Oil Facts, not fiction

I am getting really irritated by the comments of politicians about our energy situation and those who oppose trying to drill now for more oil.   Their arguments are disingenuous at best and outright spin lies at worst.   Just this weekend I heard more than one say that it would take 30 years to develop offshore fields.  They have also touted the more modern technologies and the envoirnmental concerns to the point of hysteria.   I did notice that an international group of physicists ( real scientist by the way)  have raised questions about the whole idea that global warming is caused by man made activity.   Perhaps we should pay them some heed.

I have written before that I am for all the methods for improving our energy needs, except ethanol.  I oppose that because it is a boondoggle and a political sop for special interests groups which I always oppose.   Let’s do it all, try it all and that includes drilling for more oil and saving our money and spending it at home.   Let free market competition loose to find our best solution.  It is true that we borrow from the Chinese now to buy mid east oil.   Any significant savings we can make there helps all Americans.   We will need the oil for the mid term.  We can’t get around that and we should have as much of it home grown as we can; it helps strenthen the dollar and our national security.   By way of example I would point out that I have a gas operated vehicle that is a few years old but paid for and I intend to drive it as long as I can, say 10 more years.  If Mr. Genius invented the perfect solar battery for cars tomorrow would I go out and buy a new car?  No.   There are millions of folks just like me and we shouldn’t be punished and forced to pay for something we don’t need yet.   Ten years from now I might well be in the market for something different if it is available.  But remember the market and Americans’ right to choose their means of transport and how they wish to spend their money or save it.  

Now with that said let’s  turn to drilling offshore and the arguments some are making against it.  It will not take 30 years.   This is not rocket engineering.  (There is no science of rockets).  We know how to drill oil wells; it fact we have done it better than anyone for decades.  One interesting point also to consider is  the seepage from the ocean floor for the envoirnmentalist out there.   Off Santa Barbara  there is a substantial natural seepage that flows into the offshores waters every day, every year.  I have heard it asserted that it amounts to another Valdez every year.  That would be eliminated by drilling and properly  pumping out the oil in the formations below the seas.   The seepage is substantial and real.   Check it  out for yourself.   It will  take a few years to get everything online but only a few and the price of oil will reflect that effort.   All markets are based on the future.  Prices for comodities are a result of the collective belief of what is going to be, not what has been.  Anytime you buy a stock you are projecting the future.   A real drilling program will have an effect on the price of oil and it certainly won’t make the price higher to have a greater supply.   The technology today for drilling is vastly different that what it was a generation ago.   Most people still picture in their minds those ugly drilling derricks dotting  the horizon but that is not the reality of today.   Drilliing today is cleaner and neater than every before.   We will not all die in 10 years from carbon.   Besides what if we have another methane eruption like the earth has had many times in its past or we are hit with a gamma ray burst from an exploding star or the magnetic field reverses on us again which it is more or less due to do?   The average Joe wants the gas at a lower price and it is definitely in his personal interest that the Dollar have greater worth against all foreign currencies.   It will work.   Green geeks don’t want to discuss the truth or the facts though, their are on a misguided mission and insist we all be baptised into their faith regardless of costs.

Lastly, I keep hearing the blather about how there are 68 million acres under lease already and the oil companies could simply drill on them.   They imply that they are sitting there just ready to be plucked and the public is being suckered.   Well, we will write more tomorrow about that in detail but for now please observe that yes there are lots  of acres under lease.   Oil complanies have to plan ahead for decades.  They have leased up lots of areas that just might, maybe have some oil production potential.   Those are the least productive of the “plays” available or they would be drilling them already.   Those extra leases are their inventory if you will.  They have leased up millions of acres of oil shale land in the Rockies even though the technology is not developed to tap that petroleum resource.  Maybe someday it will be and they can extract the petroleum and that would be good for us all.   But to assert the way the politicians do now that the companies are just sitting on their hands on top of all this oil product is assuming we are all idiots.  Oil companies have leases in Ohio, Pennslyvania and just about every state in the Union where seismology indicates there could be petroleum but those are not  viable options yet and may well never be.   I would  point out that those leases costs the companies money when they get them.   They have to pay a signing bounus and then delay rentals. We’ll explain those tomorrow because I imagine there are some very bright folks out there who simply  have never had any exposure to the oil and gas business and don’t understand how it works.   In case someone thinks I am in the oil business, think again.  I am not and never have been.  This is not about me but I what I believe is best for my country and the millions of decent folks who deserve oil at the most competitive price until we do have those solar panels that work.   That would be marvelous.   I am all for that when the day comes.

I have always wondered why we could not build better turbines to harness the energy of the moon as it is reflected in our tides.  Those billions of gallons of water move every day.  Motion and the electromagnet field is all you need to produce electricity.  Those turbines could create it.  Guess it is too expensive an engineering job.  But I like the idea.  There is lots of ocean and the tides will be here longer than we will.


1 Comment

Filed under Economics

One response to “Oil Facts, not fiction

  1. Great article; I’ve been echoing what you have said in a few posts of my own. Myth: Drilling for oil won’t be productive for years. and mocking global warming Is CO2 causing the price of fuel to increase

    And at Jeremiah Films Media Bias: Offshore Drilling Wouldn’t Lower Gas Prices for Ten Years and McCain vs Obama on Gas and Oil

    I’m linking back to your site from Jeremiah Films posts …

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