I suggest to you that if we hinted that we were going into Alaska to begin drilling for oil....The price of crude futures would fall drop like a ROCK!!What do you think would happen to the price of oil if Bush said ';we're going to begin tapping oil in Alaska';?
oh my God , an outspoken intelligent female !yes,there is still hope for us.we have more oil than the middle east.the libs and the eco wackos have been hiding this information.we can drill on the east,west coast,gulf of mexico,alaska and develop the tar sands in colorado.gazzillion barrells of oil.the problem is the stupid politicians and the tree huggers.we have the technology to do this safely without harming the hair on a moose's a*s*s !contact your parasite politicians and tell them time to drill in the USA !!!!!!!!!!!!What do you think would happen to the price of oil if Bush said ';we're going to begin tapping oil in Alaska';?
Nothing short term because it would take years to get the oil out. The biggest problem today is the rapidly declining dollar. This is a direct result of the out of control borrowing that has been going on.
Well it wouldn't drop like a rock... but it would drop.
Of the $110 price right now about $20 to $25 is due to the weakness of the dollar. Supply and Demand probably puts the price between $60 and $80, and that leaves about $20 that is due to pure speculation.
If we let the oil companies drill tommorrow we probably wouldn't see oil from ANWAR reach our gas tanks for about 2 years. (Remember how the Dems kept saying that was a reason NOT to drill back in '05...because it wouldn't have helped cut oil prices till 07 or 08!!!). So the supply and demand part wouldn't be effected immediately.
HOWEVER the $20 of pure speculation...That WOULD drop, and very fast. It would signal that the government was going to be serious about opening new areas for drilling, and that, over the long term, prices WOULD be falling... that would pop the speculative bubble that is going on in oil right now.
It would also be a MAJOR policial signal that we wern't going to just keep shipping our money to Saudi Arabia forever. That might see some strength come back into the dollar...which would also help oil prices drop.
So you are right, it would more or less immediately drop oil prices back to...I'd guess the between the high 70s to mid 80s per barrel, and then over time as more wells came on line, down below that.
BTW Bush hasn't got any say over drilling in ANWAR, you can thank Congressional Democrats for the fact that we aren't drilling there, or off the coast of California, or off the coast of Florida, or in the Eastern Gulf of Mexico. There were efforts to open up all those areas to drilling back when the GOP still ran Congress, but they got blocked by the Democrats in Congress. The Dems won't even let them come up for a vote now. They are in bed with the Greens, and the greens don't want oil wells... if they understand that this makes oil prices go up or not I don't know.
As for Alaska ';only having a three year supply'; that is pure stupidity. We wouldn't be switching to only Alaskan oil... what we would be doing would be increasing global supply, and that would have a significant effect on the market.
Right now margins are VERY tight and there is no excess supply in the system. That is why prices jump every time a hurricane moves into the Gulf of Mexico, or a pipeline in Nigeria is attacked. 10 years ago it did not matter if rigs went off line for a while because there was enough of a supply cushion in the system that the loss could be made up elsewhere...(typically Saudi Arabia would just open the tap a little wider for a few weeks) and the over all supply would be maintained. That cushion no longer exists...which is why it doesn't work anymore. The increased demand from India and China has eaten up all the excess, which is why prices are so high and so volitale... and at $110 a barrel NOBODY is holding even a DROP back. (DUH!)
By adding more supply to the system, even a slight amount (and ANWAR is a lot more than a slight amount) that would restor the cushion and help restor price stability.
Its ECON 101 people!
What do you mean begin tapping? There's been oil coming out of Alaska for decades. That's where a lot of our own oil comes from.
Maybe it has escaped your dim vision, but we've been drilling in Alaska since the 1970s. Maybe if every beef cow in this country wasn't fed about 200 gallons of oil per (in the feed), we'd have some more of the stuff for you and your SUVs. In Europe, where the price of gas has been over $6.00 per gallon for decades, they have cars that get over 50 miles to the gallon. The oil companies own this country and you were probably dumb enough to think that electing an 'oil man' as the President would be good for this country.
not 1 thing...the supply in ANWAR is only about 6 months of US consumption. oil is NEVER going to drop in price below $100 again get over it.
