Bachmann promises $2 gas

[777 fixer]

I see in the mirror many gulf state oilmen out of work.......I see vast sums of money spent in Alaska on exploration stopped dead in its tracks.....I see mid west oil shale being muzzled....I see US oil production dropping the world oil price if implemented...... I see a green agenda gone terribly wrong......I see:

ITS TIME FOR CHANGE WE CAN BELIEVE IN

How much would it drop? All the evidence shows not very much. Sure you might have a small initial drop due to the speculators but that won't last long. How much did oil prices drop when they opened up the strategic oil reserves? People are kidding themselves if they think drilling in Alaska is going to drop prices to the point where we have $2 a gallon gas.

 

[delldude]

How much would it drop? All the evidence shows not very much. Sure you might have a small initial drop due to the speculators but that won't last long. How much did oil prices drop when they opened up the strategic oil reserves? People are kidding themselves if they think drilling in Alaska is going to drop prices to the point where we have $2 a gallon gas.

Point is it will affect futures speculation. Its about more available oil on the world market.

 

[777 fixer]

Point is it will affect futures speculation. Its about more available oil on the world market.

An extra 500,000-800000 barrells a day ten years from now with 85 million barrels consumed daily right now with that number likely to go up.

 

[delldude]

An extra 500,000-800000 barrells a day ten years from now with 85 million barrels consumed daily right now with that number likely to go up.

(CNN) - John McCain — whose campaign launched an ad this week blaming Barack Obama for high prices at the pump — said Wednesday President Bush's new push for offshore oil drilling deserves the credit for the recent drop in crude oil prices.

"In case you missed it, soon as the President announced that we were going to end the moratorium on offshore drilling the price of a barrel of oil went down $10," the presumptive Republican nominee said at a Wilkes-Barre, Pennsylvania town hall.

Crude oil prices are down about $20 a barrel from their record-setting intra-day high of $147.27 a barrel back on July 11.

President Bush announced on July 14 he was lifting executive ban on offshore drilling, although Congress has yet to act on his call to lift its own drilling ban.

Asked about McCain's comments today, White House Press Secretary Dana Perino replied, "I don't know that we fully deserve the credit, but I do think in was important to send a signal to the market that we are serious about moving forward."

Earlier this week, McCain's campaign released a new television spot blaming Barack Obama's opposition to offshore drilling for the nation’s rising gas prices.

:blink:

 

[SparrowHawk]

An extra 500,000-800000 barrells a day ten years from now with 85 million barrels consumed daily right now with that number likely to go up.

That really isn't the point. It's this fields 500K, that fields 300K per day etc etc, More wind farms here in the Midwest, More development of clean coal technology, Fraking oil sands and Natural gas, Off shore drilling. Pretty soon it adds up to energy independence. Meanwhile back at the ranch all of this free market capitalism create jobs by the bushel basket and may actually help address the immigration problem as we could well find ourselves with a genuine shortage of workers at the entry level and then it would be super easy to set up a guest worker program with a path towards citizenship,

Environmental concerns could be addressed by having the oil companies post what amounts to a bid bond when their permits are approved. You don't need 4200 regulations. What you need is 4200 people to enforce a very few but critical regulations designed to maximize safety, productivity and the surrounding environment.

 

[777 fixer]

:blink:

Was this from 2008? What else was going on in the world in 2008? World finacial markets were in a tailspin as well. Which causes prices to drop due to the ecoomic uncertainty. What has driven the price up recently? Various middle east countries coming apart at the seems.

 

[delldude]

Was this from 2008? What else was going on in the world in 2008? World finacial markets were in a tailspin as well. Which causes prices to drop due to the ecoomic uncertainty. What has driven the price up recently? Various middle east countries coming apart at the seems.

Hells bells, Rocky Bama got $5 off with the strategic oil reserve a few months back.

 

[eolesen]

Drilling is great, but when's the last time a new refinery came online?

 

[700UW]

Bingo,

Someone finally gets the real problem!

Thanks E!

 

[tech2101]

Drilling is great, but when's the last time a new refinery came online?

There is no incentive for oil companies to increase refining capacity. That would increase supply.

...Econ 101.

 

[signals]

If you leave out all the taxes, gas is actually about $1 a gallon. $2 a gallon will actually cost about $4.50 a gallon. Although not totally acturate you get the jist and politics of it B)

 

[Ms Tree]

I need to find the info again but I thought I read a few pieces saying that refining fuel does not have a big profit margin. That is another reason no new refineries have opened. That and its cheaper to retro fit existing ones.

 

[delldude]

I need to find the info again but I thought I read a few pieces saying that refining fuel does not have a big profit margin. That is another reason no new refineries have opened. That and its cheaper to retro fit existing ones.

Like most everything else, technology helps......plus they already own the property and don't have to play nimby.

