Re: Will More Drilling Mean Cheaper Gas? Not Likely. Bigger Oil Profits More Likely.
- From: FDR <FDR@jdfgkldfgkldklfg>
- Date: Sat, 21 Jun 2008 21:52:56 -0400
marc0ni@xxxxxxxxxxxxx wrote:
On Jun 19, 4:57 pm, billimmel...@xxxxxxxxx wrote:On Jun 19, 3:05 pm, Harry Hope <riv...@xxxxxxxxxxxxx> wrote:
As recently as his 2000 presidential run, McCain had been againstIt is disappointing to be reminded of how dense is the general public
offshore drilling, but he changed that position Tuesday, arguing that
individual states should decide for themselves.
(He remains against drilling ANWR, however, pointing out that "we
called it a 'refuge' for a reason.'")
The Republican Governor of Florida, Charlie Crist — considered a
possible vice-presidential candidate — also flip-flopped, backing
McCain's position.
From TIME Magazine, 6/18/08:http://www.time.com/time/business/article/0,8599,1815884,00.html?xid=...
Jun. 18, 2008
Will More Drilling Mean Cheaper Gas?
By BRYAN WALSH
On Wednesday morning President George W. Bush urged Congress to
overturn a 26-year ban on offshore oil drilling in the U.S., and open
a part of the Arctic National Wildlife Refuge (ANWR) for petroleum
exploration.
Flanked by the secretaries of Energy and the Interior, Bush also
proposed streamlining the construction process for new oil refineries,
and explained that these moves would "take pressure off gas prices
over time by expanding the amount of American-made oil and gasoline."
Coming a day after Republican presumptive presidential nominee John
McCain made a similar appeal to enhance domestic oil exploration, Bush
was sending an unsubtle election year message to the American public:
I care about the economic toll of $4 a gallon gas, and Democrats in
Congress, who have opposed such an expansion, don't.
But there's a flaw in that logic:
even if tomorrow we opened up every square mile of the outer
Continental Shelf to offshore rigs, even if we drilled the entire
state of Alaska and pulled new refineries out of thin air, the impact
on gas prices would be minimal and delayed at best.
A 2004 study by the government's Energy Information Administration
(EIA) found that drilling in ANWR would trim the price of gas by 3.5
cents a gallon by 2027.
(If oil prices continue to skyrocket, the savings would be greater,
but not by much.)
Opening up offshore areas to oil exploration — currently all coastal
areas save a section of the Gulf of Mexico are off-limits, thanks to a
congressional ban enacted in 1982 and supplemented by an executive
order from the first President Bush — might cut the price of gas by 3
to 4 cents a gallon at most, according to the Natural Resources
Defense Council.
And the relief at the pump, such as it is, wouldn't be immediate — it
would take several years, at least, for the oil to begin to flow,
which is time enough for increased demand from China, India and the
rest of the world to outpace those relatively meager savings.
"Right now the price of oil is set on the global market," says Kevin
Lindemer, executive managing director of the energy markets group for
the research firm Global Insight.
President Bush's move "would not have an impact."
The reason is simple:
the U.S. has an estimated 3% of global petroleum reserves, but
consumes 24% of the world's oil.
Offshore territories and public lands like ANWR that don't allow
drilling may contain up to 75 billion barrels of oil, according to the
EIA.
That may sound like a lot, but it's not enough to make a significant
difference in a world where global oil demand is expected to rise 30%
by 2030, to nearly 120 million barrels a day.
____________________________________________________
Harry
if they take up
the "drill now chant".
bill
What's wrong with making a profit?
Because the profit is based on hype and not reality. There is no shortage. Prices have doubled in a couple years, but has demand doubled? Has production been cut in half? no and no.
.
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