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America's Untapped Oil ( Drill Here! Drill Now! )
money.cnn.com ^ | June 29, 2008 | Steve Hargreaves

Posted on 06/29/2008 12:44:47 PM PDT by kellynla

NEW YORK (CNNMoney.com) -- Oil companies and many lawmakers are pressing to open up more U.S. areas for drilling. But the industry is drilling on just a fraction of areas it already has access to.

Of the 90 million offshore acres the industry has leases to, mostly in the Gulf of Mexico, it is estimated that upwards of 70 million are not producing oil, according to both Democrats and oil-industry sources.

One Democrat staffer said if all these existing areas were being drilled, U.S. oil production could be boosted by nearly 5 million barrels a day, although the oil industry said that number is far too high and one government agency said it was impossible to estimate production.

Recent proposals to open up offshore coastal areas near Florida and California, as well as Alaska's Arctic National Wildlife Refuge, might yield 2 million additional barrels, according to estimates from various government sources that also stressed the difficulty in making forecasts. The United States currently produces 8 million barrels of oil and other petroleum liquids a day and consumes about 21 million.

Oil companies "should finish what's on their plate before they go back in line," said Oppenheimer analyst Fadel Gheit.

Some Democrats also charge that oil companies are deliberately not drilling on the land to limit supply and drive up oil prices.

"Big Oil is more interested in pumping up prices and pumping up their own profits rather than pumping more oil," said Rep. Edward Markey (D-Mass), who has co-sponsored a bill to charge oil companies a fee for land they hold that's not producing oil. "We should not even begin discussing handing over more public land to the oil companies until they first use [the land] they already hold."

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Culture/Society; Extended News; Government
KEYWORDS: congress; energy; oil
"Big Oil is more interested in pumping up prices and pumping up their own profits rather than pumping more oil," said Rep. Edward Markey (D-Mass)

"Big oil?" Someone should inform Markey and the rest of the Lefties just who exactly owns "Big Oil"


1 posted on 06/29/2008 12:44:47 PM PDT by kellynla
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To: thackney

ping


2 posted on 06/29/2008 12:45:05 PM PDT by kellynla (Freedom of speech makes it easier to spot the idiots! Semper Fi!)
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To: kellynla
My Energy Manifesto:

* Cease all ethanol production. It takes away from food production and the unintended consequence is higher food costs. As diesel prices go up, the cost of farming tips the balance of cost to make ethanol a bad idea. Just say "no" to ethanol! Even Jimmy Carter says that diverting farm production from food to fuel is dumb – even HE gets it. This will create only ONE "blend" of gasoline and will cease regional "boutique" blends (gasohols) which are stupid, costly, and meaningless. Trucking custom blends around the country is wasteful. Ethanol blends may actually lead to fewer miles to the gallon, and adds to the cost of production and transportation. Newer cars do not need oxygenated fuels.

* Lift the restrictions in order to drill for oil in Alaska, Gulf of Mexico, and other sites in the CONUS as a matter of national security.

* Encourage the petro industry to construct state-of-the-art refineries and/or retrofit current and dormant ones and crank up production for our newly-accessed oil in the CONUS.

* Make all “carbon credit” scams unlawful. Discrediting Algore should have been a slam-dunk a long time ago. Stop electing Reps who buy into the Global Warming / Global Cooling / Climate Change Hoax. CO2 is not our enemy!

* Construct SEVERAL, regional Pebble-Bed Modular Reactors (or other similar modern designs) that are rechargeable, and cleaner than any current nuclear generator design. Refine spent nuke fuel for recycling. DO SOMETHING NUCLEAR to resolve energy problems.

* Use the residual heat from the reactors above to process motor fuel from coal and/or shale. Even though Clinton "stole" some of the best coal reserves, we still have a lot to use.

* Become independent enough to make the cartels (i.e. OPEC) inconsequential.

* Lift or cap the tax on gasoline. When the tax is higher than the profit margin, the argument over what is “obscene” becomes moot.

* List (chapter and verse) all the regulations and laws that need to be repealed in order to drill, and drill now. Use this list as the new "Contract With America for Energy Independence". Have a mega-bill introduced that in one fell swoop removes the self-imposed energy embargo.

If you squint real hard, and read between the lines, the ‘manifesto’ will require fewer RINOs and LibDems and the election of some clear-minded conservatives to even consider the above.

3 posted on 06/29/2008 12:49:05 PM PDT by SERKIT ("Blazing Saddles" explains it all.....)
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To: kellynla
This is not a note of agreement or disagreement, but another perspective of a highly controversial subject.

FIRST… do you know what ANWR is?

ANWR = Arctic National Wildlife Refuge.

