Wonder what will happen to the price of oil when we actually start drilling...

quote:

In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136.

Now isn’t this interesting?

Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators. And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them.

Traders took a look at a feisty and aggressive George Bush and started selling the market well before a single new drop of oil has been lifted. What does this tell us? Well, if Congress moves to seal the deal, oil prices will probably keep on falling. That’s the way traders work. They discount the future. Psychology and expectations can turn on a dime.

The congressional ban on offshore drilling expires September 30, so that becomes a key date. A new report from Wall Street research house Sanford C. Bernstein says that California actually could start producing new oil within one year if the moratorium were lifted. The California oil is under shallow water and already has been explored. Drilling platforms have been in place since before the moratorium. They’re talking about 10 billion barrels worth off the coast of California.

There’s also a “gang of 10” in the Senate, five Republicans and five Democrats, that is trying to work a compromise deal on lifting the moratorium. So it’s possible a lot of action on this front could occur much sooner than people seem to think.

So I repeat: Drill, drill, drill. Deregulate, decontrol, and unleash the American energy industry. Those hated traders will then keep selling oil as the laws of supply and demand and free markets keep working.

Bravo for Bush. Bravo for the traders.

Source

quote:

THE PRESIDENT: First of all, there is a psychology in the oil market that basically says, supplies are going to stay stagnant while demand rises. And that's reflected somewhat in the price of crude oil. Gasoline prices are reflected -- the amount of a gasoline price at the pump is reflected in the price of crude oil. And therefore, it seems like it makes sense to me to say to the world that we're going to use new technologies to explore for oil and gas in the United States -- offshore oil, ANWR, oil shale projects -- to help change the psychology, to send a clear message that the supplies of oil will increase.

Then why don't we just tell them we are going to drill.....and drill....and drill some more. Then see what the market does.

quote:

Secondly, obviously good conservation measures matter. I've been reading a lot about how the automobile companies are beginning to adjust -- people -- consumers are beginning to say, wait a minute, I don't want a gas guzzler anymore, I want a smaller car. So the two need to go hand in hand. There is no immediate fix. This took us a while to get in this problem; there is no short-term solution. I think it was in the Rose Garden where I issued this brilliant statement: If I had a magic wand -- but the President doesn't have a magic wand. You just can't say, low gas. It took us a while to get here and we need to have a good strategy to get out of it.

Yes George, that was brilliant. Brilliant!

This is BS! All Bush has to do is release 1/3 of the national reserves and bankrupt the speculators. Then oil prices will drop to market driven prices.

If all the democrats could somehow get on a Jumbo Jet and fly somewhere, anywhere and have that plane crash, (Oh my God! did I really say that?) the price of oil would go back down to around $15.00/bll. or about $0.67/gal.

For me, it was the day the Saudis, after years of not doing so, said they would up production because they felt the price of oil was "too high."

At the same time, more Americans were clamoring for more domestic production....

I think the Sauds may see the writing on the wall.... that if they don't do something soon, they may be back to living in tents and riding camels.

Based on the words of a Saudi prince, some time ago... (quote is a ROUGH approximation... don't have the original in front of me...)

"My grandfather lived in a tent and rode a camel.

My father lived in a house with running water, and drove a car.

I live in a palace and am chauffeured in a Rolls Royce.

My son lives in a palace and rides in a Lear Jet.

But, for my grandsons, they will likely live in a tent and ride a camel."

The Saudis know that things come full circle... eventually, they will return to being just another bunch of desert dwelling fanatics, without 2 nickels to rub together.

NOT soon enough... but....

Stratigic reserves would be gone in one day, then what? Jawboning, as Pres. Bush has done works, for a while. What needs to be done is to back up the jawboning with action. Do wqhat needs to be done.

Get as many stripper wells back into production using new methods. Start increasing pipeline capacity in the Williston Basin. Salvage all the orphaned , abandoned wells possible that stretch from NYS to LA TO TX to CA Canada and back to NYS THE LONG WAS. iT IS TENS OF THOUSANDS OF WELLS THAT GAVE UP 100%of recoverable oil ehen they closed, b ut today that can b e 1/3 and LESS than is recoverable now.

Eliminate the FLAW in our law than enables supposed enviornmental organizations to bring suit, when, excepting that law, they have no legal standing.

Start building several NEW STATE OF THE ART refineries that are also capable of converting methane to gas, oil and diesel.

Increase pipeline capABILITIES so that our refinery capacity drops well below 90% in use.

Build modular nuclear plants, increase hydro. facilities, explore tidal power potential, explore SOLAR cells for direct conversion emphisis on EFFICIENCY. Re examine the modern Sterling cycle engine (external combustion), but back off on wind until the expoxed blade generators are replaced AND a method of STORING the energy is found for use when the wind ain't blowing.

And so on.

Today I filled up my truck in Kinston NC. $3.68 a gallon. WHAT A DEAL!!!!

Oh, Yea. What if they did start drilling. They already are Drilling
in the Alantic, and the Gulf of Mexico. The Korean company that is
building the off shore rigs for American oil companys can not keep pace
with the demand.

Lets start with the Biography channels " The Life and Times of George
Bush jr". It showed George just out of college with his little brief
case and what appeard to be a Pontiac. It showed all of his buisness ventures that he tried starting up and failed at. But the Oil Men of
Houston that were friends of his Father ( Bush sr ) had to buy out his
companys at a loss to spare him. Bush jrs life did not turn around until
he convensed a small group of investors to purchase the Texas Rangers
baseball org. This is a shortened version of what the Biography channel
put out about his life.

