Bush lifts executive ban on offshore oil drilling

[Manuel]

President Bush lifted an executive order banning offshore oil drilling on Monday and urged Congress to follow suit.

Citing the high prices Americans are paying at the pump, Bush said from the White House Rose Garden that allowing offshore oil drilling is "one of the most important steps we can take" to reduce that burden.

However, the move is largely symbolic as there is also a federal law banning offshore drilling.

"This means that the only thing standing between the American people and these vast oil reserves is action from the U.S. Congress," Bush said.

Bush lifts executive ban on offshore oil drilling - CNN.com

 

[Chris]

Bush lifts executive ban on offshore oil drilling - CNN.com

Trying to shift the blame of no energy policy to Congress. Part of Karl Rove's strategy.

Why don't they just blame Canada?

 

[Charles_Main]

Trying to shift the blame of no energy policy to Congress. Part of Karl Rove's strategy.

Why don't they just blame Canada?

It will prove effective too. Now the only thing standing in the way of Drilling is Democrats in congress.

 

[AllieBaba]

Everyone already knows everything is Canada's fault.

I love the South Park movie where the politicians and newsheads keep saying, "We've already apologized for Bryan Adams!"

 

[Steerpike]

Everyone already knows everything is Canada's fault.

I love the South Park movie where the politicians and newsheads keep saying, "We've already apologized for Bryan Adams!"

"..and that bitch Anne Murray too."

 

[Tech_Esq]

It will prove effective too. Now the only thing standing in the way of Drilling is Democrats in congress.

I doubt it. The Dems have too much to lose to cave on drilling. Their constituency is firmly in the "alternative energy is the only way" camp. And let's not forget the "eco-nuts" no way they would support drilling. Not when there is a one-winged, two-legged purple beetle that could be harmed, maybe, because of it.

 

[Charles_Main]

I doubt it. The Dems have too much to lose to cave on drilling. Their constituency is firmly in the "alternative energy is the only way" camp. And let's not forget the "eco-nuts" no way they would support drilling. Not when there is a one-winged, two-legged purple beetle that could be harmed, maybe, because of it.

Well thats kinda my point isn't it. If they do not cave, In the face of a large majority of people being in favor of Drilling, it will hurt the Dems at the polls. Which I assume is why Bush lifted the Executive ban, to try and place the blame for not drilling at the feet of Democrats.

 

[Tech_Esq]

Well thats kinda my point isn't it. If they do not cave, In the face of a large majority of people being in favor of Drilling, it will hurt the Dems at the polls. Which I assume is why Bush lifted the Executive ban, to try and place the blame for not drilling at the feet of Democrats.

I think your analysis is correct, but it will require republicans to nationalize the election and have an aggressive message to actually take the Dems to task on the point. This year the Repubs have shown they are in complete disarray. They have no stomach for anything decisive. Even if McCain manages a win, he'll have major democrat coattails.

Not what I hope happens, but it's what I think will happen.

 

[JimH52]

The GOP could score some big points on this one. The majority of Americans now see a need for off shore drilling. If the GOP pushes the Dems to the wall, they might win or at least keep their seats in Congress.

 

[Bern80]

I would not be surprised if the democrates waivered on this one. It's that time of the election cycle where the pandering really begins. The two candidates are doing it already. Apparently they think there's something to gain.

It's all going to depend on the spin afterward. The dems could be in a lose, lose situation. If they block it, McCain would be wise to take the 'dems are makeing the economy worse' ball and run with it. And as was eluded to earlier the dems will be in pretty hot water with the fringe left if they vote it through.

As to whether or not this is a good idea, of course it is. In financial terms and prices at the pump we are kinda putting the noose around our own necks. There is no reason to not use what we can readily get at right now. Oil somehow has got this 'dirty' reputation. even though technology, from drilling to auto emissions, has curbed pollution significantly. To the point that when people scream about the environmental impact they are really making mountains of mole hills.

