself a glue OD. So you're learning another lesson. Don't do too much glue, or your night sucks."
by vcalzone on Thu Jun 19, 2008 at 11:37:54 AM EST
[ Parent ]

Re: Absolutely wrong. (2.00 / 2)

Plus, if we nail McCain on supporting it for Florida, we still kick the everloving shit out of him in the process. Everybody wins!


"Hey, check it out. You just had yourself a glue OD. So you're learning another lesson. Don't do too much glue, or your night sucks."
by vcalzone on Thu Jun 19, 2008 at 11:43:11 AM EST
[ Parent ]

Re: Absolutely wrong. (none / 0)

Agreed 100%. Definitely not near FL, but otherwise spot on.


Philly Liberal
by Airb330 on Thu Jun 19, 2008 at 11:43:44 AM EST
[ Parent ]

Re: Absolutely wrong. (none / 0)

Florida is not a special case. The massive, newly discovered reserves off her coast are the white elephant in the room. Seriously, its 5 billion barrels of oil down there.


by Trey Rentz on Thu Jun 19, 2008 at 11:44:08 AM EST
[ Parent ]

Re: Absolutely wrong. (none / 0)

That won't get gotten for a very long time. Alaska has way way more. I thought we were supposed to be for reducing the PRICE of oil. If we focus on using less in our cars, oil goes down, diesel goes down, gas goes down. We just have to keep getting money in there to make sure people will still use the alternative means when oil does go down.

Perhaps we could make a deal with the devil and make it clear that participation in alternative energy investment and more efficient automobiles will be a top priority for energy companies if we are desperate enough to tap our reserves at the risk of our wildlife.


"Hey, check it out. You just had yourself a glue OD. So you're learning another lesson. Don't do too much glue, or your night sucks."
by vcalzone on Thu Jun 19, 2008 at 11:52:05 AM EST
[ Parent ]

Re: Absolutely wrong. (none / 0)

The best predictions state any offshore oil would not become available for another decade (or three). Furthermore, the oil available at that point would provide an insignificant increase in oil supplies.

I keep hearing opponents of offshore drilling making this point, but I am not persuaded.

First off, if the amount of offshore oil is insignificant, oil companies will simply decline to drill.  Why make huge capital investments for a miniscule quantity of oil?

If in fact offshore oil is so sparse, there's no drawback to giving oil companies permission to drill.  They'd never take the government up on its offer.  Let the market work.

This leads me to my next point: just where is the data that says there's so little oil offshore?  What are the amounts of proved, probable, and possible resources -- and what is the basis of the estimates?  Who's doing the estimating?

My suspicion is that drilling opponents don't want to answer that question, because they're afraid that once oil companies gain the right to drill, they'll do real seismic analysis and find that there's more oil than drilling opponents claim.

Finally, there's a huge difference between saying the oil won't come online for one decade, or for three.  I truly get the sense that numbers are being bandied around without any basis.  So again: what is a realistic estimate for how long it takes to do the seismics, procure the necessary capital equipment, drill test wells, and deploy large-scale offshore drills?  I'm not a petroleum engineer, so I can't say, but I'd be surprised if it's thirty years.

Now, I agree that we need to do far more R&D into alternative energy sources.  And I also think that the real bottleneck is in our lack of refining capacity as much as in the extraction of crude oil.  But it is also silly to think we can rely on foreigners to extract our oil indefinitely -- and we do have to address short- and medium-term issues, not just long-term ones.  So I am tentatively in favor of drilling offshore.


by He Who Must Not Be Named on Fri Jun 20, 2008 at 12:23:52 AM EST
[ Parent ]

Here's your sources, dammit (none / 0)

This one is an unadulterated crock.  Roll up your pantlegs while I shovel.

