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With Gas Prices Soaring, Obama Looks to Ramp Up U.S. Oil Production

randel

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With Gas Prices Soaring, Obama Looks to Ramp Up U.S. Oil Production - FoxNews.com

WASHINGTON -- Seeking to address mounting criticism over high gas prices, President Obama is directing his administration to ramp up U.S. oil production by extending existing leases in the Gulf of Mexico and off Alaska's coast and holding more frequent lease sales in a federal petroleum reserve in Alaska.

snip


His announcement followed passage in the Republican-controlled House of three bills -- including two this week -- that would expand and speed up offshore oil and gas drilling. Republicans say the bills are aimed at easing gasoline costs, but they also acknowledge that won't be immediate
 
:yawn: he's claimed this before. When we see action, I'll believe it and support it. Until then, I'm betting it's the exact same thing as last time - a political announcement, not a policy one.
 
Hooray! In five years gas prices will go down by ten cents!
 
Well, that's what I was wondering. Why didn't he do so many moons ago? And what does that mean for the corporations that are currently keeping gas prices high?

Yes, I'm ignorant on this point. Anybody willing to fill in the blanks would get five warm fuzzies and a gold star. Or my undying gratitude. Maybe all of the above.
 
When gas prices are high they tell us theres not enough supply, when theres plenty of supply they tell us theres not enough refining capacity or they have to shut them down for maintenance. The oil companies will never accept less than the huge profits they always have no matter how much drilling is allowed...There will always be an excuse when gas prices go skyhigh. I do however still support domestic drilling, at least that keeps some of our money out of arab hands
 
Hooray! In five years gas prices will go down by ten cents!

Exactly. I have no idea why this is so hard to grasp. Canada's tar sands are the largest oil deposit on earth and yet our gas prices are much higher than in the US.
 
Exactly. I have no idea why this is so hard to grasp. Canada's tar sands are the largest oil deposit on earth and yet our gas prices are much higher than in the US.

Higher taxes and higher distribution costs for the refined gasoline
 
Exactly. I have no idea why this is so hard to grasp. Canada's tar sands are the largest oil deposit on earth and yet our gas prices are much higher than in the US.

There is absolutely no incentive for big oil to lower gas prices. When they drill domestically and get cheaper crude they just make even more money.
We are all hostages to oil...we must buy gas no matter how high the prices go...we must have heating oil and oil for industry. When prices go sky high and usage drops a bit...their profits still soar...No matter what there will always be a manipulation of oil and gas prices
They have no competition, there is no place else for us to go and buy, there are no alternatives....big oil doesnt have to worry about losing customers, yet.
 
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Higher taxes and higher distribution costs for the refined gasoline

Right. So American huge reserves of shale oil will not be any different I would say. Like the tar sands, it will be be easy to extract and refine.
 
Hooray! In five years gas prices will go down by ten cents!

Not with China forecast to exceed US vehicle ownership by 2015 or 2017 (dependent on one's flavor of sources). I'll never understand why so many Americans can't get it through their heads that oil is a global commodity priced by demand. $10/gal gasoline will eventually present an interesting US economic scenario. Please, no dreamer statements of the US having enough oil reserves to service its own consumption without imports. Unless US oil is nationalized and production subsidized, an impossible scenario, it pays the going rate of global demand and no amount of drilling, shale conversion or tar sands refining is going to change that fact.
 
There is absolutely no incentive for big oil to lower gas prices. When they drill domestically and get cheaper crude they just make even more money.

Huh? What do you mean by this?
 
Right. So American huge reserves of shale oil will not be any different I would say. Like the tar sands, it will be be easy to extract and refine.

Depends on what you mean by shale oil


The stuff in the Dakohta areas is high quality oil that is hard and expensive to extract. The proccess of which requires a massive amount of water to aid in the fracking process. The stuff in Utah and Colorado, is of a worse quality then the tar sands of Alberta. It is also harder to extract.

Where the US beats us is in having lower gas taxes and a more efficient distribution network (higher population density helps in that regard
 
Not with China forecast to exceed US vehicle ownership by 2015 or 2017 (dependent on one's flavor of sources). I'll never understand why so many Americans can't get it through their heads that oil is a global commodity priced by demand. $10/gal gasoline will eventually present an interesting US economic scenario. Please, no dreamer statements of the US having enough oil reserves to service its own consumption without imports. Unless US oil is nationalized and production subsidized, an impossible scenario, it pays the going rate of global demand and no amount of drilling, shale conversion or tar sands refining is going to change that fact.




To assess the impact of oil and gas drilling for future pricing impacts

A person should not assume that it will lower prices from todays levels as demand is going to increase in developing countries. But one should state that prices would be lower then what they would be without that extra supply in the future.
 
Depends on what you mean by shale oil


The stuff in the Dakohta areas is high quality oil that is hard and expensive to extract. The proccess of which requires a massive amount of water to aid in the fracking process. The stuff in Utah and Colorado, is of a worse quality then the tar sands of Alberta. It is also harder to extract.

