Should the US Drill for Oil?

[Destino]

I agree we shouldn't rely on oil, but our economy can't handle $5 a gallon gas, with the potential (and likelihood) that the price will increase if we continue not to drill. I agree we need to look for alternatives, but our economy and country runs off oil for the moment, and we can't just sit on our hands for 10-20 years while we find alternative energy.

But there is no reason to think domestic drilling will lower gas prices. The problem isn't supply and thus adding supply fails to address the problem. Private companies will be allowed to drill and they have NO INCENTIVE to sell that oil lower than current market price.

The ONLY argument for increased drilling is to reduce foreign imports of oil. There is no evidence that it will greatly impact price.

[Destino]

Nahh. Let's not do anything.

All is well.

Let's pretend more supply in the hands of private companies solves the problem and claim others want to do nothing.

[Kilmer17]

Let's pretend more supply in the hands of private companies solves the problem and claim others want to do nothing.

Sure Des, because that's what we're saying.

Only by distorting others views are those of you on that side of the argument able to stay alive in this debate.

NOBODY is advocating that drilling alone will solve the problem. Only you and your minions are making that claim.

Drilling is PART of the solution. But as long as you can cry that "drilling wont solve the problem" you can sit back and attempt to claim the high ground.

We need to drill. More nukes, more wind, higher fuel standards, etc etc etc.

You're smart guy, why are you so blind in this debate?

[Destino]

Sure Des, because that's what we're saying.

Only by distorting others views are those of you on that side of the argument able to stay alive in this debate.

NOBODY is advocating that drilling alone will solve the problem. Only you and your minions are making that claim.

Feel free to point out where I made that claim Kilmer. Good luck.

Drilling is PART of the solution. But as long as you can cry that "drilling wont solve the problem" you can sit back and attempt to claim the high ground.

We need to drill. More nukes, more wind, higher fuel standards, etc etc etc.

You're smart guy, why are you so blind in this debate?

I don't think we need to drill, I don't see the benefit. The only reason we are even talking about this is the price of gas. I've yet to see anything that argues that more drilling will reduce the price of gas. The price of gas can go down tomorrow, next year, or the year after... it doesn't require any additional supply at all.

That's the tragedy of this debate. The support for drilling is motivated by PRICE and drilling does nothing to solve PRICE. We'd see much higher gains in price by doing something about speculation. That would actually have an impact on the main concern of most americans.

What more drilling will do is increase american investment in oil and thus motivation in keeping it as the primary fuel source. After all Kilmer do you want to cut AMERICAN JOBS by switching away from oil after rapidly and greatly expanding american oil production? More drilling works against what I believe is in America's best interest. I agree with more nukes, more wind, and more options. But ENERGY isn't america's problem exactly - FUEL is the damn problem at the moment. FUEL is increasing the price of everything. We need to get rid of oil as a fuel. That is the best outcome from all this, keeping us invested and interested in oils future as a fuel for vehicles is not.

[Kilmer17]

"Let's pretend more supply in the hands of private companies solves the problem and claim others want to do nothing."

2 posts ago.

[Kilmer17]

Des, drilling solves a PART of the short term problem. And a PART of the midrange problem.

I will agree that it does NOT solve the longterm problem.

It's a complex issue requiring complex solutions. Drilling is part of it.

[Destino]

"Let's pretend more supply in the hands of private companies solves the problem and claim others want to do nothing."

2 posts ago.

And where do I claim that you don't want to do anything but drill? The problem I'm talking about there is "price at the pump". Not energy in general. I'm well aware of increasing all forms of energy... the problem is that this doesn't focus on the major issue, fuel costs. It's you that claimed others wanted to do nothing Kilmer.

[Destino]

Des, drilling solves a PART of the short term problem. And a PART of the midrange problem.

I will agree that it does NOT solve the longterm problem.

It's a complex issue requiring complex solutions. Drilling is part of it.

What part? Be specific.

[Kilmer17]

What part? Be specific.

Short term, it affects speculators. Even the THREAT of more supply will drive a large portion of them out of the market. If we had drilled in ANWR 15 years ago, we wouldnt have the speculators in these numbers in the market. Oil futures right now are a sure thing. Demand will continue to go up, and a monopoly controls the supply. Basic Econ 101.

Mid term, it will actually ADD supply. Again it's basic Econ. More supply= lower prices.

[Destino]

Short term, it affects speculators. Even the THREAT of more supply will drive a large portion of them out of the market. If we had drilled in ANWR 15 years ago, we wouldnt have the speculators in these numbers in the market. Oil futures right now are a sure thing. Demand will continue to go up, and a monopoly controls the supply. Basic Econ 101.

Mid term, it will actually ADD supply. Again it's basic Econ. More supply= lower prices.

The basic Econ 101 describes a free market. Oil has no competition and enjoys rigid (and growing) demand. Increased access to supply would effect prices if supply were artificially controlled... but it's not, there is no shortage (real or created). I don't think speculators are going to concern themselves with supply increasing because that isn't an issue at the moment anyway.

But let's say you are right (you're not). Let's say prices do drop significantly. Gas drops to 3 bucks. What is the outcome? Alternative fuels are priced out because without large scale production the costs do not drop, there is no incentive for the government to promote it, and we are stuck paying three times the price of gas instead of four.

great solution.

[Kilmer17]

The basic Econ 101 describes a free market. Oil has no competition and enjoys rigid (and growing) demand. Increased access to supply would effect prices if supply were artificially controlled... but it's not, there is no shortage (real or created). I don't think speculators are going to concern themselves with supply increasing because that isn't an issue at the moment anyway.

But let's say you are right (you're not). Let's say prices do drop significantly. Gas drops to 3 bucks. What is the outcome? Alternative fuels are priced out because without large scale production the costs do not drop, there is no incentive for the government to promote it, and we are stuck paying three times the price of gas instead of four.

great solution.

Remember, Ive been advocating higher gas prices for YEARS for that very reason. No way the genie gets put back in the bottle now.

We can get gas back to 3 bucks, but the push for alternatives has begun for real now. Even 2 bucks a gallon wont stop it.

You are right that oil does not enjoy free market forces, but that's PRECICELY what more drilling on our own would bring to the equation.

[twa]

How?

Any change in the rights to drill should be directly related to funds going to helping actually implement (not basic research) of alternative energy solutions.

This something I have been pushing as well.

All funds from any new leases should be dedicated to implementing alt energy,and IF oil is produced a 50/50 split of the royalties should go to alt energy and the national debt....700 billion dollars a yr going to foreign countries for oil is foolish when our own could fund real CHANGE

PS the 68 million acres includes area under development and survey,and every bit of it has to have the rights to explore purchased AND reverts back in ten yrs if not developed.

I would like a link with a breakdown on that acreage if anyone finds it. :2cents:

[Seabee1973]

I say offshore drill in the gulf because China is already sucking it dry. Meanwhile, put big $$$ into R&D for an alternative fuel that is cost effective for the American public.

This should appease both sides and ween the US off of it's oil addiction.

They havent started but will in the nexty couple of years