Are you ready to drill for new oil?

[Epsilon Delta]

The problem is that there's absolutely no proof that more drilling's going to make it any cheaper, and the figures revolve around an absolute complete minimum of 5 years before it gives any fruit anyway, with most going around the one or two decades time span. You have to make oil a more relatively ELASTIC good, so that when the price rises, people can switch to alternatives and the price goes down. Obviously it's not that cristal clear in real life, but that's economics for you.

Suggest reading CharlestonChad's post.

 

[Charles_Main]

The problem is that there's absolutely no proof that more drilling's going to make it any cheaper, and the figures revolve around an absolute complete minimum of 5 years before it gives any fruit anyway, with most going around the one or two decades time span. You have to make oil a more relatively ELASTIC good, so that when the price rises, people can switch to alternatives and the price goes down. Obviously it's not that cristal clear in real life, but that's economics for you.

of course lowering the price is hardly the only or even the best reason to drill for are own oil. There is the whole Trade Deficit thing. I mean would we not be better served by spending 700 Billion dollars a year on our own oil, rather than sending it to nations who hate us?

I mean if drilling is not going to lower the price at all, then why not Drill for are own oil, keep the money over here and not send it over there. The price will not go down as you say, so the incentive to develope Alternatives, and conserve will not go away.

now if lowering the price of Gasoline is your goal, I would say that building more refineries would be the way to do it, Considering there is not a shortage of crude oil, but our refineries are nearly at full capacity. I think it only makes sense that the bottle neck at the refineries is part of the cause of high gas prices.

of course the oil companies could just limit production in that case to keep the price of Gas high. So some sort of government intervention and regulation might be needed to force them to not do that.Hell for all I know they are doing that now, and if that is the case, We should get on their asses. If in fact lowering the price of Gas is we want to do. (call me a raging liberal if you must, to me it is about what is practical not what fits my ideology)

me personally while I see the validity of your point about keep up the incentive to develope alternative, I am also feeling the crunch at the pump bad, and would like to see gas come down some. (call me a heartless climate destroyer if you must, I just like my money )

 

[Epsilon Delta]

Well, no the price at the pump is a totally reasonable concern everywhere, but as you said, it's not about lowering the price (which is unlikely to happen in any case, which is why alternatives should be the main focus).

As for sending money to countries that hate the US, well, the Saudi monarchy likes the US. The Iraqi government does too, after all, they were both installed by the US. Canada's a big ally, Norway ain't so bad. Brazil, Colombia, Mexico, Kuwait are all allies. Even the UK exports petroleum to the US. What I'm not so sure about are US relations with Nigeria, Angola, Equatorial Guinea, or Algeria. That leaves pretty much Russia and Venezuela. I mean, a trade deficit is a problem in itself, but the argument that it is 'giving money to our enemies' is kinda shaky.

 

[Care4all]

of course lowering the price is hardly the only or even the best reason to drill for are own oil. There is the whole Trade Deficit thing. I mean would we not be better served by spending 700 Billion dollars a year on our own oil, rather than sending it to nations who hate us?

I mean if drilling is not going to lower the price at all, then why not Drill for are own oil, keep the money over here and not send it over there. The price will not go down as you say, so the incentive to develope Alternatives, and conserve will not go away.

now if lowering the price of Gasoline is your goal, I would say that building more refineries would be the way to do it, Considering there is not a shortage of crude oil, but our refineries are nearly at full capacity. I think it only makes sense that the bottle neck at the refineries is part of the cause of high gas prices.

of course the oil companies could just limit production in that case to keep the price of Gas high. So some sort of government intervention and regulation might be needed to force them to not do that.Hell for all I know they are doing that now, and if that is the case, We should get on their asses. If in fact lowering the price of Gas is we want to do. (call me a raging liberal if you must, to me it is about what is practical not what fits my ideology)

me personally while I see the validity of your point about keep up the incentive to develope alternative, I am also feeling the crunch at the pump bad, and would like to see gas come down some. (call me a heartless climate destroyer if you must, I just like my money )

The only thing you might have missed Charles in all of this is; that EVEN WITH the additional drilling of the estimated billions of barrels of oil that have not been tapped here in the USA, it will ONLY bring our own oil reserves up by an increase of 50%-to doubling them, I believe was mentioned in one of the articles posted here.

