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PoliCon
03-13-2011, 12:11 AM
By Sean Higgins
Fri., March 11, 2011 4:56 PM ET

In his Friday press conference to discuss gas prices, President Obama was rather defensive, straining to counter the notion that his administration has been unfriendly to oil drilling, something most people would like to see a lot more of these days.

Where do people get that notion? Perhaps his Interior Department appealing a judge’s ruling that it act on several pending deepwater permits had something to with it.

Obama claimed repeatedly that he is not against drilling, then made the following comments:

There is more we can do, however. For example, right now, the (oil) industry holds leases on tens of millions of acres — both offshore and on land — where they aren’t producing a thing. So I’ve directed the Interior Department to determine just how many of these leases are going undeveloped and report back to me within two weeks so that we can encourage companies to develop the leases they hold and produce American energy. People deserve to know that the energy they depend on is being developed in a timely manner.

In other words, Obama is arguing that the oil companies themselves may be to blame for the fact that there isn’t more drilling. For some reason they’re ignoring making a profit. It’s a bizarro-world inversion of the usual complaint against oil companies — that they are reckless and all-too eager to despoil pristine lands in search of black gold.

Nevertheless, it is a familiar talking point that Democrats have been throwing out there for years now. The Interior report Obama mentioned will probably come in the coming weeks or months and “prove” this point. Obama clearly hopes it will take the pressure off of his administration for high gas prices and throw it on the oil companies.

But is any of this true? Technically yes, says the oil industry, but the claim is extremely misleading. As Richard Ranger, a policy analyst with the American Petroleum Institute, has explained:

“The process of looking at an area that might have oil and gas potential and narrowing your search over time and over a sequence of steps to actually producing oil and gas involves kind of casting a big net first and over time through geologic work,” Ranger said. “[Y] You prioritize some over others, you may be lucky on those first ones you drill, you may not — then you drill prospects further down your priority list.”

Ranger also explained it’s not always a cut-and-dried situation. Some areas will have oil and gas, some won’t and some might have it, but it may not be economically feasible to pump it out of the ground.

“When you drill, you have results that are either sufficient oil or gas to allow production or a dry hole or somewhere in between where you think we may have production but we may need some further work to determine whether this formation, this target, is economic to produce. Those steps consume several years from the point of leasing to a point of decision.”

http://blogs.investors.com/capitalhill/index.php/home/35-politicsinvesting/2510-obama-blames-oil-companies-for-lack-of-drilling

Arroyo_Doble
03-13-2011, 12:12 AM
I thought oil production in the United States was pretty high.

I will check it out.

lacarnut
03-13-2011, 12:40 AM
I thought oil production in the United States was pretty high.

I will check it out.

It would dramatically increase if the Env nuts and the Democrats would stop blocking drilling. FYI, the Federal government is making billions off of those leases that Obummer speaks of. You don't think the government does not charge a yearly fee for those leases that remain dormant, do you? The O forgot that tidbit of information. Obummer is an idiot if he thinks that the majors do not want to drill. He is just playing politics to cover his ass for the lack of a comprehensive energy policy.

Novaheart
03-13-2011, 01:10 AM
I thought oil production in the United States was pretty high.

I will check it out.

1- Russia abt 10m bbl/day
2- Saudi Arabia abt 9.6m bbl/day
3- USA abt 9.2m bbl/day

..... Or so I read two weeks ago.

megimoo
03-13-2011, 01:34 AM
The United States uses 20.687 Million Barrels of petroleum per day.
Daily gasoline consupption is 9.253 million barrels..

the United States consumes about 400 million gallons (1.51 billion litres) of gasoline every day.

A barrel of crude contains 42 gallons. After refining, it makes about 19.5 gallons
of gasoline in addition to numerous other products such as heating oil..

http://www.eia.doe.gov/neic/quickfacts/q…

* 3 years ago

megimoo
03-13-2011, 01:35 AM
I thought oil production in the United States was pretty high.

I will check it out.Not quite high enough !

lacarnut
03-13-2011, 02:20 AM
I thought oil production in the United States was pretty high.

I will check it out.

Our imports of oil grow higher and higher every year. You would think with all this tremendous amount of money for expensive greenie energy that the Feds have poured down a rat hole like Ethanol, that it would have slowed down. No such luck. But, we have caused world food shortages by growing more corn and less of other crops. Good going there Democrats and Republicans.:mad:

BTW, it will take a 170 years to put that million number of GM Volt's on the road Obama opined at the rate that they are being sold for the past couple of months. I can not wait.

NJCardFan
03-13-2011, 02:40 AM
And even though there are about 900 billion or so barrels worth of oil at ANWR, we can't drill for it.