I hope the next administration is able to strike a balance between using what we have available and R&D on alternative fuels. We're all aware that the oil won't last forever and most likely in our lifetimes it is the now third world and developing nations taht will be the largest consumers of it, not the U.S.

 

[Jeepers]

It will prove effective too. Now the only thing standing in the way of Drilling is Democrats in congress.

That and maybe common sense.... I give two shits about four dollars a gallon gas... I still use my suv just as much as before.. how is drilling going to help... face it.. drilling has dick to do with the price of oil.. the only sense of urgency is due to the fact that everyone knows that a democrat will win the presidency.. this is cash grab while the perceived grabbing is good... basically you duped bushophiles are still proving that being duped is an inherent trait and not just a once or twice in a lifetime fluke...

 

[jreeves]

That and maybe common sense.... I give two shits about four dollars a gallon gas... I still use my suv just as much as before.. how is drilling going to help... face it.. drilling has dick to do with the price of oil.. the only sense of urgency is due to the fact that everyone knows that a democrat will win the presidency.. this is cash grab while the perceived grabbing is good... basically you duped bushophiles are still proving that being duped is an inherent trait and not just a once or twice in a lifetime fluke...

Sure supply and demand doesn't have anything with the price of anything....

 

[Chris]

Well thats kinda my point isn't it. If they do not cave, In the face of a large majority of people being in favor of Drilling, it will hurt the Dems at the polls. Which I assume is why Bush lifted the Executive ban, to try and place the blame for not drilling at the feet of Democrats.

On Bush's desk is a sign that says "The Buck Passes Here."

 

[Charles_Main]

On Bush's desk is a sign that says "The Buck Passes Here."

Good one.

I hope people do not think, just because I think I understand his motivation, that I in anyway approve of his ass. I will be thrilled when Bush is finally gone. However If his replacement is Obama I am sure the happiness will wear off pretty fast. Not that McCain is much better lol. Guess that is why I am willing to waste my vote on the likes of Bob Barr and the Libertarians.

Talk about a fucked up election.

 

[Ninja]

Bush

The more cute animals that go extinct as a result, the better

 

[Jeepers]

Sure supply and demand doesn't have anything with the price of anything....

C'mon einstein.. do explain to all of us how the lack of supply is causing this rise in oil prices...

 

[Tech_Esq]

Good one.

I hope people do not think, just because I think I understand his motivation, that I in anyway approve of his ass. I will be thrilled when Bush is finally gone. However If his replacement is Obama I am sure the happiness will wear off pretty fast. Not that McCain is much better lol. Guess that is why I am willing to waste my vote on the likes of Bob Barr and the Libertarians.

Talk about a fucked up election.

I sitting in your boat right beside you. I can't vote for a socialist, so Obama is out. I won't vote for McCain. I've held my nose and pulled the lever for the last time. I mostly believe along libertarian lines (they are so wrong on foreign policy I almost can't stand them). So, I'm gonna do that.

If we end up with a President Obama, fine, we probably need the shit kicked out of us for a while for being so stupid and falling for the Washington power game and losing focus on what's important.

 

[Tech_Esq]

C'mon einstein.. do explain to all of us how the lack of supply is causing this rise in oil prices...

School is in session. Sit down and shut up.

If supply is plentiful, I can't charge you for the resource. Let air be the example. You consume air all the time. It's freely available and nobody can make you pay for it even though you need it for your continued existence.

So, in order for there to be a market for something there must be a scarcity of resources. And, people have to want it. Pyrite is somewhat scarce, but nobody wants it so who cares. It may have a price, but it's nominal.

Water everyone needs but it's so plentiful (in many places) that you can't charge much for it.

Enter oil. People want it. In fact, more and more people want it. It is relatively scarce. Certainly less plentiful than water. But, how much can you charge for scarce oil? Enter Price Elasticity. If the demand increases but the supply remains the same, the price increases because people are willing to pay more to ensure that they get some of the oil. How much more is Price Elasticity. To the extent that there is no viable substitute for oil, theoretically, the price could go very high indeed. You can't put some other substance in your car and drive it right now.

