Holy Sh!! Not even $10/Gal gas will get Dems to drill here

[LA_MERC_Captain_Obvious]

Are you kidding me? This guys constituants should file a recall to send him a message.

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[LA_MERC_YellowDog]

OK.... WTF???
Do these arse holes not realize if gas hits 10 dollars a gallon, their wont be a country left for them to run!

[LA_MERC_th33_r00k]

The objection is not related to the price. It is related to the result. Will drilling in the Outer Cont. Shelf actually lower prices? Maybe 5 yrs after production starts, after monstrous upgrades to refineries to handle increased volumes high enough to offset the need, and after huge pipelines get built, and such.

http://clasticdetritus.com/2008/06/21/petroleum-resources-and-the-outer-continental-shelf-ocs/

[LA_MERC_WBHighwind]

The objection is not related to the price. It is related to the result. Will drilling in the Outer Cont. Shelf actually lower prices? Maybe 5 yrs after production starts, after monstrous upgrades to refineries to handle increased volumes high enough to offset the need, and after huge pipelines get built, and such.

http://clasticdetritus.com/2008/06/21/petroleum-resources-and-the-outer-continental-shelf-ocs/

Umm, except that these upgrades are needed anyways and is one reason why gasoline prices are climbing. How long has it been since we were allowed to build a refinery???

[LA_MERC_T4rg3T]

The objection is not related to the price. It is related to the result. Will drilling in the Outer Cont. Shelf actually lower prices? Maybe 5 yrs after production starts, after monstrous upgrades to refineries to handle increased volumes high enough to offset the need, and after huge pipelines get built, and such.

http://clasticdetritus.com/2008/06/21/petroleum-resources-and-the-outer-continental-shelf-ocs/

The government started talking about really reconsidering offshore drilling and the price per barrel went down $25. If speculators knew we would start having our own new oil supply, that would lower price.

They could start getting new oil in as little as 2 years so I'm not sure where you get 5 years from.

We do however need new refineries but after Exxon Mobile made more money than any other company in history this last quarter, I think they could afford it.

[Chi_Townz]

They just need to develop alt fuels more. It would be to their advantage anyway if they do it... Corner the market on both types. They do seem to have the $$$

[LA_MERC_th33_r00k]

They could start getting new oil in as little as 2 years so I'm not sure where you get 5 years from.


How Long Until We Can Get That Oil?

Let’s assume the offshore drilling ban was lifted later today … just like that. Would the oil start flowing tomorrow? Of course not.

Firstly, there is currently a five-year backlog for offshore drilling rigs/ships. As other nations such as China and India start developing their offshore resources, the demand for drilling equipment as skyrocketed. Ship builders are answering the call by building more equipment but, as you might guess, building a vessel that can drill in 3,000 m of water and 8,000 m into the subsurface can’t be done on a weekend.

Secondly, drilling an exploration well is but one step in a long process of getting the resource to market. Depending on the depths and other geologic factors, just drilling a hole to test the hypothesis of the presence of oil could take several months. Then, the company, country, or joint-venture needs to decide whether or not to proceed with the project … sometimes they do, sometimes they don’t. If they do decide there’s enough oil to make the project economic then a development plan needs to be hammered out … those other wells need to be drilled. That’s just the drilling … we haven’t even gotten to the actual production facilities yet! You get the picture. Depending on water depths, distance from pipelines, and so on and so forth, getting an oil field online from time of discovery can take anywhere from a few years to more than a decade.

Thirdly, only a handful of fields would come online in, let’s be optimistic, a decade from now (2018). It’s not like those 86 billion barrels are all going to magically be delivered to the refineries all at once. It would take many decades to deliver that resource.


There are several layers of complexity in this issue, but the two aspects that I’ve discussed in this post, the estimated amount of undiscovered oil and the time it would take to get it to market, are not mentioned by these politicians. Reporters, other bloggers, and, even more telling, those that actually work in this industry, have mentioned this:

As politicians debate whether to open federal offshore waters to oil and natural-gas drilling, there is agreement on at least one point: It isn’t a short-term fix.

