Home Forums Hunting & Shooting Hunter's Campfire Who here really thinks domestic drilling lowers the price of oil/gas?

500G and I get a creative outlet by annoying each other.

Engineering, law, investing, double rifles, ect is a bunch of left brain activity.

If he accuses me of sleeping in my car, because of my wife, he gets to see how his other brain half lives.

Under all the insults, he is really an annoying guy.

And his vehicles look like out takes from the old A team TV show.

if this is so, why do they pay 7 cents /gal in arabia and some places in south america, and i think, lybia.

Because outside of the royal families it's a welfare state......the general population just survives, nothing more The State's subsidize the cost of fuel to try and keep the populous happy.

yea, and dont forget, they forgot to add in all that methane gas those oil field trash put out. grin

I cannot believe that so few people here understand the supply-demand curve.

yea, leaving out some simple no.'s caused them to cancel a 4 billion dollar project.

There's much more to the price of crude and fuel than supply and demand, as has been pointed out numerous times.

Kevin, I took your earlier comment:



To imply that we had experienced peak oil in the U.S.

Stating that we could never match the production of 1969 seemed to infer that that was the case. If you meant that we could not match 1969 production due to factors I pointed out such as the cost of production now, then I understand and agree that is probably the case.

I also agree, to a point, with your theory that we should not produce everything we have, though I think there is a balance and the negative effect it is having on our economy by not producing right now, may not be in our best interest.

Had we started production on ANWR in 2001 when we first had it shot down by the Democrats in the Senate, we would not be experiencing $4.00 gas in the middle of the longest recession in 80 years.

Rest assured that many of us that disagree with you do indeed understand a supply/demand price graph. It is just that we understand other things such as inelastic demand and price stickiness as well.

There is also the problem that to affect the final price you have to have the ability to significantly affect the supply. There are many of us who don't think America has this ability, not because of enviro pinkos but because of geology. :p

Will

no chit.....impatiently waiting for the drilling on the Bakken to shift another 35 miles east....damn difficult to get a hotel room here now mid week and its 40 miles to where drilling is really happening.....

the oil fields and their workers come with a chit load of headaches.....but they also bring alot of money that gets injected directly into the local economy.....know alot of guys that started driving over that way just hauling water for $18 plus an hour in a place where anything over $10 is a decent wage...the wages only go up from there.....

cant wait.....gonna mean some extra money for my business but also means a whole lot of money i can tap into for a couple service organizations i belong to that have been hurting for money lately......can put some of that oil money to a alot of good if it will just get over here....

Prudhoe Bay production has affected crude oil prices much more than it's % of U.S. consumption over the past 30+ years.

ANWR by most estimates, would have filled much of that void.

The funny thing about supply/demand is, an increase of X won't even be felt if demand outstrips supply by greater than X, but in a recession, when demand is soft, a 10% increase in domestic production can have a huge effect. Perhaps not down the road when demand increases from economic growth, but then gas prices don't have quite the negative impact on the economy during times of growth as they do during recessions.

Theoretically, the Senate's vote down of ANWR in 2001 and 2005 may end up the straw that broke the camels back, as the former would have resulted in full production at this time and the latter would be coming on line shortly.

Electric cars are fueled with coal.

The USA is the Saudi Arabia of coal and nat gas.

I'm sure the above are significant, but not to politicians and the current crop of social planners.

course its a beotch to build a new coal power plant......tried to build one in the middle of nowhere in eastern Montana in one of the lowest population counties and got shot down by the tree [bleep].....if yah cant build one in the badlands of eastern Montana where yah gonna a build one?

Both of these get to the heart of the matter. A good part of the price of oil is the inherent instability factor relating to where much of the oil the U.S. uses comes from. Most U.S. oil does not come from the middle east but enough does that it's a critical supply. The constant friction in that region results in instability in the price of oil, call it a "radical muslim jackass" tax if you will. If we decrease the percentage of our daily use of oil from these regions and replace it with home pumped oil I'll bet it'll have a significant impact on the price of oil worldwide as the instability factor to the U.S. will have been reduced, and like it or not the U.S. market is the main factor in the pricing of oil.

In other words, we've got to reduce the reliance of the oil market on the middle eastern despots. The region's too unstable and controlled by too many tyrannical dictators. As long as we're getting a significant supply of oil from these thugs we'll be paying an premium as the markets tack on that "radical muslim jackass tax" to the price of a barrel of oil. Just to show you how unstable OPEC is, Iran is the current country that holds the presidency of OPEC. It's done on a rotating basis and this is Iran's year. Ahmadinejad just fired the oil minister and took over the position himself so at least in theory Ahmadinejad is the head of OPEC. That certainly can't help the price of oil.

If we have 726M barrels in strategic oil reserves and the US uses 18M/year, it looks like the gov is stilling on a great commodities investment. Much better than those foreign banks holding in reserve the majority of falling US cash.

"inelastic"?
I can calculate gun firing rate or power supply transient recovery time, but they don't have human emotion in the loop.
If gas is $100/gal, you will bike to work, even if it breaks down your elastic underwear.

Exactly. Their Terrorist Training Camps are like the Boy Scouts here in America. It's what they do to keep the populace occupied and worrying about something other than how they live in abject poverty while their royalty live like...well, royalty. Anybody that thinks the top dogs over in the Islamic world worship anything other than the dollar are fooling themselves.

i think a key part of the equation is being left out. you can pull every barrel of oil out of the ground but unless you can process it it is virtually useless. refinery capacity in the united states has not increased since 1976-the date the last refinery opened. We saw what happened after Katrina when we lost the refineries on the lower mississippi.

Refining capabilities are not inconsequential, but they usually only come into play when a disaster such as the one you speak of, occurs. They are usually able to easily keep up with demand. Were it not so, the price of oil would not be tied to the price of gas nearly as much as it is. While many times attempts are made to prop up the price of gas after an oil price decrease, it only works so long. Oil and gas are inextricably intertwined, thus far.

All this bluster from the "it can't be done, we don't have the reserves crowd".

Whenever you read someone who says it's complex, and doesn't have a solution - run, don't walk the other way. You can put their finger on a map containing enough oil reserves to run the US for a century, - "it can't be done". You can explain that coverting electrical energy generation to anything other than coal ensures both electrical, and carbon-based energy for centuries - "it can't be done."

They will however say that oil has to go.

Run, don't walk.

In answer to the original post, obviously the answer is yes. Look at spot prices right now.(HINT, CLUE) There's a reason they are falling.

It is rather odd that folks on this thread who think global warming is hooey (and I would agree), buy into all sorts of superstition about oil. Depending on which estimate you want to believe, the US has 20 to 200 bn bbls of oil waiting... waiting... waiting... for the EPA to be disbanded.