So, we know the China and India are industrializing and creating previously unknown demand which will only increase over the next 50 years. (probably rapidly). If you refuse to increase supply, the price will increase so that countries can make sure they get their needed supply of oil to make sure their economies can continue.

The only way out of this loop is that an alternative to oil is developed that is sufficient to have an effect on supply. So some part of the demand falls off and begins using the alternative. (Similar to if the price of coffee goes up high enough, people will switch to tea). Or, the actual supply increases thus being able to meet the demand at a lower price. (wishing I could draw a supply and demand curve here.)

This is an imperfect explanation, but it should get you started.

Back to the point, if the US says that it is firmly committed to a program of drilling a few results will follow. Speculators will leave the market, because they know supply will be increasing in the future which is where they speculate. The amount of increase in supply will become too speculative for the investor. The US has known reserves of vast amounts of oil, in addition there are unknown amounts of oil where exploration has yet to take place. Brazil recently found one of the largest supplies in the world off its shore. As oil starts pumping out of the ground and into the markets the price equilibrium of oil will fall relative to a situation will less supply.

The more the supply of oil looks like the supply of water and not the supply of gold, the lower its cost will be. That's how drilling more wells make oil cost less.

 

[sealybobo]

C'mon einstein.. do explain to all of us how the lack of supply is causing this rise in oil prices...

We don't have a free market in the energy industry. Everybody knows that. We give a trillion a year in subsidies, direct and indirect subsidies, to oil, and somewhere near a trillion dollars to coal. Nuclear energy is also highly subsidized. If we had a real free market that does what a market is supposed to do, which is to reward good behavior and punish bad behavior and inefficiency, wind, solar, geothermal and tidal would easily triumph in the marketplace. You would see them immediately taking over the marketplace. The biggest impediment is these huge subsidies we're pouring into incumbents.

 

[Jeepers]

School is in session. Sit down and shut up.

If supply is plentiful, I can't charge you for the resource. Let air be the example. You consume air all the time. It's freely available and nobody can make you pay for it even though you need it for your continued existence.

So, in order for there to be a market for something there must be a scarcity of resources. And, people have to want it. Pyrite is somewhat scarce, but nobody wants it so who cares. It may have a price, but it's nominal.

Water everyone needs but it's so plentiful (in many places) that you can't charge much for it.

Enter oil. People want it. In fact, more and more people want it. It is relatively scarce. Certainly less plentiful than water. But, how much can you charge for scarce oil? Enter Price Elasticity. If the demand increases but the supply remains the same, the price increases because people are willing to pay more to ensure that they get some of the oil. How much more is Price Elasticity. To the extent that there is no viable substitute for oil, theoretically, the price could go very high indeed. You can't put some other substance in your car and drive it right now.

So, we know the China and India are industrializing and creating previously unknown demand which will only increase over the next 50 years. (probably rapidly). If you refuse to increase supply, the price will increase so that countries can make sure they get their needed supply of oil to make sure their economies can continue.

The only way out of this loop is that an alternative to oil is developed that is sufficient to have an effect on supply. So some part of the demand falls off and begins using the alternative. (Similar to if the price of coffee goes up high enough, people will switch to tea). Or, the actual supply increases thus being able to meet the demand at a lower price. (wishing I could draw a supply and demand curve here.)

This is an imperfect explanation, but it should get you started.

Back to the point, if the US says that it is firmly committed to a program of drilling a few results will follow. Speculators will leave the market, because they know supply will be increasing in the future which is where they speculate. The amount of increase in supply will become too speculative for the investor. The US has known reserves of vast amounts of oil, in addition there are unknown amounts of oil where exploration has yet to take place. Brazil recently found one of the largest supplies in the world off its shore. As oil starts pumping out of the ground and into the markets the price equilibrium of oil will fall relative to a situation will less supply.

The more the supply of oil looks like the supply of water and not the supply of gold, the lower its cost will be. That's how drilling more wells make oil cost less.

Wrong.... if this were the case, then oil would be in short supply to justify the cost .. right?... will the next wingnut try to answer this please...