If the bans were lifted tomorrow, it would be at least seven years — and likely as long as a decade — before the first oil began to flow off the coasts of Florida, California and the eastern seaboard.

“Is it going to happen overnight? No,” said Dan Naatz, vice president of the Independent Petroleum Association of America. “Is it going to solve all of our nation’s energy problems? No.”

That’s a report from The Wall Street Journal quoting the vice president of the Independent Petroleum Association of America (bold emphasis mine). These people actually work in the industry … they know what’s up.

This is a blog by a sedimentary geologist who is not taking a political stance. I love the "media will tell you want they want you to believe" cries, but America is swallowing this off shore drilling "pill" as what needs to be done. Off shore drilling will do a couple things for sure:
1. Create more oil field jobs, and opportunities.
2. Expand the already record profit margin Oil companies are allowed achieve every year. We try to make them upgrade to more efficient and cleaner refineries and they go elsewhere blaming the gov't for their woes, and the American people are so brain-washed by propaganda that we cry for more oil production. FTW? The point is refineries in America CANNOT handle any more oil. It would have to go to foreign markets to be refined, and WALLAH! we are still dependent on "foreign oil companies" for our gasoline.

[LA_MERC_T4rg3T]

r00k, do you even understand the nation security side of things? Also, If Clinton didn't veto drilling in Alaska 12 years ago, we would have that oil right now.

Iran is developing nuclear weapons, what do you think will happen to the price of oil if Isreal attacks Iran or even if we do? The price of oil will go through the roof, will you pay my monthly gas bill?

Drilling in the US will not only bring down the price of oil, because we will stop competing with other country's around the world for Saudi oil, but it will secure the US's economic future and security.

What is your plan? Solar? Wind? My freaking vehicle doesn't run on anything but gasoline. It would take 30 years to develop and impliment solar or wind power to a point where it would substitute oil.

Also, oil isn't used for just fuel. Almost everything around you comes from oil based products.

I'm for everything from drilling, nuclear power, to alternative fuels and wind. The problem comes from our current dependance on oil and that will not go away in next 30 years.

Read my other thread where Obama's solution is to inflat your vehicle tires.

[LA_MERC_DocSparky]

I don't see the downside in opening new areas for drilling. Having worked for an company that cleans up chem spills, the drilling of oil wells isn't even close to the top of the 'worst offender' list. And even though the oil will not be available for 2-5 years, it will eventually be available and will help increase the supply and thus decrease gas costs (whatever they might be at the time). Refiners are already adding to their capabilities and regardless of that fact, we'll have a domestic supply available in case they decide that they don't want to sell it to us at a reasonable price.

One of my beefs with this whole situation is that there is a large group of greens that likes the high prices since it keeps those evil cars off the road. They have a pretty strong lobby and are effectively shutting down exploration. I'm not sure why we have to have an either/or situation here. Let's explore those areas and see what we have there. Let's get to it before the Chinese (or other country) parks some platforms off our coast. Also, make sure they have proper procedures in place to protect against spills and such. At the same time, we have plenty of incentives to develop alternate fuels. When they are ready to stand on their own two feet, they can start to provide a chunk of our energy needs.

BTW, if you don't want to give your money to Exxon, there are several other oil companies that sell gasoline. Find the one that made the least money last year and buy from them. Better yet, buy one of those green vehicles that run on bio-{insert fuel here} and vote with your $s. BTW, I have no plans to do this until they can produce one that works with similar capabilities to our cars today.

[LA_MERC_th33_r00k]

I'm for everything from drilling, nuclear power, to alternative fuels and wind. The problem comes from our current dependance on oil and that will not go away in next 30 years.

Where are we at if we run out of oil in 30 yrs?

[LA_MERC_th33_r00k]

Here is my point. Will drilling be harmful to the world...Prolly not. I agree, but what if the reserves are not as "Ginormous" as the oil companies say? 30 yrs later my kids stare at Oil being traded like Gold. Why do we not tariff these countries we defend all the time. They produce the oil.....gouge our citizens......and yet we keep them safe and happy. I will not cripple my or your children's future by being hasty. Why is there a push for off shore drilling when Oil industry people themselves are saying it will not help that much? Follow the Money trail. It does not lead to your or my door.

