Let the Drilling Begin

24 09 2008

Finally. Starting October 1, the moratorium on off-shore drilling will be lifted. States will no longer have any federal restrictions. The Democrats have relinquished the issue to Republicans at long last.

Democrats have decided to allow a quarter-century ban on drilling for oil off the Atlantic and Pacific coasts to expire next week, conceding defeat in an months-long battle with the White House and Republicans set off by $4 a gallon gasoline prices this summer.

Appropriations Committee Chairman David Obey, D-Wis., told reporters Tuesday that a provision continuing the moratorium will be dropped this year from a stopgap spending bill to keep the government running after Congress recesses for the election.

Republicans have made lifting the ban a key campaign issue after gasoline prices spiked this summer and public opinion turned in favor of more drilling. President Bush lifted an executive ban on offshore drilling in July.

Does this mean drilling can begin? As soon as the states and the federal government lease the lands. But the states aren’t likely to do so without revenue sharing, something the Democrats are still trying to block. But that’s expected to cede soon as well.  

Ed Morrissey is right on:

This puts quite the capper on the 110th.  Not only did Democrats fail to achieve their broad policy goals, they failed on almost every specific goal they set in 2006.  They failed to stop funding the Iraq war, they failed to impeach George Bush, and they surrendered on energy policy.  Their only policy goal achieved — an increase in the minimum wage — came in a war-funding bill.

This battle may have been won, but the larger war for a rational energy policy continues.  Congress has to pass a revenue-sharing bill with the states in order to get investment started in American production — a process that will create American jobs and keep our wealth in the US rather than overseas.  With the meltdown in the financial markets still looming, this could not come at a better time.

Since the Democrats have conceded oil production, I wonder if these failures still think it’s the War in Iraq that got them elected in 2006.

Advertisements

Actions

Information

8 responses

24 09 2008
Mr. Incredible

Had this happened ten years ago, we would have been in a better position than we are now.

In any case, I hope we keep this oil here and not send it elsewhere.

24 09 2008
Truth and Reason

Yes.

And most of it will, but we’ll also be creating lots of new jobs for Americans.

24 09 2008
Mr. Incredible

It seems to me that the oil companies and the government ought to have been ready for this moment. I would have had the leases ready to hand out and sign. I hope we can git t’ gittin’ on this.

24 09 2008
WoodLawn Review

Y’all need to realize something about your precious need to drill. 1) You won’t see a drop for atleast 10-12 years. 2) The amount you will add to the overall supply is minimal…maybe 200,000 barrel a day. 3) There is not garuntee that the oil companies will keep that new supply in the country. Not when demand is growing elsewhere. 4) You do realize that there is plenty of land (off shore and within the US) already made available to the oil companies, but they have chosen not to drill to supress the supply. Mr. Incredible is partially right…you should have done something 10 years ago, but drilling would not have been the answer. As long as you are the largest user of oil in the world, you are beholden to it….

24 09 2008
Mr. Incredible

==You won’t see a drop for atleast 10-12 years.==

Irrelevant. Ten years ago, you might have said the same thing, and, now, we’d be seeing oil. A journey of a thousand miles begins with the first step, and, at this time and in this situation, I’m willing to take that step. DRILL, DRILL AND DRILL NOW!

==The amount you will add to the overall supply is minimal…maybe 200,000 barrel a day.==

I don’t care. Every little bit counts.

==There is not garuntee that the oil companies will keep that new supply in the country.==

The market is here, and they will sell here. I wouldn’t mind seeing a lease clause setting aside the vast majority of that oil for our use.

==You do realize that there is plenty of land (off shore and within the US) already made available to the oil companies, but they have chosen not to drill to supress the supply. ==

Don’t believe it.

==Mr. Incredible is partially right…you should have done something 10 years ago, but drilling would not have been the answer.==

Nobody is saying that drilling is the only answer. Nobody has said it.

However, it is THE answer now, as far as getting started is concerned. The ones worrying ought to be OPEC cuz this means that we will use less of theirs and, maybe, undercut them. Competition will bring the price down.

30 09 2008
WoodLawn Review

Unfortunately, it is not ‘THE” answer…….

When you consider all that is happened and where the country is right now……the US is left with a great opportunity. Instead of borrowing money for Iraq (10 billion) a month and for the bail out (700 billion), use those funds to invest in new energy creation, infrastructure and development of vehicles that use alternative sources of fuel. By doing all this, you have helped spur growth in a down economy, the bridges and roads in this country are embarrassing, and you are actually taking on the energy issue.

—————
However, it is THE answer now, as far as getting started is concerned. The ones worrying ought to be OPEC cuz this means that we will use less of theirs and, maybe, undercut them. Competition will bring the price down.
————-

Opec will not be worried, demand is increasing around the world….China will soon have a middle class the size of the entire US population and they all are able to buy cars!!!!!

