More Drilling

[DangerDave921]

Can someone explain to me why -- while we're researching biofuels, wind power, solar power, etc., we can't drill for more oil, gas, and use shale? I don't mean instead of alternative fuels. But if prices are so high, and we're buying so much oil from foreign countries, why NOT drill for more in our own country?

What am I missing? Why can't we get more energy for ourselves while we investigate newer technology?

[leftofthedial]

1. supply is not the problem

capitalism (speculation) is the problem


we already spend orders of maginitude more on oil exploration and drilling than we do on alternative energy.

[DangerDave921]

3. Foreign oil

But what about drilling for more oil here so we don't have to buy so much from foreign countries? Seems we're at the mercy of the mid-east and other countries in keeping up the supply.

Why not drill here so we don't have to buy so much from other countries?

[LSK]

America's oil supply peaked in 1970

[leftofthedial]

16. oil companies are sitting on (not drilling)

over 80% of the leases they currently have.

oil companies don't want to drill. they like artificial constraints on supply. plus, they haven't built the refinery capacity to handle more oil anyway. Dependence on foreign oil won't be solved by drilling in the US. There's not enough oil here to make a difference for two or three decades.

[dkf]

7. look at depletion in the North Sea, in Mexico, and in Russia.

Saudi Arabia can only pump more sour crude which requires more refining.

Supply is the problem.

[leftofthedial]

22. peak oil is real, but the recent increases in crude prices are almost entirely

due to speculation in the market, not to changes in supply. there is no shortage in terms of the market. long-term there will be shortages, but nothing that justifies the current bubble in prices.

[LSK]

2. there is no oil supply crisis

Supply is meeting demand. The problem is in the unregulated oil futures market. It is the new dot-com/housing bubble.

[Terry in Austin]

23. Sadly, no. Supply is falling short of demand.

The problem is all of us who've bought into the oil-driven consumer-industrial high and will pay anything to keep the fixes coming.

Let's face it, "demand" in this case is a nice word for "addiction." The scammers wouldn't be able to pull anything without it. Time to dry out -- even though there's going to be a lot of denial first.

[larkrake]

4. Why dont we stop selling our oil to other countries and fill our own coffers?

[dkf]

6. We are net importers, not net exporters.

[dkf]

5. Have you seen the backlog of oil rigs?

Getting oil from offshore drilling is not going to happen all that fast...certainly not fast enough to relieve current prices.

We have to transition off of oil, because we are going to get less and less of it in the future anyway.

[dysfunctional press]

30. but WE don't "have to" transition off of oil- there's still plenty for us...

it'll be up to our children and/or grandchildren to do the transitioning, and solving the ensuing problems.

right?


:sarcasm:

[eleny]

8. Rep Peter DeFazio - they're already sitting on 13 billion barrels of oil leases in Alaska

They've explored drilled, found and then capped the wells in the Naval Reserve where oil companies own the leases. It's not in ecologically sensitive areas. But the oil companies are sitting on it. The DeFazio was on Thom Hartmann show today and he's a member of the Congressional Natural Resources Committee and represents a district in Oregon.

He said they also have millions of barrels of leases off shore that they don't pump.

This is profits driven scheme.

[Gold Metal Flake]

10. This is the correct response. Thank you eleny.

There are also leases owned by the oil companies that are approved for drilling, permission has been given, but they are not being drilled.

So, the OP's question is invalid because the oil companies CAN drill. They simply choose not to. Why? To extort even more leases to hoard and not drill. Why? To keep oil off the market.

[eleny]

14. I listened to Hartmann this morning after reading another post here today

In fact, it appears that they've already drilled and found oil where they have leases. But the wells have been capped.

I live in Colorado and will say that I don't want shale to be used for oil extraction. The reason is twofold: 1) I don't want to see our national, natural beauty destroyed and 2) I can take people on a tour of capped oil wells that have pumps rusting where they sit. I remember when they were pumping back before the oil crash. Many are right along the I-25 corridor. Some are pumping again but many sit unused for decades.

