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Bush drops offshore drilling ban, Oil futures drop immediately.

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Just think what could happen if we actually started drilling for oil off our coasts and in ANWAR?

 

 

 

 

Bush Says Drill, Drill, Drill — and Oil Drops $9! [Larry Kudlow]

 

 

 

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.

 

http://corner.nationalreview.com/post/?q=N...mM5ZWU3M2UxYTY=

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CGV - that's the only stock in play

 

4 dimensional mapping for oil

 

only game in play and you can get it at it's lowest price ever right now.

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Who are the "evil oil speculators"? If the price of oil were to drop back down to $20 a barrel tomorrow, who would be hurt the most?

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Who are the "evil oil speculators"? If the price of oil were to drop back down to $20 a barrel tomorrow, who would be hurt the most?

 

 

Saudi Arabia and Iran since they can flat out buy the US with all their oil reserves.

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It's going to take years to even focking find the GD oil...it's not like it's sitting out there in barrels waiting to be picked up...

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there is an issue here that people arent talking about...it is that there is like 60 million acres of land that the oil companies have leases on that they can drill on, but they are not...

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there is an issue here that people arent talking about...it is that there is like 60 million acres of land that the oil companies have leases on that they can drill on, but they are not...

 

It's not cost effective for them to do so, or at least it hasn't been until recently.

 

Weening ourselves from dependancy on foreign oil. Hardly.

 

It's all about $$$$$$.

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It's going to take years to even focking find the GD oil...it's not like it's sitting out there in barrels waiting to be picked up...

 

 

Didn't read the article, did ya?

 

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.

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there is an issue here that people arent talking about...it is that there is like 60 million acres of land that the oil companies have leases on that they can drill on, but they are not...

 

It's stunning, isn't it? Why isn't this being discussed more? And I believe the number is more like 68 million acres of untapped leases.

 

RP, care to comment? Or is this going to be one of your selective response threads?

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It's stunning, isn't it? Why isn't this being discussed more? And I believe the number is more like 68 million acres of untapped leases.

 

RP, care to comment? Or is this going to be one of your selective response threads?

 

The Gubmint makes the oil companies take out long term leases. Once they get them they determine if the lease has oil on it, then they determine if it is economically viable to drill for it if it has oil. If it is economically viable to drill for it they will do it once their assets are done at a more profitable site.

 

If there is no oil, or it isn't profitable to drill on a particular lease, they do nothing but continue to pay the Gubmint for land they can't make money off of.

 

So, if they aren't drilling on a particular lease it's most likely for one of the following reasons:

 

1. They are still determining if it has oil.

B. It has oil, but it isn't profitable to drill for it.

3, It has oil, but they need to free up assets (equipment) to drill for it.

D. It has no oil.

 

 

Now, howsabout you explain why you think they aren't drilling for oil on those leases. And please try to come up with something beyond your usual idiotic "Evil Big Oil" wants prices to stay high.

 

Any lease that is more profitable to drill on in the U.S. than bringing it in from another country is being drilled. Where I live any business remotely connected to drilling oil is off the hook busy. They are punching holes all over the place.

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It's stunning, isn't it? Why isn't this being discussed more? And I believe the number is more like 68 million acres of untapped leases.

 

RP, care to comment? Or is this going to be one of your selective response threads?

 

common sense and just a basic understanding of the oil industry should answer your question.

I assume you have some sort of basic understanding about this since you have been shooting your mouth off about it. :dunno:

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The Gubmint makes the oil companies take out long term leases. Once they get them they determine if the lease has oil on it, then they determine if it is economically viable to drill for it if it has oil. If it is economically viable to drill for it they will do it once their assets are done at a more profitable site.

 

If there is no oil, or it isn't profitable to drill on a particular lease, they do nothing but continue to pay the Gubmint for land they can't make money off of.

 

So, if they aren't drilling on a particular lease it's most likely for one of the following reasons:

 

1. They are still determining if it has oil.

B. It has oil, but it isn't profitable to drill for it.

3, It has oil, but they need to free up assets (equipment) to drill for it.

D. It has no oil.

Now, howsabout you explain why you think they aren't drilling for oil on those leases. And please try to come up with something beyond your usual idiotic "Evil Big Oil" wants prices to stay high.

