Drilling For More Oil Not Solution

[misterblue]

Demand (India and China) >> Increase in US supply of oil should regulations be favorable

More drilling won't get us back down to the prices we have grown accustomed to.

Now if we adjusted our auto infrastructure for natural gas as a fuel, US drilling would have an effect, but at present time the price of natural gas is lower than a snake's ballbag.

The fact still remains that no matter what the prices are, drilling WILL CREATE JOBS.

Yesterdays NEWS. Gas prices going down in part because of Saudi Arabia's increased production......... MY MY MY MY MY

[Tigerdrafted]

The Gulf Coast (PADD 33) is the largest supply area of the U.S.,
accounting for 55% of the nation’s crude oil production and 47% of its
refined product output. It is the largest oil supplier in interregional trade,
accounting for 90% of the crude oil shipments and 80% of the refined
petroleum production shipments among PADDs. Most of the crude oil
goes to refineries in the Midwest, while most refined products go to the
East Coast and, to a lesser extent, to the Midwest.

http://www.pipeline101.com/reports/Notes.pdf

Sorta blows a giant hole in the theory that GOM oil will be shipped to markets in Asia doesn't it? WTI is trading below Brent because we are producing more and the world market isn't ready for WTI. Even if it was, it would still be shipped to refineries in the US since we have the pipelines.

Oil is fungible like gold but oil has a much greater carry cost that must be factored into each trade. There is also a timing issue.

[Doci-Do]

Yesterdays NEWS. Gas prices going down in part because of Saudi Arabia's increased production......... MY MY MY MY MY

It's still over $100 a barrel.

[Thundercat]

The rhetoric saying that if US drills and obtains more oil domestically, the price of gas and petroleum products will decrease is pure nonsense.

The fact is, even if all the US reserves were suddenly realized, the price of oil and gas would not be affected one bit. Because the price is set globally, by speculators bidding on oil futures. Certain globalist groups, backed by certain politicians, also manipulate political and military events, to cause panic and further drive up the price. The Iran concocted nuclear "crisis" issue is one case in point. Remember the false WMD story pushed in 2003 about Iraq?
The resulting actions drove the price of oil strait up to its current artificial value.

If Iran really wanted to have nuclear weapon capability, they can purchase it already made from Russia, North Korea, China and an array of other actors, who would and can get the hardware to Iran for the right price.

So do not believe the orchestrated calls to drill, as a solution to ending high artificially priced oil and gas.

You must be some liberal. The fact is oil drilling does in fact lead to lower prices at the pump. You mentioned speculators and they act on pyschology of the market. The same is indeed true with drilling since it offsetts the fear of lack of supply and thereby lowers prices.

[Grapha]

Oil is a future's market, so I don't know what all the fuss about speculation is about. It takes a long time from oilfield to gas tank, and so by definition, oil purchasers are making future calculations. Indeed, I believe the actual futures market in oil is the most robust of any commodity, except agricultural products.

Buyers buy futures in oil (and fuel in general) as a hedge against rising prices all the time. If you didn't have a futures market, cruise ships wouldn't be able to sell tickets today for trips planned in summer.

Increased drilling is just part of that futures calculation, but it's not a vanishingly small part.

[misterblue]

It's still over $100 a barrel.

And what was it prior?

[misterblue]

Trouble is the dimocrat minions believe what ever the dimocrat politicians tell them.

[tulsatech]

"Drilling for more oil not solution"? How about Natural Gas? Any objections to using more natural gas (which we have an abundance of)?

[JayJay]

"Drilling for more oil not solution"? How about Natural Gas? Any objections to using more natural gas (which we have an abundance of)?

And when demand for it skyrockets because we try and start using it for an oil substitute?

Point everyone seems to miss is that conventional, easy-to-get oil peaked around 2006. Despite ever-increasing oil prices, production of that type of oil is starting to decline.

We are depleting those easy-to-produce fields and replacing their lost production with more expensive, harder-to-produce oil.

That will continue to put upward pressure on oil prices.

[Doci-Do]

"Drilling for more oil not solution"? How about Natural Gas? Any objections to using more natural gas (which we have an abundance of)?

Not at all.

I'm not against drilling for oil either. I'm just not under the illusion if we drilled all of Alaska we would be down to $1.50 gas again.

My job is finding oil and gas. It really doesn't matter to me if we drill it now or in twenty years.

[misterblue]

Not at all.

I'm not against drilling for oil either. I'm just not under the illusion if we drilled all of Alaska we would be down to $1.50 gas again.

My job is finding oil and gas. It really doesn't matter to me if we drill it now or in twenty years.

And what happened to the democrats plan to lower gas prices that Pelosi talked about? Nothing but Moon Bats.

[tarpoon]

The rhetoric saying that if US drills and obtains more oil domestically, the price of gas and petroleum products will decrease is pure nonsense.

The fact is, even if all the US reserves were suddenly realized, the price of oil and gas would not be affected one bit. Because the price is set globally, by speculators bidding on oil futures. Certain globalist groups, backed by certain politicians, also manipulate political and military events, to cause panic and further drive up the price. The Iran concocted nuclear "crisis" issue is one case in point. Remember the false WMD story pushed in 2003 about Iraq?
The resulting actions drove the price of oil strait up to its current artificial value.

If Iran really wanted to have nuclear weapon capability, they can purchase it already made from Russia, North Korea, China and an array of other actors, who would and can get the hardware to Iran for the right price.

So do not believe the orchestrated calls to drill, as a solution to ending high artificially priced oil and gas.

That's the most self contradicatory inane argument I have ever seen in print And it seems to be the Liberals most widely parroted and cogent one.

It's difficult to make up an analogy for that.

Let me think:

No I can't think of one. Yeah I can.

have to be something like this.
One plus one equals apple

[Doci-Do]

And what happened to the democrats plan to lower gas prices that Pelosi talked about? Nothing but Moon Bats.

Anyone who says they can control the mid to long term price of a barrel of oil is lying.

Unless the Democrats have a magic wand that lowers world demand.

[misterblue]

Anyone who says they can control the mid to long term price of a barrel of oil is lying.

Unless the Democrats have a magic wand that lowers world demand.

democrats lie alot. Wonder why the law of supply and demand do not apply to oil. Like other products and NG?

[JayJay]

democrats lie alot. Wonder why the law of supply and demand do not apply to oil. Like other products and NG?

The law of supply and demand DO apply to oil.

But what happens when you replace easy-to-produce supply with harder-to-produce supply?

What sort of pressure does that put on prices?