Not so fast on drilling . . .

Greetings All: This is my first post here so read before you shoot. I just had a letter to the editor published in my small town Ohio newpaper yesterday and thought it might be interesting to see what a conservative group of independent thinkers might have to say about my letter. Here it is: Dear Editor: I've been hearing a whole lot lately about opening up more and more of our natural wildlife areas to allow drilling for oil. My "stupid question", one that's been nagging at me for a while, is what guarantees would we have that the oil stays in America? Corporations are profit driven and they have a duty to their stockholders to sell their product at the highest profit margin they can. So let's assume that our oil companies hit a real bonanza. What possible incentive would they have to sell at a lower price in America? I don't believe there are currently any incentives or disincentives strong enough to keep that oil flowing only within our borders. I think that before we do anything that might result in relaxed drilling restrictions, we better make certain federal laws are in place to keep that oil in our country! I don't want to pretend that I have any answers - just what I see as being some common sense questions. For instance, if we want to open more areas for oil drilling in currently restricted areas why doesn't the government set up an oil drilling lottery for those areas? Let everybody have a chance at a piece of the pie. It seems to me that one of the big problems we have in America is a restricted oil supply in part because there are way too few companies controlling pricing and supply. By allowing more companies to compete it just might help to open that marketplace to some sorely needed and healthy forces of competition. As it stands, if we let the current handful of oil companies go anywhere they want and suck out the oil, there's little doubt in my mind that they would get richer selling our resources to China or Japan or other international high bidders. We would continue to be at the mercy of these few corporations whenever they wanted to manipulate prices. The worst part is we would give up some of our most beautiful wildlife areas and receive absolutely nothing in return. Bob Green

Good point BGO.  I wouldn't put it past these bums we have elected to get the oil and export it to the highest bidder. They are doing this now with some of our oil in Alaska.

After all, after selling their soul of money, power and votes... a little oil $ on the side wouldn't hurt !

As far as more competition, IMO no matter how many competitors there are, we will have the same problem -- they will sell to the highest bidder -- no matter who or where.  Anything else would be government intrusion and regulation.

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Hey Rocky & Jim:

Right now that oil belongs to us, the American tax payers.  If there's no guarantee that it flows to our benefit in the USA, why screw up the scenery?  Let 'em buy their own property - there's a bunch for sale right now!  Thanks for your comments!

 Bob Green

Yes--I've hears that the oil from Alaska is being sold to Japan.  But---from what else I know--is because WE do not have enough refinerys to distill it. That is ALSO congress's fault!! SO-- instead of bemoaning the "possibility" of any of them selling to other countrys --Get off your duffs and tell congress that they cannot go on vacation until they lift the (illegal) ban on drilling and building refinerys.  Congress had no business to interfere in  Any companys business !!That is not their job !!! Period!!

Rush-Baby: Hear you loud and clear. Agree with you on lifting refineries bans. Regarding the oil, right now it's in the USA. We might need it for our own consumption and/or military real soon. Until we get some guarantees that we will benefit, it's silly to use it to fatten the oil companys bottom lines. Heck, they're getting enough from me right now. BG

Hey All:

Just a quick FYI, I just posted a similar message a few minutes ago on an old political newsgroup I used to visit.  I would really like to see this information spread around pretty quick, so please excuse me if anyone sees this as cross posting.  I just think that the conservative community is being sold a bill of goods and need to look at it from more than one side.  No one else seems to be talking about it.  Thanks!

 BG

Oil is truly a global commodity, all business no matter what their product are there to make a profit. I ask any of you if you could sell your product for $2:00 or for $5:00, which would you, do. If the U.S. drills for more oil it will only go into the world supply. OPEC now controls the majority of the oil production and the amount of oil that is allowed in the pipeline. The US government would have to control all oil that was found in the U.S. and regulate the price before you would see a drop in price. There is no shortage there is no supply problem. You are just helping in paying back money that the government can't. I suggest you watch this video. http://video.google.com/videoplay?doc...

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Dang!   Y'all need to learn how the oiyle bidness works, or don't make a comment!

Supply and demand sets the price.  If the US drills their own stuff, then there is an increase in world supply and the price goes down.   I mean....Bush just *talks* about drilling here, and the price goes down.

The main thing is the money we are paying out <70% to foreign right now> stays in this country, and we don't have such a huge loss of dollars to other countries.  The price stays the same worldwide....it's the market!

 BGO112, a few oil companies don't control the price.   And, we don't have a lottery because very few companies have the money, equipment or expertise to do this drilling.   Drilling in these areas is a very, very expensive proposition.    And, it would be my idea that if you don't know any more than you do, don't publish a letter and give others the wrong information.  There's enough out there already w/out your adding to it.

