Author Topic: Obama approves offshore drilling  (Read 1710 times)

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Offline wreckhog

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Obama approves offshore drilling
« on: March 31, 2010, 06:55:37 AM »
Personally, I think that it is a waste of time/money, but it should make the Rep oil barons happy.

Offline Sourdough

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Re: Obama approves offshore drilling
« Reply #1 on: March 31, 2010, 07:07:58 AM »
We need to stop buying oil from the middle east.  We have oil here in the US so why not drill for it and quite buying oil.  And no it won't take ten years before we see the first drop of oil.  If we had drilled ten years ago we would have been using that oil for the last seven years.  OPEC has us over a barrel and we need to get away from their influence.

And I don't have a problem with the so called Rich Oil Barons making money.  The more money they make the more people they hire to make more money.  The process puts people to work, and that is real economic stimulus.  It's a win win, and it's called Capitalism, it's what this country does best.

There is lots of places near our shores that if we don't drill someone else will.  Look at the drilling going on right now between Florida and Cuba.  First the oil companies came to the US and asked permission to drill there.  Florida raised a fuss saying NO it could ruin their pristine beaches.  So the oil company went to Cuba.  Castro said pay us this amount and drill.  So Florida's beaches are endangered without the safeguards that would have been in place if the US had gave the permits.  Cuba could care less, as long as they get their money.   
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Offline bearmgc

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Re: Obama approves offshore drilling
« Reply #2 on: March 31, 2010, 08:52:05 AM »
While I think its a good idea, I also think his motives were nefarious. Just trying to form a few alliances, but won't succeed in that department.

Offline Lon371

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Re: Obama approves offshore drilling
« Reply #3 on: March 31, 2010, 09:01:44 AM »
 Yeah and in the same breath took over student loans ::) And refused to let them drill in Alaska where the oil companys have already tested and found oil.

Offline Oldshooter

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Re: Obama approves offshore drilling
« Reply #4 on: March 31, 2010, 09:05:15 AM »
While I think its a good idea, I also think his motives were nefarious. Just trying to form a few alliances, but won't succeed in that department.

Yep, its a ploy! I know all you left wingers are gonna praise him for trying but It isnt legit! For one thing hes a liar! Next if you noticed it will be contingent on the legislature and "SCIENCE" to determine where and if it happens.

His version of Science and scientist have already, given it thumbs down! I'm betting it wont happen #1 and if it does it will be a miniscule attempt at a LARGE problem!

Just another campaign like ploy to take our minds off of "heathcaw"!
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Offline gypsyman

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Re: Obama approves offshore drilling
« Reply #5 on: March 31, 2010, 09:48:09 AM »
Like throwing a starving dog a bone. Something to chew on, no meat to it. We've had offshore rigs in place for 30+ years. We could be refining that oil in less than 3-5 months. Agree with others, just a ploy for delay. gypsyman
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Offline myronman3

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Re: Obama approves offshore drilling
« Reply #6 on: March 31, 2010, 09:56:06 AM »
it will never happen.  it is just a political move so he can say "see, i approved this on this day..." but the reality is it will never actually happen.    and, if he was serious about it, why not drill in a place that companys would actually get oil from?   instead, he is picking a place that there is no corporate interest in drilling; because there is little to nothing to drill for.   ::)       
   anyone that falls for this is a buffoon. 

Offline Swampman

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Re: Obama approves offshore drilling
« Reply #7 on: March 31, 2010, 10:11:00 AM »
I hope they put 10,000 wells off the FL coast.
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Offline saddlebum

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Re: Obama approves offshore drilling
« Reply #8 on: March 31, 2010, 10:28:28 AM »
This means very little to me since there is still billions of acres in the west,(ON LAND), that progressives still refuse to open up. The closest Obamanation can come to making any sense is to make a showing of good sense. The largest reserves I believe are in Alaska, Wyoming, Montana and N. Dakota. Seems safer ecologically to drill on land. More cost effective. But heck, that would create too many jobs........Maybe he is going to give those states back to the native Americans. Social justice don't you know. Or maybe he is going to turn all those states into national parks and turn loose a bunch of grizzlies, wolves, buffalo, and progressives in there and charge the rest of us admission to go sight-see. No hunting allowed. Just think, it would be just like,"Dances With Wolves".    :P
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Offline Oldshooter

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Re: Obama approves offshore drilling
« Reply #9 on: March 31, 2010, 11:56:47 AM »
I hope they put 10,000 wells off the FL coast.

