McCain: Allow offshore drilling

Sen. John McCain today said he will call for lifting the two-decade old federal moratorium on gas and oil exploration that covers most of the U.S. coast and let states decide whether to allow drilling.

"We must, we must, embark on a national mission to reduce our dependence on foreign oil," McCain said during a media availability at his campaign headquarters in Arlington, Va.

Read more on the Times political blog The Buzz and an article in Tuesday's St Petersburg Times by  Washington correspondent Wes Allison.

Comments

[CM1972]

Maybe John McCain should worry the fact that he has to stay up at night attempting to pee and not about continuing the failed policies of the last old fart failure president Mr. Ronald Reagan!

[Chris]

Come on who do they think they are fooling. It has already been reported that oil refineries are--and have been for some time--at peak production. Which means that, no matter how much more oil there is, they can not turn out more gasoline.

No, what they aren't saying is that their greedy suppliers in the Middle East have also jumped aboard the profit game. And of coarse why should the U.S. oil companies be the only one making windfall profits. But not any more.

Now having to pay greater prices per barrel has left 'big oil' in a sludgy situation. They can no longer simply sell their own stock to cover the taxes and refining costs. Instead, they are now finaly paying taxes from out of their pockets rather than ours. Good, for as long as it lasts anyway. Unfortunately all the idiots will get together and approve more drilling. And when that happens 'the big three' will be tax free once again!

Wise up people, the price of gasoline is not ever going back down. Increase domestic drilling = increased demostic oil profitability, while the consumer steadily pays more.

[Dave in St Pete]

Wow, what a brilliant and on point comment, not.

We need to drill. If we don't China and Cuba will and they will not care about polluting our beaches. We had oil rigs that went through Katrina with zero spillage. Why do we think we can't do it on this side of the Gulf?

Drill, explore, and build nuke plants. Do it now. Don't give me the it won't help for 10 years answer. We have been living that failed policy for 20 years now.

We have vast oil reserves that need to be used. It will lower prices immediately if we show we are serious about it.

[Tino]

Chris and most other ANWR whiners completely miss the big picture.

Within 10 years, our third largest oil importer -- Mexico -- is expected to be sending significantly less oil up north to us.

When that occurs, and oil takes another significant leg up, we will be asking the same questions that we are today (which were the same questions in the 90's and 80's): why should we drill in ANWR when it takes 10 years to have meaningful production?

When you are paying through your nose to fill your tank, thank an environmentalist.

[Chris]

The business is;
Buying and selling, not
Drilling and selling.
The oil drilled here covers the overhead (refining & taxes etc.) I'm not concerned with, nor had I mentioned 'spillage'. I'll be concerned with the question that comes after the new drilling has commmenced. E.g., where to build the new refinery, My backyard or Yours?

The two of you almost sound as though you work in the oil industry, given your expertise.

-Dave says, "We have vast oil reserves that need to be used. It will lower prices immediately if we show we are serious about it."

and. . .

-Tino says, "Within 10 years, our third largest oil importer -- Mexico -- is expected to be sending significantly less oil up north to us."

The two of you are either psychic or very misinformed.

[Dave in St Pete]

Refineries? Simple, we have lots of closed military bases. Turn them into refineries.

So Exxon, Shell, etc don't drill? Where do you get your misinformation?

Oil shale (vast resource here in the US) can be profitable at $50 a barrel. We have oil fields that are estimated to be equal or greater than those in Saudi.

Are you seriously trying to tell me that all of that would only cover the taxes??

Get out of NIMBY / pseudo environmental land and do some research!

[Tino]

Mexican oil production: be very, very worried. You will not hear this in the mainstream press. In fact, I just heard Dick Durbin on CNBC a few minutes ago saying that oil prices are led by speculators, not by supply/demand, and that oil production is so easy we should be swimming in it.

http://www.eia.doe.gov/oiaf/ieo/special_topics.html

"Cantarell is, by far, Mexico’s most important oil field today. In 2004, Cantarell held more than 26 percent of Mexico’s total remaining oil reserves and produced 2.1 million barrels per day, accounting for more than 61 percent of the country’s total crude oil output. Since its peak production in 2004, Cantarell has been in decline. According to Lui Ramirez Corzo, the former president of Pemex, the Cantarell decline rate is likely to average 14 percent per year from 2007 to 2015.

...over the period from 2006 to 2015, the reference case projects an annual decline in Mexico’s oil production. After 2015, it is assumed that changes in current oil industry regulations, whether they concern taxation rates or rules about foreign investment in the sector, will be made when the country suffers a significant loss of profits from declining oil production."

Mexico's demand will continue to increase at the same time that production will be plunging (14% annually in Cantarell!). Hence, imports (Mexico is the 3rd largest importer to the US) are going to head to zero in a hurry as Mexico decides to use it themselves.

We should have started drilling ANWR and other offshore locations years ago. When will Congress wise up? $200 oil? $300 oil?

[Tino]

Dave in St Pete,

if only it were so easy to build refineries. Heck, you can't even EXPAND existing ones any more.

From a June 12 Wall Street Journal article on refiners, environmentalists are using the courts to block large refinery expansions in Roxana (IL), Richmond (CA) and Whiting (IN).

The eco-terrorist organization NRDC is doing everything that they can to drive the cost of gasoline up for consumers. The next time that you pay through the nose at the pump, thank an environmentalist.

[Chris]

Of coarse they drill. Thats not the game. They don't sell their oil to us, they sell us Saudi oil.

Hence; "buy&sell."

Some of the money from 'their' oil sold overseas pays their profit taxes here. And they still get to gripe to government about how much they are paying per barrel, while the government isn't even taxing them as much as some small businesses are getting taxed. 30% is not 40%.

30% of what they profit, is really 30% of what? Our government does not even know!

[Tino]

Chris, I'm not sure of the point you are trying to make.

Are you saying that the government should add more taxes to the price of a gallon of gas to the consumer? Or should oil & gas companies move out of the US and pay less taxes elsewhere?

[Dave in St Pete]

Tino,

Yep, I understand the enviro problems with refineries. That is why I say we put them on gov't land where we can tell the enviros to sit on it and spin.

Many of the closed bases are empty and have 'pollution problems' already so it would be a good fit IMHO.

[Tino]

Dave in St Pete,

I like your thinking. However, I never underestimate the power of the eco-terrorists. They have neutered the domestic oil industry and killed off domestic nuclear power.

If a Democrat administration does not want private companies to develop refineries on their own land, why would they allow them build it on government land?

[Frank]

How much oil will ANWR provide for US 20 million barrels/day consumption? 6 months? 1 year?

That's if it's all sold in the US, which it won't be since all oil goes on the open market to the highest bidder.

We're competing with China and India for the remaining resource.

The US has 2% of the world's oil reserves but consume 25% of the world's pumped oil. Do the math.

[Tino]

ANWR will try to soften the blow of resources that are going away forever. Re-read the note above on Cantarell.

It is getting tougher, not easier, to explore and produce new sources of oil as existing ones are depleting away at a greater rate.

We need to continue drilling just to hold demand steady -- without new sources, demand is going to outstrip supply even more and then there is NO ceiling on price.

Heck, I heard people bashing ANWR when oil was $40 a barrel. I expect to still hear it when oil is $250 a barrel.