Shell Admits Cheap Oil Is Running Out
January 25, 2008 03:48 PM ET | Marianne Lavelle | Permanent Link
I'm getting a ton of E-mail, from the congressional peak oil caucus and others, about Shell Chief Executive Jeroen van der Veer's acknowledgement that the world is running out of oil鈥攁t least, cheap oil. Here is what van der Veer writes about the two new future energy scenarios that have been developed by the quintessential business-scenario writers at Shell: ';We are experiencing a step-change in the growth rate of energy demand due to rising population and economic development. After 2015, easily accessible supplies of oil and gas probably will no longer keep up with demand.'; The future, according to Shell, will be either a ';scramble'; for resources or a cautious, well-planned ride into a changing future.
The Oil Drum views it as ';a clear acknowledgement of the reality of peak oil.'; Says Climate Progress: ';The oil company with the best strategic planning says the day of reckoning is nigh.'; Island of Doubt says Shell's concerns seem ';precious,'; given the outstanding profits the company and its industry fellows are making.
Not much would happen. First, it would take a decade before any oil came out of ANWR because of all the infrastructure that would need to be built. Second, the amount of proven oil actually there wouldn't fuel the US for 6 months. So--you can screw polar bears if you want to, but it won't help the world energy situation much.
Liberals don't want to drill in the Arctic because we're smart. Try to follow me here:
The United States Geological Survey estimated in 1998 (with 95% probability) that Alaska could provide us with 4.3 billion barrels of recoverable oil. Now, the US consumes 20 million barrels of oil a day. If the Arctic National Wildlife Refuge oil were used to supplement just 5% of US daily consumption, those 4.3 billion barrels last ALMOST 12 years. That's it. Twelve frickin years. And we will have done irreparable damage to ANWR and it's wildlife.
So tell me, unless you relish the idea of explaining to your kids what a polar once was - really, what's the point?
The price would drop. Because the countries we import from would get nervous as hell and drop their prices so we don't tell them to get lost.
I wish we would drill our own oil and become self sufficient so we can tell the Arabs and who ever, 'It's been nice, SEE YA!';
ur right it would drop as it would drop if we looked seriously at alternatives like ethanol but bush is making too much cash to stop it
of course what is going on here is blaming ';libs'; for corporate greed there is no real shortage exxon makes record profits
we should be drilling in Alaska and off the gulf coast of Florida
all those opposed have no right to complain about gas prices
There are two oil men in the white house and they held secret meeting with the oil companies to write our energy policy. That's the reason oil is at a record high. It has nothing to do with the polar bear. Do some reading
To answer your question;
The price of oil will drop if we start pumping our own. Even if its 1 million barrels a day that's 100 million dollars not going to the members of OPEC. They would have 1 million barrels of oil unsold per day and they would have to lower the price to sell it. The only reason the price is so high now is that OPEC knows that America needs them to supply our oil.
We have been drilling and pumping oil here since 1977. The wildlife are fine with the pipeline. Our citizens are fine with it, too. We don't have enough oil to make a drastic difference in the way USA uses it or needs it. Gas up here today was $3.25. The folks who are fussing about it have never lived here, don't plan to visit, and have no idea of the real situation. Remember that President Bush, sr. never even came up here to see the biggest oil spill in USA history. He and his son are oil men.
Bush is Mr. Ill-Gotten Oil Wealth. The premise of your question is naive and typically intelligence-impaired neocon vomitage.
Amen.
Colorado has MUCH more oil than Alaska though. If CORPORATIONS drilled in Colorado (not the government) then we would be free of foreign dependency. But that might speed up ';global warming';!
Stupid libs!
Global Warming is the ';Salem Witch Craft'; of the 21st century!
Nothing. You could lower the price of gas today. The reason it's so high is that the oil industry is making record profits. That's not about to change unless forced.
It would fall sharply if we start to produce vast amounts of our own...then again the lib enviro wackos would tie up the courts so much the price would probibly go back up...
Alaska only has a three year supply.
Initially nothing would happen because it would take time to set everything up and oil prices are based on futures.
Then, OPEC would adjust their prices to compensate for the fact that they knew that there would be a decreased demand in a year or two ...so prices would go up.
Then we might see about three years of slightly lower prices, but probably not because the oil companies would have rushed in and made a lot of mistakes and would have to recoup their costs.
Then after the oil ran out they would abandon the area and leave a polluted mess.
That wouldn't bother a greedy little self serving Republican like yourself though, would it
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