Swampy, you gotta better chance of meeting your buddy in that avatar than that happening!  :o
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Offline DDZ

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Re: Obama approves offshore drilling
« Reply #10 on: March 31, 2010, 11:58:50 AM »
it will never happen.  it is just a political move so he can say "see, i approved this on this day..." but the reality is it will never actually happen.    and, if he was serious about it, why not drill in a place that companys would actually get oil from?   instead, he is picking a place that there is no corporate interest in drilling; because there is little to nothing to drill for.   ::)       
   anyone that falls for this is a buffoon. 

Exactly right myronman! The areas offshore that government says oil companies can lease to drill on do not have any oil or very little. All the anti drillers know this and say "look we are letting the oil companies drill if they want". They figure there are enough stupid people to believe them, and they are right. To bad we can't let oil companies drill where there is actually oil. Heck oil companies might be able to lower the cost of gasoline, and we can't have that happen. People would be buying trucks and SUV's again, and not Obama mobiles.

Ever notice how people think the oil companies are greedy because gas is $2.50-$3.00 gal. when their cut is around 8 cents on a gal. I think gas is a pretty good deal when you take into account that research and development, extraction, refining, and shipping to a gas station goes into that price you pay at the pump. Don't forget state and federal taxes are a piece of the pie also.
 I don't hear much talk about dairy farmers being greedy because their milk costs $4.00+ a gal. at the market.
 
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Offline Oldshooter

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Re: Obama approves offshore drilling
« Reply #11 on: March 31, 2010, 12:14:14 PM »
Ok I'll go along with the cost of doin biness and all but The double crosses made Billions in 2008 (45.2) to be exact. Heck they paid Tillerson (ceo)  $23.9 million in compensation!  ::) I aint feelin their pain!

Good news tho, some of my retirement is from Exxon, and I'll get that starting next year, Yahooo whooopiii!  New rifles and a Ranch!


Your point is well taken DDZ but its all in perspective I guess!
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Offline DDZ

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Re: Obama approves offshore drilling
« Reply #12 on: March 31, 2010, 01:01:32 PM »
A majority of that profit goes back into research and development, so they can bring more product to market.  The reason their profits are large is because they sell a large amount of product. Oil companies make around 8 cents on every dollar invested. Many other companies make much more than that. For instance pharmaceutical companies make around 18 cents on every dollar invested. Beverage and tobacco companies make around 19 cents. 
Also every mutual fund company owns oil stocks. So there are millions of middle class Americans that are part owners of oil companies. So through pension plans, mutual funds, IRA accounts, and 401K's, Americans are making profits when their stock portfolios go up due to oil companies finding, extracting, refining, and selling gas and oil. Oil companies are not the bad guys. Its all about supply and demand. I bet if everyone bought an electric/gas powered car, the price of gasoline would come down. 
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Offline Sheila

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Re: Obama approves offshore drilling
« Reply #13 on: March 31, 2010, 01:16:07 PM »
He's trying to distract the people from the death care bill, and its not working.
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Offline wreckhog

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Re: Obama approves offshore drilling
« Reply #14 on: March 31, 2010, 01:26:47 PM »
Gasoline was $1-$4/gallon in the last few years. Are you telling me that the oil companies made the same 8 cents per gallon this whole time? That is an insult. A distracting one at that.

