I know the idea of offshore drilling is popular with the public this summer. Everyone wants to see the gas prices come down.
The current debate has gone on for months, and I’ve always felt there was something very fishy about it all. The Big Oil companies just reported a $58.5 Billion profit last quarter by doing absolutely nothing at all. To get that kind of money, all they had to do was keep the gas pumps full. It seems to me that if I was an oil tycoon, the last thing I would do is something that would make me lose money! The last time the oil industry went on a drilling spree, about 25 years ago, oil prices hit the dirt from oversupply and stayed there until just 5 years ago. I’m sure they won’t repeat the same mistake again.
I recently looked at a map of potential oil deposits in the continental U.S. The West is full of them, and this area is one of the most likely. In 1980, my family was contacted by an oil prospector who wanted to lease our land as a drilling reserve. They were willing to pay for the sole rights to sink a drill, not for any oil they might possibly find. The agent told me our ground was one of 30 sites they wanted to ‘thump’- back then, they were using seismographic detection systems.
Looking at the relative costs of opening up a new oil field, it makes much more economic sense to drill where there are already pipelines, refineries and a good infrastructure. All the offshore talk is just a red herring for the oil companies to just sit back and watch the money roll in.
If the companies were serious about lowering the costs of oil, why aren’t they investing in new refineries? Our domestic refineries are at peak capacity, but I haven’t heard of serious plans to build more.
And so what if we all cut back on our driving? Or use all those small means to economize, like keeping our tires inflated and our car engines tuned up, lubed and working at their best? Seems to me that all the oil companies will do as demand lessens will be to charge more for gas- we are still at half the price gas goes for in most of the world.
It’s all the better for the oil companies to keep prices very high. There are many places in the world where they can sell their oil for even greater profit with less regulation than the U.S.
What are your thoughts?
Popularity: 11%
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Gato got runned over by Marcus many moons ago. Be ye daft, 2486? 
Let's have a new poll, alright, Joe?
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{ 35 comments… read them below or add one }
We already have cut back on our driving….for the 1st time in 26 years according to USA Today. Another USA Today report has said that we’ve driven 30 Billion fewer miles from Nov – April than during the same period in 2006-2007.
http://www.usatoday.com/news/nation/2007-05-17-gas-prices_N.htm
And the Wall Street Journal poll has 45% of the people have cut back and 25% haven’t.
http://forums.wsj.com/viewtopic.php?p=105635
Yet the price of fuel hasn’t declined. Why should I have to cut back on my driving? Because big brother tells me to? The oil companies are still making record profits so who cares really? I’m supposed to do it “for my environment”?? I don’t think so. The only people that have cut back on their driving habits are the lower and lower-middle class because the fuel costs have taken a chunk out of their weekly salaries and it’s the lower and lower middle class that have a highest percentage of credit card and other debt as well. If they didn’t have all that debt, they wouldn’t have a problem with 4 dollar a gallon gasoline. (imo) So once again we come back to the issue of “personal responsibility”. I’ve always worked on my own cars and kept them running in peak condition, but I refuse to cut back on my driving habits because somebody tells me “it’s what I should do”.
Guess I should have answered the original question huh? As for offshore drilling…..I’m all for it. As well as a few new nuclear power plants. The longer we wait, the longer we’ll continue to make the Saudis richer and be dependant on their oil.
I liked this article. It forces us to really question the oil companies on the drilling issue. The analysis above was thoughtful and on target. Oil companies are not necessarily in favor of more drilling because of several reasons: 1) It does increase supply, which drives down price….and their profit; 2) We do not have refining capability to handle much more oil….this is in large part due to environmental regulations that have stopped construction of new refineries (much like nuclear plants). It takes too long to get permits and get it up and running. No one wants to fork over the cash to start a project that can take decades to get up and running.
As for drilling, it is important to note that the United States has many already developed (and capped off) oil reserves not being used. For example, google “Point Thompson in Alaska for Oil”. This will give you information on a vast reserve that has more oil than the Alaskan North Slope. Why is it not being tapped. We don’t even have to open Anwar to get at this oil. We really are getting scammed again by both the Democrats and Republicans. I agree that drilling is important, just as renewable energy technologies. We can and should be doing both. However, I can also see why there are demands from some Congressional folks to nationalize the oil companies.
