More drilling won't lower the price of gas..............

[crustylicious]

Domestic drilling won’t lower price of gas
People say more domestic drilling would lower the  price of gas. The United States produces less than half of the oil we use domestically; the rest comes from other countries. If we produced more, the price would go down, or so it’s said. By that logic, producing all of our oil domestically should score us a hefty discount at the pump. If only there were a country that produced all of its oil, we could look to see how low gas prices could get.
Actually, there is such a country, and it’s not far away in the oil-rich Persian Gulf. It’s our neighbor to the north. Canada produces all of its own oil and has enough left over to export what it doesn’t need. Canada must have much lower gas prices. Exactly how cheap is gas for those lucky Canadian drivers?
Oh, wait. It turns out it’s not so cheap after all. 
http://www.washingtontimes.com/news/2012/jul/6/domestic-drilling-wont-lower-price-of-gas/
 
But there's a flaw in that logic: even if tomorrow we opened up every square  mile of the outer continental shelf to offshore rigs, even if we drilled the  entire state of Alaska and pulled new refineries out of thin air, the impact on  gas prices would be minimal and delayed at best. A 2004 study by the  government's Energy Information Administration (EIA) found that drilling in ANWR  would trim the price of gas by 3.5 cents a gallon by 2027.

Read more: http://www.time.com/time/business/article/0,8599,1815884,00.html#ixzz210xwebUO
 
Expanded domestic drilling will significantly lower gas prices: … it’s not like it would make much difference. Every time gas prices  start climbing, the “drill, baby, drill” chorus kicks in. We heard it back in 2008, and we’re hearing it again. Sounds good. More oil should equal lower  prices. Except that’s not quite the case. As this helpful little analysis from  EIA shows, even expanded offshore production will do very little to reduce gas prices. But you don’t need  fancy math—the reality is that while the U.S. consumes about a quarter  of the world’s oil, we have less than 2% of total remaining reserves. Oil is a  fungible commodity, meaning there’s really no way to ensure that the oil we  produce here, stays here. Instead, any additional production would be absorbed  and digested by the global oil markets, with little difference in prices at the  pump.


Read more: http://ecocentric.blogs.time.com/2011/05/06/debunking-a-few-myths-about-oil-and-gas-prices/#ixzz210yc5LJj
 
 

[lakota]

Bravo Sierra.

[nomosendero]

Hard to have it both ways, but Libs try. When the gas prices started going back dow a month or so back, it was stated that things are slowing and supplies were way up. Funny how it only works in one direction. 
 
Oh, great stuff just the same

[Gary G]

Prices are controlled by supply and demand. Greater supply would lead to lower prices with demand constant. However, it is world supply that matters. That is why drilling the US would only marginally lower prices. But, lest we not forget, it would create a multitude of jobs.

[Cuts Crooked]

BS in large amounts!!!!!!!!!!

Bottom line, until it's tried, we don't know!

[Val]

Prices are controlled by supply and demand. Greater supply would lead to lower prices with demand constant. However, it is world supply that matters. That is why drilling the US would only marginally lower prices. But, lest we not forget, it would create a multitude of jobs.

In addition to the thousands of good paying job we would improve our trade balance and stop the sending of billions of dollars to countries who hate us. OPEC raises their prices and reduces production to keep the price of oil artificially high. The liberals claim limited oil reserves in the US whereas the oil industry talks about vast domestic reserves. We have tremendous reserves of coil and natural gas in this Country.
Yes it would take a number of years to see the benefit but if we don't get started it will never happen. The left wing  lunatic fringe bleeding heart liberal use the courts and the dummycratic politicians to make us dependent on other countries. I think it's part of their world government plan.

Solar energy is absolutely not the key since the cost of solar energy is three to four times the cost of oil energy. In addition the Chinese have a virtual monopoly on the rare earth necessary for the most efficient solar panels and we would be at the mercy of the Chinese. They would get all the jobs associated with building the solar panels.

Wind turbines, similar to solar energy is too costly and wind turbines also require a rare earth to make the magnets used in the turbines. Again we would be dependent on foreigners.

In order to continue the prosperity of this country we must drill baby drill, Use our vast reserves of coal (while we continue to research reducing the environmental footprint of burning coal) and continue the drilling for and use of natural gas. We also need to build nuclear power plants.

[hillbill]

lets see, drill now, savings later ,as opposed to not drill now and no savings later.which one shud yu choose?

