if we drill for oil on US land, will we sell any of it?

[vash]

nothing says we cant ship it to china right? if we do, how does it help us at the pumps? break it down for me please..

[DaveE]

It doesn't help us at the pumps. If it's any significant amount, which most say it won't be, those that aren't running for President anyway, all OPEC would need to do is reduce their production to keep supply / demand around the same and stretch out their reserves a bit longer. Whatever we drill is going to go right into the world oil market in the 7 or so years from now when there is actually oil.

[Porsche-O-Phile]

Nah, if there was ever a glut of oil, we'd want to go run right out and ressurect the H2 and other stupid-arse vehicles so we could waste it rather than (sensibly) trying to balance our trade deficit with it.

It's the American way to consume any/all available domestic resources and then borrow to consume even more from foreign sources. Consume, consume, consume. Like that bacteria that eats whale dung on the bottom of the ocean.

[dd74]

...or we drill and announce we will continue to explore for and drill in new reserves, which sends a message to the speculators that prices are less subject to fears the world supply is decreasing, which in turn won't allow for a rise in prices.

OPEC are our lap dogs. If we wanted them to lower prices, we just drive/use less or drive/use more fuel efficient dino-burning machines.

[red-beard]

So Dave, would you think it is appropriate that our country go after a cartel, by any mean necessary, that is artificially raising the price of oil and hurting our country?

[Chuck Moreland]

The revenue from the oil flows to the US instead of the ME. The taxes on the profits, and the lease revenues on the oil rights all fund our government programs instead of theirs.

In other words, a huge economic boost to the US economy and increasing tax revenues to pay off our massive budget deficit.

Exactly what has created great wealth in the ME could instead be happening in the US.

[dd74]

Originally Posted by Chuck Moreland

The revenue from the oil flows to the US instead of the ME. The taxes on the profits, and the lease revenues on the oil rights all fund our government programs instead of theirs.

In other words, a huge economic boost to the US economy and increasing tax revenues to pay off our massive budget deficit.

Exactly what has created great wealth in the ME could instead be happening in the US.

Bingo!

[DaveE]

Originally Posted by red-beard

So Dave, would you think it is appropriate that our country go after a cartel, by any mean necessary, that is artificially raising the price of oil and hurting our country?

What are you proposing, go to war against OPEC? I would rather see us do something to stop the uncontrolled speculation that seems to be driving the price right now. I think all OPEC is doing is setting a production level. But then I'm no genius about the oil market.

[Shaun @ Tru6]

price of oil is dictated by speculators, not oil companies, not OPEC, not the President.

it is not our oil unless you want to nationalize it like Chavez.

[Shaun @ Tru6]

Originally Posted by Chuck Moreland

The revenue from the oil flows to the US instead of the ME. The taxes on the profits, and the lease revenues on the oil rights all fund our government programs instead of theirs.

In other words, a huge economic boost to the US economy and increasing tax revenues to pay off our massive budget deficit.

Exactly what has created great wealth in the ME could instead be happening in the US.

Someone should do the math on this, really.

WAG: instead of the $10 billion in tax breaks the oil companies get, it will be $9 billion.

Huge windfall for the American public.

[Mule]

Originally Posted by red-beard

So Dave, would you think it is appropriate that our country go after a cartel, by any mean necessary, that is artificially raising the price of oil and hurting our country?

You're always doing this! You try to make people think logically. Don't you know this is unacceptable. Further use of this obamanation known as logic, will not be tolerated! Got it!

[Shaun @ Tru6]

Originally Posted by red-beard

So Dave, would you think it is appropriate that our country go after a cartel, by any mean necessary, that is artificially raising the price of oil and hurting our country?

You mean reverse a law allowing oil/energy speculation? yeah, real hard.:roll eyes:

[DaveE]

So Mule, you think we SHOULD go to war against OPEC? I'm sure THAT wouldn't destabilize the markets at all.

[jyl]

Originally Posted by Chuck Moreland

The revenue from the oil flows to the US instead of the ME. The taxes on the profits, and the lease revenues on the oil rights all fund our government programs instead of theirs.

In other words, a huge economic boost to the US economy and increasing tax revenues to pay off our massive budget deficit.

Exactly what has created great wealth in the ME could instead be happening in the US.

Numbers, please.

Without numbers, you might as well wish for a pony while you're at it.

[Mule]

Originally Posted by DaveE

So Mule, you think we SHOULD go to war against OPEC? I'm sure THAT wouldn't destabilize the markets at all.

Not any more than they are at war with us.

[sammyg2]

It does not matter where it goes. Even if it goes to china it displaces a purchase they otherwise would have made. It affects the available pool of oil and affects the price, no matter who buys it. Eco 101.

There's another factor: government revenue. Oil leases are expensive. Real expensive. The government gets that lease money.
They also get a tax on every barrel produced. Then they get to tax the crap out of the oil company when they sell it, provided they do it on US property.

[Mule]

Originally Posted by jyl

Numbers, please.

Without numbers, you might as well wish for a pony while you're at it.

$700B per year is what we spend now. That enough?

[pwd72s]

Originally Posted by vash

nothing says we cant ship it to china right? if we do, how does it help us at the pumps? break it down for me please..

Sure...we might sell ALL of t. Who cares? The goal is to reduce the global ptice of oil. Think about it...

[Rearden]

Originally Posted by vash

nothing says we cant ship it to china right? if we do, how does it help us at the pumps? break it down for me please..

Oil is fungible.

The likelihood of increased supply in the future will decrease futures prices (see oil futures prices since Bush announced the change in offshore drilling). The likelihood of increased future supply and lower futures prices decreases the spot price (see oil spot prices since Bush announced the change in offshore drilling).

[Tidybuoy]

Originally Posted by Shaun 84 Targa

price of oil is dictated by speculators, not oil companies, not OPEC, not the President.

Wait a second....I thought this whole mess was Bush's fault.