Where the US beats us is in having lower gas taxes and a more efficient distribution network (higher population density helps in that regard

The shale oil are the deposits in the mid west (i.e. Dakotas). Like the tars sands, the price of oil has to be high enough to make it worthwhile to extract because of the added costs of extraction and fracking (as you note). It seems to me many here think these shale deposits are similar to to gushing wells of Saudi Arabia.
 
The shale oil are the deposits in the mid west (i.e. Dakotas). Like the tars sands, the price of oil has to be high enough to make it worthwhile to extract because of the added costs of extraction and fracking (as you note). It seems to me many here think these shale deposits are similar to to gushing wells of Saudi Arabia.

The shale oil will definately never be cheap, not like what we saw with the extraction of oil in Texas or Alberta's conventional oil, and definately not like what Saudi Arabia has been able to produce. The shale oil I doubt would be profitable at less then $50 a barrel, and I doubt the environmental costs are being considered currently ( contaminated ground water/drinking water). I know the tar sands was profitable at $50/barrel a few years ago, but I am not sure if costs have increased since then
 
Unless US oil is nationalized and production subsidized, an impossible scenario, it pays the going rate of global demand and no amount of drilling, shale conversion or tar sands refining is going to change that fact.

Sadly, you're probably right; at least for the near term. No matter how high the price of gasoline, Americans never will understand the economics of the oil market well enough to protect their own interests. Instead, they will allow the oil industry to set the terms of the debate and to dictate American energy policy.

Obama has to be commended for playing the "drill here, drill now" crowd. With global supply adequate, the oil companies probably won't increase drilling significantly but Obama will get the political benefit of saying they can.
 
To assess the impact of oil and gas drilling for future pricing impacts

A person should not assume that it will lower prices from todays levels as demand is going to increase in developing countries. But one should state that prices would be lower then what they would be without that extra supply in the future.

I notice few posters consider USD decline (11% 2011 to date) in their complaints about gasoline prices (oil trade being settled in USD). I view steady decline in USD exchange value as negating any increase in supply for the USA.
 
Sadly, you're probably right; at least for the near term. No matter how high the price of gasoline, Americans never will understand the economics of the oil market well enough to protect their own interests. Instead, they will allow the oil industry to set the terms of the debate and to dictate American energy policy.

Not just the oil industry, the severely bloated US military is the largest single consumer of oil byproducts in the world.

Obama has to be commended for playing the "drill here, drill now" crowd. With global supply adequate, the oil companies probably won't increase drilling significantly but Obama will get the political benefit of saying they can.

Natural gas is now the energy industry darling and sucking up the majority of new production/distribution investment. US domestic oil production is based on cost of production with most of the easy stuff (cost of production within global oil futures range) already taken. New directional drilling technology is allowing faster exploitation of that existing production (easy stuff) and will remain the primary thrust of domestic oil production increases for some time. At least until consumption by developing nations such as China and India push futures prices to a point where higher production costs for the 'hard to get stuff' can be justified.
 
When gas prices are high they tell us theres not enough supply, when theres plenty of supply they tell us theres not enough refining capacity or they have to shut them down for maintenance. The oil companies will never accept less than the huge profits they always have no matter how much drilling is allowed...There will always be an excuse when gas prices go skyhigh.


Oil%20Profit%20Margins%20vs%20Other%20Industries%203Q10.gif


.....akin to blaming high health care costs on the Health Insurace Companies.......for their "huge" profits.........4%.

I do however still support domestic drilling, at least that keeps some of our money out of arab hands

......to support domestic drilling, is to oppose the Democrat agenda.
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Can we say looming election.
 
Can we say looming election.

That's exactly right. Obama will be lucky to survive the Democrat primary, much less win the general election. He has to butter up everyone that he can to have even a half ass chance at getting elected.

IMO, this isn't as much about lowering gas prices as it about lowering the unemployment rate.
 
With Gas Prices Soaring, Obama Looks to Ramp Up U.S. Oil Production - FoxNews.com

WASHINGTON -- Seeking to address mounting criticism over high gas prices, President Obama is directing his administration to ramp up U.S. oil production by extending existing leases in the Gulf of Mexico and off Alaska's coast and holding more frequent lease sales in a federal petroleum reserve in Alaska.

snip


His announcement followed passage in the Republican-controlled House of three bills -- including two this week -- that would expand and speed up offshore oil and gas drilling. Republicans say the bills are aimed at easing gasoline costs, but they also acknowledge that won't be immediate

This is crap. It's good that Obama is streamlining oil production, but like T. Boone Pickens said, this is not something that we can drill our way out of. I want to see what else Obama is planning, and right now I don't see diddly squat.
 
This is not something that we can drill our way out of. I want to see what else Obama is planning, and right now I don't see diddly squat.

Any guesses? I mean, what would you be expecting to see?
 
Drill baby Drill!!!!!!


:lamo



if he cuts taxes i may have to vote for the guy. :lamo
 
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