[BUGEYE]

when obama restricts drilling, his muslim buddies rejoice.
he's not exactly in favor of private sector jobs.  government jobs?  yes...

[crustylicious]

BS in large amounts!!!!!!!!!!

Bottom line, until it's tried, we don't know!

Such an endeavor requires a plan. I have not seen an economic study that supports this position.

[Empty Quiver]

Supply is not the only driver of oil prices. Something your sources do not address is the speculative supply. That is, the oil that could be tied up if there is some M.E. blowup that reduces shipments.
 
The value of a domestic supply lies in the availability as much as the amount produced. Every time I need dinner jacket opens his pie hole oil prices sky rocket. Do you think this idiot doesn't understand the connection? He plays the crazy card and his chief export gains value, not rocket science.
 
Oil prices tend to reflect replacement costs, not inventory cost. Well at least when prices are rising.   Speculation on future supply is what drives prices. When the drillers are drilling the future supply shoud no doubt be greater than if they are idle, correct?
 
So exactly what market force do you see driving oil prices higher if in fact oil supplies are greater? Even if only by 1% it should have an effect. Understand, economics is not a religion it is a science and therefore not subject to wishes and political doctrine.

[Buckskin]

What a bunch of hog wash.  Just a way of trying to justifying the liberals stance of job killing in the US.  Even if it has little effect on price, it certainly has more upside than downside.
 
Now please try and justify the insane amount of money that is wasted on wind and solar power. Obama pumped hundreds of billions of dollars into these rat holes and we got what??? The Volt, what a shame... If he would have put money into the power grid, pipelines, fracking research, and refineries we would be heading in the right direction. And guess what, using the same amount of oil that we are using now...

[alsatian]

There is a lot of distortion on this issue.  I'm going to focus on two: (1) the price of oil is determined largely based on perceptions which DO change rapidly and (2) the quantification of domestic oil supplies is subject to deliberate misleading use of different terms.

Oil is quantified in a number of different ways.  There is current production.  There are proven reserves.  There are estimated reserves.  You need to keep in mind which term is being used.  I believe that the term the anti-drilling contingent throws around is the current production of the US versus its consumption.  Of course, that isn't the term of interest when we talk about whether we should or shouldn't alter our drilling policy.  I'm going to let oil industry experts cover this topic in more detail, but suffice it to say misleading information is being used.  There are a LOT of oil in the ground here in the US.  There may be some questions about price points.  More specifically, if oil is selling at $10/barrel, there may be a small amount of economically extractable oil on hand; at $1000/barrel there is a lot more economically extractable oil on hand.  I'm not saying most of our oil is $1000/barrel oil, either.

Granted, if we drill tomorrow it is a long time before oil produced from that drilling can be refined into gasoline and delivered at the pumps.  In 2008 George Bush lifted the moratorium on off-shore oil drilling and the price of oil plummeted over two months, from about July to August.  I might have the year wrong but not the price drop.  What happened?  Did they use some super-duper technology to drill, tap the oil, refine the oil, and transport it to the pumps?  No.  Perceptions of the oil commodity market changed.  While the oil stocks won't change rapidly, the perceptions WILL change rapidly when our oil policy changes.
We're adults.  We have witnessed these rapid oil/gasoline price changes.  We have first hand experience of the "perceptions set the price" phenomenon.  It is more than deceptive to recite that sophmoric statement "even if we start drilling today if can't have any effect for 10 years!"  Poppycock.

How about some oil industry expert weighing in on the difference between production, proven reserves, estimated reserves?
Do you guys have any idea how productive off-shore wells are in the Gulf of Mexico?  Highly productive.

[powderman]

What a bunch of hog wash.  Just a way of trying to justifying the liberals stance of job killing in the US.  Even if it has little effect on price, it certainly has more upside than downside.
 
Now please try and justify the insane amount of money that is wasted on wind and solar power. Obama pumped hundreds of billions of dollars into these rat holes and we got what??? The Volt, what a shame... If he would have put money into the power grid, pipelines, fracking research, and refineries we would be heading in the right direction. And guess what, using the same amount of oil that we are using now...

 
BUCKSKIN. Agreed Sir. POWDERMAN. 

[magooch]

I still remember when Carter and the anti-oil crowd said that all of the earth's oil would be depleted by 1975.  How many years ago was that and what planet has all the oil come from since then?
 
