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namvet
06-14-2008, 03:08 PM
RIYADH, Saudi Arabia Saudi Arabia's oil minister on Sunday will address reports that the world's largest oil-producing country is set to raise production by about 500,000 barrels per day, his adviser said.
what brought this on???

story (story)


meanwhile here at home:
Bush Administration Grants Oil Companies Legal Protection in Polar Bear Habitats

WASHINGTON Less than a month after declaring polar bears a threatened species because of global warming, the Bush administration is giving oil companies permission to annoy and potentially harm them in the pursuit of oil and natural gas.

story (story)

MstrBlue
06-14-2008, 03:38 PM
They probably realize that Americans are not going to tolerate these fuel prices for too much longer, before the outcry is so loud that Congress pulls their collective heads out of their collective asses, and allows drilling for our own damned oil!

lacarnut
06-14-2008, 03:39 PM
what brought this on???

story (story)


meanwhile here at home:
Bush Administration Grants Oil Companies Legal Protection in Polar Bear Habitats

story (story)

The Saudis are pretty damn smart. First they say they will not increase production; the speculators jump on the band wagon and the price shoots up. Then the Saudis reverse themselves and the price per barrel goes down sending the DC critters in a tizzy. So when the Saudis hear that the US and/ or other parts of the world are going to expand exploration or increase production of Ethanol, wind, solar and hybrid cars, they put more oil on the world market. If the price comes down substantially, that will drive down the incentives for other energy sources other than oil. The Saudis can not lose either way because the legislators in Congress are running around like a bunch of monkeys and don't have a clue regarding an energy policy. Increasing taxes on the oil companies and the consumers will not bring us one more drop of oil or new energy.

I also believe Bush's trip there sealed the deal for an increase. Saving face in that part of the world is important so I believe an agreement was made in secret. Of course, the media would never give Bush credit.

namvet
06-14-2008, 04:31 PM
well in any event when we start drilling for more here at home the Saudis will start increasing more production. and cheaper by the barrel as we decrease supply demands from them. . I think their sweatin' bullets over this. they had a conference way back when we started alternative sources. im glad to see Bush over rule the conservationists clowns.

Cold Warrior
06-14-2008, 05:33 PM
Unless people here think that drilling in ANWAR and other areas is going to dramatically increase the world's oil supply in the short term, there is no reason to think that such activities will dramatically lower the price of oil. Unless, of course, you believe that the oil companies will sell oil to Americans cheaper than world market prices (and if you believe that, there's a bridge...).

Ranger Rick
06-14-2008, 05:37 PM
well in any event when we start drilling for more here at home the Saudis will start increasing more production. and cheaper by the barrel as we decrease supply demands from them. . I think their sweatin' bullets over this. they had a conference way back when we started alternative sources. im glad to see Bush over rule the conservationists clowns.

Sweating bullets? They are playing us like a violin. We saw this in the seventy's with Carter. As soon as we start making sense in our oil policy, they will lower costs to 2 cents under what it would take for the US to produce its own oil.

LogansPapa
06-14-2008, 05:37 PM
$5.00 gasoline will be the norm from now on. People are still drving, albeit a bit less - but the freeways are still full - of one person per vehicle.

namvet
06-14-2008, 05:40 PM
Unless people here think that drilling in ANWAR and other areas is going to dramatically increase the world's oil supply in the short term, there is no reason to think that such activities will dramatically lower the price of oil. Unless, of course, you believe that the oil companies will sell oil to Americans cheaper than world market prices (and if you believe that, there's a bridge...).

who said anything about sharing ours with the world???? as far as market prices, well thats really set by the politicians. who are owned by the oil companies. the voters and taxpayers can have a BIG say here.

Cold Warrior
06-14-2008, 05:47 PM
who said anything about sharing ours with the world???? as far as market prices, well thats really set by the politicians. who are owned by the oil companies. the voters and taxpayers can have a BIG say here.

"Sharing?" So, we're going to throw free market capitalism right out the window and mandate to those publically-held companies that they can only sell to Americans at below the market rate? Seems like you're saying capitalism is good when it affects others adversely, but bad when it affects me adversely.

