Domestic oil production. The Great Lie of 2011

#3
#3
Pesky facts

Push for permits in Gulf of Mexico - FT.com

Of 115 rigs in the gulf, 51 have no contracts, said Cinnamon Odell, senior rig market reporter at ODS-Petrodata, which provides data on the energy sector.
Of the 64 with contracts, she said, only 48, or 41.5 per cent of the fleet, are working.
That is down from the 74 contracted rigs in March 2010 – the month before Macondo. Sixty-five of those rigs – or 56.4 per cent – were working at that time.
Companies have complained that slow and unpredictable permitting costs them millions of dollars and has led some to pull rigs from the gulf.
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Analysts said at least nine rigs have left the gulf since the accident – six this year with two leaving this month.
“Once they leave, they typically leave on a long-term contract,” said Jim Dillavou, of Deloitte, the consultancy. He noted that several rigs destined for the gulf are going elsewhere.
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Since the moratorium ended, she said, regulators had approved 68 new shallow water permits, 112 permits for 34 unique deepwater wells requiring sub-sea containment and 45 permits for additional activities, including water injection.
“There are more rigs on contract today than there was a year ago,” she added.
But Mr Noe, also senior vice-president of Hercules Offshore, the gulf’s largest shallow water drilling company, said there was a moratorium on drilling in the deepwater gulf a year ago, so the comparison was meaningless.
“We have 18 of our 25 rigs working today but that may not last long,” he said. “We have 10 or 11 committed jobs for the rigs but we don’t have permits for the work yet. Without the permits, these wells won’t be drilled.”
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#4
#4
The increase in production is from the Bakken Oil field, which has zero to do with this current administration. The new wells were planed years ago and way before Obama even announced his candidacy
 
#7
#7
Ezra Klein as the article's author should have been the dead giveaway.
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#8
#8
Sheesz guys, how many wells are there? Sure, you can find individual examples where things have slowed or permits are tougher. That's not unusual.

The point is, the claim by Bachmann and others in the GOP race that the reason gas prices are high is because Obama has blocked more drilling or domestic oil production is a flat out lie. Domestic oil production is up 60 percent !!! And yet prices are still high.

What this tells you is what the experts say is true -- and that is that domestic oil production, even if maximized, really puts only a very small dent in the demand we place on foreign oil.

The people pushing the notion that Obama is standing in the way of sufficient domestic production so as to lower gas prices are lying to you, and to the American people. And guess who that is? That's right, the companies that stand to make huge profits off of domestic production and who, as one might expect, are in bed with the GOP.

Domestic oil production is not the key to reducing foreign oil dependence. IT NEVER WAS, AND NEVER WILL BE.
 
#10
#10
lawgator1 said:
Sheesz guys, how many wells are there? Sure, you can find individual examples where things have slowed or permits are tougher. That's not unusual.

The point is, the claim by Bachmann and others in the GOP race that the reason gas prices are high is because Obama has blocked more drilling or domestic oil production is a flat out lie. Domestic oil production is up 60 percent !!! And yet prices are still high.

Reread - production is not up 60%, drilling is. Production may be slightly up but typically production is known well in advance - hence factored into oil prices. However, production would be higher if were not for Obama's actions in the gulf were true production ready wells exist but are offline. Likewise, the market factors in this reduction in available production.

What this tells you is what the experts say is true -- and that is that domestic oil production, even if maximized, really puts only a very small dent in the demand we place on foreign oil.

The people pushing the notion that Obama is standing in the way of sufficient domestic production so as to lower gas prices are lying to you, and to the American people. And guess who that is? That's right, the companies that stand to make huge profits off of domestic production and who, as one might expect, are in bed with the GOP.

Domestic oil production is not the key to reducing foreign oil dependence. IT NEVER WAS, AND NEVER WILL BE.
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Ezra Klein is lying to you as well by cherry picking data. Plenty of sins of omission in his work.

Domestic oil production increase WILL reduce dependence on foreign oil but it will not eliminate it. No one has ever said it would. It also holds much more short term promise for dependence reduction than the "green" energy nonsense this administration is pushing. If you want to talk about a BIG LIE you need to include that doozy as well.

Finally, we all agree Bachmann is off on the $2 gas. However, more domestic production will do more to stabilize prices in the near term than less domestic production. The truth is that Obama has pulled back on moves to increase production.
 
#11
#11
lawgator1 said:
He's quoting the Wall Street Journal, you doofus.
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Only a small part. In fact, he's relying on some dude who posted a blog on ThinkProgress use of a paragraph from WSJ.

Once again, you claim misleading facts while using misleading sources. Brilliant.
 
#13
#13
volinbham said:
Only a small part. In fact, he's relying on some dude who posted a blog on ThinkProgress use of a paragraph from WSJ.

Once again, you claim misleading facts while using misleading sources. Brilliant.
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Beat me to it. Also, stated more eloquently than I would have.
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#14
#14
the reason gas prices are still high is because A) Lybia production is gone B) Wells in the gulf are in decline and no new wells are coming online due to the gulf drilling ban. Therefore the refineries along the gulf coast need oil. Since less oil is coming from the gulf, they have to have it shipped in via rail car from North Dakota all the way down to LA, and increase imports of crappy venezuela oil C) see below

COLUMN-Libya is last straw for Sunoco's refineries: John Kemp | Reuters

East Coast refiners' margins have been under pressure as they struggle with old facilities, rising product specifications, and fierce competition from Europe for both crudes to process and share in the gasoline market.