The question was asked, where is the model for an oil independant country that has cheap gasoline.  The last time I heard, Venezuela has cheap gas.  They also have a commie leader, so maybe if we drill like crazy our commie will lower our gas prices too.  I'll not hold my breath for that to happen.

[tobster]

THREATEN to drill and see what happens to prices. If we had the ability to be self-sufficient, do you really think the Arabs would be so willing to see how much they could squeeze us? If you heated your house with wood and you bought wood from your neighbor, but had a big pile of wood in your backyard, do you think you might have a little more influence on what he tried to charge you?

[Val]

THREATEN to drill and see what happens to prices. If we had the ability to be self-sufficient, do you really think the Arabs would be so willing to see how much they could squeeze us? If you heated your house with wood and you bought wood from your neighbor, but had a big pile of wood in your backyard, do you think you might have a little more influence on what he tried to charge you?

We have the resources to be energy independent but the commie dumycrats prevent it. I just don't know why they don't take their heads out of a place where the sun don't shine, on this issue.

[Dee]

BS in large amounts!!!!!!!!!!

Bottom line, until it's tried, we don't know!

Such an endeavor requires a plan. I have not seen an economic study that supports this position.

This is possibly due to, that you believe "everything you read", "and hear", from an "out of control Marxist president", and a "socialist democratic party". Liberals THINK they know a lot more than us old cranks, but their like most people. Their lazy, and they let someone else do their homework, and then the "liberal" posts something than has absolutely no real factual value, but is only "liberally slanted opinion". Then someone comes along with easily accessible facts, and makes the whole thing look silly.
 
Caracas, Venezuela......12 cents per gallon
Lagos, Nigeria..............38 cents per gallon
Cairo, Egypt................65 cents per gallon
Kuwait, City Kuwait......78 cents per gallon
Riyadh, Saudi Arabia.....91 cents per gallon
 
I think if you will check, these listed countries, all fall under the "drill baby drill" theology.

[Cuts Crooked]

BS in large amounts!!!!!!!!!!

Bottom line, until it's tried, we don't know!

Such an endeavor requires a plan. I have not seen an economic study that supports this position.

Riddle me this......how are you going to "study" it if you DON"T DO IT?

Lotta so called experts said an atomic bomb was impossible, at one time.....then somebody did it!

[nomosendero]

I havn't seen an economic study on common sense either, but those that have common sense find it quite valuable & those that don't would not know how to evaluate the study or conduct it. 

[crustylicious]

 I think if you will check, these countries, all fall under the "SUBSIDIZE baby SUBSIDIZE" theology.   Their gas prices have little relevance to conditions here and provide NO REAL FACTUAL VALUE  for comparison.In any case they are hardly  an economic study which demonstrates that more drilling in the US will lower gas prices.  I’ve looked and have no doubt that the drill baby cranks will be GONE a long time trying to find supporting evidence.
The atom bomb had a lot of “STUDY” behind it. Both sides had reams of calculations to support their position. I’m looking for REAL FACTUAL VALUES   not Palin pronuciamento
Check out this “STUDY” that advocates increased drilling in the gulf. It presents economic benefits supported with REAL FACTUAL VALUES,   none of which includes lower gas prices (as mentioned in the thread title)
 
http://www.americanenergyalliance.org/images/aea_offshore_updated_final.pdf
 
Common Sense = Is a way of  taking social understandings and rules, and applying them to a situation.
Logical Thinking means = a way to  analyze a problem to come up with an answer sometimes using a formal  system similar to mathematics (a process)

[Three44s]

Any darned fool knows that the progressives have done away with supply and demand!


(They stuffed it in the same dark corner as they did with "morals"!!)




Three 44s

[Needles]

I think that now that the oil companies know how much we will pay for gas, even if it were possible to drill all of our own oil, the price would not drop much. The price will only go up from here. As for the big drop in GW's last year in office, that probably had more to do with the start of the recession than anything else.

[Cuts Crooked]

Logical Thinking means = a way to  analyze a problem to come up with an answer sometimes using a formal  system similar to mathematics (a process)

Yup!
 
DRILL!!!!!!!!!!!!!!!

[BUGEYE]

just think of the jobs that could be created with drill-baby-drill.

[Dee]

BS in large amounts!!!!!!!!!!

Bottom line, until it's tried, we don't know!