LogansPapa
06-14-2008, 05:54 PM
Let's be realistic about this - the oil producers now know we can handle this pain and have found the new threshold. I'm thinking $10.00 for Regular might be the new choke point that would bring the American economy to a halt because people couldn't get to work - driving alone. The fuel dock at Avalon on Catalina Island is charging $6.78 a gallon for gas and boats from the mainland - hundreds of them per day - are lining up to buy it. We have a very rich nation.

hampshirebrit
06-14-2008, 06:20 PM
It doesn't matter any more how much untapped oil the US, or anyone else has.

We are about to pay, in arrears, for far too many years of far too low oil prices.

It takes, on average, 10 years to develop deep-water discoveries and bring the first few barrels to market.

The cost of exploration is becoming prohibitive, and it's only the new high $/bbl price that makes this very risky business worth the risk.

Extraction of shale and tar sands is very energy and water resource intensive, and deposits tend to be in areas that have poor access to either, especially to water.

The price of drilling rigs has gone through the roof in the past year or so. If you're looking for a good investment, get into companies that specialise in extraction services.

If you want to devellope ANWR, or Bakkan, or the new maybe superfield offshore off Brazil, then it will cost much, much more than it would have done two years ago.

Nubs
06-14-2008, 06:20 PM
Move to New England where it will cost $8,000 to heat the average house this coming winter.

lacarnut
06-14-2008, 06:31 PM
Unless people here think that drilling in ANWAR and other areas is going to dramatically increase the world's oil supply in the short term, there is no reason to think that such activities will dramatically lower the price of oil. Unless, of course, you believe that the oil companies will sell oil to Americans cheaper than world market prices (and if you believe that, there's a bridge...).

I think drilling in Anwar and finding new areas to explore along with new alternative sources of energy will bring the price down in the short run and the long run. Some experts claim that 30% of the increase in the price of oil is due to speculation that the price will keep going up. The physiological effect of more exploration along with more alternative energy will make the price drop. When these hedge funds investments in oil start retracting, just watch what happens to the price. Since the Saudis announced today that they will ramp up production, oil prices will drop but that does not necessarily mean that gasoline prices will drop for a while. The largest refiner in the country, Valero, is making a very small profit off their sales, and are even trying to sell 3 of their 17 refineries.

Cold Warrior
06-14-2008, 06:38 PM
I think drilling in Anwar and finding new areas to explore along with new alternative sources of energy will bring the price down in the short run and the long run. Some experts claim that 30% of the increase in the price of oil is due to speculation that the price will keep going up. The physiological effect of more exploration along with more alternative energy will make the price drop. When these hedge funds investments in oil start retracting, just watch what happens to the price. Since the Saudis announced today that they will ramp up production, oil prices will drop but that does not necessarily mean that gasoline prices will drop for a while. The largest refiner in the country, Valero, is making a very small profit off their sales, and are even trying to sell 3 of their 17 refineries.

It will have to be a psychological effect, as it can have no real effect upon world supplies for the next 5-7 years. Clearly, a significant amount of the rise in the price of oil is due to speculators; however, a much more significant percentage of that rise is due to the fall of the dollar vs other currencies, particularly the Euro. Chart the Euro vs Dollar ratio vs the price of oil and the correlation becomes evident. And the weakness of the dollar is directly attributable to the trade deficit and the Fed's persistence in lowering interest rates. What investor wants to invest in a currency carrying the current Fed rate? You might as well invest in the Yen.

namvet
06-14-2008, 06:45 PM
"Sharing?" So, we're going to throw free market capitalism right out the window and mandate to those publically-held companies that they can only sell to Americans at below the market rate? Seems like you're saying capitalism is good when it affects others adversely, but bad when it affects me adversely.

we need to care of OUR needs first. and then the world. I take it you don't live in this country

namvet
06-14-2008, 07:01 PM
Let's be realistic about this - the oil producers now know we can handle this pain and have found the new threshold. I'm thinking $10.00 for Regular might be the new choke point that would bring the American economy to a halt because people couldn't get to work - driving alone. The fuel dock at Avalon on Catalina Island is charging $6.78 a gallon for gas and boats from the mainland - hundreds of them per day - are lining up to buy it. We have a very rich nation.

they also know the nation is pointing a BIG finger at them. and NO we can't handle the pain. people in this country are starving because they can't afford food. many have been forced to quit their jobs cause they can't afford gas. the red light is blinking. can anyone see it???

hampshirebrit
06-14-2008, 07:01 PM
Since the Saudis announced today that they will ramp up production, oil prices will drop but that does not necessarily mean that gasoline prices will drop for a while.