Now a Comparison



And some perspective…



NOTE WHERE THE PROPOSED DEVELOPMENT AREA IS…
(It's in the 'ANWR Coastal Plain')



THIS IS WHAT THE DEMOCRATS, LIBERALS AND 'GREENS' SHOW YOU WHEN THEY TALK ABOUT ANWR …and they are right… these ARE photographs of ANWR




ISN'T ANWR BEAUTIFUL?  WHY SHOULD WE DRILL HERE (AND DESTROY) THIS BEAUTIFUL PLACE?
WELL…THAT'S NOT EXACTLY THE TRUTH
Do you remember the map?
The map showed that the proposed drilling area is in the ANWR Coastal Plain.
Do those photographs look like a coastal plain to you?
WHAT'S GOING ON HERE?
The answer is simple...
THAT IS NOT WHERE THEY ARE WANTING TO DRILL!
THIS IS WHAT THE PROPOSED EXPLORATION AREA ACTUALLY LOOKS LIKE IN THE WINTER


AND THIS IS WHAT IT ACTUALLY LOOKS LIKE IN THE SUMMER




HERE ARE A COUPLE SCREEN SHOTS FROM GOOGLE EARTH





AS YOU CAN SEE, THE AREA WHERE THEY ARE TALKING ABOUT DRILLING IS A BARREN WASTELAND. OH… AND THEY SAY THAT THEY ARE CONCERNED ABOUT THE EFFECT ON THE LOCAL WILDLIFE…HERE IS A PHOTO (SHOT DURING THE SUMMER) OF THE
'DEPLETED WILDLIFE' SITUATION CREATED BY DRILLING AROUND PRUDHOE BAY*…
DON'T YOU THINK THAT THE CARIBOU REALLY HATE THAT DRILLING?



HERE'S THAT SAME SPOT DURING THE WINTER.



HEY, THIS BEAR SEEMS TO REALLY HATE THE PIPELINE NEAR PRUDHOE BAY*…



*Prudhoe bay area accounts for 17% of U.S. domestic oil production
NOW, WHY DO YOU THINK THAT THE DEMOCRATS ARE LYING ABOUT ANWR?

REMEMBER WHEN AL GORE SAID THAT THE GOVERNMENT SHOULD WORK TO ARTIFICIALLY RAISE GAS PRICES TO $5.00 A GALLON?

WELL…

AL GORE AND HIS FELLOW DEMOCRATS HAVE ALMOST REACHED THEIR GOAL!

NOW THAT YOU KNOW THAT THE DEMOCRATS HAVE BEEN LYING, WHAT ARE YOU GOING TO DO ABOUT IT?

YOU CAN START BY FORWARDING THIS TO EVERYONE YOU KNOW… SO THAT THEY WILL KNOW THE TRUTH.

LET'S START BY DUMPING THOSE LIBERAL POLITICIANS, WHETHER THEY BE DEMOCRATS OR REPUBLICANS...!

4 posted on 06/29/2008 12:49:17 PM PDT by B-Cause (It's not what you gather, but what you scatter that tells what kind of life you have lived.)
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To: kellynla

“With prices at $135 dollars a barrel, everyone is trying to pump as much as they can, he said. But fearing oil prices will eventually fall, the industry is leery about making too many investments in the fields it has - many of which are in deepwater areas that can be pricey to develop.”

This would indicate that the guys in a position to know think there’s an oil bubble.


5 posted on 06/29/2008 12:50:56 PM PDT by kms61
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To: kms61; Chieftain

CSPAN now has the oil speculation hearings on.


6 posted on 06/29/2008 12:52:48 PM PDT by Recovering Ex-hippie (WE NEED A TROOP SURGE IN CHICAGO !)
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To: B-Cause
Nicely done!
7 posted on 06/29/2008 12:57:59 PM PDT by A message
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To: kellynla

Actually....it has do with REFINERIES...BUILD NEW REFINERIES...should be the cry...


8 posted on 06/29/2008 1:01:14 PM PDT by shield (A wise man's heart is at his RIGHT hand;but a fool's heart at his LEFT. Ecc 10:2)
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To: kms61
Question:
If the nearest refineries in the Gulf of Mexico area to these so called un-drilled leases are already operating at or near capacity -- what good would there be in adding an additional 20 million barrels into a clogged pipeline?
Drilling must be done in other market areas where the transportation of refined products are cost effective.
9 posted on 06/29/2008 1:06:20 PM PDT by BigSkyDream
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To: kellynla
"Rep. Edward Markey (D-Mass), who has co-sponsored a bill to charge oil companies a fee for land they hold that's not producing oil. "We should not even begin discussing handing over more public land to the oil companies until they first use [the land] they already hold."

This guy is nuts! The owners are already paying taxes.

10 posted on 06/29/2008 1:14:36 PM PDT by Cobra64 (www.BulletBras.net)
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To: B-Cause

Good stuff.


