Why don't we drill our own oil?
We are getting raped at the pump and oil companies are due to release earnings which are projected to be records...of course
Given our economy and lack of jobs specifically...
Why don't we drill more of our own oil?. If we were to subsidize imported oil with our own even driving the price back down to ~$2.50 a gallon while hiring thousands to work for this operation...it would spike our GDP (think of the multipliers)
Furthermore, the profits realized, aside from alleviating some of our debt issues, could subsidize the green movement and invest in alternative power.
Seems like a no-brainer to me. Why don't we do this?






Supply & Demand
Supply & Demand
I hope the US never drills
I hope the US never drills for oil, more money for me ma fuckas
The vast majority of the oil
The vast majority of the oil we use comes from Canada and the US (with Saudi Arabia providing oil for political reasons). The reason we aren't drilling for more oil in the US is because of government prevention (ANWAR?). As for why the government doesn't actively drill its own oil, I can only guess that the political pressure is too much. Can you imagine the outrage if the government was drilling for oil and charging fair market prices that are above $4 a gallon.
"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
......This way no one truly
......This way no one truly has us by the balls.
YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...
@gekko21 "government was
@gekko21 "government was drilling for oil and charging fair market prices that are above $4 a gallon."
I know we drill but wouldn't the additional drilling allow for our government to charge its citizens with below market price? - act like a subsidy?
kelleykid wrote: @gekko21
@gekko21 "government was drilling for oil and charging fair market prices that are above $4 a gallon."
I know we drill but wouldn't the additional drilling allow for our government to charge its citizens with below market price? - act like a subsidy?
^^^this implies the government acts logically.. and is economically efficient...
The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee
WSO is not your personal search function.
We drill about 7 million of
We drill about 7 million of the 20 million barrels we use each day. Gekko is right, we get the most from Canada (followed by Mexico, then Venezuela, Saudi Arabia and Nigeria in no particular order).
The reason we don't mostly has to do with environmental policy.
looking for that pick-me-up to power through an all-nighter?
kelleykid wrote: @gekko21
@gekko21 "government was drilling for oil and charging fair market prices that are above $4 a gallon."
I know we drill but wouldn't the additional drilling allow for our government to charge its citizens with below market price? - act like a subsidy?
In this country any oil drilled by the government that is >$0 is probably "too high" a price to a politician. There is also the question of how that oil that is drilled by the government is delivered if it is at a "below market price". The cost of gasoline is basically cost on inputs (oil)+refining costs+transportation costs+taxes. Who would get this cheaper oil. Any gas that is refined from government oil could be sold at a lower price and would undercut any companies that didn't have government oil and would put them out of business.
The best thing you can do is limit all the environmental red tape that exists and let oil companies start drilling more.
"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
Have you read up on the
Have you read up on the Bakken? Google it.
America has a lot of unconvential oil that is high grade that can be drilled using hydraulic fracturing and other new methods. The problem? There is absolutely no infrastructure, cushing is full and has been full for a while.
They are moving the bakken by flippin trunks basically at this point, every other method/pipeline is full. Yet the US Government is almost blocking "Key stone" right now.
You need infrastructure to move and drill unconvential oil. Unlike the OPEC nations where you can just swim in that stuff.
The U.S. and Saudi Arabia are
The U.S. and Saudi Arabia are actually pretty close in terms of daily oil production. Only difference is that we're at full capacity and they're not.
People tend to think life is a race with other people. They don't realize that every moment they spend sprinting towards the finish line is a moment they lose permanently, and a moment closer to their death.
The U.S has also been
The U.S has also been sporting a pretty significant emergency oil reserve and inventories are rising have risen to nearly 360 mmb.
If anything the U.S might need to import more oil to augment domestic supply since U.S crude imports are down over 1 MMB/d over the past 3 years. Although my memory of the demand picture is a bit choppy so I can't say for sure but if going into backwardation is any sign, demand looks healthy but might be curbed if prices keep rising.
kelleykid wrote: @gekko21
@gekko21 "government was drilling for oil and charging fair market prices that are above $4 a gallon."
I know we drill but wouldn't the additional drilling allow for our government to charge its citizens with below market price? - act like a subsidy?
Ah da da, greetingz fellow comrade, I see you are a fan of the planned economy, good that is good, we shall drink vodka to that. The capitalist pigs should learn from the glorious soviet 5 year plans
Oh, if the food prices go really high we can set up kolkhoz farms and if you no work then you be sent to gulag.. on aljaska.
We aren't allowed to drill
We aren't allowed to drill where it would be best/easiest. There is basically a moratorium in the gulf and most of the drilling has been forced further offshore into deeper and more technically complex areas. America does have massive shale oil reserves in the Bakken as mentioned, but it is only economically feasible at >40 a barrel. Ultimately what we need is to recognize that America's first priority should be energy independence and after that we can transition to "green energy" not the other way around. I'm pretty sure most people on this board, myself included are too young to remember the OPEC boycott, but that's the real reason to want to be energy independent, although the Canadians and Mexicans are a bit more friendly than the Muslims.
kelleykid wrote: @gekko21
@gekko21 "government was drilling for oil and charging fair market prices that are above $4 a gallon."
I know we drill but wouldn't the additional drilling allow for our government to charge its citizens with below market price? - act like a subsidy?
And repeat what happened in 1979?
The thing is, high oil prices reflects supply/demand and if we make oil cheap, those who need it the most won't be able to get it. That would hurt the economy more than just high oil prices.
We do drill for a lot of our
We do drill for a lot of our own oil and we get even more from Canada. The USA is actually an oil exporter and exports up to 9% of its drilled oil. The reason oil is this expensive is because of a week dollar and a whole lot of speculation. Their is absolutely no need for a gallon of oil to cost $112 other than the former reasons.
Also Have you completely forgot about the BP oil spill. After that Obama put a stop on all new drilling permits for off shore drilling. With out being able to drill more in the Gulf and fracking ( the procedure used to drill for shale) pretty much putting cancer causing chemicals right into our water supply you better just hope that we find a completely new and different energy source that won't be speculated on like oil is today. That is the only way we will ever see cheap energy again.
marcellus_wallace wrote: Have
The US buys oil from Saudi
Greed is Good.
Ok. Here it is let me give it
"Climbing a mountain that's only getting steeper"
-Barboon
About Oil and Speculation:
marcellus_wallace
Oil companies do not make
Because American oil is more
'Oh, yeah, that's right. That's what's it's all about, all right. But talkin' about it and bein' it, that's two different things.'
Cartwright wrote: Oil
ctw930 wrote: The real
konig wrote: The US buys oil
Come back when you have
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konig wrote: The US buys oil
More is good, all is better
ctw930 wrote: The real
More is good, all is better
thor1000 wrote: kelleykid
Cartwright wrote: Oil
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UofCOandG wrote: Cartwright
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More is good, all is better
Gekko21 wrote: The best thing
Quote: I am from Pittsburgh
Btw how many proven oil
Oil & Gas monkey
There are few misnomers in
XOM produces only about 3% of
More is good, all is better