The Saudis have not announced this at all, as far as I know.

They have been making repeated statements for the past two months that they will not increase production, because "the market is well supplied".

Why would they increase production, at a time when the bbl price is near $140?

I would not. Would you?

If I was a supplier of widgets, and I realised that my ability to keep suppying these widgets was declining, then I would charge whatever the market would bear, especially if I, at the same time, could make this much money from restricting supply. If I were stupid enough to supply more widgets to the market, then the market price would drop.

Oil has a unique place among commodities: we are so dependent on oil that real demand destruction will only be driven by unavailability of further supply. We may see (are already seeing) a decline in discretional demand, but that is nowhere near the same thing as demand destruction.

I will only stop buying gas when my local gas stations no longer sell gas.

lacarnut
06-14-2008, 07:03 PM
It will have to be a psychological effect, as it can have no real effect upon world supplies for the next 5-7 years. Clearly, a significant amount of the rise in the price of oil is due to speculators; however, a much more significant percentage of that rise is due to the fall of the dollar vs other currencies, particularly the Euro. Chart the Euro vs Dollar ratio vs the price of oil and the correlation becomes evident. And the weakness of the dollar is directly attributable to the trade deficit and the Fed's persistence in lowering interest rates. What investor wants to invest in a currency carrying the current Fed rate? You might as well invest in the Yen.

What goes up must come down and that is what is going to happen to the Euro. The dollar will start rising. That should push the price of oil downward somewhat. The EU is worried about the rise of the Euro because it makes their products much more expensive. Many Europeans are coming to the US because of the falling dollar as their Euros buy more and makes our products cheaper. It's a trade off, and our exports have never been so high.

Like Hemp. said, oil service and domestic exploration stocks are good investments.

namvet
06-14-2008, 07:07 PM
The Saudis have not announced this at all, as far as I know.

They have been making repeated statements for the past two months that they will not increase production, because "the market is well supplied".

Why would they increase production, at a time when the bbl price is near $140?

I would not. Would you?

If I was a supplier of widgets, and I realised that my ability to keep suppying these widgets was declining, then I would charge whatever the market would bear, especially if I, at the same time, could make this much money from restricting supply. If I were stupid enough to supply more widgets to the market, then the market price would drop.

Oil has a unique place among commodities: we are so dependent on oil that real demand destruction will only be driven by unavailability of further supply. We may see (are already seeing) a decline in discretional demand, but that is nowhere near the same thing as demand destruction.

I will only stop buying gas when my local gas stations no longer sell gas.


Why would they increase production, at a time when the bbl price is near $140?


would you still say this if you found out your biggest customer is drilling their own oil????

Cold Warrior
06-14-2008, 07:11 PM
we need to care of OUR needs first. and then the world. I take it you don't live in this country

I do, indeed, for the next 5-7 years at least. However, from your conception of the market, I take it you don't know jack about economics, do you?

It's a nice sentiment -- "we need to care of OUR needs first" -- that makes very little economic sense. How, exactly, would you accomplish that in a global economy? One way would be to get the government into the oil business. To do that, you'll need a whole lot of infrastructure so the most direct way would be to nationalize the oil companies. Is that your proposal? If so, there's another site that people here often laugh at, that might suit your views better, as probably 99.9% of them would agree with you. Unfortunately, that approach didn't work very well for the Soviets.

If that's not your answer, then perhaps you would like the Congress to pass laws that all oil drilled in the US is required to be sold within the US at rates significantly less than the world market rate? Forget for the moment the additional costs those companies would bear in starting up in new sites, we can always address that by direct government subsidies and tax breaks. Now, under this scenario, if you're an investor, investing in oil companies, which company are you invest in: Company A under US government imposed price controls or Company B, based outside of the US, under no such controls and selling oil at global market rates? I hope you answered the latter; if not, you have very little chance of being a portfolio manager with any large funds management firm.

If you've got a third way, I'd sure be interested in hearing it.

lacarnut
06-14-2008, 07:12 PM
The Saudis have not announced this at all, as far as I know.

They have been making repeated statements for the past two months that they will not increase production, because "the market is well supplied".




