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road kill
01-11-2011, 09:14 AM
Obama's Anti-Drilling Agenda

President Obamaís oil spill commission will release its long-awaited final report this morning, recommending new government regulations and limits on drilling. These conclusions could shape the future of the oil industry -- and impact our nationís energy policy for years to come.

The commissionís primary focus was determining the cause of the spill. Last week it revealed that errors by BP, Transocean and Halliburton contributed to the blowout of the Macondo well, resulting in the deaths of 11 people and the worst spill in history.

But the commissionís members have decided to go a step further. The anti-drilling measures recommended in their report would take America in the wrong direction. This shouldnít come as a surprise. Obama picked five members who lack expertise in drilling and have a history of donating to Democrats. One member leads the Natural Resources Defense Council.

Expect liberals to seize on the report to condemn the industry as a whole and renew their attacks on offshore drilling. But the fact is that mistakes of individual actors should not result in punishment for an entire industry.

The American people deserve better. With energy needs on the rise -- and gas prices inching higher -- now is a time for solutions. The first step is putting an end to the Obama administrationís anti-drilling policy in the Gulf of Mexico. Just two new deep-water permits have been issued since the politically motivated moratorium ended three months ago. Thatís down 88 percent from the historical average. Shallow-water permits, which werenít even subjected to the moratorium, are down 11 percent.

Ongoing delays in the Gulf of Mexico are only part of the problem, however. Offshore drilling bans currently prevent exploration in about 85% of our coastal waters. Those bans are crippling job creation and making America more reliant on foreign sources of oil.

Unfortunately, they were recently reinforced by the Obama administration. The Interior Department announced last month that the eastern Gulf of Mexico and the Atlantic and Pacific coasts would be off limits for the next seven years. That news came after the administration canceled four pending lease sales in Alaska.

The oil industry has much to contribute to Americaís energy needs -- particularly in light of rising gas prices. The American Petroleum Institute, in its "State of American Energy" report, estimated the industry supports more than $1 trillion in annual contributions to the U.S. economy. Creating additional access to areas currently closed to development would lead to even more domestic production, new jobs and billions in government revenue.

Yet the administration's actions are having the opposite effect: The lack of exploration and production means fewer jobs for out-of-work Americans and less money flowing into federal coffers.

For the first time since 1959, the United States could go an entire year without a lease sale. That means the loss of more than $1 billion in bonus bids, less revenue from rental payments and significantly fewer royalties. State governments, already grappling with fiscal problems of their own, could forfeit upwards of $100 million in tax revenue, according to Louisiana State University finance professor and economist Joseph Mason.
In addition to its anti-drilling recommendations, the commission will also suggest reforms to the offshore oil and gas liability regime. In the wake of the spill, The Heritage Foundation proposed a liability and claims process that assigns risk of offshore oil and gas operations, compensates victims and protects companies from frivolous lawsuits.

With renewed attention on energy issues, now is the time for Congress to abandon policies and regulations rooted in Washington that lead to higher gas prices, energy shortages and job losses. Instead, lawmakers should turn their attention to common-sense solutions that focus on the free market and entrepreneurial spirit of the private sector.
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RK

duckheads
01-11-2011, 09:58 AM
Good article! I have a question for the people that say drill baby drill won't cause prices to go down. The alaskan pipe line goes down for a leak repair and prices immediately go up. Why wouldn't drilling have the same affect but in the opposite direction?

M&K's Retrievers
01-11-2011, 10:05 AM
It should and would if not manipulated. Why does natural gas prices go down in the winter when demand is up? Go figure.

Franco
01-11-2011, 10:11 AM
Good article! I have a question for the people that say drill baby drill won't cause prices to go down. The alaskan pipe line goes down for a leak repair and prices immediately go up. Why wouldn't drilling have the same affect but in the opposite direction?

That is the arguement from the left. They want you to think that we have no control over the price of oil, that it is a global thing.

The reality is that oil that is produced here, gets refined here and consumed here!

Gas prices at the pump will continue to escalate becuase of the current administrations hostility towards oil companies. BTW, the new permits that were issued last week come with strings attached that make it too risky for anyone to start any new drilling in the gulf. Until the administration can get thier act together, those new permits are a smokescreen in attempting to divert attention away from the current administration.

mjh345
01-11-2011, 10:19 AM
That is the arguement from the left. They want you to think that we have no control over the price of oil, that it is a global thing.