11 posted on 06/29/2008 1:16:04 PM PDT by Eagles6 ( Typical White Guy: Christian, Constitutionalist, Heterosexual, Redneck)
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To: BigSkyDream
"...what good would there be in adding an additional 20 million barrels into a clogged pipeline?"

Gees another one who does not get it! You reduce the 20 million barrels of oil were are imorting by replacing it with oil from the U.S.A. keeping the money here.

12 posted on 06/29/2008 1:19:35 PM PDT by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: Cobra64

Tax everything that is productive... and land that isn’t.


13 posted on 06/29/2008 1:23:51 PM PDT by djsherin
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To: kellynla

The nasty little secret that the Dem bigwigs don’t tell their constituencies is that they LOVE!!! high gas prices. They want to destroy the automobile industry as it exists. I wish we could give lie detector tests to all Dem pols. Obama let it slip recently when he admitted that he wished the prices had gone up gradually. Which meant of course that he was quite satisfied with high gas prices. And obviously wishes they’d go higher. That will teach Big Oil. It will teach Big Oil and make life a lot tougher for average Americans.


14 posted on 06/29/2008 1:24:20 PM PDT by driftless2
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To: B-Cause

Excellent! Is there a link available to facilitate sending this information to others?


15 posted on 06/29/2008 1:50:45 PM PDT by StraightDave (.)
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To: kms61

Perhaps the companies are not drilling in these areas because they feel oil doesn’t exist in commercial quantities or the costs may exceed the revenue.


16 posted on 06/29/2008 1:50:54 PM PDT by quadrant
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To: kellynla
This 'they aren't drilling on what they have' line the dimowits have been shoveling needs to be clarified.

First, it is true a large portion of oil company leases are not producing oil. What the dimowits and their shills conveniently leave out is WHY those leases aren't producing.

The non-producing leases can be broken into three categories.
1) They are being explored to determine if there's even oil there.
2) They have been explored and there either isn't any oil there or what's there isn't economically recoverable.
3) Exploration is planned for the future.

When oil companies lease production rights, they only have rough ideas of what MIGHT be there. So, they bid on large blocks of leases to increase the chances of finding oil. Much of what they lease turns out to be of no value.

Red Cavaney, President and CEO of the American Petroleum Institute, spells it out here and answers the democrat talking points. Of course, in CNN's mind, a congresscritter from Mass. is much more credible on oil production than the head of the API.
17 posted on 06/29/2008 1:54:49 PM PDT by javachip
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To: StraightDave
Is there a link available to facilitate sending this information to others?


No link - it came to me in an email. Freepmail me your email address and I'll forward it to you.

18 posted on 06/29/2008 1:56:32 PM PDT by B-Cause (It's not what you gather, but what you scatter that tells what kind of life you have lived.)
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To: kellynla

The ‘Idle’ Oil Field Fallacy
Red Cavaney
WSJ
06-20-08

>>...Anyone with even the most basic understanding of how oil and natural gas are produced – and this should include many members of Congress – knows that claims of “idle” leases are a diversionary feint.

A company bids for and buys a lease because it believes there is a possibility that it may yield enough oil or natural gas to make the cost of the lease, and the costs of exploration and production, commercially viable. The U.S. government received $3.7 billion from company bids in a single lease sale in March 2008.

However, until the actual exploration is complete, a company does not know whether the lease will be productive. If, through exploration, it finds there is no oil or natural gas underneath a lease – or that there is not enough to justify the tremendous investment required to bring it to the surface – the company cuts its losses by moving on to more promising leases. Yet it continues to pay rent on the lease, atop a leasing bonus fee.

In addition, if the company does not develop the lease within a certain period of time, it must return it to the federal government, forfeiting all its costs. All during this active exploration and evaluation phase, however, the lease is listed as “nonproducing.”

Obviously, companies want to start producing from active fields as soon as possible. However, there are a number of time-consuming steps to be taken before they can do so: Delineation wells must be drilled to size the field, government permits must be obtained, and complex production facilities must be engineered and installed. All this takes considerable time, and during that time, the lease is also listed as “nonproducing.”

Because a lease is not producing, critics tag it as “idle” when, in reality, it is typically being actively explored and developed. Multiply these real-world circumstances by hundreds or thousands of leases, and you end up with the seemingly damning but inaccurate figures our critics cite.

Our companies have made tremendous strides in developing cutting-edge exploration technology. But they are not magicians. They cannot produce oil or natural gas where it does not exist. A significant percentage of federal leases simply may not contain oil and natural gas, especially in commercial quantities...<<


19 posted on 06/29/2008 1:58:06 PM PDT by bugseye
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To: kellynla

Who to believe, an oil company expert or a Dem staffer, tough one. If you like $5/gal, Thank Congress.