Offline Sourdough

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Re: Obama approves offshore drilling
« Reply #15 on: March 31, 2010, 01:35:59 PM »
We the people of Alaska feel we are being punished. 

The Feds just issued the permits last fall to drill off the coast of Alaska.  Alaska will get a royalty off all the oil pumped from each well.  According to our constitution all the minerals found in the state are the property of the people of the state.  Therefore when the oil companies extract it we get a cut.  Now Obama opens drilling off the east coast, and cancels all the permits off the coast of Alaska.

Since Sarah Palin is making headway against the Democrats, the majority of the people of Alaska are behind her.  We see this as a get even tactic from the White House.

Wreckhog:  DDZ is correct.  By the time the oil companies buy the oil, ship the oil to the refinery, refine it, then ship it to the retail outlets, their profits are not big.  They make big money a few cents per gallon, by selling such a large volume of their product.  Research and development is extremely expensive, especially in some of the harsh conditions they have to work under.  I know this for a fact, one of the Presidents of Alaska operations for one of the big oil companies is a very close friend.  We have discussed this issue many times. 
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Offline nomosendero

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Re: Obama approves offshore drilling
« Reply #16 on: March 31, 2010, 02:05:32 PM »
Diversion & a lie, no reason to make anyone happy!  ::)

HE said he would "look at it", no real committment exists here!!  ;D

One thing you can say is he is a polititian/deceiver.

It was a timely thing to say for 2 reasons.
1. He needed himself & his loser Lib Congress to appear more moderate & temper some of the HC generated anger.
2. This is biggie. He needed this energy friendly statement because they are about to re-intro Cap & Trade. He can appeasr to not be a total anti-fossil fuel radical & then quit "looking at it" as soon as cap & trade passes.

Come on, I hope no one on this site is that easy to trick!  ::) :D
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Offline ms

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Re: Obama approves offshore drilling
« Reply #17 on: March 31, 2010, 02:27:23 PM »
Well the Russians are going to drill there too.

Offline DDZ

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Re: Obama approves offshore drilling
« Reply #18 on: March 31, 2010, 02:34:01 PM »
Do you know what an insult is wreckhog? An insult is the government taking .50 for every gallon of gas sold. On top of that they slap a tax on gross profits of a company like Exxon. So you can add another .11 cents per gal. of government take to that .50.
The .08 companies make for every dollar spent is an industry average. It may fluctuate to 9.5 on the high end. This averages to around .22 cents per gal. you pay the greedy oil companies, compared to governments take that is three times that much. Did you ever complain about governments greedy paws in the mix? If there is such a strain on America's workers because of gas prices, why doesn't government reduce their take. No they never will, because its easier for them to just complain about the greedy oil company profits. They know people are to ignorant of facts to know the difference. Hence people are pissed at the oil companies, instead of our do nothing wrong government. Just look at who started the oil company bashing. Remember when the oil companies had to go before a government board and explain their profits. It was all just smoke and mirrors, so we the people would view the oil companies as villains. They had to blame someone for the high gas prices, and from what I see it worked.
You know wreckhog, one of the great things about living in America's capitalistic system is that if there is a need for something, someone is going to produce it, because of the chance to make a profit. If it were not for oil companies extracting oil, refining it and marketing it, you would be riding a bicycle, horse, donkey or walking. If you don't like the price of gas don't buy it. Or better yet if you think oil companies are striking it rich you can buy a drilling rig, comply with the thousands of EPA rules and regulations and have at it.      
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Offline oldandslow

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Re: Obama approves offshore drilling
« Reply #19 on: March 31, 2010, 03:27:44 PM »
Thanks for the two excellent posts, DDZ. And while we are discussing oil don't forget that oil is a commodity. Those "greedy oil companies don't set the price of what a barrel of oil costs. They sell oil for what the traders will give for it. That is driven by supply and demand although a big part of the last run-up was speculation. If the oil companies could set their prices does anyone, in all honesty, think the price would ever go down?