[aint_no_life_nowhere]

19. The oil companies are in the business of maximizing profits

They are not going to open wells if that will involve significant costs for oil that is less profitable to pump. They'll make money, but their profits won't be as high as they are now. It's the same mentality as to why Exxon is getting rid of their gas stations and franchising them out. Exxon makes enough money to absorb the losses of any unsuccessful gas stations. But they want to cut any less profitable sectors and maximize all profits. They won't maximize and repair their existing oil refineries if the result is less profitable. Only if new oil fields involve easily tapped oil will they move in. Their focus is not on relief for the U.S. oil consumer. It's engaging in whatever tactical mode of business brings them the most money. Only by forcing the U.S. oil companies through the power of taxation will we give them an incentive to act in the public interest.

[DangerDave921]

21. Higher Taxes is the answer?

Won't the oil companies just pass those costs on to the consumer in higher prices at the pump? Why would any sane company just absorb the hit of higher taxes without passing it on? I think higher taxes would just lead to higher prices at the pumps. Or maybe reduced pay/benefits to the workers.

[aint_no_life_nowhere]

25. Massive windfall profits taxes

but that provide for the possibility of significant set-offs for any investment in alternative energy, or in drilling in current leaseholds, or in building new refineries. In other words, force the oil companies to seek their profits through better behavior in the national interest. Give them a tax incentive to change the way they operate. The tax code has long been used to regulate behavior.

[Sal Minella]

9. Check out this post.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=3476086&mesg_id=3476086

The oil people are trying to pretend shortage of supply is the problem, but it's not.

[HiFructosePronSyrup]

11. Gee whiz.

You'd think suddenly flip-flopping on a position one's held for many years simply for political points during a political campaign might suggest it's not in the country's best interest. But nooooo...

[bdamomma]

12. we need to fight them on this, because they will keep on pushing and pushing

and raping this country until we say STOP.

[muntrv]

13. Here's why: 16 billion barrels in ANWR/20 million used per day=

800 days. Not exactly a life saver.

[hoosier_lefty]

15. so if we drill more oil......

are the oil companies going to give is a discount?

We already get 25% of our oil domestically, and
the price paid is the market price. More oil wont drive down the price
very far because supply is only a factor in the oil trade.

Liberals have been saying for DECADES that we need to develop
alternative energy. FREAKIN DECADES!

In that time we could have reduced our need for oil. So now republicans
and the majority of Americans finally wake up & see that there is a problem.
what do they do ?

1) Blame liberals
2) want to drill more oil.


:banghead:

[DangerDave921]

17. naive

I guess I'm just naive or something. I think of it so simplistically. Like with food. I can either go down to the store and buy tomatoes, or I can grow some in my backyard and not have to worry about someone else having to supply me with tomatoes. Strikes me as the same with oil. Why buy it when you can "grow" it in your own backyard?

Don't get me wrong. We need a ton of innovation for new forms of energy. But it just seems like oil and natural gas could tide us over for 20-30 years while we get the other things up and running.

But hey -- I'm no expert on world economy or futures speculation.

[hoosier_lefty]

18. we have oil

We have 21 billion barrels in reserve as well as wells that have Been drilled and capped.
The oil companies also have millions of acres already leased in the prudo bay area
where there is about 18.1 billion barrels of oil. They want their cake and more cake.


http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=3476086&mesg_id=3476086


Why not have the government invest in Algae diesel?

[hatrack]

20. Because it won't make any real difference in supply - and what IS there will take years to produce

Depending on who you check with - BP Statistical Review, Oil & Gas Journal and World Oil - proven oil reserves in the United States amount to anywhere from 1.65% to 2.49% of global reserves.

Or, to put it another way, with total global demand for oil last year at 31 billion barrels and change, what we have in proven reserves in the United States amount to between eight and eleven months' worth of global supply.

http://www.eia.doe.gov/emeu/international/reserves.html

[Terry in Austin]

24. Thank you, hatrack

Facts are our friends!

:hi:

[pegleg]

27. Our #1 producer is now Canada not Saudi Arabia, so It stands to reason

that if they have so much proven reserve in Alberta, why would there not be comparative amounts in the US?

[Angleae]

28. There are comparative amounts

http://www.nextenergynews.com/news1/next-energy-news2.13s.html

[pegleg]

29. Here's the comparison.

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

My guess is that we have been systematically lied to for several decades.

[PBS Poll-435]

26. Not Tonight

I have a headache.