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View Full Version : The sorry state of our nation's energy policy



Marvin S
02-27-2012, 09:18 PM
1st - all drilling in the gulf of Mexico is stopped - 2nd - the Keystone pipeline is stopped based on very faulty reasoning -

Why does everyone wonder why gas prices are so high? Is there a disconnect in logic?

paul young
02-27-2012, 10:15 PM
Marvin, we could double our production of oil, diesel, jet fuel and gasoline and the result would be that we would export even more of it. the industry is more than happy to manage the domestic supply of these products and sell the excess on he world market at even higher prices than we are paying here at home.

it is well documented that this is taking place. there have been many news articles written on the subject. it's one of the reasons i have energy stocks in my portfolio. if you can't lick 'em, join 'em........

those projects you mention would provide some employment opportunities, but the days of cheap oil are gone, unless we have another very large recession.-Paul

Quackwacker
02-27-2012, 10:19 PM
Marvin, we could double our production of oil, diesel, jet fuel and gasoline and the result would be that we would export even more of it. the industry is more than happy to manage the domestic supply of these products and sell the excess on he world market at even higher prices than we are paying here at home.

it is well documented that this is taking place. there have been many news articles written on the subject. it's one of the reasons i have energy stocks in my portfolio. if you can't lick 'em, join 'em........

those projects you mention would provide some employment opportunities, but the days of cheap oil are gone, unless we have another very large recession.-Paul

yep:mad::mad:

zeus3925
02-27-2012, 11:21 PM
This article indicates the Keystone pipeline may not give you a break to oil prices:

http://bottomline.msnbc.msn.com/_news/2012/02/27/10519685-why-the-keystone-pipeline-would-boost-pump-prices

Franco
02-28-2012, 09:36 AM
1st - all drilling in the gulf of Mexico is stopped - 2nd - the Keystone pipeline is stopped based on very faulty reasoning -

Why does everyone wonder why gas prices are so high? Is there a disconnect in logic?

Not all gulf drilling was shut down, just the deep water drilling which resumed a little over a year ago. Though the administration has opened up new areas for drilling, there is no assurance that permits will be issued to drill in those areas.

Major oil companies are focusing on countries more drilling friendly than the USA. It cost them a lot more to drill in US waters than elsewhere.

My take is that the administration is keeping domestic drilling low so as the force consumers to buy better MPG vehicles and think green. Much folly in that thinking. And, don't buy into the propaganda that Obama has incresed drilling and production. Any increases are due to policies from years ago. If you think we are in trouble now, just wait another 2 to 4 years when Obama's policies hit us at the pump!

paul young
02-28-2012, 10:19 AM
Not all gulf drilling was shut down, just the deep water drilling which resumed a little over a year ago. Though the administration has opened up new areas for drilling, there is no assurance that permits will be issued to drill in those areas.

Major oil companies are focusing on countries more drilling friendly than the USA. It cost them a lot more to drill in US waters than elsewhere.

My take is that the administration is keeping domestic drilling low so as the force consumers to buy better MPG vehicles and think green. Much folly in that thinking. And, don't buy into the propaganda that Obama has incresed drilling and production. Any increases are due to policies from years ago. If you think we are in trouble now, just wait another 2 to 4 years when Obama's policies hit us at the pump!

Franco you are just plain full of it......600,000 barrels a day-that's 18 million barrels per month being exported.

i could cite dozens of articles written over the last 3 months. here is one of the latest.

http://www.alaskadispatch.com/article/would-reducing-us-fuel-exports-stop-gas-prices-spiking

Franco
02-28-2012, 11:11 AM
Franco you are just plain full of it......600,000 barrels a day-that's 18 million barrels per month being exported.

i could cite dozens of articles written over the last 3 months. here is one of the latest.

http://www.alaskadispatch.com/article/would-reducing-us-fuel-exports-stop-gas-prices-spiking


Paul, what's wrong with your reading comprehension?

I said nothing of exports. Exporting of jet fuel and other petro products has always been a major export of the USA. I addressed the drilling in the gulf and the fact that increase in drilling over the last three years is due to the prior administration. I also said that Obama's policies will cost us at the pump in the future because there is no assurance of drilling permits in the gulf!

And, I said that drilling other than in the USA is more profitable for the oil companies and they do have a responsibility to their stockholders.

Gerry Clinchy
02-28-2012, 11:31 AM
Don't exports still help our economy?

Franco
02-28-2012, 11:40 AM
Don't exports still help our economy?

Yes they do and our jet fuel is the finest in the world. One major problem is that there are not enough refineries.