Think everyone in the oil business is getting rich? Sure, the top management of the major companies are still blowing and going but come on down to oil country and see how the rank and file are doing.

Even if off shore drilling is opened up it doesn't mean there is going to be a big boom in the oil business. If the price of oil doesn't support paying your expenses and leave room for some profit (8-9% on the DOLLAR invested) there won't be much happening just like it is now. When the demand is there drilling will increase. It also means that the price of gas, diesel, and anything else that uses oil will increase.

Offline Sourdough

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Re: Obama approves offshore drilling
« Reply #20 on: March 31, 2010, 03:47:38 PM »
Also the oil companies are getting gun shy with America.  They issue permits, the oil companies make plans to drill, spending lots of money purchasing the equipment, often times having to have it made under time constraints making it far more costly.  Then staging all that equipment, moving it to the area, hiring people and making plans.  Then the Federal Government cancels the permit.  Millions of dollars down the tubes.  That affects profits, and lowers their bottom line.  When profits drop, investments drop. 

The United States has gotten a bad reputation with the Oil Companies, and are soon going to leave us high and dry.
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Offline wreckhog

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Re: Obama approves offshore drilling
« Reply #21 on: March 31, 2010, 04:01:08 PM »
If it is so tough, why do the oil companies bother? You know how you make 8 cents a dollar? You spend everything you make until you get down to 8 cents. Junkets, whatever.

Offline scootrd

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Re: Obama approves offshore drilling
« Reply #22 on: March 31, 2010, 05:00:47 PM »
Here is a breakdown of 1 gal of gas (BTW the State Govt's not the fed rake in the largest amount of taxes per Gal.
These stats are current as of Feb 2010. Wanna give Americans a break give up Fed taxes for a year at the pump.
in 2008 we had approx 19,121( in millions)  barrels of crude in reserve. The U.S consumed 19.5 million barrels a day in 2008 (EIA). Assuming 365 days a year, the United States consumed 7,117.5 million barrels in 2008.  
The first eleven weeks of 2010,US crude oil production has been stable at about 5.5 million barrels per day
Net US oil imports averaged 8.5 million barrels per day in Dec, 2009 and are 9.2 million barrels per day so far in March, 2010
Occidental Petroleum found in mid-2009 a big oil field in California's San Jaoqin basin. It is already producing 7,500 barrels of oil per day at the end of Jan 2009 from 15 wells. It is expected to produce 100,000 barrels of oil per day late in 2011.
Continental Resources has 13,000 barrels of oil per day from ten wells completed in the first quarter of 2010 mostly in the Bakken oil field.    

Per 1 gal gas
Taxes = 15%
Distribution and marketing and profits10%
refining costs and profits 6%
crude oil  69%

as of 03/29/10 the average U.S price per gal was 2.79

so crudely (no pun intended) rounding up

Taxes = .42 Cents (only 18.4 cents is Fed, states take the rest on average 23 cents per gal. )
Dist and Mkt and profits = 27 cents
refining costs and profits =.18 cents
price of crude to make 1 refined gal =1.92 cents

Crude Oil - the monthly average of the composite refiner acquisition cost, which is the average price of crude oil purchased by refiners.
Refining Costs & Profits - the difference between the monthly average of the spot price of gasoline or diesel fuel (used as a proxy for the value of gasoline or diesel fuel as it exits the refinery) and the average price of crude oil purchased by refiners (the crude oil component).
Distribution & Marketing Costs & Profits - the difference between the average retail price of gasoline or diesel fuel as computed from EIA's weekly survey and the sum of the other 3 components.
Taxes - a monthly national average of federal and state taxes applied to gasoline or diesel fuel.
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Offline wreckhog

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Re: Obama approves offshore drilling
« Reply #23 on: March 31, 2010, 05:44:37 PM »
If there is no oil offshore, what are the Russians drilling for?

