Monday, July 14, 2008

Drill Here, Drill Now



I think Newt hits the nail on the head concerning a reasonable remedy for our current oil situation:

1. Tap our oil reserves immediately.
2. Drill here (in the U.S.). We have ALOT of oil in this country, plenty to get us well in to the future without the Middle East.
3. Develop alternative fuel sources in the mean time.

12 comments:

Rick Calohan said...

Eliminate the 18 cents a gallon of gasoline Federal Tax
Gasoline Tax Rates by State
Note: The Federal Gas Tax is 18.4 cpg

As of July 1, 2008, the average amount of tax imposed on a gallon of gasoline sold in the United States was 49.4 cents per gallon, up 2.4 cents from the January 2008 report. For diesel fuel, the national average amount of tax was 56.4 cents per gallon, up 2.8 cents from the January 2008 report.

Eliminate the state tax on a gallon of gasoline

Kansas is 24 cents per gallon and Missouri is 17 cents per gallon.

Which means that in Kansas in taxes alone you pay 42 cents on the gallon in Missouri you pay 35 cents a gallon.

So on Sunday when I paid, $4.05 per gallon in Olathe, Kansas if you subtract the 42 cents per gallon at $3.63 instead of $43.76 I paid for 10.781 gallons of gasoline I would have paid $39.23.

Instead, we focus on the 9 cents a gallon profit the Oil Companies make on a gallon of gasoline.

I think Michael Savage was correct on his way to lower fuel cost.

Make Iraq pay with their oil for the cost of the war.

China. 20 percent tariffs on all China made goods immediately; rising by 5 percent each year for each year China refuses to revalue their currency.

Mexico. Force Mexico to pay one barrel of oil for every illegal alien in the United States of America per month.

Then you can start to implement Newt’s plan.

When I bought my 1999 Saturn Station Wagon almost 10 years ago, premium gasoline was only $1.13 a gallon on September 6, 1998.

On November 9, 2000 two days after election premium gasoline was $1.50 a gallon.

When President Bush came into office premium was $1.62 a gallon.

On September 11, 2001, premium gasoline was at $1.70 a gallon before the gas gauging began.

The day before the Iraq War March 16, 2003, premium gasoline was at $1.85 a gallon

On November 3, 2004, $2.08 a gallon, which I think was about the time I stopped buying premium gasoline.

Since apparently we went to war for oil as the critics will say, where the Hell is the Oil?

I’m Rick Calohan and I approve this message.

Augfirst said...

While I agree with drilling in the U.S. for oil and finding alternative energy (I especially liked the hydrogen with excess energy from nuclear sources), I do not agree with flooding the market with strategic oil. I believe that cheap oil increases waste, if gas is $1.50 a gallon then people buy cars that get 12 mpg and drive more. If gas is $6.00 per gallon people will buy cars that get 30 mpg and drive less. While the price of gas sucks (sorry), the cost of gasoline in comparison to what my father paid in mid 1970's is about the same http://www.eia.doe.gov/emeu/steo/pub/special/gifs/2008_sp_02_08.gif, but when you look at the cost in comparison to deposable income we are not even close http://www.eia.doe.gov/emeu/steo/pub/special/gifs/2008_sp_02_12.gif. Plus we have become more efficient! We are drive farther on average to work http://www.eia.doe.gov/emeu/steo/pub/special/gifs/2008_sp_02_05.gif, we also have more vehicles per household http://www.eia.doe.gov/emeu/steo/pub/special/gifs/2008_sp_02_06.gif. I know full well that other cost increases are due to fuel like food, but i don't believe that putting ourselves at risk by taking from the strategic oil reserve is the answer. That would be like buying a house you can't afford then taking part of your house payment out of savings, at some point you will run out of savings and lose the house. I argue the real reason you lost the house was that you couldn't afford it.

If we can't afford to pay the prices at the pump right now then change what you are doing (smaller cars, drive less), when we all have changed what we are doing and still can't afford the prices at the pump then start empting the strategic oil reserve, that would constitute an emergency.

Reepicheep said...

Don't use all the reserves.

Even if we did use all the reserves, we have literally TONS of undrilled oil all over our country. It will take 10 years to develop those sites, in the mean time, use the reserves. Watch how prices come down when the Middle East gets some competition.

As far as people buying big, gas-guzzling vehicles- that's up to them.

rgmann said...

It will take 10 years to develop those sites, in the mean time, use the reserves.

Apparently, we may have been repeatedly lied to about this by “certain” politicians. I just heard today (on Sean Hannity’s show) that a Fox news financial correspondent looked into the truthfulness of this mantra, and according to top oil officials it would only take about 1 year to produce new oil in the Gulf and 2 to 3 years off our coasts. That sounds more reasonable to me (since the quicker the oil companies can get the oil to market, the quicker they’ll make money off of it), but I guess it all boils down to who you want to believe -- politicians or oil executives.

