WOW that Obama speech was a doozie He said he cut taxes. We hear this ……

So you believe that the oil that’s drilled here is sold directly to us? Interesting. And by interesting I mean wrong.

All we do by increasing drilling here is increase the world supply of oil. So yeah it will decrease prices globally but not specifically for us. At the current rate of demand I doubt it will so much lower prices as keep them from rising as quickly anyway.

The “drill now” people keep making the argument that we have enough oil here to be self sufficient but what they are keeping from you is that’s not how the market works.

My stance on it is that I want more drilling to be done but if we are going to allow them to drill here it’s going to be to OUR benefit before anyone else’s. As part of the deal that let’s them expand their drilling in US territory they need to sell a percentage of whatever they drill to us at below market prices. If the oil companies refuse to operate like that then it’s time for state governments to hire private companies to drill and refine their oil.

Benaiah on March 27, 2012 at 2:28 PM

You appear very confused about this – and as a result are not only contradicting yourself, but missing the point. Of course oil is a worldwide commodity, and supply and demand applies – worldwide, but it does matter where it comes from. I don’t necessarily expect all oil pumped from the US to be used in the US, but right now we are a net importer and the largest user of oil. So if we produce more ourselves, logically much/most perhaps even all of it will be used here, and it will be cheaper because it won’t be getting shipped from overseas. We may even be able to become a net exporter of oil. If we produce more in the US, why would we pay more in shipping costs to get it from somewhere else – especially countries who don’t like us?
You keep falling for the lib illogic that since more drilling now might not increase the supply for a few years then we shouldn’t do it all. That’s just idiotic.
But your last paragraph shows a statist/socialist mindset of the government directly controlling the market. I don’t agree with that at all. Drill here and our internal demand will take care of who gets according to free market principles.

Fail.
You sound like an Obummer hack pushing his “shut up and eat your peas” diktats.
When Bush announced re-opening oil fields, gas prices dropped immediately.
If supply is not keeping up with demand – then drilling more will get us closer to meeting demand, even if it takes a couple years. Doing nothing doesn’t solve any part of the problem. If getting more oil requires a couple years lead time, then we need to do it NOW not keep waiting to do it later and constantly saying “we won’t see it soon enough”.
Providing more supply absolutely does bring prices down. If you don’t believe that, you don’t understand basic economics – supply and demand. So what if demand is going up? That measn we need to increase the supply to keep up. At the very least, that will keep prices from climbing faster. If we do nothing, prices go up faster.
I refuse to “just deal with it” – on this issue as well as Obummer’s “new normal” unemployment rate. That attitude is just for Obamatrons who are willing to stick their head in the sand and let him do what he wants to whatever part of you is exposed.

dentarthurdent

So you believe that the oil that’s drilled here is sold directly to us? Interesting. And by interesting I mean wrong.

All we do by increasing drilling here is increase the world supply of oil. So yeah it will decrease prices globally but not specifically for us. At the current rate of demand I doubt it will so much lower prices as keep them from rising as quickly anyway.

The “drill now” people keep making the argument that we have enough oil here to be self sufficient but what they are keeping from you is that’s not how the market works.

My stance on it is that I want more drilling to be done but if we are going to allow them to drill here it’s going to be to OUR benefit before anyone else’s. As part of the deal that let’s them expand their drilling in US territory they need to sell a percentage of whatever they drill to us at below market prices. If the oil companies refuse to operate like that then it’s time for state governments to hire private companies to drill and refine their oil.

So much of the BLM land is lower-cost drilling land than lands directly south in Texas, but the private and state-owned lands in Texas are being permitted and drilled, while the BLM properties are seeing no increase in drilling under Obama.

jon1979 on March 27, 2012 at 11:42 AM

The republican Govenor hasn’t overruled in favor of increased drilling?

My fav BLM land grab story.

Around 25 years ago, the BLM prevented offroad cars and mortorcycles in the high desert along the 15 freeway in Victorville, California due to the desert tortoise habitat and mating area.

Three years later, while traveling to Lake Havasu along that same route, a new freeway overpass had been erected, a Home Depot shopping center and surrounding businesses and restaurants and thousands of single family homes at the very location of the ill-fated desert tortoise.

established oil companies have the same desire to see more expensive fuel prices
Buddahpundit on March 27, 2012 at 10:42 AM

Actually the run up in prices is squeezing the oil companies profit margin; particularly at the refining level. Valero is closing a refinery because they have been operating at a loss since the price of a barrel of oil has become so expensive. They use the profit margins off of the polymers that get turned into plastics and paint to cover the gasoline production. Gas is nearly given away at profits of about 5 cents a gallon. Whereas the government makes about 15 cents a gallon in taxes. And the oil companies reinvest upwards of 40% of that profit in oil-field exploration and R&D. Whereas the government uses their profit to build a bike path that goes in circles around a park.

What’s really pushing up the price of gasoline (not oil per se) is the ever increasing demand in China and India. Keep in mind that we export more gasoline, diesel, and fuel oil to other nations than we use here domestically. Petroleum products are our number one export in fact. So, when you go and look at the price of a gallon of gas at the station down at the end of your street you’re actually looking at the price that people in China and India are willing to pay more than the price of what you or I are willing to pay.