The reality is that oil that is produced here, gets refined here and consumed here!

Gas prices at the pump will continue to escalate becuase of the current administrations hostility towards oil companies. BTW, the new permits that were issued last week come with strings attached that make it too risky for anyone to start any new drilling in the gulf. Until the administration can get thier act together, those new permits are a smokescreen in attempting to divert attention away from the current administration.

Franco are you implying that the domestically produced oil is sold at a reduced price from other oil supplies?

dnf777
01-11-2011, 10:21 AM
Gas prices at the pump will continue to escalate becuase of the current administrations hostility towards oil companies. BTW, the new permits that were issued last week come with strings attached that make it too risky for anyone to start any new drilling in the gulf. Until the administration can get thier act together, those new permits are a smokescreen in attempting to divert attention away from the current administration.

What caused the spike in prices three years ago? I remember gas at over $4/gallon, and diesel at over $5! Surely, that wasn't Sen. Obama's fault?

Franco
01-11-2011, 10:36 AM
Franco are you implying that the domestically produced oil is sold at a reduced price from other oil supplies?

No.

But, the more oil in the market the cheaper. OPEC cut production because we have cut production.

Franco
01-11-2011, 10:37 AM
What caused the spike in prices three years ago? I remember gas at over $4/gallon, and diesel at over $5! Surely, that wasn't Sen. Obama's fault?

Price was driven by speculators. Many of which lost billions when they had to pay $147. for a $60 barrel of oil!

With OPEC and the USA cutting production, the speculators are getting bold again.

M&K's Retrievers
01-11-2011, 10:43 AM
That is the arguement from the left. They want you to think that we have no control over the price of oil, that it is a global thing.

The reality is that oil that is produced here, gets refined here and consumed here!

Gas prices at the pump will continue to escalate becuase of the current administrations hostility towards oil companies. BTW, the new permits that were issued last week come with strings attached that make it too risky for anyone to start any new drilling in the gulf. Until the administration can get thier act together, those new permits are a smokescreen in attempting to divert attention away from the current administration.

Natural gas remains in the $3-$4 range because it is produced here, is abundant, clean and versatile. It seems to me that if additional oil were produced here and added to the market it would drive the price down by forcing OPEC to become more competitive. I for one would like to send their tankers home riding low in the water - lower price or not.

Franco
01-11-2011, 11:39 AM
Natural gas remains in the $3-$4 range because it is produced here, is abundant, clean and versatile. It seems to me that if additional oil were produced here and added to the market it would drive the price down by forcing OPEC to become more competitive. I for one would like to send their tankers home riding low in the water - lower price or not.

And, lets don't forget the taxes paid to the Feds when we drill locally!

Plus, the oil patch employs thousands of skilled workers and that helps the economy, they pay taxes and they stay off of Welfare. They may not make as much money as UAW Assemblyline workers but many entry level positions pay near six figures.

dnf777
01-11-2011, 11:52 AM
No.

But, the more oil in the market the cheaper. OPEC cut production because we have cut production.

Franco,
What do you think about the "abiotic oil" theory?

For those not familiar, we know two confusing facts to be true:

1) Oil is being found at depths far deeper than can be explained by previous life on earth decaying and transforming into oil.

2) Gulf of Mexico and certain Russian oil fields are depleting FAR slower than geologists have predicted, implying that they may be replenished from unknown sources.

Add to this, the fact that we know petroleum can be produced from biosphere in the lab, but obviously, this has not been directly witnessed to happen in nature....only assumed and taught as irrefutable dogma.

zeus3925
01-11-2011, 12:20 PM
Natural gas remains in the $3-$4 range because it is produced here, is abundant, clean and versatile. It seems to me that if additional oil were produced here and added to the market it would drive the price down by forcing OPEC to become more competitive. I for one would like to send their tankers home riding low in the water - lower price or not.

Historically when oil does not meet OPEC's price target there is a big powwow and production is cut in order to maintain price.

Oil presently is not responding to a typical demand/ price structure. Most of the pundits following the issue say that prices have been overinflated by the actions of speculators More than anything.

Cody Covey
01-11-2011, 12:26 PM
Franco,
What do you think about the "abiotic oil" theory?

For those not familiar, we know two confusing facts to be true:

1) Oil is being found at depths far deeper than can be explained by previous life on earth decaying and transforming into oil.