Such an endeavor requires a plan. I have not seen an economic study that supports this position.

 
Caracas, Venezuela......12 cents per gallon
Lagos, Nigeria..............38 cents per gallon
Cairo, Egypt................65 cents per gallon
Kuwait, City Kuwait......78 cents per gallon
Riyadh, Saudi Arabia.....91 cents per gallon
 

[Dee]

LED flashlights (as an example) were very high when first introduced on the market. As the technology improved the availability increased,  the priced went down, and you can buy a good one cheap at WalMart. Whatever the product. When it gets plentiful, the price goes down, because it's just plain easier to get.
I'm almost 63 years old, and it's been like that since I have been consciously aware of markets. This is historical economic FACT. You can reject it if you want, it matters not to me. Your comment on the countries I named was "subsidize baby subsidize", concerning these MAJOR oil producing countries. Well! The American Farmer has been "subsidized baby subsidized" for years, and us THE MAJOR FOOD PRODUCING COUNTRY. Has your grocery bill went down, or up?

[Dixie Dude]

Here is my solution.  Allow drilling everywhere in America, offshore, Alaska, and on government leased land.  Then break up the oil companies to smaller companies like it was about 40-50 years ago.  Break up BP who bought out Amoco, Texaco, and Gulf oil companies.  Bring those companies back independently.  Then break up Exxon back to Mobil, Esso, Sinclair.  Break up Connoco-Phillps.  Then when you have the multiple companies, drilling everywhere, then you will have gas wars and lower prices.  When I first got my drivers liscense, there were gas wars in the late 1960's with $0.19 gas. 
 
So yes, more drilling with more capitalism will bring down prices.  Natural gas is another solution, especially for fleets. You just have to get BIG GOVERNMENT OUT OF THE WAY.   They are the ones who allowed the mergers over the years.  We have anti monopoly laws.  Even a handfull of national companies can get together with an oligarth, just like OPEC.  Break things up and open up drilling, and things will get interesting. 

[Dee]

The concept sounds "ok" DD, but "who" does the breaking up? The government? That's the real problem anyway. In my last post I mentioned "farm subsidies". Do you know whom is issuing "farm subsidies" and why?
Monsanto has the Congress, and Senate in their back pockets, and controls everything from wheat, and corn prices, to subsidy amounts for the farmers. I have a brother-in-law that lives like a prince, and draws subsidies for "leased farm land", and his wife (my sister-in-law) is drawing them also, and doesn't even know where the land is. I also know other farmers just here in my home town, that do the same. I have a nephew and niece that work for Monsanto seed company, and draw outstanding wages as "laborers".
The last thing "in my opinion", is the government to step in AGAIN, and start telling companies what they can, and cannot do. It would be like you and I have separate "shoe shine stands" and us merging, throwing all of our resources together, and buying up the other shoe shine stands, then the government telling us we were too big.
When my youngest son was still in high school, he was living with his very liberal mother, and got hooked up with Amnesty International. He was at my house one day, and said: I think the government should take all the wealth and divide it up amongst the people.
I replied: In other words, in theory take up all the money, and give everyone $10,000.00? He said: Yes! I replied: But son, I have $40,000.00. You think it's alright to take my $30,000.00 and give it to total strangers, that didn't work for it? Nuff said, he saw the light.
You open up drilling in this country, and someone is going to take advantage of it. Pass laws on EXPORT, and the problem will take care of itself.JMO

[nomosendero]

The corn yield will be way down due to the drought. We shall see if corn prices go up or down. Any bets on that one?

[Larry L]

Here's my take on our drilling. The BP rig that blew up in the Gulf was an exploratory rig, not a production rig. They are attempting to find out just how big a large reserve is that has already shown to be several times larger than anything we've ever found any where. The reserve stretches from northern Brazil to Venezuela to Florida and almost to Mexico. It's deep and it is of the sweet crude type which is much easier to refine and you get more yield from it versus the sulfur packed sludge we get from the Arabs. While we are spending time researching, other nations like China are dropping holes in it....and just off our shores too. Bet ya can't guess who's buying it? We need to stop the bleeding of our assets and quit paying for something that all we have to do is go get it. We also need to show the Chinese the door. South Texas is covered with the Chinese oil companies trucks. If you travel Texas and see trucks with the CNPC logo on the door, that's them. Why are we allowing these clowns to control any of our resources? I guess this is some more of the change some of the folks voted for.