It’s is time to drill for OIL in ANWR
Washington, D.C. (rightcommentary.com): To drill or not to drill oil in the Arctic National Wildlife Refuge has been debated since the 1970s. The time to drill is now.
Many polls have indicated a majority of Americans favor not drilling in the ANWR. Overnight, the national average price Americans pay to gas up rose 0.4 cent overnight to a record $3.603 a gallon, according to a survey of stations by AAA and the Oil Price Information Service.
Recently, OPEC President Chakib Khelil said he does not rule out oil prices reaching $200 a barrel, even though supply is adequate, because the market is driven by the dollar’s slide, Algerian government newspaper El Moudjahid reported on Monday.
If that happens, gas could reach $8 to $10 per gallon. Most agree drilling for oil in the ANWR will not end our dependence on foreign oil, but it will put a dent in it. Some oil companies have said the oil taken from the ground there wouldn’t reach the market for 10 years. So now is the time to drill for the future.
We cannot ignore this anymore. The United States HAS to improve its domestic oil production capability - including drilling for ANWR. By refusing to drill - we’ve decided to punish our economy and the American consumer.
The potential effects of a serious shortage go far beyond stress at the gas pumps. Nearly everything we eat or use was made or transported with a fuel made from petroleum. The fuels power factories, farm equipment and ships. They heat homes and businesses. Fertilizers and insecticides are made from oil.
Oil is used to make most organic chemicals — or petrochemicals — including pharmaceuticals, agricultural products, plastics and fabrics.
High oil prices drive up the prices of goods and services and eat up the money people would rather spend on food, clothes, vacations, houses and other pleasures and necessities. That hurts those businesses and their employees. Every recession since the early 1970s was preceded by a sharp rise in oil prices.
Stripping out natural gas liquids, oil production has not grown for over two years, which certainly goes a long way to explaining why oil prices have doubled over that period. It is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity.
According to Wikipedia.org, a 1998 United States Geological Survey study indicated there is a 95 percent probability that at least 4.3 billion barrels and a five percent possibility that as much as 11.8 billion barrels of technically recoverable oil exists in the AWNR 1002 area, with a mean value of 7.7 billion barrels.
In addition, in the entire assessment area, which covers not only land under federal jurisdiction, but also native lands and adjacent state waters within three miles, technically recoverable oil is estimated to be at least 5.7 billion and as much as 16.0 billion barrels, with a mean value of 10.4 billion barrels.
The US consumes about 20 million barrels daily. If the AWNR oil reserves were used to supply five percent of the US daily consumption— most is imported from Canada (19 percent), Mexico (15 percent), Saudi Arabia (11.5 percent), Nigeria (10.5 percent) and Venezuela (10.5 percent)— the reserves, using the low figure of 4.3 billion barrels, would last approximately 4,300 days, or almost 12 years. Using the high estimate, the reserves would last approximately 11,800 days, or 32 years. If the ANWR was used to meet 100 percent of US demand, it would last for 215 days under the low estimate, and 525 days or just 1.4 years if it contained 10.4 billion barrels.
Drilling in ANWR will not solve all the oil problems in the US, but it will help.
Otherwise - we won’t need gasoline, or cars, because when gas is $10 a gallon - no one will be able to afford to eat, to work, or to survive in a modern economy.
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So why does the US actually exports around 370 million barrels of oil per year?
The US consumes close to 8 billion barrels of oil every year.
The US produces over 3 billion barrels of oil every year
The US imports around 4.8 billion barrels of oil per year.
At best estimates, there are 12 billion barrels of oil available in ANWR, perhaps even as little as 4 billion. ANWR oil reserves would account for 3% of our daily needs. So with ANWR, which wouldn’t reach peak production until about the year 2018, oil would be at $134.83 per barrel instead of $139.
If such a high portion of our oil comes from a non-Opec nation such as ourselves, why are we charging ourselves $139 per barrel? Since it isn’t OPEC, who is it? Exxon?
Thanks for pointing out that by voting republican, gas prices go from $1.44 to $4.00. It’s what happens when you elect an ex oil man from Texas with ties to the Saudi Royal Family, as President.