There is no excuse for not building the Keystone Pipeline or assuring oil companies that if they purchase leases in the gulf that drilling permits will be issued. No matter what BS the current administration's PR department says, they have been anti-oil! Actions do speak louder than words.

Gerry Clinchy
02-28-2012, 01:59 PM
Well, TransCanada is building a line from OK to TX. They don't need POTUS approval since it does not cross a US border. The pipeline "hub" in OK is glutted with too much oil :-)

Sounds like this would be a preamble to the Keystone line ... once they get Pres approval on the rest of it, they will already have part of the pipeline in place.

Paul, the days of cheap oil may be over ... but it makes sense to me to get our oil from a friendly neighbor like Canada (or produce our own) instead of some unstable countries in the MidEast, who are most often less than friendly.

Uncle Bill
02-28-2012, 02:12 PM
The Sodak Republican Senator had an op-ed in Politico the other day, which I'd like to share with everyone.

UB

POLITICO
Obama Policy Threatens Energy Boom (http://e2ma.net/go/12610722948/214036709/228460821/40437/goto:http://www.politico.com/news/stories/0212/73298.html)

By: Sen. John Thune
February 27, 2012

During our historically slow economic recovery, the energy industry has been a bright spot amid otherwise gloomy economic news. Domestic energy production is increasing, and jobs are beginning to spring up around new energy construction.

President Barack Obama likes to take credit for this energy boom, but in reality, recent U.S. energy growth is largely a result of private-sector investment and policies put in place by his predecessors. The energy policies this president has adopted are jeopardizing the progress we have made, and if he continues them, the U.S. energy boom could soon be over.

Moreover, the presidentís policies are driving up energy prices for consumers. Gasoline prices have already doubled under Obama ó the 2011 average of $3.50 per gallon was the highest annual average ever recorded ó and they are expected to increase even further in 2012, with some predictions suggesting $5 per gallon by the end of May. If the president continues to restrict access to domestic energy resources and drive up the cost of production, energy prices will continue to worsen.

Over the past three years, the president has systematically discouraged new energy exploration and development. His proposed five-year offshore lease plan sharply restricts the sale of leases for energy exploration and bans energy development on 97 percent of the available offshore areas. Since Obama issued his six-month deep water moratorium in 2010, the number of permits issued for offshore energy development has declined a staggering 40 percent to 50 percent.

As a result of the presidentís policies, energy production in Alaska and the Gulf of Mexico is projected to decline. Energy production in Alaska is threatened to such an extent that the future viability of the Trans Alaska Pipeline System, a vital source of domestic oil, is now in question.

The president is also restricting energy production on federal lands. While energy production from federal areas was relatively high in 2010 and 2011, almost all of that production was from leases issued before he entered office. Under the Obama administration, the issuance of new drilling leases and permits to drill on federal lands has declined by 44 percent and 39 percent, respectively.

Perhaps the most spectacular example of the presidentís hostility to increased domestic production is his recent rejection of the largest shovel-ready project in the United States, the Keystone XL pipeline, which, in addition to boosting domestic production, would immediately create 20,000 jobs. The pipeline would also greatly enhance the reliability of our energy supply by replacing crude oil imports from places like Venezuela with imports from Canada, our nationís closest trading partner.

Not content with restricting access to domestic energy sources, the president is also jeopardizing the current energy boom by making it more expensive to produce American energy. Thanks to an avalanche of new regulations from the Environmental Protection Agency ófrom new greenhouse gas emission rules to regulations specifically targeting the oil and gas industry ó the cost of energy production is steadily increasing. Just one of these regulations ó the new Tier 3 gasoline standard ó is expected to drive up the cost of producing gasoline by 25 cents per gallon and force up to a 14 percent reduction in gasoline supplies from U.S. refineries.

To achieve energy security and lower energy prices for Americans, our nation requires the kind of all-of-the-above energy policy that Republicans continue to push. Facing rising gas prices and a tough reelection campaign, the president has recently taken to saying that he, too, believes in such an approach. But a true all-of-the-above policy would focus on developing more American energy of every kind and consist of more than just funding stimulus energy projects like Solyndra.

Approving the Keystone XL pipeline, streamlining how offshore and onshore permits are issued, lifting the offshore oil and gas moratorium in the Eastern Gulf and Atlantic and Pacific Coasts, relaxing boutique fuel requirements, opening offshore areas of Alaska and Alaskaís North Slope and stopping new regulations that will drive up the price of gasoline are just a few of the actions that could be taken today to open up domestic energy resources and ease Americansí pain at the pump.

Robust domestic energy production will create jobs, enhance the reliability of our energy supply, spur economic development and help keep gas prices down. Itís time for the president to stop stifling American energy and start encouraging the development of all our nationís energy resources.