Bush Lifts Ban on Offshore Drilling (but...)

[Pangloss]

http://abcnews.go.com/Technology/wireStory?id=5369090

 

President Bush will lift the executive branch's ban on drilling on the outer continental shelf this afternoon. But congress has its own ban so drilling can't begin without that being lifted as well. However, given Congress' nine percent approval rating and the overwhelming popular opinion on high gas prices, it could be difficult for them to say no. Plus they can approve it while keeping ANWR secure, which gives them something to placate environmentalists.

 

Given the apparent safety of offshore drilling, and the need for interim solutions while we adopt alternative energy sources, I think this makes sense, even if it's only a trickle and/or a long way off. One of the reasons we're at that 70% dependency mark is our refusal over the years to develop domestic sources. The time has come.

[Ophiolite]

You presume that there significant discoveries to be made. While there is oil there - in commercial quantities - I would be staggered if there were sufficient to seriously dent the import levels.

[bascule]

I, for one, am hoping for no last minute oil grab

[Phi for All]

I, for one, am hoping for no last minute oil grab

I agree with this, but, while most Americans are probably thinking that offshore drilling will bring prices down, I'm just hoping they don't go up too much more too quickly. I want a price that makes alternatives more attractive without impacting the prices of everything else too heavily, and I want less dependence on oil from questionable sources.

 

And I want a fireman's hat, some LEGOs and a horse; not a pony, a HORSE.

[Pangloss]

No!

 

[DJBruce]

I'm thinking that we should use this challenge to find alternatives but while we are working on those I we should drill. But I highly doubt that there will be a significant impact on the high prices.

[Aardvark]

I'm thinking that we should use this challenge to find alternatives but while we are working on those I we should drill. But I highly doubt that there will be a significant impact on the high prices.

 

The day that President Bush announced the end of the Presidential ban on off shore oil drilling the price of oil dropped. The price dropped immediately he made the speech.

[Pangloss]

The day that President Bush announced the end of the Presidential ban on off shore oil drilling the price of oil dropped. The price dropped immediately he made the speech.

 

Thus demonstrating the impact of speculation on the price of oil.

[Aardvark]

Thus demonstrating the impact of speculation on the price of oil.

 

Of course.

 

Future production is a fact that is part of the pricing of any commodity in a properly functioning market.

[iNow]

Let's see how long the price decline lasts. That is a fundamentally more important question to ask in this situation.

[Pangloss]

Or if it affects the price of gas at all. I read a couple of months ago that while the price of crude had risen 70% (over an amount of time I cannot recall), the price at the pump had only risen 30%, suggesting a margin. The current decline in the price of crude might therefore have no impact on the price at the pump. But I don't know how accurate any of that really is.

 

I suspect we will see a slight fall but that it will remain in the vicinity of $4/gallon. I'm even less of a sage than I am a rocket scientist, though.

[iNow]

I actually agree with your conclusion though. I suppose you can call me the lemon butter for your sage.

[iNow]

Let's see how long the price decline lasts. That is a fundamentally more important question to ask in this situation.

 

Or if it affects the price of gas at all. I read a couple of months ago that while the price of crude had risen 70% (over an amount of time I cannot recall), the price at the pump had only risen 30%, suggesting a margin. The current decline in the price of crude might therefore have no impact on the price at the pump. But I don't know how accurate any of that really is.

 

I suspect we will see a slight fall but that it will remain in the vicinity of $4/gallon. I'm even less of a sage than I am a rocket scientist, though.

 

Your prediction on this has held true thus far. I've seen no change at the pump despite the massive drop in per barrel costs these past few weeks.

 

 

Why lower prices if people will pay higher ones, eh?

 

http://www.freep.com/apps/pbcs.dll/article?AID=/20080801/BUSINESS07/808010363/1020/Business07

[ecoli]

Your prediction on this has held true thus far. I've seen no change at the pump despite the massive drop in per barrel costs these past few weeks.

 

 

Why lower prices if people will pay higher ones, eh?

 

http://www.freep.com/apps/pbcs.dll/article?AID=/20080801/BUSINESS07/808010363/1020/Business07

 

I've seen gas prices drop from about $4.20 to $4.09 in two weeks.

[Pangloss]

The news stories I've been seeing have been talking about a 10-20 cent drop at the pump. One story (I'll have to look around for it) said that the national average is down below the $4 mark again. I'm concerned that we may drop below the critical threshold of consumer participation in the downward trend. But the auto market suggests otherwise, and I think we'll have to just wait and see.