When refinery problems started up about 12 or 13 years ago, the Saudi
King told the American oil companys that he would build the US the
biggest Refinery in the world. Just for the US. The American Oil Companys
said NO. The oil companys gave every excuse as to why one could or
should not be built. This was even brought up at the Senate Hearings
on the high price of oil and the lack of refinerys. This was on C-Span,
even when a Republican Senator asked the oil companys why would you have
turned down an offer like that. The oil companys just set there in
silence.

You still don`t think Bush has ties to Big oil, When He ran for Gov.
of Texas, the leading men behind him were T-Boone Pickens and the Bass
bros. Anyone who knows Texas oil know who these guys are.

Everybody keeps talking about not being able to drill off the Continetal
shelf, then how did Modern Marvels do a Documentry on the oil companys
buying Rigs and drilling in the North Atlantic and the Gulf of Mexico.

As long as folks keep watching Fauxs news, you might really learn
something by accident.

People keep talking about the Left Wing Enviro nut jobs that keep us
from drilling. Well here in North Texas where the Barnet Shale is, as
soon as Technology was found on how to drill it. They started drilling.
Their were no 10 year studys, no 10 years to get permits. They started
drilling.

That is like in Colorados drilling for oil, it takes water, something
that they are running out of. It is said that for every 1 gallon of oil
taken out of the ground, it takes about 3 gallons of water.

That is like the water problem we have here now, the oil companys are
trying to blame the folks with a private water well and wanting the
Gov to put meters on private wells. The oil companys are basically saying
that it is the private home owner with a well that is using up the water.
The oil companys ruin the good water and then want to dispose of it
down so called deep wells where it could contaminate the drinking water.
Our county Commisioners are trying to find a way to recoop our tax
money that goes into repairing our roads that these trucks tear up.
The oil companys and corporate America are paying lobbyist to put
loop holes in the law that makes them exempt from any repairs or cleanup,
it will always fall back on the taxpayer. Just like the Exxon Valdez,
sure they paid alot of money, but in the end the Taxpayer paid alot for
the cleanup also.

quote:

Originally posted by Duster6:
Today I filled up my truck in Kinston NC. $3.68 a gallon. WHAT A DEAL!!!!

Uhhhh you live in kinston, nc? pitty you.

The ole blame game....The Federal government has juristiction over the outer continental shelf.HOLD IT!!!!!The states say they want a piece of that great revenue...off to federal court.

Pipe NG down from alaska. HOLD IT!!! Canada/provinces and the states that the pipeline are going thru want some of those great revenues....off to court and state department treaties...

No Slam Dunk....

yea this was funny just him saying that was enough to drop the price ... just think what will happen when we start to act on it.....

quote:

Everything we hear about oil, about energy, speculators, I kinda laugh. Before 1990 there were 750 million people in the world
who had an aspiration for a middle-class standard of living. All of a sudden we have 4.5 billion people in the world...
the eastern block opened up, Russia opened up, India opened up, China opened up...and now we have 4.5 billion people who want to drive cars,
they want to eat steak, they want to do everything that we've been doing for 100 years in this country, and they're entitled to do it.

So if people think that it's speculators driving the price of oil, look at what's going on outside this country. Our lawmakers don't really understand, in my opinion. - Peter Cohen

We've got to stay competitive if we wish our standard of living to at the very least, stay the same.

This is why I've been posting about energy independence, and how it's a necessary foundation for us as Americans going forward, if we wish to stay competitive.

Link and Video

quote:

Originally posted by DCookeUSA1:

quote:

Everything we hear about oil, about energy, speculators, I kinda laugh. Before 1990 there were 750 million people in the world
who had an aspiration for a middle-class standard of living. All of a sudden we have 4.5 billion people in the world...
the eastern block opened up, Russia opened up, India opened up, China opened up...and now we have 4.5 billion people who want to drive cars,
they want to eat steak, they want to do everything that we've been doing for 100 years in this country, and they're entitled to do it.

So if people think that it's speculators driving the price of oil, look at what's going on outside this country. Our lawmakers don't really understand, in my opinion. - Peter Cohen

Link and Video

Exactly....While it appears the sky is falling in the western world, Chinese citizens are thriving. I mean after years of eating out of dumpsters, the worst conditions in the US are welcomed with open arms in China....

Its the mindset....Americans will not tolerate nor accept a standard of living that the Chinese will love and defend...even though its not that bad, but dammit I want my freaking Hummer

quote:

Originally posted by Kegler300:
Wonder what will happen to the price of oil when we actually start drilling...

quote:

In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136.

Now isn’t this interesting?

Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators. And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them.

Traders took a look at a feisty and aggressive George Bush and started selling the market well before a single new drop of oil has been lifted. What does this tell us? Well, if Congress moves to seal the deal, oil prices will probably keep on falling. That’s the way traders work. They discount the future. Psychology and expectations can turn on a dime.

The congressional ban on offshore drilling expires September 30, so that becomes a key date. A new report from Wall Street research house Sanford C. Bernstein says that California actually could start producing new oil within one year if the moratorium were lifted. The California oil is under shallow water and already has been explored. Drilling platforms have been in place since before the moratorium. They’re talking about 10 billion barrels worth off the coast of California.

There’s also a “gang of 10” in the Senate, five Republicans and five Democrats, that is trying to work a compromise deal on lifting the moratorium. So it’s possible a lot of action on this front could occur much sooner than people seem to think.

So I repeat: Drill, drill, drill. Deregulate, decontrol, and unleash the American energy industry. Those hated traders will then keep selling oil as the laws of supply and demand and free markets keep working.

Bravo for Bush. Bravo for the traders.

Source

Probably nothing will happen. The price of oil may have dropped, but gasoline prices didn't.

All due respect, dear Marine - but things like this take time. And I don't think the oil producers are interested in spending their profits on research and development. They're getting plenty of money under the current circumstances.