News, Pelosi Calls Bush Oil Plan 'A Hoax'

[kidicarus89]

Any politician who promises to lower gas prices for you is lying to you with a smile.

[KevinM782]

Originally Posted by StillwaterTownie

Meanwhile, I don't know why oil companies aren't drilling on the millions of acres of land they have leases on. If there's no oil there, why don't they give up their leases?

There are several reasons. First it takes a long time to explore to see if there actually is the possibility of any oil in that area. Second, the world is pretty much at its limit as far as drilling goes. Just about all of the drilling rigs in existence are being used right now. More are being built but that takes years. Plus drilling rigs take a huge amount of steel to build and if you look at the run up in the price of steel lately it doesn't take a mathematician to realize that the costs of new rigs has skyrocketed. Finally, even if there is oil it may not be economical to get it even with oil as high as it is now. Oil production is very expensive and very risky. If they know that there is oil, the oil companies will hold these leases and if the price goes high enough that it is economical to go after it, they will.

[Mircea]

Originally Posted by StillwaterTownie

Meanwhile, I don't know why oil companies aren't drilling on the millions of acres of land they have leases on. If there's no oil there, why don't they give up their leases?

Because most of the oil is very heavy or heavy oil, and totally useless for gasoline.

The US and the world are glutted with heavy oil. Iran can't even sell its hevy oil and is storing it in tankers. The prices for heavy oils starts at $41/barrel.

The reason for keeping the leases is that Prudhoe Bay production is in decline, as are all of the California heavy oil fields.

Heavy oil is great for diesel, fuel oil, asphalts, tars, naphthas and paraffins, but only produces 34 gallons of products per barrel and just 6 gallons of gasoline.

That's why the US started importing light sweet crude from Middle East in the first place, you get 22 gallons of gasoline and 44.5 gallons of total products from one 42 gallon barrel.

The US can switch back to heavy oil, so long as you're willing to switch back to a 1960s life-style. All the little trinkets and gadgets that make up your life are produced from light sweet crude, and cannot be made from heavy oils.

[Innovator831021]

I say we sink california once and for all with pelosi in it.

[KevK]

She should stand firm for our beaches!