If we can’t count on oil companies to expand supply because it hurts their bottom line, then it becomes incumbent on the government to take back leases and hire private companies that will extract the oil for national security purposes. Recall that President Harry Truman Nationalized the Steel Mills to aid in war production because the industry just didn’t want to play nice at a time of need. While I wouldn’t advocate government take over of existing companies, forcefully taking back oil leases and contracting out extraction of resources would be extremely helpful to consumers and the high price of oil as well as improving our national security and getting us away from foreign oil.
Truman’s actions were found unconstitutional in Youngstown, one of the landmark Supreme Court decisions.
Hi, Bundy…
I disagree on regulations being the cause that new refineries aren’t being built. If Big Oil wanted refineries, building them to regs wouldn’t be a big deal for them… that’s just an excuse not to build more.
I agree that new reactors also need to be built. Much of the Colorado oil reserves are locked in oil shale; gazillions of barrels of oil are trapped in the rock, and heat is needed to get the oil out. The same thing exists in Alberta, but the Canadians are now building a reactor to heat the extraction process. This reactor will make money two ways: the reactor operation will create electricity, and the heat that is otherwise wasted will be used to extract oil out of the shale.
This same shale is all over the Upper Snake River Valley. It seems to me that, since we have a lot of expertise right here in reactors, that local power utilities should start looking into the same enterprise.
The main reasons atomic power failed in the 70’s were from 2 things- the decision to build huge power plants, and 3 Mile Island.
3 Mile Island is one of the big plants. The release of steam scared everyone to the bone, but the plant is still operating 20 years later, with no further incidents. The Japanese, British and French all looked at the American failures with the mega-plants, and decided to build smaller ones, with a few more added. These facilities have proved to be more economical in building & maintenance, and are more effecient.
The French took the lead in reactor design long ago; only the fear of the American public is holding nuclear power development back, and if it’s ever possible, building them like the French do it would remove a lot of the lingering fears.
With the last 10+ years of record profits, there’s no reason these oil companies can’t start building new refineries. Everyone complains it’ll take tens years before we see results, but who cares? It needs to be done regardless.
I agree with most of what everyone has said here. The oil companies have many legal areas in which to drill, but no capacity to refine…and due to windfall profits, no incentive to build new refineries.
The anti-nuke lobby keeps that option off the table. I have to admit I was a card-carrying anti-nuker for many years because of 3 Mile Island…but after seeing what other countries were able to do safely, I’m on the fence with tentative support, worried more now about the radioactive waste disposal issue…
Our country needs to develop an alternative energy policy and start it NOW. If we had really done it in the 70s we would be fine today…
The fact that many sources of energy, or ways to develop the resources, are years in the making does not mean we should never start.
I’m not for opening up more offshore drilling right now. If the powers that be come up with a good case for it I might be persuaded.
Nice post, boomer, and great comments, everyone. This is the kind of dialogue I like to see on this site!
Idahogie, thanks for pointing out the Youngstown decision. Dang, I forgot all about that ruling and was getting all jazzed up with Bundy’s idea…but it could still work, couldn’t it, with the idea of leases? Ah, maybe not. Unless eminent domain could be stretched…ugh. I dislike what they’ve done in that vein, too.
Not wanting to take the subject off course, it makes me sad to think, where are the cojones on our current Supreme Court to limit the power of the president to do all the unconstitutional stuff he’s getting away with today, with regards to his blatant disregard of our freedoms under the Bill of Rights?
But I digress.
As far as cutting back on the driving, well, both my family and my boss’ family (who are quite wealthy) have cut back. The pocketbook hurts in all areas these days, and I am so fortunate to have the means that I do, by comparison to my younger days. I can’t even imagine what it would be like to be poor these days. (And not everyone who is poor is lazy or stupid, that’s just too foolish to pretend to believe.)
Not sure why Nemesis made a comment like “And not everyone who is poor is lazy or stupid, that’s just too foolish to pretend to believe”. Are you trying to “bait” other posters, because I didn’t see anyone mention anything even remotely to that effect. For someone who preaches “civil debate” on this site on almost a daily basis, I was shocked to see a comment like that coming from her.