Check out MSN Money; the story broke at noon today and the Saudis will up production by a half million a day starting in July.

namvet
06-14-2008, 07:19 PM
I do, indeed, for the next 5-7 years at least. However, from your conception of the market, I take it you don't know jack about economics, do you?

It's a nice sentiment -- "we need to care of OUR needs first" -- that makes very little economic sense. How, exactly, would you accomplish that in a global economy? One way would be to get the government into the oil business. To do that, you'll need a whole lot of infrastructure so the most direct way would be to nationalize the oil companies. Is that your proposal? If so, there's another site that people here often laugh at, that might suit your views better, as probably 99.9% of them would agree with you. Unfortunately, that approach didn't work very well for the Soviets.

If that's not your answer, then perhaps you would like the Congress to pass laws that all oil drilled in the US is required to be sold within the US at rates significantly less than the world market rate? Forget for the moment the additional costs those companies would bear in starting up in new sites, we can always address that by direct government subsidies and tax breaks. Now, under this scenario, if you're an investor, investing in oil companies, which company are you invest in: Company A under US government imposed price controls or Company B, based outside of the US, under no such controls and selling oil at global market rates? I hope you answered the latter; if not, you have very little chance of being a portfolio manager with any large funds management firm.

If you've got a third way, I'd sure be interested in hearing it.

and your way takes how long???? 20 30 years???? we're happy YOU can wait that long

Cold Warrior
06-14-2008, 07:22 PM
What goes up must come down and that is what is going to happen to the Euro. The dollar will start rising. That should push the price of oil downward somewhat. The EU is worried about the rise of the Euro because it makes their products much more expensive. Many Europeans are coming to the US because of the falling dollar as their Euros buy more and makes our products cheaper. It's a trade off, and our exports have never been so high.

Like Hemp. said, oil service and domestic exploration stocks are good investments.

Hopefully, it will come down soon, as I convert a significant amount of dollars to Euros each month and I'm taking a beating on it. However, I don't think it will ever (in my lifetime, at least) go back to its historic lows of 80 cent to the Euro. I would anticipate it to settle at around $1.25 to the Euro, slightly above the original strike price of $1.17.

And yes the Europeans are worried about it; however, not worried enough to take any definitive action, such as lowering interest rates. As to Europeans coming to the US, they're flocking here in droves. Go into any NYC pub and you'll find that the majority of patrons are Europeans here on holiday, buying "cheap" US goods and services; sort of like we used to do in countries like Mexico, wherein the currency was extremely weak.

namvet
06-14-2008, 07:26 PM
http://www.youtube.com/watch?v=ZPch2k63uj4

right on.

Cold Warrior
06-14-2008, 07:26 PM
and your way takes how long???? 20 30 years???? we're happy YOU can wait that long

Well, I can certainly wait that long (and billions and billions of years longer) as I'll probably be dead by then. However, you failed to answer the basic question. How would you enforce the price of US-drilled oil to be lower than the global market rate? How would you, in a global economy and free market capitalistic country, achieve the sentiment you expressed earlier, i.e., "taking care of our own first?"

hampshirebrit
06-14-2008, 07:28 PM
Check out MSN Money; the story broke at noon today and the Saudis will up production by a half million a day starting in July.

OK.

They say they will. Will they?

They said that in late March, too, and they didn't deliver. The $/bbl price has increased $20 since the last time they said they would increase production.

We are getting increasingly mixed signals from Saudi Aramco. I'm not even sure which half a mil they're talking about anymore.

Reading between the lines, it looks like Aramco is hitting peak, for probably political rather than geological causes ... but peak is peak, regardless of cause.

We need to develop alternatives for transportation liquid fuels, and fast, and stop relying on producing nations who don't like us very much, and who can no longer deliver.

namvet
06-14-2008, 08:05 PM
Well, I can certainly wait that long (and billions and billions of years longer) as I'll probably be dead by then. However, you failed to answer the basic question. How would you enforce the price of US-drilled oil to be lower than the global market rate? How would you, in a global economy and free market capitalistic country, achieve the sentiment you expressed earlier, i.e., "taking care of our own first?"

did I say I was an economists ???? NO IM NOT.