PoliCon
03-13-2011, 08:25 AM
and even if we could drill for it - we need refineries to get it turned into gas.

fettpett
03-13-2011, 09:49 AM
um...isn't he the fucktard that put a illegal morotorum on drilling and is in contempt of court for not lifting it?

lacarnut
03-13-2011, 11:00 AM
um...isn't he the fucktard that put a illegal morotorum on drilling and is in contempt of court for not lifting it?

That's the same fucktard. He is a lying POS in trying to put the blame on the oil companies for production limitations. We have tax cheats in this administration and now the President will not obey a court order. Just a bunch of Democrat slime-balls.

RobJohnson
03-13-2011, 04:57 PM
Our imports of oil grow higher and higher every year. You would think with all this tremendous amount of money for expensive greenie energy that the Feds have poured down a rat hole like Ethanol, that it would have slowed down. No such luck. But, we have caused world food shortages by growing more corn and less of other crops. Good going there Democrats and Republicans.:mad:

BTW, it will take a 170 years to put that million number of GM Volt's on the road Obama opined at the rate that they are being sold for the past couple of months. I can not wait.

GM volts use a lot of battery acid in prodcution and disposal. We all know how enviro-friendly that is. :D

MrsSmith
03-13-2011, 05:18 PM
No one has a problem with us looking for more ways to replace oil, though the "green" stuff they've come up with not only can't but actually uses a lot of it. What our liberal "comrades" can't seem to understand is that the replacement energy just isn't ready, and artificially reducing our energy supply is just stupid, especially when our economy is so stressed. Just like they can't figure out why companies are not expanding or increasing hiring in the face of uncertain healthcare costs and the constant threat of higher taxes. :rolleyes::rolleyes: So much for the "educated, intelligent" left...

Starbuck
03-13-2011, 08:02 PM
and even if we could drill for it - we need refineries to get it turned into gas.

There are 148 refineries in the U.S. 11 are idle and 137 are operating. They can refine 17.5 Mln. Brls/day and produce 2.3 million barrels/day of refined gasoline.

http://www.eia.doe.gov/dnav/pet/pet_pnp_cap1_dcu_nus_a.htm

And I have no idea why these figures don't jive with the 20 MB/Day oil and 9 MB/Day gasoline consumption that is generally accepted as correct.:confused:

Odysseus
03-13-2011, 11:16 PM
By Sean Higgins
Fri., March 11, 2011 4:56 PM ET

In his Friday press conference to discuss gas prices, President Obama was rather defensive, straining to counter the notion that his administration has been unfriendly to oil drilling, something most people would like to see a lot more of these days.

Where do people get that notion? Perhaps his Interior Department appealing a judge’s ruling that it act on several pending deepwater permits had something to with it.

Obama claimed repeatedly that he is not against drilling, then made the following comments:

There is more we can do, however. For example, right now, the (oil) industry holds leases on tens of millions of acres — both offshore and on land — where they aren’t producing a thing. So I’ve directed the Interior Department to determine just how many of these leases are going undeveloped and report back to me within two weeks so that we can encourage companies to develop the leases they hold and produce American energy. People deserve to know that the energy they depend on is being developed in a timely manner.

In other words, Obama is arguing that the oil companies themselves may be to blame for the fact that there isn’t more drilling. For some reason they’re ignoring making a profit. It’s a bizarro-world inversion of the usual complaint against oil companies — that they are reckless and all-too eager to despoil pristine lands in search of black gold.

Nevertheless, it is a familiar talking point that Democrats have been throwing out there for years now. The Interior report Obama mentioned will probably come in the coming weeks or months and “prove” this point. Obama clearly hopes it will take the pressure off of his administration for high gas prices and throw it on the oil companies.

But is any of this true? Technically yes, says the oil industry, but the claim is extremely misleading. As Richard Ranger, a policy analyst with the American Petroleum Institute, has explained:

“The process of looking at an area that might have oil and gas potential and narrowing your search over time and over a sequence of steps to actually producing oil and gas involves kind of casting a big net first and over time through geologic work,” Ranger said. “[Y] You prioritize some over others, you may be lucky on those first ones you drill, you may not — then you drill prospects further down your priority list.”

Ranger also explained it’s not always a cut-and-dried situation. Some areas will have oil and gas, some won’t and some might have it, but it may not be economically feasible to pump it out of the ground.

“When you drill, you have results that are either sufficient oil or gas to allow production or a dry hole or somewhere in between where you think we may have production but we may need some further work to determine whether this formation, this target, is economic to produce. Those steps consume several years from the point of leasing to a point of decision.”

http://blogs.investors.com/capitalhill/index.php/home/35-politicsinvesting/2510-obama-blames-oil-companies-for-lack-of-drilling

Leases are not proven reserves. And even if the leases do have proven reserves, that doesn't mean that they are allowed to drill on them, especially with environuts in charge of the DOE and DOI.