Hoagie,
Bundtcake here……just making sure that you realize that I never advocated takeover of the industry….exactly because that is the road to socialism and is blatantly unconstitutional (thanks for the Wikipedia link, but I already knew that). However, the government does have the ability to take back some leases that are not being utilized in the national interest. That would be the way to go and give the leases to hungry companies that will drill.
As for oil refineries there seems to be disagreement about the causes. Here are two interesting links on the counterpoints:
http://www.citizen.org/cmep/energy_enviro_nuclear/electricity/Oil_and_Gas/articles.cfm?ID=11829
http://www.slate.com/id/2102031/
As for 3 Mile Island, the terrible leadership of Jimmy Carter led to a lack of confidence in nuclear power. What most people don’t get is that the safety systems at 3 Mile Island DID work. No one perished or became sick. The reactor contained the situation and was the result of a preventable incident.
Guest of a Guest -
I’d like to see that you (or anyone) was actually insulted by Nemesis before you get all huffy.
Here’s CR67:
In the thread about the fast food ban in LA, several people made the point that poor people should have responsibility for their actions (i.e., should be to blame if they are obese).
Lots of people like to blame the poor for being in the position that they are in. I think Nemesis’s comment was entirely appropriate.
Don’t be so sensitive.
I’d like to add that I don’t think that CR67 was insulting the poor. I’m just saying that Nemesis’s comment was a fair and polite response to it. CR67 can clarify what he/she meant if Nemesis misinterpreted.
I’m not at all sensitive about such issues. Just seemed odd to me that Nemesis would make a comment like that when she herself preaches “civil discussion”. Seems some here should practice what they preach. But I understand that’s your girl so you keep sticking up for her. Won’t bother me one bit.
I was surprised by that too. But it’s not the first time I’ve been surprised by responses/reactions and I’m sure it won’t be the last.
My post 14 was in response to 11 and 12.
Answer the point, GofaG. I showed you a comment that could be perceived as a statement about the intelligence of the poor. In other words, there was a basis for her comment, which you ignored.
The honorable thing to do at this point is for you to say something like this:
The dishonorable thing to do is insult the person who pointed out your mistake. What kind of person are you?
I’m not you and I don’t post like you or your friends. The sooner you realize we’re all different, the better off we’ll all be. All I did was point out something you or your buddies would have pointed out if I made such a comment. Don’t get so bent out of shape, it’s just a blog.
And I don’t recall “insulting” anybody thank you very much.
Guest of Guest, I think that some people have decided that if we have differing view points, we must be the enemy. To state that you don’t post like him or his friends is taking it a bit far. I honestly can’t think of anyone here that I agree with all of the time, nor can I think of anyone here that I disagree with all of the time. You’re right, it’s a blog. How simple it would be if we all agreed all of the time. Nobody would bother ot look at IdahoFallsToday for lack of interest. Lets not categorize people as me friend you enemy (because we don’t agree) okay?
GofaG -
You said Nemesis’s comment was rude enough to have crossed some line. I showed you how you were wrong. Now you’re acting like your the victim.
Own up to your comment. “Personal responsibility” and all that.
It’s interesting how threads can get off track, because of a single sentence in a comment that gets blown out of proportion in relation to its initial value in the discussion.
Initially I thought I was much too tired to insert myself into this, as I clearly have my detractors and defenders (and those who aren’t quite sure which way they want to go) on this issue and I don’t think I’ll be changing anyone’s mind at this point.
But here goes, I’ll give it another try. Guest of a Guest #9…and any others who are shocked at the one sentence in my comment #8…
If you think my comment pertained to something that you wrote, and that I misinterpreted what you meant, then call me on it and help me understand your intent.
If you don’t know for sure why I wrote it, or what I was referring to, ask me about it so YOU can understand. That is civil debate, and can be done nicely.
But to accuse me of baiting other commenters while saying you have no idea where my comment came from, or what the initiating reference was, only fanned the flames and jacked the thread.
Others extrapolated some references that made sense to them (thanks, Idahogie) and didn’t take offense at my comment. In order to take offense, you must first have an idea as to what you thought I was referring to (which would have been something you did not think merited an opposing response)…but you stated you clearly were confused and genuinely had no idea as to what I was referencing…so I’m unclear as to why you would be offended. Can you help me with that?
I will continue my attempts at participating in a genuine dialogue. I’m hoping most of you will be happy with my efforts.