 

Any lease that is more profitable to drill on in the U.S. than bringing it in from another country is being drilled. Where I live any business remotely connected to drilling oil is off the hook busy. They are punching holes all over the place.

 

Very fair reply, with no hostility or mocking. I will respond in turn...

 

I'm not going to preach from my soapbox over this concern as I'm with the majority of Americans on this issue. We certainly need to augment our domestic oil output in order to advance our self-sufficiency, and to implement some level of price controls. But we also need to identify alternative energy sources in order to ween ourselves from dependence on foreign oil. And sooner than later.

 

I detest that our nation is so reliant on crude from nations that sponsor terrorism, have dictatorial regimes or theocracies, are known for poor human rights track records, and generally operate as though they are stuck in the dark ages. If it weren't for their oil, we would ride them off completely and hope they quietly disposed of one another without our involvement. I'm aghast when I see Bush swishing around with Saudi royalty, holding hands, and sharing kisses.

 

My only significant beef is with oil companies looking to travel the easy road. They see simpler means for tapping oil and appear to be unwilling to take advantage of their leased land. I can see where their reasoning lies to an extent, but it's certainly not written in stone that there isn't oil below said leases. I've been fortunate enough to enjoy the company of many people in the geophysical and seismic surveying industries, and I've heard time again that "the biggest secret in the industry is that locating oil is still a crapshoot." And yes, that is with all the marvelous advancements in seismic technology, astonishing processing power, etc.

 

You mentioned that, "The Gubmint makes the oil companies take out long term leases." Makes them? Is this true? I tried researching your statement but wasn't able to determine if it was wholly valid. I'm not saying it's not, but I'd appreciate if you could provide a link so that I can educate myself further. Honestly. Nothing more.

 

One thing is for certain: This has been a contentious and often misunderstood issue. The average American is affected by rising fuel costs and they don't need to hear hollow rhetoric about how European gas prices far exceed ours...get used to it...blah, blah, blah. This problem will continue to escalate as the November elections near, and Democrats may well shoot themselves in the foot if they maintain their present positions.

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common sense and just a basic understanding of the oil industry should answer your question.

I assume you have some sort of basic understanding about this since you have been shooting your mouth off about it. :mad:

 

What's up, kpbucktooth? I figured our paths would cross again. Thanks for your insightful contributions to this thread. I figured you'd chime in with your typical "strained vagina" or "whiner" comments, but I was mistaken.

 

It's refreshing to see you've taken a different stance. Thanks again for the edumacation.

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What's up, kpbucktooth? I figured our paths would cross again. Thanks for your insightful contributions to thie thread. I figured you'd chime in with your typical "strained vagina" or "whiner" comments, but I was mistaken.

 

It's refreshing to see you've taken a different stance. Thanks again for the edumacation.

 

I'm here to please. good to see you came back with some common sense. :mad:

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but but I thought the REAL problem was we don't have more / new refineries?

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Very fair reply, with no hostility or mocking. I will respond in turn...

 

I'm not going to preach from my soapbox over this concern as I'm with the majority of Americans on this issue. We certainly need to augment our domestic oil output in order to advance our self-sufficiency, and to implement some level of price controls. But we also need to identify alternative energy sources in order to ween ourselves from dependence on foreign oil. And sooner than later.

 

I detest that our nation is so reliant on crude from nations that sponsor terrorism, have dictatorial regimes or theocracies, are known for poor human rights track records, and generally operate as though they are stuck in the dark ages. If it weren't for their oil, we would ride them off completely and hope they quietly disposed of one another without our involvement. I'm aghast when I see Bush swishing around with Saudi royalty, holding hands, and sharing kisses.

 

My only significant beef is with oil companies looking to travel the easy road. They see simpler means for tapping oil and appear to be unwilling to take advantage of their leased land. I can see where their reasoning lies to an extent, but it's certainly not written in stone that there isn't oil below said leases. I've been fortunate enough to enjoy the company of many people in the geophysical and seismic surveying industries, and I've heard time again that "the biggest secret in the industry is that locating oil is still a crapshoot." And yes, that is with all the marvelous advancements in seismic technology, astonishing processing power, etc.

