Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Oil prices drop, and oil companies lose their lust to drill baby drill. Quite logical actually but rather ironic when you think about it.
"The number of oil and gas rigs deployed to tap new energy supplies across the country has plunged to less than 1,200 from 2,400 last summer, and energy executives say the drop is accelerating further."
Yes, and if the current administration had any real strategic foresight, now would be the time to be encouraging more exploration so that future production will be online to help smooth out the inevitable price shock when the economy recovers (assuming that's really what he wants). But instead, we see a dis-incentivization of exploration. Why is that?
Yes, and if the current administration had any real strategic foresight, now would be the time to be encouraging more exploration so that future production will be online to help smooth out the inevitable price shock when the economy recovers (assuming that's really what he wants). But instead, we see a dis-incentivization of exploration. Why is that?
Encourage it how? Clearly the push to "Drill Baby Drill" was based upon anticipation of much higher sustained oil prices. Only a complete moron would think that oil companies were hoping to increase the areas that they could exploit in hopes of reducing the price of a barrel of oil. In point of fact, much of the "Off the Continental Shelf" drilling that was being demanded is extremely expensive, which is why there was never a major push by the oil companies in previous years. So, unless you can reduce the cost, significantly, for drilling there is not much incentive for oil companies to increase drilling.
This precisely what happened in the 80's. OPEC runs up price, oil companies expand production capacity, demand drops, so does investment in exploration and capacity. Pretty simple.
Easy, tax incentives to make it more economically viable. DUH!
So your solution is to wait until economic recovery drives up the price of oil again, then continue sending trillions overseas to terrorist states. Brilliant.
Yes, and if the current administration had any real strategic foresight, now would be the time to be encouraging more exploration so that future production will be online to help smooth out the inevitable price shock when the economy recovers (assuming that's really what he wants).
OP - do you have any idea at all how long it takes from exploration til the stuff's at your local gas station? Last summer's prices are going to seem awfully, awfully cheap in the not too distant future.
Easy, tax incentives to make it more economically viable. DUH!
So your solution is to wait until economic recovery drives up the price of oil again, then continue sending trillions overseas to terrorist states. Brilliant.
Tax incentives after record shattering years of profit?
Pardon my ignorance but what would be the total amount of incentive that would offset the price of exploration by, let's say, $40 dollars per barrel?
Easy, tax incentives to make it more economically viable. DUH!
So your solution is to wait until economic recovery drives up the price of oil again, then continue sending trillions overseas to terrorist states. Brilliant.
Tax incentives? Big oil enjoys huge tax incentives already! Hows this, Obama ran on Green Renewable Alternative Energies. We elected him and we go forward.
OP - do you have any idea at all how long it takes from exploration til the stuff's at your local gas station? Last summer's prices are going to seem awfully, awfully cheap in the not too distant future.
If so, then the best strategy we could follow would be to leave as much of our own oil as possible in the ground, take advantage for a while longer of the cheap stuff these desperate-for-cash foreigners are willing to dump on the world market, while putting our available cash resources into developing ways to provide particularly transportation energy via some means other than oil.
Frankly you haven't got a clue. Worldwide, oil discoveries peaked in 1964 and have been in relentless decline ever since, no matter how much money or technological innovation has been thrown at the problem. The ammount of oil left to be discovered is a drop in the bucket compared to what is actualy needed. Just to keep production flat over the next five years we need to add 4 times the current capacity of Saudi Arabia, which is frankly impossible. Quite simply, oil production will start to irreversibly decline within the next 3 years. Also in the case of North America 80% of your oil pipeline and refinery infrastructure is 25 years past its design life and will rust away within the next 5-7 years. Rectifying this alone is a 100 trillion dollar construction project. Here are some links to get you started:
YOU elected him. We go forward? Depends on your definition of forward I guess. I'm not seeing much "forward" movement at the moment. I see a return to Jimmy Carter's policies, with Bill Clinton's appointees (and wife).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