Offline Redhawk1

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Re: Obama approves offshore drilling
« Reply #24 on: March 31, 2010, 05:49:36 PM »
Personally, I think that it is a waste of time/money, but it should make the Rep oil barons happy.

It has nothing to do with the Republicans, it is a political move to come to the center. Which is a little to late if you ask me.

 In my opinion, we should be drilling everywhere there is oil to be found and be self reliant.
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Offline scootrd

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Re: Obama approves offshore drilling
« Reply #25 on: March 31, 2010, 06:18:48 PM »
Personally, I think that it is a waste of time/money, but it should make the Rep oil barons happy.

It has nothing to do with the Republicans, it is a political move to come to the center. Which is a little to late if you ask me.

 In my opinion, we should be drilling everywhere there is oil to be found and be self reliant.

no matter where they find oil , it would not make it into our supply chain until 2030.. little late if you ask me.
When was our last refinery built 1970?  mid 70's? Are the ones damaged by Katrina back fully operational?
Aand why the need for the added expenses for summer blends vs winter blends. just pick one and stick with it.
Switching back and forth is expensive.

and when are we going to get serious about Diesel
Newer diesels engines are about 30 percent more efficient than gas engines of comparable performance. If you're burning less fuel, your producing 30 percent less carbon dioxide. The Federal excise tax on diesel fuel is 6 cents per gallon higher (at 24.4 cents/gallon) than the tax on gasoline. There is no reason why Diesel should cost more . They charge more because they can.
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Offline teamnelson

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Re: Obama approves offshore drilling
« Reply #26 on: March 31, 2010, 11:43:10 PM »
wait, wasn't he opposed to drilling during the campaign?
held fast

Offline Oldshooter

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Re: Obama approves offshore drilling
« Reply #27 on: April 01, 2010, 12:18:51 AM »
Wait a minute, All you right wing radicals, never give our President the credit for nuttin!
He was opposed to drilling then, but NOW we need drilling for oil to show the world that we can do something about our "depends ants" on froeign oil. not to mention the fact that he so much needs to make Y'all think that he is moving to the right a bit and wants to take our troubled minds off'n the heartbreak that we went threw gettin Heathcaw passed. Give him a chance he only wants whats best for us. Yea thats it, he wants whats best for us. And NO Family will have a tax increase that makes less than 250,000 a year I mean 100,000 a year I mean 85,000 a year Well no family will pay more taxes that wasnt paying before! and they will get yo tax money! See how nice he is, he luvs us! Give him a break TN quit being so radical! your radical past is showing, if ya dont mind me saying so!

Oh yea, and give me an wreckhog some credit! we only want to be on the left I mean the right side of all of this. Cause we are patriots!.......... The defense rests.
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Offline oldandslow

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Re: Obama approves offshore drilling
« Reply #28 on: April 01, 2010, 03:17:40 AM »
OK, equate producing oil with manufacturing most items we use today. Everyone hollers about everything being made in China today and about using foreign oil. It's real simple. It's cheaper than producing the same product in the US, consumer goods or oil. And cheaper prices mean more sales.

I retired from a major oil company and I can remember the warnings from management about what was going to happen to oil production in the US with all the restrictions being placed on the industry by the government. They were right.

I'm all for drilling everywhere oil is available and being self reliant. Ain't gonna happen. Too much cheaper oil available elsewhere.

The reason the companies switch from summer blends to winter blends and back is because the government says they have too. Have to have someplace to use that ethanol that costs more to produce than you get in return.  ;D

Offline wreckhog

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Re: Obama approves offshore drilling
« Reply #29 on: April 01, 2010, 05:38:28 AM »
I don't believe that Obama was against drilling. He wanted to focus on alternative energy, and since he has budgeted $60+ billion for new nuke plants, that is on it's way. Now he is on oil, which I consider a waste of time/money, but he does not. Timelines are weird. 30 years for oil, 5 years for oil, 20 years for nukes, 7 years for nukes, heard it all, from biased sources.