 

You mentioned that, "The Gubmint makes the oil companies take out long term leases." Makes them? Is this true? I tried researching your statement but wasn't able to determine if it was wholly valid. I'm not saying it's not, but I'd appreciate if you could provide a link so that I can educate myself further. Honestly. Nothing more.

 

One thing is for certain: This has been a contentious and often misunderstood issue. The average American is affected by rising fuel costs and they don't need to hear hollow rhetoric about how European gas prices far exceed ours...get used to it...blah, blah, blah. This problem will continue to escalate as the November elections near, and Democrats may well shoot themselves in the foot if they maintain their present positions.

 

 

Long post so I will try to respond to all your points.......but I have about 15 beers in me so far cuz it's my day off so I may miss some.

 

I have no problem with alternative energy sources. I would love to drive some "fuel cell" car for next to nothing. Until something like that happens we will be tied to oil. So, as long as oil is the driving force of our economy I see no reason why we don't open up each and every option we have right here at home.

 

As with any industry they would be heavily regulated so the enviro-nuts have no leg to stand on when it comes to the "environment". My position is the enviro-nuts are socialists in disguise............against the "evil" corporations. :music_guitarred: I'm in the middle of the oil patch here in Texas and believe me when I tell ya that you can't drill, pump, or refine oil and do a focking thing to the environment without all hell breaking loose.

 

As for the leases they already have, like I said before there needs to be oil there and there needs to a profit to be made. Without those two why would a company go in? The length of the leases (which was a guess on my part) is most likely a situation where the oil companies figure that if they hit oil on a certain percentage it will offset paying the long term cost of leases that have squat.

 

But for idiots here that have no clue how the industry works to say "But the oil companies already have 65 million acres leased, why don't they drill there and give us $2 gas" is focking stupid.

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Shale distillation = USA is biggest energy producer in the world.

 

Can anyone talk about where shale is in terms of getting the technology to a stable and reliable status?

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Gas prices dropped .25 per gallon yesterday around here. :wave:

 

I'm glad to hear that, but I definitely don't understand it. :mad:

 

It takes months for oil to be refined to gas and delivered to stations to be put into vehicles. How can this drop now, which will take months to actually make it to the gas stations, cause an immediate price drop. Conversely, how can a sudden spike in crude cause an immediate price jump. I just don't get it. :mad:

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OMG...An interesting and very informative thread without too much name calling. :lol:

 

Also RP, good job on your explainations. As one who obviously doesn't know a whole lot about the industry, you gave me some good ammo to fight with the next time my eco nut mom calls. :lol:

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Just think what could happen if we actually started drilling for oil off our coasts and in ANWAR?

just think if they counted all the votes in 2000

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Why didn't Bush do this a year ago?

:thumbsup: Prices for one. Gas wasn't this high a year ago. People were still expecting the democrats to do what they promised in 06 and wouldn't have supported it. At least Bush listened to the people for a change and is trying to do something. All we here form the libs is "we need an alternative" or "just get used to it." Like nobody has been working furiously to find an alternative until last year or something. I don't know a single person who doesn't think we need an alternative. That is going to take time to get going. We can't just say "Fock it, nothing we can do about it now" anymore. That is not working.

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American offshore drilling had little to no effect on the price of oil.

 

The latest monthly market report from the Organization of Petroleum Exporting Countries gave traders further reason to unload oil this week.

 

The cartel predicted world oil demand will rise by 900,000 barrels a day in 2009, or 100,000 barrels per day less than this year. OPEC blamed the slowdown in growth on slumping economies and high pump prices in rich, industrialized countries.

 

http://ap.google.com/article/ALeqM5i5Ttajg...HBB-tAD91UUBUG0

 

But I guess because The National Review says the price dropped because Bush changed his position on offshore drilling, it must be true. Nevermind what OPEC says.

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American offshore drilling had little to no effect on the price of oil.

http://ap.google.com/article/ALeqM5i5Ttajg...HBB-tAD91UUBUG0

 

But I guess because The National Review says the price dropped because Bush changed his position on offshore drilling, it must be true. Nevermind what OPEC says.

 

 

You want to rag on National Review as not being objective? And WTF do you bring to support your position....focking OPEC????