Good night, Gracie!
Wow!! I’ve never left a comment on this sight before, nor have I been here much. Seems to me that somebody has issues with poor people. I don’t know what “poor people” not driving, has to do with “why gas prices aren’t going down”, or what having credit card debt has to do with gas prices not dropping.
I think that the next step, (back on topic of gas prices and oil, etc.) would be to open up the reserve oil we have, while we work on getting those new refineries built.
sorry I meant to spell “site” instead of “sight”
Hey Hoagie, Bundtcake here again. I like how you always seem to pull out one sentence of someone and pile drive them. It is also interesting to see how you shortened up Guest of a Guest’s screen name to “GofaG”. LOL! Now if that poster were sensitive they could call you out for labeling them a fag. Or perhaps that poster isn’t going to get all riled up about a trivial point. I didn’t take Nemesis’ point as being bad at all. So what if another poster did. Perhaps it would be best if we all took a step back and let it ride…….or perhaps we should let the parties to the comment deal with it and not get immediately involved? What do you think about that? Would that solve some of the ganging up mentality on this site? Or are other posters too wimpy to defend themselves without your help? LOL!!!!!
Good point Bundtcake! And yes I did notice the shortened version of my name, (and actually got a chuckle out of it) but it was really too insignifigant to bother mentioning. He always scolds other posters, yet he always throws in these little jabs of his own all the while acting so innocent. But that’s ok, I can take it and often encourage it. Like I’ve been telling him all along, “doesnt bother me”.
Cheers!
It’s pretty funny in a sad way how GofaG shows a pattern of baiting, arguing and otherwise throwing the discussion off track. They get pretty bent out of shape over a blog. Then after everyone’s stirred up GofaG tells everyone else not to get bent out of shape over a blog. Seems hypocritical to me. By the way I knew right away which comment Nemesis was referring to before GofaG changed the subject (once again).
casual observer,
I think if you read through more of this blog, you will see who really is doing the “baiting, arguing and throwing off track.” Unfortunately, these posts keep devolving into attacks and demands made by some posters re: “how” people must respond to certain issues.
Shame really as this site can generate really great discussion at times.
Funny how you’re being a hypocrite yourself CasualObserver by not contributing anything to this post but your snide comment. How many times does a poster like GofaG have to say “peoples comments dont bother me” (at least a half a dozen that I notice), yet people like you come on here and stir up trouble calling posters hypocrites when you’re doing the exact same thing you’re bitching about!! WTF is that?
There’s only ONE way to settle this. IdahoFallsToday 1st annual Mud Bowl held at Sandy Downs. A football game held in the mud between the bleeding heart liberals and the conservatives of the IFT blog. (the socialists and communists can referee) Winner take all, no holds barred, down and dirty game where “mud-slinging” is encouraged. Whaddaya say folks?
GofaG…..
I am still ROFL about that . . . . how terribly un P.C.
CR67…….great idea! Although how will we play with those paper bags over our heads?
We just change the bags to stockings or full ski masks. Surely Hoagster has a few old stockings in his dresser drawers? lol (only kidding!!)
…..or we could wear clever Obama or McCain masks. . .
Even better! I bet we’d make the nightly news. (maybe even national news.)
Y’all know about my continuing love-hate relationship with Glenn Beck. Well, today’s column keeps me having those same feelings. I love him and then I hate him all through the article.
http://www.cnn.com/2008/POLITICS/08/07/beck.energy/index.html
The part that I appreciate is his agreement that we are in the pockets of big oil and the Saudis, and the reminder that we can’t hope to build a sustainable long term energy policy off the hope that people like you and me will do the right things (if we only know them) because truth be told, if we were that kind of society we’d be mostly thin and healthy and working and wealthy and happy and have no crime and and and and…sigh.
The part that dismays me is the fact that he continues with the same pretense that this response is solely an Obama issue, without also admitting that John McCain tossed an off-the-cuff remark himself, this spring, saying very essentially the same kinds of things.
“Is Obama’s energy policy solely based on tire gauges? No. But can we criticize him for embracing the same kind of gimmicky stall tactics that have gotten us to this place? Yes. Yes we can.”
Ah, nuts. Just because you’re on CNN does not mean you can’t be “fair and balanced” too, Glenn!