[LA_MERC_T4rg3T]

Where are we at if we run out of oil in 30 yrs?

It's pretty much been shown that American has more oil than Saudi. Even if we get 30 years of oil out of drilling, why would you not want to drill? During that 30 years, alternative fuels will be developed to a standard where they will be able to replace oil.

Then you say that other countries produce the oil, gouge our citizens and yet you still want to continue to buy oil from them? It's also a proven fact that if you initiate a windfall tax on oil companies or "tariff" these other countries, they will just increase the price. How can people not understand that. Exxon Mobile is not having record high profits from increase their profit margin, they are just selling more more oil. Their profit margin is 8.5-12%.

[LA_MERC_Captain_Obvious]

Where are we at if we run out of oil in 30 yrs?

LOL try being open minded a little. No one is saying drill for oil and stop other potential energy means. We can refine the solar, wind, nuclear, etc. energy technologies while using the oil that we gather from drilling. All the while, we are paying less to the middle east for our oil, less reasons for us to get involved with squables over there (such as Iraq invading kuwait).

and I don't care when we would start seeing the new oil at the pumps. it could be 2 years, it could be 10 years. When the measure is passed, the price of oil will drop significantly. When we start drilling, the price of oil will drop below $100 a barrel.

[LA_MERC_th33_r00k]

It's pretty much been shown that American has more oil than Saudi. Even if we get 30 years of oil out of drilling, why would you not want to drill? During that 30 years, alternative fuels will be developed to a standard where they will be able to replace oil.


How many "alternative" fuels sources were born out of the oil crisis in 1973, 1979, 1980, 2008. I think 2008 will produce more break through research than before. An oil crisis seems just days away in the U.S. Lets change that. I would support off shore drilling more if there would be a conscience effort in producing alternative fuels. I think the OPEC nations will drop oil prices again before they let one of their biggest consumers off the chain. We shall see.

[LA_MERC_Shadow]

We need to become independent of other nations for our energy however it's done: nuclear, solar, drilling, whatever. But on top of that we NEED to have more refineries, not just upgrading the ones we have. For god's sake, there was a group of investors that wanted to build one in Arizona in the frigging desert, and still they wouldn't allow it. I mean, come on people! I know they can build better refineries than what we have now, and they would be more safe. The funny thing is we worry about the effect the new ones would have on the environment, but the old ones do not have to upgrade to the latest rules until they shut down and do a turnaround to that unit or refinery. Which do you think is better, something built and designed in the 60's or 70's or something from 2008?

[LA_MERC_th33_r00k]

I agree. Modern day refineries would be much better and more efficient. After getting a few up and running then phase out some older ones as we replace them 1 for 1 until we can be independent of foreign oil. We have ample oil here right now without drilling the OCS. Lets get up to speed and the meantime we can better assess what we do have out there.

[LA_MERC_WBHighwind]

wow, this thread got real busy since I posted last.

[LA_MERC_Sabre]

Guys, my job is to help companies like Shell plan their developments for drilling and producing reserves. (www.caesarsystems.com)

I can tell you that it will not be 2 years when we see this 'new' oil. It will take MINIMUM of 5-7 years, and that would a super-fast track). Right now, it takes approximately 24 months to build a FPSO (floating production storage and offloading) vessel. AND, due to the huge demand for steel, that could very likely increase. That is just one small part (if small is 1 billion dollars). Then you have to consider all the subsea systems that have to be designed and built which that could take several years as well.

Then...you have to prove to yourself that there is even oil or gas there by drilling exploration and appraisal wells....then you have to get the rigs to drill production wells...build pipelines, build production facilities....it goes on and on.

Maybe one company could do it in a few years, but when you have many companies competing for the few rigs that are available, shipyards to build new boats, build new facilites...etc....there is only a certain amount of steel available...it takes time.

No way you get this new oil in 2 years.

However, if you could find a nearby facility to send your new oil to, then MAYBE you could get it out of the ground in somewhere around two years. Problem is there are no facilities of the coast of Florida....