2) Gulf of Mexico and certain Russian oil fields are depleting FAR slower than geologists have predicted, implying that they may be replenished from unknown sources.

Add to this, the fact that we know petroleum can be produced from biosphere in the lab, but obviously, this has not been directly witnessed to happen in nature....only assumed and taught as irrefutable dogma.
I blame the reptiles underneath the Denver Airport :)

mjh345
01-11-2011, 12:28 PM
I would also image that exporting sources don't want to sell their oil for $60/barrell when the weekened dollar ain't worth what it used to be; and that $60 doesn't but what it used to in the international market

Franco
01-11-2011, 12:42 PM
Franco,
What do you think about the "abiotic oil" theory?

For those not familiar, we know two confusing facts to be true:

1) Oil is being found at depths far deeper than can be explained by previous life on earth decaying and transforming into oil.

2) Gulf of Mexico and certain Russian oil fields are depleting FAR slower than geologists have predicted, implying that they may be replenished from unknown sources.

Add to this, the fact that we know petroleum can be produced from biosphere in the lab, but obviously, this has not been directly witnessed to happen in nature....only assumed and taught as irrefutable dogma.

I don't know anythign about this subject.

However, we do have massive reserves. Much more than what the Democrats would have one beleive. Thier current policy in economic suicide! But then again, a major crisis would give those incharge more power.

Shrinking the size and power of the Federal Government is the first step to our economic recovery!

Buzz
01-11-2011, 01:15 PM
Thier current policy in economic suicide!


The policies of the Bush Administration gave us almost $150/barrel oil and gas over $4/gallon. So I guess that worked pretty well too.

dnf777
01-11-2011, 01:19 PM
I don't know anythign about this subject.

However, we do have massive reserves. Much more than what the Democrats would have one beleive. Thier current policy in economic suicide! But then again, a major crisis would give those incharge more power.

Shrinking the size and power of the Federal Government is the first step to our economic recovery!

I didn't either, but after researching it a bit, I found this fascinating. There are theories out of Russia and China that much of the worlds oil is created deep in the earth, under conditions we know very little about. The slower than expected depletion has never been explained by our petroleum geologists even to their own satisfaction, and reserves that have been previously declared "depleted" in Russia and China are now producing once again. Obviously, more dinosaurs didn't die and turn into oil in the past 100 years!

If this theory of abiotic oil has any merit, it will completely change the world.

Roger Perry
01-11-2011, 01:26 PM
The policies of the Bush Administration gave us almost $150/barrel oil and gas over $4/gallon. So I guess that worked pretty well too.

Seemed like when the war in Afghanistan and Iraq started, the price of oil/gasoline went up. Any unrest in the Middle East and the price of Oil/Gas went up, anything that North Korea did or said, the price of Oil/gas went up.

duckheads
01-11-2011, 01:28 PM
Their current policy in economic suicide! I'll second that franco. Buzz I know it's hard but let's stick with the current not the past!

oil surges after off shore drilling report. again oil would plummet if we started the "drill baby drill" attitude and started drilling for our own oil.

http://finance.yahoo.com/news/Oil-surges-on-offshore-apf-963598852.html?x=0&sec=topStories&pos=1&asset=&ccode=

ducknwork
01-11-2011, 02:22 PM
If this theory of abiotic oil has any merit, it will completely change the world.

Boy, isn't that the truth.

Now I won't live in constant fear of us pumping oil from the center of the earth until it is completely hollow and collapses on itself! Maybe I can stop having that recurring nightmare now.

road kill
01-11-2011, 02:24 PM
The policies of the Bush Administration gave us almost $150/barrel oil and gas over $4/gallon. So I guess that worked pretty well too.


Thanks Buzz, you made me laugh out loud.:D

Are you and Roger related???:neutral:


RK

Franco
01-11-2011, 02:48 PM
The policies of the Bush Administration gave us almost $150/barrel oil and gas over $4/gallon. So I guess that worked pretty well too.

That was right before the Presidential election.

Who knows what the speculators were thinking? The speculators took a financial bath when they were taking delivery of $147. per barrel of oil. It put a lot of them out of business!

Today's prices have less to do with speculation and more to do with a lack of production.

dnf777
01-11-2011, 02:59 PM
Today's prices have less to do with speculation and more to do with a lack of production.

Or speculation on lack of production. ;)

Roger Perry
01-11-2011, 03:08 PM
That was right before the Presidential election.

