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It's become nearly impossible to turn on the news or pick up a newspaper without seeing a story about rising oil prices. The combination of international events and our restrictive domestic energy policies have pushed oil prices past $100 per barrel. At a time when we import more than 60% of our oil supply, the costs and consequences of such high prices pose genuine threats to our economy and security.
Why can't people learn that USA is not in a position to set oil prices? Instead of educating self, they keep buying into rhetoric promoted by politicians?
Ya gotta love these Alaskan politicians take us lower 48er's for idiots.
What Murkowski leaves out is that fact that Alaskan oil production continues to decline and with it the underlying socialism, that's right socialism, enjoyed by the residents of Alaska who reap direct benefit from high oil profits. Another thing that Murhowski leaves out is a 2008 assessment of why there is such an hankering the ANWR and North Slope oil prepared by the Energy Information Agency (EIA).
Alaska North Slope crude oil prices have increased dramatically, rising from $23.62 per barrel in 2000 to $47.05 per barrel in 2005, a 99 percent increase, and to $63.69 in 2007, a 170 percent increase.10 Alaska North Slope oil prices have continued to increase in 2008, in line with other crude prices. The price of West Texas Intermediate crude oil, which typically has a price premium of $5 to $8 per barrel over Alaska North Slope crude, has recently exceeded $120 per barrel.
Considered in isolation, higher prices alone might raise an expectation of higher ultimate recovery from whatever oil resource exists in place.11 Higher prices can motivate efforts to increase the recovery factor through more intensive drilling and through the application of advanced techniques to increase recovery factors. While the menu of available methods may in some cases be limited by the features of the Alaska North Slope environment, for example, steam-injection enhanced oil recovery of the near-surface West Sak heavy oil deposits could endanger the permafrost, some techniques would likely still be suitable. Higher prices also make it more attractive to go after very small fields that are in close proximity to the larger fields that are presumed to be the initial development targets. However, as discussed below, the main impact of such approaches on the amount of oil actually recovered from ANWR is likely to occur after 2030, the current time horizon for EIA analyses.
You see what some lower 48er's fail to recognize is that the drive to drill in Alaska and the deep waters of the Gulf of Mexico is because current prices finally make drilling in these areas were prohibitively expensive until the rise in the price of oil. Drilling in these areas now and in the future is based upon current price levels (starting to get the picture?). If the price drops as you assume that it will, do you expect oil companies to continue producing oil out of their sense of patriotism?
oil is traded on a world market. even if you drill here, if chinese and indian demand increases, you will see an increase here (albiet at a slower rate than current).
If you want to keep 'american oil' in 'america', you would have to have federal controls on a private enterprise or nationalize domestic drilling. I doubt the 'drill baby drill' coalition would be in support for the latter two.
Someone please tell Obama about the futures market and how it works.
He just expalined it would take years before we would realize any benefits from drilling today.
But yet today he is taking credit
for current production rates.
“In fact, oil production last year rose to its highest level since 2003. From 2008 to 2010, oil production from the Outer Continental Shelf increased more than a third – from 446 million barrels in 2008 to an more than 600 million barrels of estimated production in 2010.”
Last edited by Speleothem; 03-12-2011 at 03:21 AM..
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Obama, step 6
