I need help to answer a question.

[zanne]

As some of you may know, I do alot of phonebanking for Obama, Shaheen, etc. Yesterday, somebody told me that more offshore drilling would help us in the future. I'm wondering about where this oil will go; in other words, are these oil companies obliged to sell it to American refineries or can they just sell most of it to other countries?

If anybody knows the answer to this, I'd be eternally grateful. I'll be able to send this guy an email with the correct information. I'm sure he'd want a link, too, so if you have that, that would be wonderful. I Googled but my research skills are pathetic.

[Amy6627]

1. The oil belongs to the oil companies, period. They can do with it as they want. n/t

[jobycom]

2. Excellent question.

I have no idea, but I'll kick this, and by doing so put it in "My DU" so I can check back later.

[bdamomma]

3. I found this that may help you

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x114970

snip of article

It was conducted to determine the official amount of oil a thousand feet deep in the Rocky Mountains...

They reported this stunning news:

We have more oil inside our borders, than all the other proven reserves on earth!!!!!!!!!!!!!!!!!

[dipsydoodle]

8. It's only economic to reach stuff

while the price of oil remains high. Hence one of the reasons why it will now stay high.

Other than that if its oil shale your talking about the environmental costs are tragic. It requires the equivalent of 3 barrels of water to extract a barrel of oil. Some of the water can be recycled but what do you do with the waste ?

It would seem to me that those most supportive of off shore drilling are those furthest away from the oceans and I'd guess the same applies to extracting oil shale : those nowhere it support it.

[gateley]

4. I've heard (from the campaign - so people who I give credence to) that

even now "our" oil companies aren't selling all their oil to us. They get a better price for it elsewhere, and that's where they concentrate their sales.

I don't have a link, but if nobody else comes up with one -- or more -- I'll start looking.

[zanne]

6. Thank you, guys.

I get a great deal of satisfaction by dispelling right wing myths, especially if there's a gasbag on the other end of the phone line. But some people, when given the right information, will say something like "I didn't know that". So if I can give them a link to the information, they may or may not use it, but they'll trust me.

I love DU! :yourock:

[dipsydoodle]

5. Once the oil companies have got the leases

there is no associated obligation for them to drill so there might not be any oil actually going anywhere.

[bdamomma]

7. check this out too.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3472049

[zanne]

10. That is beautiful!

I've printed it out and I have a brand new highlighter! Thanks!

[MissMarple]

11. Good one...Hoarding oil leases and not drilling on the land.

"Oil and gas companies, however, are not required to demonstrate diligent development. Because of this, oil and gas companies have been allowed to stockpile leases in a non-producing status, while leaving millions of acres of leased land untouched. The Rahall legislation directs the Secretary of the Interior to define what constitutes diligent development for oil and gas leases."

[lapfog_1]

9. They will sell the oil wherever they can make the most profit.

There are many costs associated with oil production, one of them is transport cost to a refinery. It's quite likely that if the oil was from the north shore of Alaska, it would be cheaper (and more profitable) to ship it to Japan or China or Korea than to ship it to the lower 48. It all depends.

However, oil is also a commodity resource... and that means that it's fungible. Oil from Saudi Arabia is (almost) the same as Alaskan oil. If there is a significant increase in the global supply of oil, market economics would dictate that the price of all oil would drop and vice versa. Of course, we don't live in a "free market" world when it comes to oil... OPEC and the few remaining oil companies see to it that they control the supply and, therefore, the price of oil.

given that the same oil companies who now partially control the price of oil would be the ones receiving the oil drilled here, it's hard to see how this translates to lower gasoline prices... If it did, it would only be a few percent. One hurricane in the wrong place has more effect on the price at the pump.

[treestar]

12. Here is an article

http://www.msnbc.msn.com/id/4542853

[asdjrocky]

13. It goes on the world market.

We, the American government, do not own the oil companies. What they take out of the ground, they put on the market and it simply goes to the highest bidder. It's just that simple. They don't have to sell to us at a discount rate or even sell to us, as in America, at all.

We use 25% of the worlds oil and have 3% of the reserves. Drilling here, drilling now, drilling repeatedly will not raise that 3% number.

The American people are being sold a pipe dream here by the Republican moneyed interests and the oil companies. It's a last minute give away by the Bush administration to their best friends, Exxon, BP and the rest.

A better question is why aren't we building wind farms, and solar farms? Why aren't we funding a plan to give grants to everyone to make their home wind or solar capable? Why did we give the auto industry until 2020 to comply with higher cafe standards?

This lie, like The Gulf of Tonkin incident, WMD and the missile gap will go down in history as one of the biggest hoaxes ever played on the American people.

The simple lie always sells.

Try saying that.

[Life Long Dem]

14. If you haven't, you might want to check out AIP in Alaska.

Sarah Palin is "said" to be a member of AIP in Alaska. I didn't hear anything saying it is a rumor since it broke, unless others heard differently.

AIP wants to take Alaska, and become it's own country while profiting from oil, by selling it to foreign countries, us included. I kid you not.

I was reading about the party and how they plan on converting to a new country. Alaska will keep all the businesses they already have (the same U.S.businesses.

Basically it looks like nothing but the name's have changed and nothing else. They'll have their own government and say they are against government (so they portray), and they base their reasoning on separating to their own country, so they can get out from underneath a heavy debt owed by the U.S. Sure, they make out like a bandit and we're still stuck with the debt.

[wryter2000]

15. They can sell it anywhere they want

If they even bother to drill. They really want the leases to make their bottom lines look better.

All the freeptards figure the oil companies sell the oil they get here to us because that would be the right thing to do.