Who knows what the speculators were thinking? The speculators took a financial bath when they were taking delivery of $147. per barrel of oil. It put a lot of them out of business!

Today's prices have less to do with speculation and more to do with a lack of production.

Original Press Release:

July 11, 2008 -- Oil prices spiked Friday as continued tensions in the Middle East and concerns of renewed violence in Nigeria pushed the price for a barrel of oil to a record near $147.

By midday in Europe, light, sweet crude for August delivery jumped $5.25 to $146.90 on the New York Mercantile Exchange.

Oil prices had fallen $10 over two days to start the week and as oil rebounded Friday, Dow Jones industrial average futures fell more than 120 points.

In London, August Brent crude soared $4.92 to $146.95 a barrel on the ICE Futures exchange after hitting a record $147.25.

"There's always a fear premium in pricing. The tensions in Iran and the threat of supply disruption will help support oil prices," said Jeff Brown, managing director of FACTS Global Energy in Singapore.

JBC Energy in Vienna, Austria, said the news about Iran, Nigeria, as well as a reported threat of a strike by oil workers in Brazil were "enough to wake the market from its two-day slumber."

A day after Iran tested a missile capable of reaching Israel, Secretary of State Condoleezza Rice warned the oil-producing nation that the United States will defend its allies. Iran then responded with another missile launch, drawing buyers back to jittery energy markets.

Both the U.S. and Israel have not ruled out a military strike on Iran.

Just backing up my post about what caused oil prices to rise RK

Buzz
01-11-2011, 04:00 PM
That was right before the Presidential election.

Who knows what the speculators were thinking? The speculators took a financial bath when they were taking delivery of $147. per barrel of oil. It put a lot of them out of business!

Today's prices have less to do with speculation and more to do with a lack of production.

I think the implication is that the speculators were capitalizing on the prospect of a President Obama?

Speculators don't take delivery in actual oil. What they did was re-sell those options at a much lower price than they bought them at.


Like Dave says, there is much speculation about lack of production. In fact in the article that duckheads posted a link to we find:


The report raised speculation that the government might slow down production in the Gulf of Mexico, which would lead to higher prices. "As it stands right now, this is a little bit of a concern in the oil patch," PFGBest analyst Phil Flynn said.


Oil prices also got a boost from another blast of cold and snow headed into the Northeast. Winter storm warnings were posted as the third snowstorm in less than three weeks took aim at the New York City area. Prices rose for heating oil, which is used mostly in the Northeast to warm older homes and commercial buildings. The price of heating oil has risen almost 5 percent this week.


Oil prices also got support from Japan's promise to buy bonds to help finance Europe's bailout fund. The money from the sale will be used as part of an international bailout of Ireland, even as speculation lingers that Portugal and perhaps even Spain may be forced to seek help with financial problems.

"Every time we get a sign that the market is going to bail out Europe, it's always been bullish for oil," Flynn said.

So we have speculation about production. We have speculation about what cold weather might do to supply. And we have speculation about the economy and Europe bailouts.

What they won't find to speculate about next.

I follow the market news very closely on a daily basis, and all I can say after YEARS of doing this is that Wall Street is manic with their swings between optimism and panic.

Don't get me wrong, I am ALL FOR DRILLING. I just am sick and tired of everyone panicking every time someone sneezes.

Franco
01-11-2011, 04:46 PM
I think the implication is that the speculators were capitalizing on the prospect of a President Obama?

Not sure Obama had anything to do with it. I just used the election as a reference in time. However, between rising oil prices and the collapse of the auto and financial markets, it sure seemed like the perfect storm to get the Rebublicans out of office.

Speculators don't take delivery in actual oil. What they did was re-sell those options at a much lower price than they bought them at.

Correct. That only take delivery of the paperwork and profit or loss.


Like Dave says, there is much speculation about lack of production. In fact in the article that duckheads posted a link to we find:







So we have speculation about production. We have speculation about what cold weather might do to supply. And we have speculation about the economy and Europe bailouts.

What they won't find to speculate about next.

I follow the market news very closely on a daily basis, and all I can say after YEARS of doing this is that Wall Street is manic with their swings between optimism and panic.

Don't get me wrong, I am ALL FOR DRILLING. I just am sick and tired of everyone panicking every time someone sneezes.

Just one of the reasons I say out of the stock market/futures etc.!
I would rather speculate on taking the Packers and the 3.5 points against the Falcons this weekend!



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