Republicans Fail to Understand That We Cannot Drill Our Way to Lower Gas Prices

[LaurenG]

June 18, 2008

From President Bush to the Senate Republican leadership, from Vice President Cheney to Senator McCain, the Republican energy policy can be summed up in three words: drill, drill, drill. The recent flip-flops by President Bush and Senator McCain to grant new access for offshore drilling comes as the Big Oil companies have spent $188 billion in stock buybacks over the last five years instead of investing significantly in increasing supply here and abroad. Meanwhile, at a recent House hearing, an ExxonMobil official testified that it was only investing $100 million over ten years on renewable energy.



We cannot drill our way to lower prices at the pump



The U.S. demand for oil is 25 percent of world oil supply, but our reserves are only three percent or less of the world's oil reserves. More access to the Outer Continental Shelf (OCS) is not going to keep OPEC from setting the price of crude or impact prices. In its 2007 Annual Energy Outlook on the impacts of increased access to oil and natural gas resources in the Lower 48 Federal Outer Continental Shelf, the Energy Information Administration found that:



* "The projections in the OCS access case indicate that access to the Pacific, Atlantic, and eastern Gulf regions would not have a significant impact on domestic crude oil and natural gas production or prices before 2030. Leasing would begin no sooner than 2012, and production would not be expected to start before 2017. Total domestic production of crude oil from 2012 through 2030 in the OCS access case is projected to be 1.6 percent higher than in the reference case, and 3 percent higher in 2030 alone, at 5.6 million barrels per day. For the lower 48 OCS, annual crude oil production in 2030 is projected to be 7 percent higher-2.4 million barrels per day in the OCS access case compared with 2.2 million barrels per day in the reference case. Because oil prices are determined on the international market, however, any impact on average wellhead prices is expected to be insignificant."





Approvals for drilling on federal lands is at an all-time high



* There were 4.6 million acres of federal onshore lands leased for oil and gas development last year, which is up from 2.6 million in 2000.



* There were almost twice as many wells spud on federal lands in Fiscal Year 2007 than in Fiscal Year 2000 (5,343 wells in 2007 vs. 2,861 wells in 2000)

* Approvals of Applications for Permits to Drill (APDs) on federal lands by the Bureau of Land Management increased from 2,580 in 1997 to 7,124 in 2007.



* APD approvals have nearly quadrupled on federal lands since 1996.



The fastest way to bring on new production is for the oil industry to develop what is already leased



...more


http://dpc.senate.gov/dpc-new.cfm?doc_name=fs-110-2-104

[MadMaddie]

1. Common and Logical sense has never been a strength of

the Repugs.

[chknltl]

2. Big Oil wants what it currently does not have and...

...the repukes are making political hay out of this: "Those Dem's are obstructing the lowering of gas prices." The repukes in congress are well aware of what they are doing and who is paying them to do this. The supporters of the repukes in Congress are the ones who need to see this...everyone needs to see this. There have been numerous posts here and elsewhere regarding what is going on...by posting this data you are keeping the truth kicked. Thank you
KnR

[Gman]

3. You're making an easy mistake when it comes to Republicans

They don't misunderstand anything at all. They know full well everything you cite above. This is nothing more than a blatant assuming how stupid people are and offering a solution that does nothing but make them more money. They're taking advantage of a very bad situation to make more money. It's about as immoral a thing as any I've ever seen, including baby rape.

[liberal N proud]

4. They are in bed with big oil and will not violate their trust.