However, you failed to answer the basic question. How would you enforce the price of US-drilled oil to be lower than the global market rate? How would you, in a global economy and free market capitalistic country, achieve the sentiment you expressed earlier, i.e., "taking care of our own first?



here's the basic answer. crooked politicans.

namvet
06-14-2008, 08:08 PM
Well, I can certainly wait that long (and billions and billions of years longer) as I'll probably be dead by then. However, you failed to answer the basic question. How would you enforce the price of US-drilled oil to be lower than the global market rate? How would you, in a global economy and free market capitalistic country, achieve the sentiment you expressed earlier, i.e., "taking care of our own first?"

well then should we elect you prez. or a sen or congress??? you do have ALL the answers don't you???? well don't you????....... all I see from you is wine complain and moan. thanks for nothin' !!!!!!!!

Cold Warrior
06-14-2008, 08:20 PM
well then should we elect you prez. or a sen or congress??? you do have ALL the answers don't you???? well don't you????....... all I see from you is wine complain and moan. thanks for nothin' !!!!!!!!

Actually, that's pretty funny. First, I never claimed to have any of the answers. I merely pointed out that it's unrealistic in a global economy for a free-market country to impose constraints of the type you're suggesting in order to ensure that "we take care of our own."

As to "wine," I'm just about to open a very nice, hearty Sicilian red to serve with my lamb kebabs; however, if you actually meant "whine," I would point out to you that NOWHERE in this thread have I whined about anything. I've not complained about the price of oil, nor about the evil Saudis, nor about the bad old oil companies. I'll leave it to your imagination to guess as to who has.

Still awaiting your answer, even though you're not an "economists." Perhaps you might just outline it in broad, high-level terms without all the economiststics detail. :D

namvet
06-14-2008, 08:44 PM
Actually, that's pretty funny. First, I never claimed to have any of the answers. I merely pointed out that it's unrealistic in a global economy for a free-market country to impose constraints of the type you're suggesting in order to ensure that "we take care of our own."

As to "wine," I'm just about to open a very nice, hearty Sicilian red to serve with my lamb kebabs; however, if you actually meant "whine," I would point out to you that NOWHERE in this thread have I whined about anything. I've not complained about the price of oil, nor about the evil Saudis, nor about the bad old oil companies. I'll leave it to your imagination to guess as to who has.

Still awaiting your answer, even though you're not an "economists." Perhaps you might just outline it in broad, high-level terms without all the economiststics detail. :D

look back. i gave you the answer. your long on theory but unable to marry it to an action. enjoy your food. hope it didn't come from China.

Cold Warrior
06-14-2008, 09:22 PM
look back. i gave you the answer. your long on theory but unable to marry it to an action. enjoy your food. hope it didn't come from China.

Ok, so your answer to the question of rising oil prices is "crooked politicians." Maybe we ought to make you prez (not me, as my sordid past makes me virtually unelectable), as you seem to have such a grasp of world economies, global politics, and the general issues of the day!

I doubt that the lamb came from China (more directly, it came from Whole Foods), as I don't think China is a big exporter of lamb. However, the wine is from Sicily, and the whine is really what matters, isn't it? :D

namvet
06-14-2008, 09:26 PM
Ok, so your answer to the question of rising oil prices is "crooked politicians." Maybe we ought to make you prez (not me, as my sordid past makes me virtually unelectable), as you seem to have such a grasp of world economies, global politics, and the general issues of the day!

I doubt that the lamb came from China (more directly, it came from Whole Foods), as I don't think China is a big exporter of lamb. However, the wine is from Sicily, and the whine is really what matters, isn't it? :D


as you seem to have such a grasp of world economies, global politics, and the general issues of the day!


having trouble with the font??? i answered this to. you mean the "theory" is the food didn't come from China.:D

Cold Warrior
06-14-2008, 09:36 PM
having trouble with the font??? i answered this to. you mean the "theory" is the food didn't come from China.:D

Not quite sure what you mean? I did, indeed, forget to increase the font size on the last post; however, I hardly see how that matters.

As I said, I doubt that the lamb came from China, but it may have. So what? That's the Sam Walton business model, isn't it? Manufacture where it's cheap and take advantage of cheap transportation costs to maintain "just in time" inventories. Whoops! But what if transportation isn't cheap anymore? :D The whole model falls down! Too bad. Another model will replace it. And, at the end of the day, Sam and the Samlets could care less (is Sam dead?).

And, I'm fairly certain the Sicilian red did not come from China.

ReaganForRus
06-14-2008, 11:16 PM
Unless people here think that drilling in ANWAR and other areas is going to dramatically increase the world's oil supply in the short term, there is no reason to think that such activities will dramatically lower the price of oil. Unless, of course, you believe that the oil companies will sell oil to Americans cheaper than world market prices (and if you believe that, there's a bridge...).

True, ANWR would only produce a million barrels a day, but the mere announcement by a Statesman that the US would open up federal lands and the coasts of the US to drilling, and the short term price of oil would drop 30 to 40 dollars a barrel. Actually implement an energy independence project ala the Manhattan project and the Mideast would resort to offering those tumbler glass sets that they hand out when you drove up to the full service pumps in the 60's

Cold Warrior
06-15-2008, 05:30 AM
True, ANWR would only produce a million barrels a day, but the mere announcement by a Statesman that the US would open up federal lands and the coasts of the US to drilling, and the short term price of oil would drop 30 to 40 dollars a barrel. Actually implement an energy independence project ala the Manhattan project and the Mideast would resort to offering those tumbler glass sets that they hand out when you drove up to the full service pumps in the 60's

I am totally in agreement with you regarding an energy independence program, including a strong focus on nuclear to provide electrical power, ala France which provides 80% of its electricity through nuclear. That simply makes sense and politicians who ignore it do so at risk of our country.

However, short-term measures such as opening ANWR would be less effective than most people believe. First, it would take several years for that oil to come online, and oil futures are typically traded iwith a three month window. Secondly, as I pointed out above to the guy whose answer is "crooked politicians," unless you dramatically increase supply, you will not dramatically decrease prices, as we operate in a global economy and thoughts of keeping the oil for ourselves at lower prices are nonsense.

Certainly, opening up these areas to drilling would cause a drop in the price of oil, purely from the psychological effects, but probably not as much as you indicate, as experts believe that only a maximum of 50% of the rise is due to speculation. Assuming the increase is $70 and the speculative component amounts to $35, then the actions you suggest might knock 30% off that, netting a drop of around $10-$15. None of these actions, however, address the key factor in the rise, the weakness of the dollar. Get the dollar back to close to parity with the Euro and you would see oil drop down to around $90 a barrel.

lacarnut
06-15-2008, 12:03 PM
I am totally in agreement with you regarding an energy independence program, including a strong focus on nuclear to provide electrical power, ala France which provides 80% of its electricity through nuclear. That simply makes sense and politicians who ignore it do so at risk of our country.

However, short-term measures such as opening ANWR would be less effective than most people believe. First, it would take several years for that oil to come online, and oil futures are typically traded iwith a three month window. Secondly, as I pointed out above to the guy whose answer is "crooked politicians," unless you dramatically increase supply, you will not dramatically decrease prices, as we operate in a global economy and thoughts of keeping the oil for ourselves at lower prices are nonsense.

Certainly, opening up these areas to drilling would cause a drop in the price of oil, purely from the psychological effects, but probably not as much as you indicate, as experts believe that only a maximum of 50% of the rise is due to speculation. Assuming the increase is $70 and the speculative component amounts to $35, then the actions you suggest might knock 30% off that, netting a drop of around $10-$15. None of these actions, however, address the key factor in the rise, the weakness of the dollar. Get the dollar back to close to parity with the Euro and you would see oil drop down to around $90 a barrel.

One type of exploration that you might not be aware of is the use of CO2 injected into old (capped ) oil wells. It is projected that there is 30 to 40 per cent remaining in these old wells. The problem is getting the CO2 to the wells. This type of exploration is in the early stages in MS, LA, TX. Denbury is building a pipeline from MS to TX. My brother and I own mineral rights where those wells are located. In a year or two, the black gold will start flowing.

Up until 10 or 15 years ago, natural gas was very cheap. Now, not so cheap. It is a clean and safe energy source. In AK the natural gas that comes out of the wells is pumped back into the ground because there is no pipeline to bring it to the states. The oil companies, Canada & the US government do not want to pay for the construction of the pipeline because of the cost. If the government had spent a small part of the energy bill that has been spent on renewable energy in the last several years, we would have natural gas coming out of our ears resulting in less dependence on oil and from a cheaper energy source. As an added benefit, natural gas could be used to cook the corn into making that stupid Ethanol rather than oil.

namvet
06-15-2008, 12:21 PM
One type of exploration that you might not be aware of is the use of CO2 injected into old (capped ) oil wells. It is projected that there is 30 to 40 per cent remaining in these old wells. The problem is getting the CO2 to the wells. This type of exploration is in the early stages in MS, LA, TX. Denbury is building a pipeline from MS to TX. My brother and I own mineral rights where those wells are located. In a year or two, the black gold will start flowing.

Up until 10 or 15 years ago, natural gas was very cheap. Now, not so cheap. It is a clean and safe energy source. In AK the natural gas that comes out of the wells is pumped back into the ground because there is no pipeline to bring it to the states. The oil companies, Canada & the US government do not want to pay for the construction of the pipeline because of the cost. If the government had spent a small part of the energy bill that has been spent on renewable energy in the last several years, we would have natural gas coming out of our ears resulting in less dependence on oil and from a cheaper energy source. As an added benefit, natural gas could be used to cook the corn into making that stupid Ethanol rather than oil.

you mean these type???


http://upload.wikimedia.org/wikipedia/commons/c/ce/Oil_well.jpg

there are literally thousands of these old wells setting idle nationwide. I used to drive across Kansas/colo and see these the whole trip. long abandon.

lacarnut
06-15-2008, 12:33 PM
you mean these type???


http://upload.wikimedia.org/wikipedia/commons/c/ce/Oil_well.jpg

there are literally thousands of these old wells setting idle nationwide. I used to drive across Kansas/colo and see these the whole trip. long abandon.

Yep, I think and hoping that these old wells have a lot of oil left in them. Denbury has gotten a lot of oil out of the ones in MS and is moving west with their pipeline. As long as oil stays above $60 per barrel, this type of exploration is very profitable. Denbury's stock has risen 100% in the last year. I sold most of mine because the stock has risen too fast and am waiting for it to drop in price.

namvet
06-15-2008, 12:45 PM
Yep, I think and hoping that these old wells have a lot of oil left in them. Denbury has gotten a lot of oil out of the ones in MS and is moving west with their pipeline. As long as oil stays above $60 per barrel, this type of exploration is very profitable. Denbury's stock has risen 100% in the last year. I sold most of mine because the stock has risen too fast and am waiting for it to drop in price.

I remember when I was a kid going on trips. i saw these pumping all over the country. mainly in farmers fields. by the thousands. it was sad to see OPEC shut em down.

but. check out this video. you may wanna check out your backyard !!!! man finds oil on his land


back yard oil rig (back yard oil rig)

Constitutionally Speaking
06-16-2008, 05:47 AM
Unless people here think that drilling in ANWAR and other areas is going to dramatically increase the world's oil supply in the short term, there is no reason to think that such activities will dramatically lower the price of oil. Unless, of course, you believe that the oil companies will sell oil to Americans cheaper than world market prices (and if you believe that, there's a bridge...).

Drilling in ANWR alone would not accomplish a whole lot, but it is not ANY single oil field that matters, it is the off limits areas as a whole.

If we were drilling in all of the areas we have available, it would indeed have a significant impact on the world market.

lacarnut
06-16-2008, 12:22 PM
Drilling in ANWR alone would not accomplish a whole lot, but it is not ANY single oil field that matters, it is the off limits areas as a whole.

If we were drilling in all of the areas we have available, it would indeed have a significant impact on the world market.

Yep, like the Gulf of Mexico, east and west coast offshore area. The politicians and the Env. are so retarded that they do not have a clue about drilling in these offshore areas. Two monster hurricanes (Katrina & Rita) ripped thru the gulf where many of these rigs are located and NOT A DROP OF OIL WAS SPILLED. The oil spills that have occurred have been due to tankers splitting open. It is much, much safer to drill for oil and transport it by pipelines than it is to ship it in by tankers. From a safety and env. standpoint, it is a no brainer to drill on both coasts in international waters.

We will always be dependent on foreign oil unless we capitalize on every form of energy at every site. With the current rate of idiots we have in DC, it will not happen. Our only hope is that gasoline prices goes up to 10 bucks a gallon; maybe then the electorate will kick out these stupid politicians.