Well, taking all of that in to consideration, and what was said in other articles regarding our consumption, and the rate of drawing this new oil out of the ground, we still will only be producing 30-35% of our own consumption in oil is what was estimated, and we will STILL be importing oil.... the trade deficit for oil will NOT be eliminated, it will improve perhaps to $500 billion for oil, unless we find alternative fuels that produce immediately or within the next 5 years, and start conserving like crazy....

Care

 

[editec]

Great points... You would think everyone would want to stop funding countries that hate us, but then again you have some people in the country who want the country to fail for some reason.

Everybody does...who isn't benefitting from that situation.

Sadly, that mostly doesn't include the insiders in this nation's current regime.

 

[Charles_Main]

The only thing you might have missed Charles in all of this is; that EVEN WITH the additional drilling of the estimated billions of barrels of oil that have not been tapped here in the USA, it will ONLY bring our own oil reserves up by an increase of 50%-to doubling them, I believe was mentioned in one of the articles posted here.

Well, taking all of that in to consideration, and what was said in other articles regarding our consumption, and the rate of drawing this new oil out of the ground, we still will only be producing 30-35% of our own consumption in oil is what was estimated, and we will STILL be importing oil.... the trade deficit for oil will NOT be eliminated, it will improve perhaps to $500 billion for oil, unless we find alternative fuels that produce immediately or within the next 5 years, and start conserving like crazy....

Care

Don't forget about the Oil Shale 800 Billion to 1.5 Trillion Barrels right here in the American West.

About Oil Shale

I know we have already talked about this in another thread, But I feel like I need to keep saying it until people realize it is there, and we should be going after it. Sure it costs more than drilling, but then every penny spent on it, would be money kept in our economy and not sent over seas.

 

[editec]

Don't forget about the Oil Shale 800 Billion to 1.5 Trillion Barrels right here in the American West.

About Oil Shale

I know we have already talked about this in another thread, But I feel like I need to keep saying it until people realize it is there, and we should be going after it. Sure it costs more than drilling, but then every penny spent on it, would be money kept in our economy and not sent over seas.

Charles, the reson people have not yet taken advantage of that Shale oil is because they KNOW (I'm talking about American oil producers, now) they KNOW that if they made the enormous investments necessary to do so..

OPEC would flood the world with cheaper oil in order to BANKRUPT them.

No rational CEO is going to invest that much money under those circumstances, champ.

They might really and truly WANT to tap that enormous resource, but right now they cannot risk it.

ADDITIONALLY, it take enormous amounts of WATER to tap that shale oil.

There is also a question, according to the experts from the oil industry I have read, about whether or not there is enough water to get that shale oil out of the ground, too.

It's not about these guys being stupid, it's about these guys being smart.

 

[busara]

Charles, the reson people have not yet taken advantage of that Shale oil is because they KNOW (I'm talking about American oil producers, now) they KNOW that if they made the enormous investments necessary to do so..

OPEC would flood the world with cheaper oil in order to BANKRUPT them.

No rational CEO is going to invest that much money under those circumstances, champ.

They might really and truly WANT to tap that enormous resource, but right now they cannot risk it.

ADDITIONALLY, it take enormous amounts of WATER to tap that shale oil.

There is also a question, according to the experts from the oil industry I have read, about whether or not there is enough water to get that shale oil out of the ground, too.

It's not about these guys being stupid, it's about these guys being smart.

here is a site that talks about shale. seems like a lot of people on this board need to learn about it

About Oil Shale

and another, a pdf, more detailed but a lot longer
www.rand.org/pubs/monographs/2005/RAND_MG414.pdf

About three barrels of water are needed per barrel of shale