———–
It seems to me that the oil companies and the government ought to have been ready for this moment. I would have had the leases ready to hand out and sign. I hope we can git t’ gittin’ on this.
———–

Adding addition supply to the inventory only benefits the oil companies if they can keep benefiting from high prices….why would a company increase supply and see their profit decrease? The oil companies were ready for this moment, no other time has there been this opportunity to make this much money of the demand for oil.

There is also something seems to miss when it comes to oil. Very little profit is made from the sale of ‘fuel’ for vehicles. Do you realize that 90-95% of the profits that come from oil, come from its other uses. Such as plastics, food, and any number of other things. The coffee cups at Starbucks/dunkin donuts, precessed foods, the containers that coke and pepsi come in….all use oil based products. To put it in simple terms, if everyone stopped driving tomorrow, Exxon’s profits would have been 10 billion instead of 12 billion (just a lose example).

You want to pay less, change the way you do things. Unfortunately when it comes down to it, everyone complains and wants change but not one is willing to change first. Because as typically North Americans, you want change, but not at the cost of your own lifestyle.

30 09 2008
Mr. Incredible

==Unfortunately, it is not ‘THE” answer…==

Doesn’t have to be “THE” answer, only an answer. It’s the answer that is more reliable right now. It was the most reliable answer ten years ago, and we coulda been realizing the benefits now. But no. Libs wanted to save their bugs and twigs, and they were agraid that the polar bear wouldn’t like it and wouldn’t be their friends any more.

==Instead of borrowing money for Iraq (10 billion) a month…==

Al-Q likes the cut of your jib.

==… and for the bail out (700 billion)…==

Ok, so you don’t like the bailout.

How would you like the alternative? Any better?

==… use those funds to invest in new energy creation, infrastructure and development of vehicles that use alternative sources of fuel.==

Why not just get rid of the entire defense budget and invest it in new energy creation, infrastructure and development of vehicles that use alternative sources of fuel? Letsee, how long will all that take, ten, maybe, twenty years?

== By doing all this, you have helped spur growth in a down economy, the bridges and roads in this country are embarrassing, and you are actually taking on the energy issue.==

So, what does al-Q do, then, quit?? Do we just cut Iraq and Afghanistan loose and let the cookies fall where they may? What does Iran do? How ’bout North Korea and the increasingly fidgetty Russia?

30 09 2008
Mr. Incredible

==Opec will not be worried [with increased drilling]…==

Any time that a seller loses a customer, or the customer starts using another source, the seller worries cuz the seller wants, at least, to maintain, and the seller loses something, and no seller likes that.

==Adding addition supply to the inventory only benefits the oil companies if they can keep benefiting from high prices.==

“Only”??? You’re blind. Oil companies bring in such profits so they can explore and for R’n’D. They can’t pocket profits cuz they’ll pay astronomical taxes. The money they make goes to investments and jobs. Do CEOs make a bundle? Yes, and that’s what the boards of directors agree with them to do, and, so, blame the boardmembers; but, in any case, that’s THEIR decision. It’s not up to us to tell them that they cannot enter into agreements unless we are party to them, and we’re not.

==why would a company increase supply and see their profit decrease?==

It wouldn’t. Y’see, they got bills, too.

== The oil companies were ready for this moment…==

However, the government has not been. Otherwise, the government would have had the leases all ready to sign. The process would have been in place.

==…no other time has there been this opportunity to make this much money of the demand for oil.==

So what? You don’t like Capitalism, do you?

By the way, don’t you jump on the opportunity to make as much money as you can?

==There is also something seems to miss when it comes to oil. Very little profit is made from the sale of ‘fuel’ for vehicles. Do you realize that 90-95% of the profits that come from oil, come from its other uses. Such as plastics, food, and any number of other things. The coffee cups at Starbucks/dunkin donuts, precessed [sic] foods, the containers that coke and pepsi come in….all use oil based products.==

So what? If it weren’t petroleum, it would be something else you’d complain about. I hope the next disappointment doesn’t make you join a gang.

== To put it in simple terms, if everyone stopped driving tomorrow, Exxon’s profits would have been 10 billion instead of 12 billion (just a lose example). ==

So, YOUR example of a sound economic system is that businesses should NOT make money???

==You want to pay less, change the way you do things.==

Pretty diffcult when everything is miles away and I can’t just get up and walk to a store, or a bank, etc. It is what it is, and most of it is not my fault, and, so, my changing ain’t gonna change the reality.

So, you want a change? Then, lobby to change the system to profitless business and, then, watch businesses go outta business and prices go up. You like that?

== Unfortunately when it comes down to it, everyone complains…==

What YOU’RE doing.

==… and wants change…==

I want more drilling cuz THAT makes more sense right now.

==… but not one is willing to change first. ==

You want me to change first, and I want YOU, the complainer, to change first. Now what?

==Because as typically North Americans…==

Oh, I see. Another uppity foreigner. I shoulda guessed.

==… you want change…==

I want drilling.

==…but not at the cost of your own lifestyle.==

Tuff. You change first.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: