Are you ready to drill for new oil?

[CharlestonChad]

What a load of BS. Every Drop of Oil we get from our own sources instead of over seas sources, Is Money kept here at home rather than sent overseas.

Oh by the way, what makes you sure oil corps even want to drill more oil? They have no obligation to consumers and are currently making huge profits. Demand is increasing, thus prices are increasing. They can make more profits for less work if they just keep drilling at the current pace. Russia, Canada, Saudi, and Iran have no intentions of helping out the world by drilling more oil, even though they could, so why should America? Oh yeah, because this whole issue is fucking stupid and will likely get some politicians elected by their ignorant voters.

 

[bornright]

The leaders of the oil trading market admitted that the last two day drop was completely unexpected. Those are their words. Now in my limited knowledge of the oil market, I believe futures are sold/traded for oil one month in advance. Domestic drilling would not be traded until 5 or more years down the road.

If your belief that the oil we are drilling right now will not be used until 5 years down the road I disagree. Yes I have heard those talking points from MSNBC also but that sure does not make that correct. That is just silly. Do you think that we should have been drilling 5 years ago?

I feel like the "create more jobs" argument is a cop out. Investing more into alt.E will also create more jobs.

Which alternative energy would hire near as many employees as oil at this time? We have not developed anything yet that actually competes with oil. I feel we will but until that time comes alternative energy is still in the developing stage which hires a lot less.

It's scientists who claim there is little oil in ANWR. Which is why anti-drilling folks repeat it. You tried to make it sound like science is moot since liberals are repeating it. Do you do the same with Global Warming?

We all lose from drilling, except the oil corporations. When the demand gets so high that people are ready to fight, which will likely happen, then I sure as shit don't want to be sitting back wondering why we drilled in 2010 to knock off 50 cents on a gallon. Do you?

With the "little oil" in ANWR I would think you as a liberal would want the oil companies to waste their money drilling. Not wanting to change the subject of the thread I will not comment on my belief or disbelief of global warming. Your answer is I do want them drilling weither it benefits the people 50 cents a gallon or $2.00 a gallon.

 

[Charles_Main]

If your belief that the oil we are drilling right now will not be used until 5 years down the road I disagree. Yes I have heard those talking points from MSNBC also but that sure does not make that correct. That is just silly. Do you think that we should have been drilling 5 years ago?



Which alternative energy would hire near as many employees as oil at this time? We have not developed anything yet that actually competes with oil. I feel we will but until that time comes alternative energy is still in the developing stage which hires a lot less.




With the "little oil" in ANWR I would think you as a liberal would want the oil companies to waste their money drilling. Not wanting to change the subject of the thread I will not comment on my belief or disbelief of global warming. Your answer is I do want them drilling weither it benefits the people 50 cents a gallon or $2.00 a gallon.

the claim is anywhere from 3 to 20 Billion barrels of Oil In anwar. that is hardly only a little oil.

 

[jillian]

Why do you ignore the government's own report?

I'm not going to post the EIA Report yet again. But it's clear there's a refusal among the extremist right wing to acknowledge that there's no gain except for oil companies.

Drilling for oil beneath the pristine tundra of the Arctic National Wildlife Refuge would do little to ease world oil prices, the federal government's energy forecasters said in a new report issued in a week that saw oil surpass $130 per barrel for the first time.

Arctic Drilling Wouldn't Cool High Oil Prices - US News and World Report

 

[Charles_Main]

Why do you ignore the government's own report?

I'm not going to post the EIA Report yet again. But it's clear there's a refusal among the extremist right wing to acknowledge that there's no gain except for oil companies.



Arctic Drilling Wouldn't Cool High Oil Prices - US News and World Report

Lowering fuel costs, is not the only, or even the best reason to drill for our own oil. The trade deficit, and funding nations that hate us, are 2 very good reasons to do it.

 

[Zoomie1980]

Charlie, you should realize that oil is traded on a world market. The WORLD will have access to any oil we remove from our ground. We would have to nationalize oil, like Venezuela, before we see 700 billion dollars stay at home. The only ones who will truly profit from domestic drilling are the oil corporations. We are estimated to knock a few quarters off the gallon as soon as 5 years from now if we start drilling.

Please don't fall for the partisan bullshit going on in the media. Too many Americans are ignorant on oil and think that the solution is drilling our reserves dry.

What's wrong with oil companies making money?

1) They have not made much money at all for over 20 years.

2) Your 401k or Pension plan probably has at least some oil company stock in it.

3) Most are American or UK companies and provides tens of thousands of high paying jobs.

4) They reinvest upwards 95% into new drilling, equipment and technology, not paying dividends to investors.

 

[Charles_Main]

I find it funny Chad calls them our oil reserves, if you are never going to drill them how are they your reserves? They are just oil sitting in the oil which we will never use.

 

[jreeves]

Oh it will hurt, but it will also drive invention. Necessity is the mother of invention. If we have $8 gas, then we'll have alternativeE fuel in no time.

And by the way, how do you think drilling domestically will cut down gas prices? Do you realize that unless we nationalize oil, we're sending what we get from FL and Alaska to the world market. We might knock off a few quarters on the gallon, in 5-7 years at the soonest.

PS: Don't try to play the victim. I'm sorry if I hurt your feelings when I said old people don't contribute to culture. Please forgive my brutal honesty.

Lmao....that's the reason oil prices has dropped over 10% after Bush announced he was dropping the executive ban on offshore drilling. That's in 4 days, imagine what oil prices will do if Congress lifts the legislative ban....

 

[jreeves]

Oh by the way, what makes you sure oil corps even want to drill more oil? They have no obligation to consumers and are currently making huge profits. Demand is increasing, thus prices are increasing. They can make more profits for less work if they just keep drilling at the current pace. Russia, Canada, Saudi, and Iran have no intentions of helping out the world by drilling more oil, even though they could, so why should America? Oh yeah, because this whole issue is fucking stupid and will likely get some politicians elected by their ignorant voters.

Our government depends on oil companies for tax revenues, imagine if new drilling was allowed what the tax revenues would be?


Figure 1 illustrates the magnitude of government tax collections versus industry profits between 1977 and 2004. During this period, the 29 largest domestic energy firms earned a collective $630 billion after adjusting for inflation. These profits varied dramatically—from a low of $7.9 billion in 1995 to a high of $42.6 billion in 2004—based upon world market demand, supply, and international events. In contrast, the taxes paid or remitted by domestic oil companies have been consistently far greater than their profits and now total more than $2.2 trillion (adjusted for inflation) over the past quarter century. The largest share of those taxes is federal and state gasoline excise taxes. In 2004, governments collected $58 billion in gasoline excise taxes. Overall, governments have collected $1.34 trillion in gasoline excise taxes since 1977.

Today, U.S. consumers pay an average of 45.9 cents per gallon in gasoline taxes. The federal gasoline excise tax is 18.4 cents per gallon while the average state and local tax is 27.5 cents. The vast majority of these taxes are levied at a flat rate per gallon—regardless of whether a gallon of gas costs $1.49, $2.49, or $3.49. Thus, the effective rate of these taxes can vary wildly, from roughly 31 percent in the former case to 13 percent in the later.

Federal and state governments also collect a substantial amount of excise tax from the sale of diesel fuel. In today’s dollars, governments have collected $160 billion in diesel fuel excise taxes since 1977.

Oil companies also pay taxes to governments for the right to extract oil from public lands and waters. For example, the federal government has collected a total of $48.8 billion in royalty payments from oil companies in exchange for their ability to explore and drill in the U.S. outer continental shelf. Oil companies also pay severance taxes to state governments for the right to drill on state lands. Unfortunately, complete data on state severance tax collections for the period is not available at this time.
In contrast to excise taxes, corporate income tax payments vary as widely as industry profits. As mentioned above, domestic energy companies earned a total of $630 billion in post-tax profits between 1977 and 2004. Tax Foundation economists estimate that companies paid $518 billion in corporate income taxes to federal and state governments during the same period. These payments varied from a low of $5.1 billion in 1995 to a high of $40.4 billion in 1981. The Tax Foundation - Oil Company Profits and Tax Collections: Does the U.S. Need a New Windfall Profits Tax?

 

[Charles_Main]

Our government depends on oil companies for tax revenues, imagine if new drilling was allowed what the tax revenues would be?


Figure 1 illustrates the magnitude of government tax collections versus industry profits between 1977 and 2004. During this period, the 29 largest domestic energy firms earned a collective $630 billion after adjusting for inflation. These profits varied dramatically—from a low of $7.9 billion in 1995 to a high of $42.6 billion in 2004—based upon world market demand, supply, and international events. In contrast, the taxes paid or remitted by domestic oil companies have been consistently far greater than their profits and now total more than $2.2 trillion (adjusted for inflation) over the past quarter century. The largest share of those taxes is federal and state gasoline excise taxes. In 2004, governments collected $58 billion in gasoline excise taxes. Overall, governments have collected $1.34 trillion in gasoline excise taxes since 1977.

Today, U.S. consumers pay an average of 45.9 cents per gallon in gasoline taxes. The federal gasoline excise tax is 18.4 cents per gallon while the average state and local tax is 27.5 cents. The vast majority of these taxes are levied at a flat rate per gallon—regardless of whether a gallon of gas costs $1.49, $2.49, or $3.49. Thus, the effective rate of these taxes can vary wildly, from roughly 31 percent in the former case to 13 percent in the later.

Federal and state governments also collect a substantial amount of excise tax from the sale of diesel fuel. In today’s dollars, governments have collected $160 billion in diesel fuel excise taxes since 1977.

Oil companies also pay taxes to governments for the right to extract oil from public lands and waters. For example, the federal government has collected a total of $48.8 billion in royalty payments from oil companies in exchange for their ability to explore and drill in the U.S. outer continental shelf. Oil companies also pay severance taxes to state governments for the right to drill on state lands. Unfortunately, complete data on state severance tax collections for the period is not available at this time.
In contrast to excise taxes, corporate income tax payments vary as widely as industry profits. As mentioned above, domestic energy companies earned a total of $630 billion in post-tax profits between 1977 and 2004. Tax Foundation economists estimate that companies paid $518 billion in corporate income taxes to federal and state governments during the same period. These payments varied from a low of $5.1 billion in 1995 to a high of $40.4 billion in 1981. The Tax Foundation - Oil Company Profits and Tax Collections: Does the U.S. Need a New Windfall Profits Tax?

more great points that will be lost on the "the oil companies are just evil crowd"

 

[Annie]

Agreed. We need to drill offshore and on shore. If we are very lucky, some new source will be found before the previous come online, but if not, we should be prepared. That doesn't preclude alternatives, just a failsafe.

 

[Charles_Main]

I would like to make a prediction right now, that in the next few weeks the Dems and Obama will begin to waver on this issue, and start talking about how they were always for drilling to begin with.

 

[BaronVonBigmeat]

Stop making sense



We will not be drilling oil, private companies will.

Anyone have any idea how much we're currently paid per barrell for the oil taken from our national lands?

Anyone? Anyone?

Me neither.

Wonder why something so important as that particular bit of data is:

1. not easily found on the net

2. never mentioned as a significant part of the story about drilling in the media?

No conspiracy theory, here, just pointing out how lazy and inept our media really is.

As to the discussion whether the government has given sweeteheart deals or is getting a fair price for that oil, we, the owners of that oil cannot say.

It should be easily discoverable public information, right?

Am I missing something here?

Why isn't it?

If the drilling is done on private lands, then the property owner gets paid. The US is one of the few countries that has mineral rights for landowners.

Oh by the way, what makes you sure oil corps even want to drill more oil? They have no obligation to consumers and are currently making huge profits. Demand is increasing, thus prices are increasing. They can make more profits for less work if they just keep drilling at the current pace.

Are you serious? The more they sell, the more they make. If they sit idly by and don't work to increase production, someone other company will come in and eat their lunch. The long-term trend for oil is (was) to become cheaper. The price drifted down throughout the 80's and 90's. It did the same in the 50's and 60's. It went down even when Standard Oil controlled 90% of the oil market. It may not go down any more due to China and possibly peak oil; however if the price only goes up from now on it won't be due to oil companies not looking for new oil.

 

[Epsilon Delta]

I am more worried about sending so much money over there, than I am about lowering prices to tell you the truth.

Then why not do everything possible to get off oil in general as much as possible? It's a double whammy, you don't support the "terrorists" AND you could stop killing the environment too! Isn't drilling just putting off the problem?

 

[Charles_Main]

Then why not do everything possible to get off oil in general as much as possible? It's a double whammy, you don't support the "terrorists" AND you could stop killing the environment too! Isn't drilling just putting off the problem?

I am totally for doing everything we can to get off of oil all together and have said so many times on this board. I would whole heartedly support any viable idea to that end, but we all know that will take some time.

Drilling here and now is a way to lower our trade deficit and stop sending billions over seas right now. Keeping that 700 billion dollars at home instead of sending it abroad could actually help us raise the capitol that would be needed to make any change to something other than oil we are likely to make.

 

[CharlestonChad]

Are you serious? The more they sell, the more they make. If they sit idly by and don't work to increase production, someone other company will come in and eat their lunch. The long-term trend for oil is (was) to become cheaper. The price drifted down throughout the 80's and 90's. It did the same in the 50's and 60's. It went down even when Standard Oil controlled 90% of the oil market. It may not go down any more due to China and possibly peak oil; however if the price only goes up from now on it won't be due to oil companies not looking for new oil.

I'm saying that off of how they actually have land and accessible oil that is still not tapped. The price to drill and transport is not a wise investment with our current exploration technologies. Maybe in the near future though.

 

[jreeves]

I'm saying that off of how they actually have land and accessible oil that is still not tapped. The price to drill and transport is not a wise investment with our current exploration technologies. Maybe in the near future though.

BS a majority of their land leases don't contain enough oil for commerical drilling. Why not allow them to drill in proven oil reserves and develop oil shale? We are sitting on 800 billion barrels of oil in oil shale and it is being held up by ultra enviromentalists.....

 

[Epsilon Delta]

I am totally for doing everything we can to get off of oil all together and have said so many times on this board. I would whole heartedly support any viable idea to that end, but we all know that will take some time.

Drilling here and now is a way to lower our trade deficit and stop sending billions over seas right now. Keeping that 700 billion dollars at home instead of sending it abroad could actually help us raise the capitol that would be needed to make any change to something other than oil we are likely to make.

True, but drilling now's not gonna do anything for a decade or two, a very good time to start on those alternative energies than NEXT time there's a crisis.

 

[Charles_Main]

True, but drilling now's not gonna do anything for a decade or two, a very good time to start on those alternative energies than NEXT time there's a crisis.

A decade or 2? Wow really try more like 4 to 8 years but nice try.

 

[Epsilon Delta]

Well, I don't know, what I always hear is about a decade from the media (and the proponents usually talk about how it'll 'calm the market'). Looked around and this is what I could find at the moment, but I'd be happy to hear other sources.

Clearing up Florida oil-rig rhetoric: What does drilling mean for you? -- OrlandoSentinel.com

The Energy Information Administration, a part of the U.S. Department of Energy, said in a report last year that opening federal waters along the nation's Pacific, Atlantic and eastern Gulf of Mexico coastlines wouldn't cause much of a bump in the nation's crude production during the next two decades. "Any impact on average wellhead prices is expected to be insignificant," the report states.

Even so, U.S. Rep. John Mica, R- Winter Park, and his brother, David Mica, executive director of the Florida Petroleum Council, argue that just opening the eastern third of the Gulf to drilling could help calm a jittery oil market.

"Send a message to the markets, and it could have a serious impact," said David Mica, whose organization is a division of the American Petroleum Council.

How long would it take?

If oil companies got the green light today, it would be five to 10 years before oil from Florida's coast could power your car.