Rivals in the Midwest are benefiting from cheap Canadian and North Dakota crudes trapped by the lack of export pipelines, while refiners on the U.S. Gulf Coast have larger and more complex facilities capable of buying heavy sour crudes and processing them into a higher share of valuable gasoline and distillate.

East Coast refineries have neither advantage. Most of their crude is imported, at prices linked to Brent rather than WTI, and their lack of complexity has forced them to buy the simplest and therefore most expensive crudes.
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Thats two major refineries going to be shut down this year
 
#15
#15
Ok, here's fact check....

Is Obama to Blame for $4 Gasoline? | FactCheck.org

A little in that for everyone, but bottom line is that moratorium on Gulf drilling had such a negligible effect that, in the words of a Mobil exec, its effect was "absolutely nothing" on gas prices. And, even if it were up, and even if other sources were maximized, it just wouldn't make a significant difference, either way.
 
#16
#16
I used to read... and kind of trust... "FactCheck". However, I caught more than a few partial truths or misleading "conclusions". For instance in your link... I am sure "a" oil analyst said just that. Is it consensus though?
 
#17
#17
sjt18 said:
I used to read... and kind of trust... "FactCheck". However, I caught more than a few partial truths or misleading "conclusions". For instance in your link... I am sure "a" oil analyst said just that. Is it consensus though?
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Well, for that I think you have to see the reasoning, which is that in 2009 and 2010 it was up, but will be down this year due to combination of permitting issues post oil well blow out and natural taking off line of some wells already there.

The decrease this year, when offset by other gains, represents 6/10 of one percent of our demand. Though not linear, if you used that measure, out of $3.50 gas, that's about 2 cents of the price of a gallon of gas.
 
#18
#18
lawgator1 said:
Ok, here's fact check....

Is Obama to Blame for $4 Gasoline? | FactCheck.org

A little in that for everyone, but bottom line is that moratorium on Gulf drilling had such a negligible effect that, in the words of a Mobil exec, its effect was "absolutely nothing" on gas prices. And, even if it were up, and even if other sources were maximized, it just wouldn't make a significant difference, either way.
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To me the question is not and has never been gas prices today.

It is about an approach to energy production that is sensible rather than political or ideological.

Obama is anti-oil/gas/coal production relative to other administrations. This by definition increases our dependence.

Likewise Obama is over-sold on green. The efforts so far have done nothing to reduce our dependence.

Bottomline, the defacto energy policy of Obama is to raise the costs of fossil fuels to motivate green energy. However, he's hedging his bets by making ridiculous moves like the Brazilian move to help them so we can be "their best customer"
 
#19
#19
volinbham said:
To me the question is not and has never been gas prices today.

It is about an approach to energy production that is sensible rather than political or ideological.

Obama is anti-oil/gas/coal production relative to other administrations. This by definition increases our dependence.

Likewise Obama is over-sold on green. The efforts so far have done nothing to reduce our dependence.

Bottomline, the defacto energy policy of Obama is to raise the costs of fossil fuels to motivate green energy. However, he's hedging his bets by making ridiculous moves like the Brazilian move to help them so we can be "their best customer"
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What you are talking about is long term energy policy and is worthy of debate.

The BIG LIE, from Bachmann and others in the GOP, is that RIGHT NOW gas prices are high because of Obama's drilling or gulf well policies, and that is utter bull shiite.
 
#20
#20
lawgator1 said:
What you are talking about is long term energy policy and is worthy of debate.

The BIG LIE, from Bachmann and others in the GOP, is that RIGHT NOW gas prices are high because of Obama's drilling or gulf well policies, and that is utter bull shiite.
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And Klein's BIG LIE is that Obama hasn't been obstructing exploration and production. So both are wrong.
 
#21
#21
lawgator1 said:
What you are talking about is long term energy policy and is worthy of debate.

The BIG LIE, from Bachmann and others in the GOP, is that RIGHT NOW gas prices are high because of Obama's drilling or gulf well policies, and that is utter bull shiite.
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Of course it is, but it is absolutely politics. Were you around when Bush was being lambasted because his ME intervention was making us all pay too much for gas? I don't remember hearing you call people like Obama morons for that commentary.
 
#22
#22
The BIG LIEs keep coming:

House Speaker Nancy Pelosi Thursday blamed the "two oil men in the White House," President Bush and Vice President Dick Cheney, and their Republican allies in Congress for gas prices exceeding $4 a gallon.
Pelosi, a California Democrat, said multiple initiatives intended to lower high energy costs have passed the Democratically controlled House only to "run into a brick wall" in the Senate because they did not receive the 60 votes needed to overcome Republican filibusters.
"The price of oil is... is attributed to two oil men in the White House and their protectors in the United States Senate," Pelosi said in an interview with CNN's Wolf Blitzer.
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#23
#23
BigPapaVol said:
Of course it is, but it is absolutely politics. Were you around when Bush was being lambasted because his ME intervention was making us all pay too much for gas? I don't remember hearing you call people like Obama morons for that commentary.
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Wait, what? You don't think the invasion of Iraq did anything to oil prices? Huh?
 
#25
#25
volinbham said:
Umm. Libya? Ummm. Moratorium?

You can't have it both ways.
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The thing with Libya did, no question. But that was relatively short lived and has been resolved.

As noted above, the moratorium claim is demonstrably nonsense.

There is no comparison between the 9 year war in Iraq and the moratorium of less than 6 months and which is now coming back on line and which, even if it didn't, the experts say has an infinitesimally small effect on gas prices.
 
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