In fact, there are just so many wrong statements on this page, I can't possibly go through them all.   The oil companies aren't the bad guys.  Our gubmit hasn't had an energy bill, discussion, nothing in almost 30 yrs. while the oil cos were telling them we were going to come to this.    They thought the oil cos. were after money.   Let me tell you....you can't keep from making money in the oiyle bidness.....it's a given.   You don't have to be crooked or lying or manipulative to do it.   So, get over it and look at your real problem.

The extremely well-heeled environmental lobby are paying off Congress in the form of perks, campaign donations.   The left loves that the usage is going down.   The globalists love that so much money is being stripped from our country and thus there is the largest economic distribution in history going on.  

Y'all get with the program!

And, that dumb Pelosi shoots her mouf off today about getting in the oil reserve....that's for emergencies!    And, I believe we have a possible looming w/ Iran and Israel glaring at one another and stomping their feet. What if our 70% imported oil per day is shut off due to local wars?   Where does that leave us.....particularly is Pelosi turns loose all of our emergency oil?

 

 

 

Suzi said:

Dang!   Y'all need to learn how the oiyle bidness works, or don't make a comment!

 What if our 70% imported oil per day is shut off due to local wars?   Where does that leave us.....particularly is Pelosi turns loose all of our emergency oil?

Dang -- once again you speak about something you know about -- how novel!  (You forgot to talk about "subsidararies"!)

As far as where would that leave us --   

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Suzi you and I think a lot alike you stated it very well, and it is the truth. 35 years in the oil business taught me a little about the business. Environmental regs have ruined the industries in this country. I have watched 50 million dollars being spent on mandated items by the government that cost to build and cost to run every day with no roci.

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Thanks Suzi and Blaze: And this is how we learn. Thanks for your time and attempts at corrections. It is appreciated and it gives me a lot to consider. "The main thing is the money we are paying out <70% to foreign right now> stays in this country, and we don't have such a huge loss of dollars to other countries. The price stays the same worldwide....it's the market!" Good point. I guess when it starts hitting my pocket with higher fuel prices and my seeing firsthand the devastation it's causing to our appalacian region, it gets my attention. The oil business is not my marketplace and I only know it as a currently disgruntled user. From my perspective I have heard the reports of the record earnings of the few large oil companies and I see the need for more competition. So you are telling me that all these areas where large oil reserves might be are so incredibly inaccessable that only a handful of companies could put up and sustain the risk? You are probably right on the ocean drilling, but Wyoming and Alaska shouldn't pose too much of a challenge for our resourceful land of contractors. That was the same attitude that locked out competition for the telephone marketplace. Just look at the marvels of construction across our land. Additionally, there's a lot of money floating around looking for a good investment. I would really like to see an oil lottery open to all American taxpayers if they decide to open those areas to drilling. The oil companies or oil company wannabes (potential "competitors" (as long as they are American with American laborers)) could always come and buy out the lottery winners or at least negotiate a lucrative agreement with them. It seems to have worked out pretty well for cell phone coverage and breaking up AT&T has totally driven down long distance costs and broken open a whole plethora of services for the American public. I'm not saying the oil companies are inherently bad, but competition is absolutely necessary for any marketplace to remain healthy. Additionally that would make a whole lot more targets that would be causing serious trouble for any plans the globalists might be conjuring up. Now, regarding leftists screwing up our government, I really don't have any good answers. That's a whole nuther subject. Thanks again for your comments. BG

How do I get a line break or set a paragraph?  Sorry about the crammed up messages, but I really did put in line breaks in the "Post New Comment" box.

 BG

There's no doubt about it....the gasoline prices are causing devastation everywhere.   In my book it is so very serious that Congress should forego their vacation and deal with it.   But, that isn't going to happen for two nitwits control this entire country:  Pelosi and Reid.

Can you believe....we elect Congress and they can override the Pres.  But, where are the controls put on Pelosi and Reid?   They are a two person wrecking crew!   And, they are both liars to boot!

Competition of the companies is not what it is needed.  Competition generally lowers the price with most products....the price of oil is set by supply and demand and is worldwide.  Producing oil is not like providing a phone service.   And, yes, their profits are huge.....you produce at $10 or $40 a bbl depending upon what type production you have, and sell for $150 a bbl....yes, profits are huge.   But, on the other hand, you don't know what it cost for them to find that oil.   Just drilling in the Gulf requires a rig that leases for around $1 mil a day.   You cannot imagine the money involved.

Everyone knocks the oil companies' profits.   Don't do that.   They are owned by stockholders, your neighbors, fellow Americans, relatives, retirees.   Companies aren't some big bad entity stealing all your money.

Alaska oil is no prob.   Just give us permission.   Already got the pipeline in place. 

Shale oil and that which we have similiar to Canada's is very expensive to produce.....but, mainly we are short on technology to do it.   Believe me....only a few companies have the money and the expertise to pull it off sucessfully.