Let me say, first off, anyone who says drilling is, to quote the disingenuous bobbing, weaving, flip-flopping cobra McCain, a "short-term solution" is delusional.  Any land -- or for that matter, portion of the seabed -- released for drilling today won't produce a drop of oil for a decade.  At least that's what the oil lobby, the American Petroleum Institute, says.  Since they get paid to be optimists about oil, you have to figure a realistic estimate would probably be longer. Source: http://www.mcclatchydc.com/homepage/stor y/41379.html

Second, as with any other resource, certain extraction methods are more expensive than others, and will only be employed when they become profitable.  Offshore drilling is expensive.  The more remote the site, the more costly.  Offshore drilling only makes economic sense if the oil tapped can be sold at a high price. Once the price of oil drops (unlikely, but let's think hypothetically), the offshore drills operate at a loss, they get shut down, and prices go up again.  Provided it even makes economic sense to drill offshore, analysts on all sides agree it is a political, regulatory and environmental powderkeg.  If exploration were allowed, permits would have to be granted, and before that environmental concerns must be addressed.  Think about it this way: you're the governor of Florida or North Carolina, whose coastal economy has billions of dollars tied up in high-value housing and tourism.  Are you willing to risk the imagined or real consequences of offshore drilling rigs (I have friends who've been to the beaches in Texas where the tar balls roll ashore all day; people prefer Florida and Carolina beaches for a reason). Source: http://www.mcclatchydc.com/homepage/stor y/41451.html

Third, there's probably not a lot of oil out there.  The Interior Department offered a wide range of estimates of how much oil might be within reach of U.S. offshore drilling in a 2006 report. It estimated that the Outer Continental Shelf could hold 115.4 billion barrels. However, it also estimated that recoverable reserves off U.S. coasts in areas now banned (well, it's actually a moratorium, dating from 1981, imposed by Ronald Reagan of all people) from production probably hold only about 19 billion barrels.  So do the math on that.  The world consumes about 86 million barrels a day. The U.S. share of that is about 20.6 million barrels, 60 percent of them from foreign sources.  One thousand million barrels equals 1 billion, so if there are 19 billion barrels in the areas McCain would open to drilling, that's enough to provide about 920 days, or about 2.5 years, of current U.S. consumption.  That's right. Drill in all the places you can't drill now and you get (gong!) a whopping 2.5 years worth of oil. And that's assuming consumption levels stay static, which they have never done.  Source: http://en.wikipedia.org/wiki/Image:World _energy_consumption%2C_1970-2025%2C_EIA. png

Fourth, there are not enough ships to carry the oil.  Let's assume you build the wells (remember, that's 7-10 years out), make it economically feasible (i.e. continued high prices), and are willing to go after that slim supply (2.5 years worth), you still need a highly specialized craft to go out there and do the drilling.  The world's current supply of drill-ships is booked solid for the next five years. It's a critical bottleneck that has frustrated oil executives by constraining their ability to even go after known reserves, let alone begin exploring for new sources.  Let me repeat that.  You can't even begin drilling currently known reserves offshore for the next FIVE years because of a shortage of drill ships.  Source: http://www.nytimes.com/2008/06/19/busine ss/19drillship.html?_r=1&hp&oref =slogin

Fifth, while we're on the topic of shipping, per the Jones Act, only U.S.-flagged oil tankers can go out to a drilling rig and bring the extracted oil to a U.S. port.  I have no data on whether there are enough U.S. flagged oil tankers available, so I'll leave it an open question, but I'd wager a weeks wages that the answer will be similar to that of the availability of drill-ships.

Sixth, the assertion by the McCain campaign, in careful, lawyerly words, that "hurricane Katrina did not cause any oil spills from the offshore rigs in the Gulf of Mexico" is disingenuous, if not an outright lie.  The reason: the offshore rigs all shut down, were abandoned or went into other failsafe modes in anticipation of the storm, as they always do for safety's sake.  Yet, according to the Natural Resources Defense Council, Hurricane Katrina caused what amounts to one of the largest oil spills in U.S. history, 6.5 million gallons, from the rupture of near-shore storage tanks and pipelines, that exist to serve the offshore rigs. Source: http://www.nrdc.org/media/pressreleases/ 050915.asp

Seventh, and perhaps the biggest argument against dropping the moratorium, the oil companies haven't developed the leases they currently hold.  Political hay is being made right now about the 1981 moratorium on drilling in certain coastal areas.  Other areas are not only open to drilling, but the leases and drilling permits have already been issued.  And they are not being drilled.  In fact, only 17% of the leased areas is in production.  So, with about 33 million acres of offshore areas already available to drill and not being drilled, why does the oil and gas industry need to have access to still more?  The fact is that nearly 25 BILLION barrels of oil off the coast of the United States is currently available for drilling ... and industry is not drilling it.