 

[SparrowHawk]

I need to find the info again but I thought I read a few pieces saying that refining fuel does not have a big profit margin. That is another reason no new refineries have opened. That and its cheaper to retro fit existing ones.

Of all the steps in the Gasoline production process refining it has far and away the lowest profit margin. However there are other aspects of the refining process that cause costs to rise unevenly. When a standard 42 Gal. of oil is "Cracked" it is broken down into percentages of Gasoline, Home Heating Oil/Diesel, Jet A. Now if supply is out of sync with demand you'll see spikes in say Diesel but not in the other two. Example being a very cold winter. Refineries can't just adjust the ration of products like we flip on the AC to cool the house. My understanding is it's a huge undertaking and one refineries seldom undertake.

Secondly, the primary reason for no new refineries is two fold. The first reason is excessive environmental regulation designed to thwart every company with roadblocks that make it impossible for the companies to afford to build a refinery. The second aspect is the NIMBY syndrome that is equally effective as government regulation.

Retrofitting existing facilities is made cost effective to the other factors mentioned above.

 

[DarkSnowyNight]

Hard question. The easy part is playing people for fools. They believed Bush with all his lies. They believed Obama when he said he would pull all the troops out of the ME and close Gitmo. They will believe this idiot when she claims to have control over gas prices. So playing the people for fools is a given.

The hard part is whether or not she is a fool. I do not know if it would blow up in her face till after she is elected because by that time it would not matter. All she wants to do is win at any cost (that's all any of them want) but she just happens to be willing to go that extra mile. It's obvious she cannot do what she claims as someone else pointed out because Carter, Bush and Obama would have done so. She obviously does not care about the American people because if she had this ability she would have told who ever is in power how to accomplish this task and be the hero of the day. Even if proven wrong (easy task) the people who believe her do not base their decisions on fact and logic. It could prove a win/win for her. The people who know she is nuts would never vote for her in the first place. The people who believe in her could care less that she is an idiot. It gets her free press and in the worlds of politics, any press is good press.

I never thought I would see a day when someone said something that made Palin look smart. That's the really scary part.

I agreed with everything you said until that last line. Nothing can make that happen...

I think Michele Bachmann made a very astute move as it's highly likely we could see $2.25/gallon gas in short order. It won't take much for the bottom to fall out of oil prices. It can probably be accomplished with a microphone and TV camera.

If it was a politically astute move, she would have saved it until a general election.

We could easily have gas in the high $2's, low 3's by Christmas if he acted over Labor day weekend. You get gas down around $2.25 and he is IMO unbeatable.

As long as Michele Bachmann or Rick Perry remain GOP fruntrunners, he is already unbeatable.

People are delusional if they think drilling in ANWR is going lower gas prices to $2 a gallon. It simple math really, and some cold hard facts. The US has about 3% of the world’s oil reserves and uses 24% of that. We consume 19 million barrels a day, at its peak oil production from ANWR might be 800,000 barrels a day. Of course that peak production won't happen overnight and when it does worldwide consumption will have risen.

That brings up another set of facts. The price of oil is set on the world market, not on the US market. If OPEC feels that the price of oil is going to fall to much all they have to do is cut production. Then there are other facts like the value of the dollar, all the drilling in the world will have no effect on that. Or natural disasters like hurricanes, earthquakes etc. Then there are wars that bring uncertainty which brings about higher prices.

You talk about lower gas prices allowing more money being available in a consumer driven economy. Here's one way you could do that, drive more efficient cars. The other day I filled up at my local Costco. The person in front of me driving had a Chevy Suburban and put $70 worth of gas. My four banger took a little over $30. Driving away I had close to $40 more in which to spend on something else. Try saying that we as the American people have a role in this as well and see what happens.

Correct. Within about a week, OPEC could effect a 7% drop in production. We see what a 2% over Libya did. If ANWR could add 30 - 40% to the world supply, that would be one thing. But it will not.

Truthfully, this is just another sham. I drive a 40+ MPG vehicle, one that actually performs better on the road and has more usable space inside than the more expensive 23mpg car I traded it for. I really don't see what's so bad about prices the way they are now. As americans, we need to accept that gas isn't getting cheaper over the long haul and that our best bet is to adjust our lifestyles to it, not the other way around.

How much would it drop? All the evidence shows not very much. Sure you might have a small initial drop due to the speculators but that won't last long. How much did oil prices drop when they opened up the strategic oil reserves? People are kidding themselves if they think drilling in Alaska is going to drop prices to the point where we have $2 a gallon gas.

There is as much reason to believe that it would actually increase as there is that it would drop. This whole Drilling out ANWR will cause prices to drop meme is just absurd and is yet another attempt by the oil production industry to maintain the status quo by securing drilling rights for when it really does become more scare in the future. It has nothing to do with prices today.