I can guarantee that in October and Novemer gas prices will drop and then drop again if Obama gets elected.
Toad734s last blog post..McCain Campaigning to Become the Next President of Israel
Toad:
The export/import equation is largely the result of the fact that not all crude oil is the same, for the same applications, and equally fungible. The United States imports oil primarily from:
- 17.8% from Saudi Arabia
- 16.5% from Canada
- 12.8% from Venezuela
- 12.0% from Mexico
- 7.5% from Nigeria
The breakdown of this import structure can be found here:
http://tonto.eia.doe.gov/dnav/pet/pet_sum_snd_d_nus_mbbl_m_cur.htm
You’ll see that the crude oil and the crude oil products are the highest constituents imported. That is because our natural supplies of those products is insufficient to cover demand. We export, however, relatively little - mostly crude oil from Texas I believe… you can drill down (pun intended) on that data here:
http://tonto.eia.doe.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_4.htm
Most of the exported oil as I understand is from Alaska and it’s going to Japan since the transportation costs are less for the Japanese than purchasing from OPEC/middle-east. Some oil is also exported to Canada along the pipeline route…
My understanding is much of the exported items are as semi-processed refined goods that are specific to certain applications for lubricants, fuels, etc. It is not generally refined gasoline that is being exported…
As for the price… OPEC does not monopolistically control the price of oil - however - price shocks in the OPEC area do have impact on the global oil market as a result of the fungibility of oil between markets. In other words - there is only one price in the world market - and it is determined by worldwide supply and demand factors (including speculation).
Congress has been a fool for the last 35 years listening to minority environmental groups. The American people need better leaders who are more concerned about the people rather than polar bears, antelope and the pristine environment in Anwr. Not one single politician is likely to go there to enjoy the beauty, but it is compared to the Grand Canyon and made out to be like a park, a treasure that Congress must protect I guess for people to sit around and admire.
In my opinion, their job is to protect the American people. No one is asking them to start shooting polar bears, antelope or to destroy the area where oil wells, a pipeline or refineries must be built. What we have in congress is a bunch of liberal educated self-centered rich lawyers and people who are just concerned about being reelected. So, they have bamboozled the people with lies, such as there is no more oil and protecting the environment.
Well it is a blatant lie; there is more oil in Anwr than the Middle East so why should we bow down before the oil rich cartel and do what they impose on the American people. Well, I’m not buying it. We can get all the oil we need and if there isn’t enough in Anwr we can tap the richest oil reserve right in North Dakota.
There is no reason we do not drill off California, Virginia and Florida and I don’t like this business of allowing the states to decide when it is in International Waters – we don’t say a darned thing when China does it close to Key West right under our noses. Hey, if the Chinese are drilling right off the Keys, it has to be okay for Americans as well – it’s in International waters after all, but as Americans we cannot do the same just because of these people we have in Congress are working against what Americans need – more oil. They must be voted out of office and power, if American treasure their nation and freedom.
Finally, Congress even votes against using oil shale in Wyoming and Colorado. We have enough to take care of all the needs of the people, but guess what has to happen first? Yes, vote out all the present members of Congress. We must do this and try our best to find leaders who are truly concerned about the American peoples’ needs.
Again, no one expects oil production needs to destroy the environment or anything else. Years ago when they built the Alaskan pipeline and Prudhoe Bay/Deadhorse, Alaskan project was on hold for many years before Congress authorized it. The main concern then was how it would affect the antelope, but today the antelope thrive because of the pipeline – they love it and rub up against it for heat, so it hasn’t hurt one single animal at all. But, the poor judgment of our Congress even back then was horrible. So now Congress has made up its mind never to allow more oil production anywhere and it is a terrible mistake that will affect the lives of millions of Americans forever.
We are the people who made America what it is and now we have leaders who want to destroy the American way of life, so we can finally live like a 3rd world country, maybe even move back to the caves so the environment is not molested. Well, I’m not doing it, but am campaigning for Americans everywhere to join together and tell Congress what we want. Further, to let them know where it hurts them the most just vote them out of office and put someone in who has some common sense.
Thanks, Bill Peters