[Chevelle-list] O/T - Drill Here, Drill Now, Pay Less" Petition

[Dale]

Maybe I'm a skeptic.  Who would control the price of the oil if a gazillon
barrels were tapped in ANWR?  If there was enough oil reserves to serve the
U.S. for the next xx years, and if the federal government controlled the
price (say $50 a barrel or less), and if the oil companies doing the
drilling were not allowed to sell oil on the open market.  See where it's
going?  Allowing the oil on the open market isn't going to stop speculators
from determining the price of that oil as they're doing now.  

 

The area is estimated conservatively to contain the equivalent of over 30
years worth of Saudi oil, but Saudi oil is only a small portion of oil the
U.S. imports.  The Energy Information Administration's web site shows for
March of 2008 that the U.S. imported (per day)  1,795,000 barrels from
Canada, 1,535,000 barrels from Saudi Arabia, 1,214,000 from Mexico and
1,154,000 from Nigeria.  Eleven other countries are listed as well with a
total of 3,313,000 barrels for a total of 9,011,000 barrels a day.  Of this
the Saudi oil is a tad over 17%.

 

A couple of statements on
http://www.anwr.org/Politics/ANWR-to-be-opened-by-$125-per-barrel.php are
interesting.  If they open the fields when oil reached $125 a barrel, the
prices wouldn't drop below $125 but rather, "The first half of the $3.5
billion of lease royalties to be used to fund development of alternative
"green" energies.and the other half to go to LIHEAP or Low Income Home
Energy Assistance Program, and the Women's Infants and Children's Nutrition
program."  Federal tax revenues would be between $152 to $237.5 billion and
it's suggested these revenues be split the same way as the royalties.

 

So, I don't see the price of this, or any other, oil coming down at all but
rather any royalties and federal tax from the oil, still pricing it at $125
a barrel mind you, would go to these agencies.  How is that going to lower
the price of $4.00 a gallon gas at all?

 

If, and only if in my opinion, the federal government nationalized the oil
recovered and kept the companies doing the drilling from selling it on the
open market, and if they set a price of say $50 a barrel, would it make any
difference?  With the weak dollar and mounting trade deficits, the
temptation to sell the oil would prevail and while the federal coffers may
grow (if it isn't given to the special interest groups like above), is
there.

Dale McIntosh 
 <http://www.chevellecd.com> ChevelleCD.com 
 <http://www.chevellestuff.com> ChevelleStuff.com 

  _____  

From: chevelle-list-bounces at chevelles.net
[mailto:chevelle-list-bounces at chevelles.net] On Behalf Of Dave Corgill
Sent: Thursday, May 29, 2008 12:35 PM
To: Alex at LaRueInsurance.Net; The Chevelle Mailing List
Subject: Re: [Chevelle-list] O/T - Drill Here, Drill Now, Pay Less" Petition

 

At 12:20 PM 5/29/2008, you wrote:



This is a WIN WIN proposal. Drilling for American Oil on or near America
would create more jobs, lower the cost of getting the oil to the refinery,
greatly reduce the income of our enemies, (Hugo Chavez, etc). AND Lower the
cost of gas/diesel at the pump. It would also kill the ethanol and soydiesel
programs which, along with the current high cost of transportation, are
driving up food prices.  This single thing will do more to help the poor
than any government program.  I signed hope everyone else will too. Thanks
Dan.


I agree with you, but it ain't going to happen, to much dirty money
to be bribed to them in DC. Let's not forget the traders. They can buy
oil that they don't have to store for what 10% margin . As a machine
shop that did oil field work there is plenty of oil already found
in the USA & Capped! I know this to be true.

Check this out. About 1 hr.
http://video.google.com/videoplay?docid=3340274697167011147

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