 

Yep, no way they might be biased. Us drilling our own oil, driving down the cost, and lessening our dependance on them wouldn't influence their opinions on the subject. :music_guitarred: :mad:

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You want to rag on National Review as not being objective? And WTF do you bring to support your position....focking OPEC????

 

Yep, no way they might be biased. Us drilling our own oil, driving down the cost, and lessening our dependance on them wouldn't influence their opinions on the subject. :mad: :lol:

 

:doh:

 

What better source to cite on oil prices and the reasons behind those prices than the organization that actually sets the fockin' price? Just when do you think in reality, that oil from our offshore drilling will actually be available? 5 years, 6 years, 7 years...More likely longer than that. Commodities such as oil have their prices set based on circumstances no more than one year away. OPEC sets the price based upon current circumstances, oil traders then try to profit by buying large quatities then selling it off when demand increases, thus allowing them a profit. So when immediate demand declines, prices drop.

 

Haven't you ever seen Trading Places? :overhead:

 

Offshore drilling has had little or no effect on oil prices. Maybe in the distant future it will, but Bush's policy switch can not be credited with making the difference. To claim that, one would have to have no basic knowledge of how economics work or they must be so partisan that they will spin anything to make a positive impression.

 

I think by posting in this thread, you have been proven to be both. Read a book sometime!

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Wall Street Journal

 

Inventories are up and demand is down, and strangely the price dropped. But clearly this is due to something Bush said and not the most basic of basic economics. :thumbsup:

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Wall Street Journal

 

Inventories are up and demand is down, and strangely the price dropped. But clearly this is due to something Bush said and not the most basic of basic economics. :cry:

And people were claiming it would take 10 years to get the oil inventories up. :dunno:

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:dunno:

 

What better source to cite on oil prices and the reasons behind those prices than the organization that actually sets the fockin' price? Just when do you think in reality, that oil from our offshore drilling will actually be available? 5 years, 6 years, 7 years...More likely longer than that. Commodities such as oil have their prices set based on circumstances no more than one year away. OPEC sets the price based upon current circumstances, oil traders then try to profit by buying large quatities then selling it off when demand increases, thus allowing them a profit. So when immediate demand declines, prices drop.

 

Haven't you ever seen Trading Places? :cry:

 

Offshore drilling has had little or no effect on oil prices. Maybe in the distant future it will, but Bush's policy switch can not be credited with making the difference. To claim that, one would have to have no basic knowledge of how economics work or they must be so partisan that they will spin anything to make a positive impression.

 

I think by posting in this thread, you have been proven to be both. Read a book sometime!

 

or to spin it to make a negative impression.

I mean seriously, who are you to point fingers about partisian politics? :shocking:

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or to spin it to make a negative impression.

I mean seriously, who are you to point fingers about partisian politics? :pointstosky:

 

Try to follow:

 

1. RP starts a thread claiming that Bush was responsible for lowering oil prices, thus attempting to score his political party some points.

 

2. RP tries to make his point by citing an article in a right wing publication.

 

3. I replied to RP that his claim that Bush had anything to do with dropping oil prices was wrong.

 

4. I cited an AP article quoting a report from OPEC that explained the real reasons oil prices were dropping.

 

5. I did not start a thread about how any Democrat's actions aided the lowering of oil prices.

 

6. Anyone with two college degrees from "The OSU" surely can follow along with logic and rational thought.

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Try to follow:

 

1. RP starts a thread claiming that Bush was responsible for lowering oil prices, thus attempting to score his political party some points.

 

2. RP tries to make his point by citing an article in a right wing publication.

 

3. I replied to RP that his claim that Bush had anything to do with dropping oil prices was wrong.

 

4. I cited an AP article quoting a report from OPEC that explained the real reasons oil prices were dropping.

 

5. I did not start a thread about how any Democrat's actions aided the lowering of oil prices.

 

6. Anyone with two college degrees from "The OSU" surely can follow along with logic and rational thought.

 

i followed and think you are both wrong and both right. You two are like bro and sister. :pointstosky:

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i followed and think you are both wrong and both right. You two are like bro and sister. :headbanger:

 

 

But I never once claimed that Bush's lifting the ban on offshore drilling was a negative toward him, nor did I ever claim that it was positive for anyone else, nor did I start a thread about it. If you want to lump me in with RP, you're just wrong.

 

:doublethumbsup:

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