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Just the start of HIgh oil prices

TooBigTooBig Member Posts: 28,559 ✭✭✭
edited October 2012 in General Discussion
Obama Curtails Drilling in Oil-Rich Alaskan Reserve ( NEWSMAX)

The Obama administration, citing environmental concerns, has banned drilling on half of the vast National Petroleum Reserve-Alaska in a move decried even by Alaska's congressional delegation.

"The price of gasoline, which was $1.84 a gallon the day President Obama took office, has more than doubled since, willfully aided and abetted by an administration that claims we can't drill our way to energy independence as we ignore vast reserves of North American energy that dwarf OPEC's and we sit on 100 years' supply of petroleum," Investor's Business Daily (IBD) stated in an editorial.

The National Petroleum Reserve-Alaska (NPRA), not to be confused with the Arctic National Wildlife Refuge (ANWR) to the east, is a 23.5-million-acre, Indiana-sized tract on Alaska's North Slope. It was established by President Harding in 1923 to ensure oil supplies for the U.S. Navy.

The desolate NPRA has been described as the largest tract of undisturbed public land in the United States and includes a point 120 miles from the nearest village or usable road.

In 1976, the reserve was transferred to the Interior Department and Congress designated it as a strategic oil and natural gas stockpile to meet the "energy needs of the nation."

But in August, Obama's Interior Secretary Ken Salazar announced that new drilling would be allowed on half of the reserve while the other half will be off-limits to oil and gas exploration.

Environmentalists had lobbied to protect the habitat of caribou, eider ducks and other Arctic species.

"The move drew praise from environmentalists but sharp criticism from oil and gas proponents who said it would restrict the industry's ability to tap the nation's hydrocarbon resources," the Washington Post reported.

The off-limits portions of the reserve are "the most productive areas" of a tract that IBD says contains 2.7 billion barrels of oil and 114 trillion cubic feet of natural gas.

Alaska's congressional delegation - Sens. Mark Begich (a Democrat) and Lisa Murkowski, and Rep. Don Young - call the administration's action "the largest wholesale land withdrawal and blocking of access to an energy resource by the federal government in decades."

They also said the move "will significantly limit options for a pipeline" through the reserve to transport oil and gas.

Erik Milito, the American Petroleum Institute's group director of upstream and industry operations, said the plan "continues to leave domestic energy resources, jobs and government revenue off the table."

IBD concludes: "The move is typical Obama sleight of hand: Take credit for increased oil production on public lands that you had nothing to do with, lock up resources on federal lands with the exception of places the oil companies find unprofitable or unpromising, then blame them, not your administration, for driving up prices."

Comments

  • dcs shootersdcs shooters Member Posts: 10,870 ✭✭✭
    edited November -1
    The POS did it so we have to buy oil from it's mooslum brothers [xx(][B)][:(!]
    Then borrows more $$$$$$$$$ from it's commie Chinese friends [B)][xx(][V]
  • mark christianmark christian Member Posts: 24,443 ✭✭✭✭
    edited November -1
    What I'd like to know is why with oil at about $90 per barrel, gasoline right now costs as much (or more) than it did back in the Summer of 2008 when crude was selling for over $150.
  • IAMAHUSKERIAMAHUSKER Member Posts: 2,479 ✭✭✭✭✭
    edited November -1
    Thats what happens when you print money as fast as the presses can. Inflation. Better get use to it cause it WILL be getting worse, much worse.
  • Marc1301Marc1301 Member Posts: 31,895 ✭✭✭
    edited November -1
    quote:Originally posted by IAMAHUSKER
    Thats what happens when you print money as fast as the presses can. Inflation. Better get use to it cause it WILL be getting worse, much worse.

    That pretty much explains it.
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
  • cpermdcpermd Member Posts: 5,273 ✭✭✭
    edited November -1
  • poshposh Member Posts: 360 ✭✭
    edited November -1
    Source? The Federal Reserve keeps on saying that they will buy as many mortgages as it takes (To re-elect Obama?). These purchases are with book entries-not real money.
  • onepopperonepopper Member Posts: 1,825 ✭✭✭✭✭
    edited November -1
    You all have hit the nail on the head. Inflation, inflation, and more inflation until the bank busts, then Katy bar the door. The prices aren't going up, your money isn't worth what it was last month, ergo, it takes more money to buy things.
  • bigoutsidebigoutside Member Posts: 19,443
    edited November -1
    quote:Originally posted by mark christian
    What I'd like to know is why with oil at about $90 per barrel, gasoline right now costs as much (or more) than it did back in the Summer of 2008 when crude was selling for over $150.




    good question


    crude pricing is not a function of supply and demand. the 'c' in OPEC stands for 'cartel'.

    price at the crude level is controlled to generate the max profit for the members of the cartel (who walk a tightrope of selling to happy customers v pissing off nation/states with active and effective military resources far in excess of what would be required to 'take' the oil.

    Those prices are inversely related to economic growth (oddly). in times of optimisim, the buyers are willing to pay more, because the future is rosy. in times of pessimism, they aren't. and the cartel drops prices.

    gas however is further down on the list. and it is subject to market forces of both supply and demand. (those are two different things- supply and demand)

    So its a lot like the pricing of Garands.
    There is one price from the contolled and artifical world of the government placing arsnal rebuild suplus rifles into the hands of the people through lottery.

    and there is a far different price for the 'two at the throat, three at the muzzle owned by patton's driver' rifle. thats all market forces.

    make sense?
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