Reepicheep said...

Roger, believing a politician or an executive? Dang. Talk about a no win. The answer probably lies in the middle somewhere. ,

Either way, I say tap the reserves. It certainly won't take MORE than 10 years to develop. Maybe it will take a lot less. Either way, we need to ditch the Middle East as soon as possible.

DRILL HERE, DRILL NOW

Augfirst said...

I am ok with drilling here and now. I just hate to lose the protection of the Strategic Oil Reserves that we have now, which is currently at 56 days, just so someone can fill up their SUV for under $100.
Let's just say that we use the Strategic Oil Reserves and then the Middle East decides to cut us off! It will be the gas lines of the 70's all over again because we were so short sighted to use our emergency fund of oil. The Strategic Oil Reserve was created for emergencies, gas at $4 a gallon is not an emergency! What if we had to go to war with Iran in the future and the middle ease cuts us off. Since we used all the strategic oil now to keep our gas cheap, how would we fill up our tanks and planes if we don't have the backup of the strategic oil supply?

Reepicheep said...

Aug,
You sure are a SUV hater!

I guess I'm not thinking of "strategic" reserves. I'm refering to our overall reserves which, according to Wikipedia:

United States proven oil reserves declined to a little less than 21 billion barrels (3.3×109 m3) as of 2006 according to the Energy Information Administration... this represents about an 11 year supply of oil reserves at current rates of production.

Augfirst said...

Tony,
No, I do not hate SUV’s or their owners! (I do believe that cheap oil allows people to be stupid about gasoline, but that is for another discussion.)

The strategic oil reserve that I was referring to is the USA’s “emergency stash” of oil stored in Texas salt caves. http://www.fossil.energy.gov/programs/reserves/#Strategic%20Petroleum%20Reserve This was created in 1973 for emergencies and we can pump 4.4 million barrels a day 15 days after the President gives the order. We currently have 58 days of protection.

Newt wants to dump a 1/3 of the Strategic Oil Reserve on to the market. I disagree with that philosophy because after we pump a 1/3 of the oil then we will be even more susceptible to market fluctuations or an embargo, what I would call a true emergency.

I agree with Newt that we should drill everywhere and anywhere we can find oil in the U.S. and we should find alternative energy as soon as possible, but to dump the Strategic Oil Reserve is a very bad idea in my opinion.

Michael Lockridge said...

When I drive south on Highway 101 here in California, I begin to see idle oil wells. I can drive past fields that are not being pumped for many miles. Once in awhile I see one pumping away, but it is rare.

Perhaps a few of those strange looking machines could be turned on, and take the edge off the prices.

Of course, much effort must be expended to move us to greater energy independence.

Where is that leader? Kennedy claimed the moon, and set a deadline. Where is our energy independence leader who will issue such a challenge?

Reepicheep said...

Well said Michael.

Char Sullivan said...

I guess that is why you sounded excited about Dads Company drilling in the South. Not only will it help a little with the need of this country and oil. The people in this poor area will actually have black gold. They have struggled ALL their lives to barely squeak out minimum wage and have raised families little above poverty. Now they have the chance at money, to go on a vacation, to simply not struggle. I. But it is also sad that while one may stand to make a million their neighbor down the road won't. Because their land is not in the rock formation pattern Dad is looking for as the geologist/engineer. I guess in a sense it is like salvation not everyone gets the calling or the prize ,only God knows who. I am not sure what the answer is. I have asked Dad and he gives me some answers. The main thing he says is to be ready for anything. Be independent, not dependent. Have a garden, a water supply, some cows or chickens. Not to be a doomsdayist by any means, We just need to be ready and not live life obliviously. If God is giving us signs about what is to come, he does take care of his own, however, he DOES expect us to be a bit proactive and use our heads to be prepared. We have our garden in Arkansas, a water supply, 5 acres of land, and I have been taking notes from my mother in law about canning, putting food up ect. Things that our parents and surely grandparents did and were frugal enough to do. We are SUCH a wasteful society. I am not saying I am not, because I am. I am changing though for the better and now realizing that my kids need to understand that their lives may not be easy. Who would ever have thought in America. I hope that We find lots of oil. Prayers would be welcomed that this project is successful and other projects take off. My dad is a Christian and loves the Lord. I know that God will bless the efforts that he and my husband and brother are working for.

Frontier Forest said...

Not much wisdom from this vantage point, but one thing for sure, in all the miles we drove, throughout Western Kansas, we saw plenty of beautiful corn and more pumping oils wells than I have seen, even living 40 years in the Oklahoma, deep-well basin. I am truly glad for the farmers.