Pray for W and Our Troops


20 posted on 06/29/2008 2:00:52 PM PDT by bray (Drill Congress!!!)
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To: B-Cause

Thank you for this B-Cause, I’ve been wanting just this very thing - sometimes you really have to go ‘visual basic’!


21 posted on 06/29/2008 2:04:16 PM PDT by the anti-liberal (Write in: Fred Thompson)
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To: bugseye
This will fall on deaf ears in the Democrat party.
22 posted on 06/29/2008 2:09:26 PM PDT by kempo (h)
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To: Cobra64
"Rep. Edward Markey (D-Mass), who has co-sponsored a bill to charge oil companies a fee for land they hold that's not producing oil. "We should not even begin discussing handing over more public land to the oil companies until they first use [the land] they already hold."

Moron Markey is a prime example of why we should not even begin discussing voting any more Democratic Morons into public office until they get rid of all the brain-dead Democrats in public office and find some Democrats who have at least one working brain cell!
23 posted on 06/29/2008 2:55:30 PM PDT by Stayfree (***************************************IF IT IS LEFT, IT CAN'T BE RIGHT!!)
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To: kellynla
"Big Oil is more interested in pumping up prices and pumping up their own profits rather than pumping more oil," said Rep. Edward Markey (D-Mass), who has co-sponsored a bill to charge oil companies a fee for land they hold that's not producing oil

Just another crazy example proving that you can't fix stupid - as if any more proof were needed!

24 posted on 06/29/2008 3:35:58 PM PDT by Gritty (Windfall profits and income created by the Bush administration need to be taxed at 100%-Nancy Pelosi)
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To: kellynla
One Democrat staffer said if all these existing areas were being drilled, U.S. oil production could be boosted by nearly 5 million barrels a day, although the oil industry said that number is far too high and one government agency said it was impossible to estimate production.

That's what passes for "real reporting". THe first person quoted is some democratic staffer -- a political hack with no known expertise in anything. His word is put on par with "the oil industry" (which I assume they mean a trained engineer in the industry) who says the number is bunk, and a government official who likely is responsible for tracking the oil leases who says you can't have any idea what is available where.

There are lots of places in this country that aren't being drilled, because there are lots of places that don't have oil. Some of them MIGHT have oil, and the government makes industry buy leases for this speculative land, which the oil companies can run tests on (they need the lease to run the tests). If the tests rank the leases, and the industry takes on the most promising.

Oh, but when they find one that is promising, often environmentalists throw up roadblocks, so while the oil companies wait for a 2-year impact study, they move on. And the Democrats count that as a lease that isn't being utilized.

The companies already have to show they are active on the lease, or the lease agreement is terminated. The government probably doesn't terminate a lot of leases because it's free money to the government. I don't know if the oil companies are allowed to give back the leases.

25 posted on 06/29/2008 4:18:16 PM PDT by CharlesWayneCT
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To: shield

We could nearly triple the domestic oil production before reaching the existing capacity of our US refineries. We could produce more of our own oil and quit sending so many dollars to OPEC.


26 posted on 06/29/2008 6:13:48 PM PDT by thackney (life is fragile, handle with prayer)
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To: BigSkyDream
what good would there be in adding an additional 20 million barrels into a clogged pipeline?

Because most of the cost of the products are the cost of the crude oil.

We could about triple the US oil production before reaching the capacity of our existing refineries. For every little increase in US oil production, we can quit sending so many dollars to OPEC.

27 posted on 06/29/2008 6:16:09 PM PDT by thackney (life is fragile, handle with prayer)
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To: StraightDave

http://www.anwr.org/


28 posted on 06/29/2008 6:17:45 PM PDT by thackney (life is fragile, handle with prayer)
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To: kellynla

The obvious answer is that it costs money to drill and drilling in these areas with marginal oil supplies is not cost effective and would RAISE the price per barrel. In areas with large KNOWN reserves drilling is more cost effective making the oil cheaper by the barrel to extract, i.e, lowering the cost. This let Big Oil drill where they already can is another lame excuse by the Democrats to blame the big oil boogy man for high oil prices rather than the failed energy policies of their party.


29 posted on 06/29/2008 9:27:09 PM PDT by The Great RJ ("Mir we bleiwen wat mir sin" or "We want to remain what we are." ..Luxembourg motto)
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To: B-Cause

Dang!

This is excellent.


30 posted on 06/29/2008 10:48:09 PM PDT by kennyboy509 (Ha! I kill me!)
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To: Stayfree

“...find some Democrats who have at least one working brain cell!”

That’s the proverbial needle in a haystack scavenger hunt.


31 posted on 06/29/2008 11:08:18 PM PDT by MissouriConservative (There is an island of opportunity in the middle of every difficulty. Miss that and you're doomed)
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