OffShore Drilling = Oil Independence in 6 yrs?

[tripleM]

Just read these articles about how the drillers believe we can be oil independent within 6 years.
Now I realize this is the drillers' interest talking & coming from an investment newsletter.
But I just thought I throw it out there for your consumption.

Part 1 - Emerging Solutions - Offshore Drilling

Part 2 - Solving the Oil Crises

 

[buster]

Goes back to my thread about reliable information. Who do you believe? No one seems to know jack about how much oil we do or do not have.

"experts say 100 years"

"experts say 2.5 years"

"experts say we don't know"

 

[tripleM]

Originally Posted By: buster
Goes back to my thread about reliable information. Who do you believe? No one seems to know jack about how much oil we do or do not have.

"experts say 100 years"

"experts say 2.5 years"

"experts say we don't know"

No Kidding. But isn't that like most industry: lack of reliable inventory data ?

 

[buster]

Probably, yes. I would like to have more reliable numbers before we start drilling. It might not be worth it if there isn't as much avaiable here as we think.

 

[Titan]

We need to build more refineries, or it doesn't matter how much more oil is made available.

 

[buster]

http://news.yahoo.com/s/nm/20080630/bs_nm/energy_congress_speculators_dc

Supply problem.

 

[Titan]

Anyone else think it fishy when the CEO of the company (BP) that is the most aggressive hedger of all the oil companies says it's NOT speculation that is responsible for the run-up of prices?

 

[hillclimber]

Gee, a guy from Fox Business Network thinks offshore oil drilling will lead to energy independence, shocking.

Too bad many of those areas are so poorly explored we don't really know what's out there, or that there's a shortage of rigs in the world right now, much less finding the human talent to get all the work done in a timely fashion. What a joke.

I generally favor offshore drilling but we should be realistic about the timeline and outcome.

(In all fairness I believe he did mention some conservation efforts, like reducing the speed limit.)

I suspect the only way to be oil independent is to reduce our consumption by about 2/3. Either that, or come to peace with our reliance on foreign oil.

 

[Pablo]

I really hate the Fox bashing on this site. It's getting really old.

Quote:

At time of publication, Bolling had no positions in stocks mentioned, although holdings can change at any time.

Eric Bolling is a host on the new Fox Business Network. Bolling was one of the developers and original panelists (nicknamed "The Admiral") on CNBC's "Fast Money."

Bolling is an active trader specializing in commodities, resource trades and ETFs.

Bolling is a member of several exchanges including The New York Mercantile Exchange (NMX), The Intercontinental Exchange (ICE) and The Commodity Exchange of New York.

After spending 5 years on the Board of Directors at the NYMEX, he became a strategic adviser to that Board of Directors where he assisted in bringing the company (NMX) public. He has been included in Trader Monthly Top 100 in 2005 and 2006. Bolling was the recipient of the Maybach Man of the Year Award in 2007 for his contribution of philanthropy and willingness to de-mystify investing to Main Street.

Bolling graduated from Rollins College in Winter Park, Florida and was awarded a fellowship to Duke University. Bolling was an accomplished baseball player. He was drafted by the Pittsburgh Pirates where he played before his career was cut short due to injuries. He honors his baseball past by sporting the NYMEX trader badge, R.B.I.


First you attack the source.....well look he cites were he's getting his information.

The way to become energy independent is to be intelligent and stop saying there are no resources in the USA. Sure the #1 immediate action should be total conservation. Then wind, some solar, wiser use of NG, off shore drilling, ANWR drilling, all at the same time we start building nuclear power plants. I sound like a broken record, but stop it with the useless attacks on Fox. Fox Business network is how old? The guy must have just signed on with them, kryste the guy was just working for CNBC - now there's a conservative beehive!

 

[Max_Wander]

if only the intentions were so noble

 

[H2GURU]

Unfortunately most of the really good oil was already found by 1965! These offshore sites are 5-7 miles deep. The rigs lease for $650,000/day and are quite busy. There is oil there but at what price per gallon?

 

[tripleM]

Well we haven't even talked pricing yet...but oil independence (ala Brazil or Venezuela) usually mean lower prices for the consumer.

 

[SubLGT]

Originally Posted By: Titan
We need to build more refineries, or it doesn't matter how much more oil is made available.


US refineries are only operating at around 85% of full capacity. No incentive to build more.

http://tonto.eia.doe.gov/dnav/pet/pet_pnp_unc_dcu_nus_m.htm

 

[Duffman77]

I dont know how anyone could think that a country that uses 1/4 of the world supply could ever be energy independent by more drilling.

 

[Eddie]

Before we drill away our future generations, I think we need to curtail the speculators. Very good estimates are that speculators are adding 25+% to the price of a barrel of crude.

 

[bcossa2001]

More drilling is more oil...

More oil is less dependence...

 

[Gary Allan]

Originally Posted By: tripleM
Well we haven't even talked pricing yet...but oil independence (ala Brazil or Venezuela) usually mean lower prices for the consumer.


Don't count on it. We have a way of morphing stuff into something other than what would sensibly be considered a normal outcome. While nobody rides free, we seem to have enough people tagging along in most processes to weigh down clean (as in straight line streamlined) economies.

 

[Shannow]

Look at the way it works in Oz.

We are largely independent (75% plus), but the Govt years ago introduced "parity pricing".

So regardless of what it costs to drill and refine it here, the sales cost basis is the Singapore Index for petrol and diesel.

Why do they do this ?

http://www.fuelwatch.wa.gov.au/info/dsp_petrol_prices.cfm

Quote:
Central to the price of petrol in Australia is the price petrol is selling for overseas. Successive Commonwealth Governments since 1977 have adopted an import parity pricing policy to determine national pricing levels for all motor fuels. This means the domestic price for petrol in Australia is linked to international petrol prices to ensure local refiners will not sell their offshore to obtain higher prices (and potentially leave no fuel for the local market).

 

[Gary Allan]

In one of our more totalitarian moves, one of our leaders engaged in a wage/price freeze. He set the price of domestic oil at something like $5/bbl. This automatically subsidized imported oil that had no limit in price.

I don't think we've every looked back.

 

[Big O Dave]

Originally Posted By: Gary Allan
In one of our more totalitarian moves, one of our leaders engaged in a wage/price freeze. He set the price of domestic oil at something like $5/bbl. This automatically subsidized imported oil that had no limit in price.

I don't think we've every looked back.


I think you're right, Gary. Sometimes you try to do something, ANYTHING in desperate situations, and it has unintended consequences. Plus, I think he had other things on his mind, if my timeline is correct

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