At the moment demand is outstripping supply which necessarily increases prices. The only solution is to pump more oil out of the ground to increase supplies which have been slumping globally over the past couple of years. We need to get Sudan to fix their pipeline issues. The refineries in the North Sea have been having a number of mechanical problems. Chevron hit a snag with a small leak off the Brazilian coast. EU sanctions on Iran have caused them to drop off a bit in production. U.S. Federal lands have been dropping in production rather than increasing the 30% like we’ve seen out of the private and state owned lands. We need to get about 2 million barrels a day of production back up and running that we’ve lost over the last few months. And we need to wait and see when the growing economies around world begin to slow down and level off. That will cause the demand for oil to tapper off significantly and the prices will probably begin to drop at the end of the year. That is if Iran doesn’t cut off the Strait of Hormuz; then were all screwed.

Drive supply down so demand goes down. Then people will have extra cash via not buying as much gas and will use this cash to buy a Chevy Volt, which will support both the auto and solar panel industries.

It has to work. It’s Obama. You know, the guy that is gonna save us all a ton on money via obamacare…….. You just have to believe………

Benaiah on March 27, 2012 at 12:26 PM

Fail.
You sound like an Obummer hack pushing his “shut up and eat your peas” diktats.
When Bush announced re-opening oil fields, gas prices dropped immediately.
If supply is not keeping up with demand – then drilling more will get us closer to meeting demand, even if it takes a couple years. Doing nothing doesn’t solve any part of the problem. If getting more oil requires a couple years lead time, then we need to do it NOW not keep waiting to do it later and constantly saying “we won’t see it soon enough”.
Providing more supply absolutely does bring prices down. If you don’t believe that, you don’t understand basic economics – supply and demand. So what if demand is going up? That measn we need to increase the supply to keep up. At the very least, that will keep prices from climbing faster. If we do nothing, prices go up faster.
I refuse to “just deal with it” – on this issue as well as Obummer’s “new normal” unemployment rate. That attitude is just for Obamatrons who are willing to stick their head in the sand and let him do what he wants to whatever part of you is exposed.

Anyone that keeps using the argument that drilling here = lower prices here is either lying or has no idea how the market works. Increasing the world market supply of oil would decrease prices to some degree but we have to remember that the amount of people who use oil is still going up as well. Supply isn’t going to increase faster than demand at this point.

So we basically have two choices -

1. Be smarter when buying cars. (Nothing that gets less than 30 miles per gallon).

or

2. Learn to deal with it.

No, he wants everyone to switch over to trains, so he can control the populace. The switch to electric cars was just a smoke screen to eliminate coal and gas.

Of course, there could be the argument that he wants everyone to switch to electric pods that require road installed electrical currents, then they can just control which roads you can go on.

Excuse me why I go fashion another tinfoil hat.

LoganSix on March 27, 2012 at 12:05 PM

Ya – that’s a logical end-game for these yahoos.

And yet he wants us all to change over to electric cars….
Do you see the same disconnect that I see?

dentarthurdent on March 27, 2012 at 11:55 AM

No, he wants everyone to switch over to trains, so he can control the populace. The switch to electric cars was just a smoke screen to eliminate coal and gas.

Of course, there could be the argument that he wants everyone to switch to electric pods that require road installed electrical currents, then they can just control which roads you can go on.

Excuse me why I go fashion another tinfoil hat.

All according to plan…

Obama: My Plan Makes Electricity Rates Skyrocket

And still people voted for him to “make history”.

*facedesk*

Yakko77 on March 27, 2012 at 11:26 AM

And yet he wants us all to change over to electric cars….
Do you see the same disconnect that I see?

dthorny on March 27, 2012 at 11:28 AM

The good thing about the raw Baker Hughes numbers is they show the lack of growth in drilling on the federal lands in New Mexico that are part of the same oilfield that’s in Texas, where the drilling activity (and the concurrent number of jobs) has skyrocketed. During the Bush years, BLM land drilling activity was above the totals in Texas, in part because the shallowness of the formations containing the oil runs southeast to northwest from Texas into New Mexico, while areas due south of New Mexico in the Permian Basin often require drilling 3-4 miles down to reach the same formations.

So much of the BLM land is lower-cost drilling land than lands directly south in Texas, but the private and state-owned lands in Texas are being permitted and drilled, while the BLM properties are seeing no increase in drilling under Obama.

The only solution is to vote these fools out of office and have them whine from the sidelines, which is what Obama will be doing for the rest of his sorry life.

If Obama were trying to do permanent damage to this country, how would he have acted any differently than he has?

lorien1973 on March 27, 2012 at 10:40 AM

He would have actually brought the Olympics to Chicago in 2016. Oh!!!!

Maybe that will sway people when they gas up as well.

DuctTapeMyBrain on March 27, 2012 at 11:28 AM

Leave a note thanking our federal, state and local government for the high taxes on every gallon of gasoline – 65 cents PER GALLON OF GAS in California.

http://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States

Experts expect prices to jump 10 to 20 cents over the next few weeks before spiking in mid-May at around a record-breaking $4.25 a gallon.

Huh?

It’s at $4.499/gal in Kalifornia right now. Guess we can look forward to $5/gal this summer.

Maybe that will sway people when they gas up as well.

jon1979 on March 27, 2012 at 11:13 AM

Obowma’s EPA has prevented drilling new water injection wells in SoCal over the past two years. This policy has resulted in a loss of oil production and revenue to the state and local economy, all due to concerns over contaminating the fresh water table with frac fluids. We have used fraccing at our company for over 30 years without any contamination issues

The rest of the story? We drill wells offshore in the Pacific Ocean, the worlds largest salt water ocean.

http://en.wikipedia.org/wiki/Water_injection_(oil_production)

Obama: My Plan Makes Electricity Rates Skyrocket

And still people voted for him to “make history”.

*facedesk*