This is the story on dry land as well.  More than 44 million acres of onshore public lands are leased for oil and gas development and yet most of it is not being drilled.  All told (onshore and offshore), 68 million acres are leased and sitting idle.  Over 10,000 permits are currently 'stockpiled' by industry. But still they want more.  Between 1999 and 2007, the number of drilling permits issued for development of public lands increased by more than 361%.

Let me ask this:  Did you see your gasoline costs drop?  How about your electricity costs?  Propane?  natural gas?  Uh...no. There is absolutely no correlation between the industrialization of public lands and the price of fossil fuels.  
It has been estimated that if all of those currently inactive leases were drilled, the USA would produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas EVERY DAY, accounting for a doubling of US oil production and a 75% increase in US natural gas production.  The Minerals Management Service tells us that about 80% of fossil fuels available in offshore are currently available for development.  I forgot to mention about offshore natural gas.  Most of the natural gas occurring offshore (over 328 TRILLION cubic feet - an eleven year supply at current consumption rates) is currently available for leasing and development.  Like the oil I mention above, the industry is not going after it.  Source: Energy Information Administration, Analysis of Crude Oil Production in the Arctic National Wildlife Refuge,May 2008; Inventory of Onshore Federal Oil and Natural Gas Resources and Restrictions to Their Development, U.S. Departments of the Interior, Agriculture, and Energy; May 2008.
Finally, the last argument the drill-lovers have to fall back on is a belief that the current oil price spike is not just supply (or supply chain) and demand, but being pumped up by speculation.  There's a lot of debate on this, and I'm actually leaning toward agreement with that narrative, and think Paul Krugman is a fool for arguing otherwise in recent NY Times columns.  But answer this: if drilling is necessary to wring speculation out of the price, wouldn't a big investment in real solutions like alternative, non-oil-based energy do exactly the same thing?
I'll sum up:

THIS

IS

A

FRAUD

There is no way offshore drilling, one of the most expensive methods of extraction there is, will reduce gasoline prices.  Not in the long term, as the data shows, and for sure not in the short term, as simple laws of physics won't allow.

Oil companies have access to oil and gas resources that they are not extracting, so that begs the question, why?  Is it just greed to keep prices, and therefore profits, artificially high?  I tend not to buy into greed arguments, since it implies the ability to read the emotions of C-level people who are a decidedly odd and tough-to-read lot to begin with.

Besides, the answer is a lot simpler, and is more black-and-white.  It's because that is how the business model of the oil industry is currently designed.  

Someone told me once that the real value of McDonald's is not in selling burgers and sodas.  That only pays the rent, so to speak.  The real value is in the land all the stores are built on: high-value, commercially-zoned, high-visibility parcels, usually in high-traffic areas near interstate highways.

The oil industry works the same way.  The real money is not in the exploring, extracting, pumping and retailing of oil and gasoline.  Those are just pass-throughs.  The real family jewels for the oil industry is the land -- large tracts, zoned for industrial extraction, with mineral rights and proven or suspected resources underneath.  What a coup to gain new lands now, and begin extracting oil from them 15 or 20 years hence, when prices and profits are even higher!

The fact that you can do this while in the same fell swoop embarrass Barack Obama, take down the Congressional Democrats, increase corporate profit and further drive up the price of energy, well, that's all just a bonus.  The fact that this became a topic of discussion among the punditocracy at this time and place, as opposed to, say, five or six years ago when anyone could have seen it coming, should be all the proof you need that this is nothing more than a political ploy and a land grab.  But if you need more evidence, note that both McCain and Gov. Charlie Crist of Florida, both staunch opponents of drilling in ANWR and offshore, respectively, have just last week changed their tunes 180 degrees.

So quick was the flip by McCain, they are calling it McCain vs. McCain: http://www.huffingtonpost.com/2008/06/18 /mccains-offshore-drilling_n_107872.html

And you will note that, in all of this, I did not make one single, leftist, environmental, tree-hugging, save-the-planet-for-the-unborn-gay-baby- harp-seals argument.

