Gateway has an interesting story about the Chinese drilling for oil off the Florida Keys.
On Thursday, Senator Larry Craig (R-ID) gave Senate speech explaining the current MiNOrity "No Zones" for drilling and exploration:
We are experiencing higher gasoline, oil, and natural gas prices today because of decades of restricted development of new sources of petroleum.
From ANWR to off-shore development such as Lease Area 181 in the Gulf of Mexico, we have identified oil and natural gas reserves that can be developed and used responsibly. Yet time and time again efforts to increase supply, and reduce prices, are blocked. For instance, ten years ago President Clinton vetoed development in ANWR.
For decades, the minority party has blocked one effort after another to responsibly develop the energy resources our country possesses, transforming vast areas of opportunity into "The No Zone."
Because of current U.S. policy, U.S. companies are prohibited from developing oil fields that lie in Cuban waters and come within 50 miles of Florida.
However, Cuba is exploring and potentially developing these oil fields, estimated by the U.S. Geological Survey to possess more oil than the Alaska National Wildlife Refuge, and Cuba is partnering with China and other countries, such as Spain, France, and Canada.
Honest to God, just what did the environmentalist think would happen? We do not control the world, there are plenty of countries out there who could care less about the dolphins and the whales and the ice shelf.
10 comments:
2hotel9:
I remember the same thing happening in Oklahoma right about then.
Where I grew up oil and gas wells were being shut down and capped in order to avoid falling afoul of the then new enviromental regulations.
Do you have good evidence that the environmental regulations were the cause? I was under the impression that the collapse of oil prices in the early 80's following the runup during the oil embargo were the cause. I'm not saying you are wrong, I would just like more evidence.
Anyway, this problem isn't going away anytime soon. I suspect it would take a good decade of unregulated developement and investment to even begin to make up for lost ground. Someday we may see that, especially if there are oil shocks involving any or all of Mexico, Venezuela, Nigeria, and Iran, but it will take pretty desperate times to push the country as a whole to change direction and start dealing with resource development again. The good news is that we do have lots of undeveloped or fallow resources.
David:
I think it has a little something to do with the fact that most of the oil seems to be in unstable scarey places.
Virtually all the world's petro reserves are now funding the worst dictatorships. Either we slant drill the Chinese and Cuban desposits or change our enviromental laws.
And just as I say that, it appears "earth in the Balance" cuckoo is running for the Dem nomination.
BTW most of the most rabid enviros are funded out of tax exempt lefty foundations. Anytime anyone tried to fund a competing group, they are discredited as being tools of the corporations.
I say it's time we put those foundations on the hot seat.
I am tired of the deceit. We are experiencing higher gasoline prices now because we are running out of oil worldwide and because more people are using more than ever before. It's not the fault of the Democrats and it's not the fault of George Bush. Nor are any of these short-sighted and disingenuous plans going to help things.
Worst of all is the incessant lie that the American government is somehow in control of a world-wide market.
chuck,
I knew a lawyer for an oil company in the Seventies. The oil wells were capped because of falling prices relative to production costs and because of federal regulations on "windfall profits". It became too difficult to just pump oil and sell it. Reams of books and regulations had to be filled out. There was an elaborate scheme for determining whether you deserved your own money if you sold the oil. Better to just let it sit.
MHA:
In fact the US oil companies only control about 13% of the market.
I do think fear helps run up the price however, but having said that people would not be so fearful if demand was not going up so much.
Terrye,
Yes. Don't forget that there's lots of demand right here in the US. My CEO owns four(!) SUVs. He just got a hefty check in the 7 figures from Microsoft, so the price can go to $100/gallon and he won't really notice. People driving around four SUVs are driving up demand, just like the Indians and Chinese. You and I have to compete with these guys for gasoline.
This is the greediest guy I've ever known--won't let a dime slip past for business spending, because any dime spent is out of his pocket--but he is angry at the "greed" of the oil companies. He's a Democrat of course.
MHA
Classic!
MHA:
I have seen this kind of thing at my job. My CEO lives in Carmel. la te da.
But out on the job, in the homes, I can honestly say that the folks with money are the ones who are the most insistent on getting everything they can from the government, anyway they can.
Some old farmer who has not bought a new truck in 20 years just can not bring himself to ask for anything and is ashamed of taking what he does get.
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