Thread: Gas $9 a gallon

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Originally Posted by ford2custom

Did anybody read today as has too how long it would take even if they got the approval, it would take years too get set up too drill. We would not see the lower price of gas for many years too come. This would not happen in the near future. Sure we need too start that process, drill but the cow has left the barn along time ago so by saying shut the door now is not going too help now. Something has too be done too get the price within reason now. Unless I read the article wrong, the oil companies have 68 million acres leased now how come they haven’t started too drill on that area set-aside for them?

Richard

There's two parts to your first comment. Yes, there's ramp up time, that's the price we'll pay for letting the enviro's have too big a voice. But it's also disingenuous on the part of those who participated in Clinton's veto of drilling in ANWR in 1995, and who stood in the way of a veto over-ride. That oil, though not enough to have a major impact by itself, would be in the market today. The second part is the psychology of our commitment. You may have missed my comment on this earlier in the post. We have trillions of barrels by most professional estimates (which leaves out politicians and bureaucrats) of crude reserves in various forms within our borders. Different economics dictate which forms will be market viable, when. However, as mentioned before, you have to think about what market makers bank on. Today they believe we're not serious about exploring and producing within our borders. They in part believe the "peak oil" story, and several of the larger producers are experienceing declines in their proven reserve output. The rational judgement is that oil into the future will be tight for supply. These people also recognize that all the proposed alternatives are still blue sky, and will remain so for an extended period of time. This country has had in the past a powerful will to achieve. Personally I believe that will has been under attack for the past 50 or so years, but there may still be enough of it left, I hope. If you listen to those voices that are telling you it'll take too long to produce oil, that there isn't any, that we're destroying the planet while they invoke junk "science" (and live their lives to the hilt ala the Goracle), that an 8-10% net profit is obscene, that the oil companies should be nationalized (Maurice Hinchey-D NY today), they all preach a message of defeat and retreat........on many issues. The market makers see too many of you giving at least silent support and believe that the U.S. is no longer serious about staying out front. High prices are the result. If we took a national position that we were tired of being whipsawed and shooting ourselves in the foot and we're going to buckle down and do whatever it takes to stay on top, they'd start to revise their long term view and bid down the future prices rather than maintain them. They're gamblers, and when they see the odds turn they react.

As for the existing leases that supposedly aren't being developed these are not proven reserves, they're posible reserves. 60% of them have already been proven to not have sufficient oil reserves to develope. Others are held up by permitting problems. You have to ask yourself, why haven't you heard about this before when the idea of opening the coastal regions and ANWR have been brought up. It's because it's a dodge by the obstuctionists. Besides, if the oil companies are not going to develope the lands they lease anyway, why not open up ANWR and the offshore areas........................after all, aren't these guys telling us the evil oil guys aren't going to develope them anyway? So what's to worry about then???