My husband has been working w/ a reservoir not even announced yet which is loaded....he only talked to about 5 companies worldwide for no one else could handle the production.   The really sad thing was that a guy made an end run and got a company that my husband says cannot be successful because they simply don't know what they are doing. 

 

 

 

If Americans really wanted cheaper gas all they have to do is to refuse to buy any Chinese products.  The massive gains of Chinese imports has expanded their economy and manufacturing and oil useage. We are all familiar with the millions of American jobs lost but the oil price jump is also a result of their manufacturing increases. If we quit using their products they would not have a need for so much oil, and the price would go down.

There are many articles such as this one showing that we are pumping more oil than what we are using. We have an abundance of oil that there are no buyers for. What would help is to have more refineries in the U.S. Even the Saudis are saying that oil should be around $70.00 per barrel. http://www.bloomberg.com/apps/news?pi... OPEC Supply to Rise This Month, PetroLogistics Says (Update1) By Grant Smith July 25 (Bloomberg) -- OPEC's oil supply will probably increase in July by 200,000 barrels a day, or 0.6 percent, as Saudi Arabia fulfils its pledge to boost production, according to preliminary estimates from PetroLogistics Ltd. The 13 members of the Organization of Petroleum Exporting Countries will provide 32.9 million barrels daily this month, compared with 32.7 million a day in June, PetroLogistics founder Conrad Gerber said in an e-mail from Geneva. OPEC contributes more than 40 percent of the world's oil. Saudi Arabia, the world's largest oil exporter, pledged on June 22 to increase output by 200,000 barrels a day in July, on top of a previous 300,000-barrel-a-day boost scheduled for June. ``The Saudis can produce more but they can't sell it,'' Gerber said in a telephone interview. ``The demand's not there.'' The Saudi kingdom increased supplies to world markets to 9.45 million barrels a day this month, from 9.32 million a day in June, according to PetroLogistics. Still, Saudi Arabian supplies to customers in July are well short of the 9.65 million a day produced in June as the Gulf kingdom is unable to find buyers for its sulfur-heavy crude types, Gerber added. Low-sulfur varieties are preferred by refiners during summer months because of their suitability for making gasoline. Angola and Iraq also contributed to the extra volumes in July, PetroLogistics said. Angola raised supplies by 100,000 barrels a day to 2.015 million a day, and Iraq by 120,000 a day to 2.45 million barrels a day. Iranian output dropped to 4.05 million barrels a day in July from 4.14 million the previous month after OPEC's second- largest member suspended the release of inventories held in storage, Gerber added. To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net Last Updated: July 25, 2008 07:21 EDT

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If I might chime in. I'm not an economist, I'm not an oil baron and I'm not a left wing lune environmentalist but, I did sleep at a holiday inn last night.

Seriously though, I moved from Las Vegas when I was about 20 to the razor city of Wyoming, Gillette and I got a job working in the oil patch. I started at Halliburton and then moved to a drill rig and then a chemical supply hauler for the rigs.

I spent 4 or 5 years in the oil patch and met many people who were generational oil field workers.

One man in particular who was one of my Supervisors at Halliburton gave me an education about the amount of Natural Resources that we had in this country. He was one of the Generational Oil Patch workers I eluded to. His Grandfather, Father, Uncles, Cousins and brothers and some of his children worked in the oil patch.

One thing that he told me was that there was more oil in the lower 48 than anywhere else in the world but that the problem in the cost of drilling was that we had to drill much, much deeper than they do in the Middle East. He knew this because he had worked over seas for Halliburton in the oil fields.

He told me then (this was in the late 70's early 80's) that we were going to run into problems because of a lack of refineries in this country because of the environmentalist wacko's agenda of shutting down the existing refineries.

Remember the "Gas Shortages" that we lived through?

Well I can remember telling my mom on the phone during the "Gas Shortage" that it was a bunch of whooey because we were punching holes left and right but then we would cap them off for later use. Watching the video of that gentleman reminded me of those days and what Suzi said is correct.

My solution would be as follows:

1. I think we should flood the market which I believe would drive the price down
2. Retrofit and build new refineries
3. Start drilling for oil here and now
4. I don't have a problem with exploring alternative energy sources (as long as they don't promote alternative lifestyles)
5. Put all the environmentalist wacko's on a rocket and send it to the sun. Let them experience Solar Warming first hand

Just my thoughts

Lord Bless, hizson

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hizson said:

If I might chime in. I'm not an economist, I'm not an oil baron and I'm not a left wing lune environmentalist but, I did sleep at a holiday inn last night.

Now that's funny!  Thanks!

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Ditto, Jim - That IS funny, hizson! Good laughing with you guys! Rhonda

Rhonda, that is the f-i-n-e-s-t looking cat I ever saw!   A real junk yard dawg cat....does he like to swim?