God, I hate batting down these stupid GOP-driven narratives.  I feel like I'm playing whack-a-mole.


by gas28man on Fri Jun 20, 2008 at 10:46:58 AM EST
[ Parent ]

Re: Oil uh oh (2.00 / 1)

I think the politics only appears to have changed based on misinformation that additional drilling will lead to decreased prices in the short term.  Explain that it won't, and the numbers will probably normalize.


by rfahey22 on Thu Jun 19, 2008 at 11:19:11 AM EST

Re: Oil uh oh (2.00 / 5)

There are something like 68 million acres under lease and approved for drilling both on and off shore in thye USA that are not being drilled right now. Oil companies in the ground reserves play heavily into their stock price and the oil companies would love to get their hands on more reserves without having to tap what they already have.

The only thing that could impact gas prices short term would be if countries like China and Saudi Arabia reduced subsidies for domestic gas. Cheap subsidized gas in developing nations is exploding demand. Long term we can not drill our way out of the problem and it remains to be seen whether the potential billions in loses to economies dependent on pristine coastlines will be offset by the gains.

Like the gas tax this sounds like a good idea until you spend 30 seconds looking at the facts. It will provide zero short term relief and it does not solve the long term problem. So is it worth putting the coastal tourism, real estate industries these states depend on at risk for a stop gap measure that will have little effect?


by hankg on Thu Jun 19, 2008 at 11:20:33 AM EST

Re: Oil uh oh (none / 0)

SE Asia, China and India are already cutting their subsidies.

Deeply.

They're out of dough for such and as are result the citizenry is rioting sproadically.

The EU ain't too happy either.

I guess folks here missed the 'news' due to the big Russert send off.

Typical.

Jerome is utterly wrong on this and I dont' have say anything other than CA will never allow off shore drilling and any Presidential candidate who advocates same is losing this state.


by Pericles on Thu Jun 19, 2008 at 12:25:42 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

China's hike of 18% makes a small dent in subsidies that keep Chinese prices half what they are here. Iran, Saudi Arabia, Egypt, Burma, Malaysia, Kuwait, Venezuela, Taiwan, South Korea, Trinidad and Tobago, Brunei and Nigeria all subsidize fuel prices. This really encourages demand growth putting additional pressure on prices. Massive subsidies in oil producing nations greatly reduces the amount that they can export.

The drill offshore effort will when it meets competing local economic interests that would lose billions with wells appearing on the coastline will produce very little but consume lots of time, money and energy. A distraction from solving the real problem.


by hankg on Thu Jun 19, 2008 at 12:58:28 PM EST
[ Parent ]

Re: Oil uh oh (none / 0)

So is it worth putting the coastal tourism, real estate industries these states depend on at risk for a stop gap measure that will have little effect?

My understanding is that most offshore drilling would take place far enough away from the coastline that you'd never see it.  If so, aren't these concerns about tourism and real estate being overstated?


by He Who Must Not Be Named on Fri Jun 20, 2008 at 12:28:06 AM EST
[ Parent ]

Re: Oil uh oh (none / 0)

It's not the sight of the oil rigs that's the problem.  It's the constant spillage in small amounts, a natural consequence of the entire enterprise (drilling, piping, transfering oil onto tankers, etc.), that causes floating tar balls to roll up on the beaches at every tide.

There's a reason people prefer the beaches in Florida and the Carolinas.  It's because the ones in Texas are pretty gross.


by gas28man on Fri Jun 20, 2008 at 10:41:17 AM EST
[ Parent ]

Don't Get Played... (2.00 / 5)

The oil companies are using the gas price scare to grab more public land and fatten their stock prices.

Big Oil is not interesting in actually investing in increased production...they just want the oil leases to attract investors.

Most Oil Leases on Public Lands Go Unused

Nearly three-fourths of the 40 million acres of public land currently leased for oil and gas development in the continental United States outside Alaska isn't producing any oil or gas, federal records show, even as the Bush administration pushes to open more environmentally sensitive public lands for oil and gas development.

Morton said the leases, which companies can lock up for 10 years with annual rents of only $2 to $3 an acre, are an economic boon to some companies because they count as assets that can make debt refinancing easier while also attracting potential investors.


by JoeCoaster on Thu Jun 19, 2008 at 11:20:43 AM EST