Comments on: Obama and McCain Move Towards Drilling Compromise

By: Synoia

Synoia — Mon, 04 Aug 2008 16:11:28 +0000

Its clever because it take a point of attack off the table. You are dreaming if you believe this drilling will happen in anyone here’s lifetime. The oidl is more valuable in the ground, sorry under the ocean.

An there are no drill ships available for over 5 years.

By: ohbytheway

ohbytheway — Mon, 04 Aug 2008 15:54:40 +0000

From what I’ve read, this offshore drilling wouldn’t even be profitable so let them have their off shore drilling. Who will they pump the oil to — no refineries available. This sounds like a phirric victory for the Republicans and the Democrates get improved efficiency standsrds and support for alternative fuels.

By: Muzzy

Muzzy — Mon, 04 Aug 2008 14:44:46 +0000

I think this is a smart approach by Obama as well. The prize to keep your eye on is improved efficiency standards and promoting alternatives. Big oil would MUCH rather have that shelved than to have more offshore sites opened for lease. Clamoring to lift restrictions on offshore sites is a way to shift eyeballs away from ambitious goals for improved efficiency without openly opposing it. In other words, for goopers, it’s better to talk positively about something that won’t work than to talk about nothing, or worse, talk negatively about something that makes good sense -efficiency and alternatives.

By: Scarecrow

Scarecrow — Mon, 04 Aug 2008 14:36:03 +0000

Thanks; that’s very helpful background.

By: Badwater

Badwater — Mon, 04 Aug 2008 14:35:17 +0000

At the end of the Clinton Administration, nearly all Republics were apoplectic about releasing oil from the strategic oil reserves because of price jumps then. Now, they are strangely quiet. Is it possible that the Republics put Party before Country?

By: selise

selise — Mon, 04 Aug 2008 14:34:20 +0000

i think a couple of my comments got lost in the toobz. just wanted to say thanks for your take. i’ve had way too little sleep and not enough coffee to come up with my own.

By: Elliott

Elliott — Mon, 04 Aug 2008 14:32:21 +0000

definitely worth listening to the video uptop

By: wasabi

wasabi — Mon, 04 Aug 2008 14:30:26 +0000

Here’s the scoop on offshore drilling…

There is NO INFRASTRUCURE built to handle offshore drilling in these new locations. To get oil out from the continental shelf at the west coast of Florida for example, new underground pipelines need to be laid. Then, there needs to be land-based infrastructure along the Florida coast that holds the oil. Floridians need to take a little tour of the Texas/Louisiana coast to appreciate the beauty (sights and smells) of having refineries/oil depots dotting the coastline.

I think it should be left up to the states to decide how they want to proceed. For now, Floridians think they want to drill offshore, but in all likelihood, the cost/benefit ratio of drilling offshore will not be in their favor. It’s an issue that with time, the electorate will understand what is at risk and what is to be gained.

Oil companies stock value is related to their known reserves. The more reserves they have on the books, the greater the value. That doesn’t mean that they are ever going to exploit the leases. They would like to have these leases added to their portfolio though. Looks good to the shareholders.

Here is an example of what is required to get one deep-sea offshore drilling rig online.
- Do sisemic testing to evaluate the potential for oil. (year or better)
- Partner with other oil companies to shoulder the risk.
- Order rig. The existing available drill ships are booked solid for the next 5 years. If you want to build a new drill ship, then you can put your name on the list and wait 6 years at a minimum for it to be built. All shipyards are running at capacity right now.
- Tow the drill ship to it’s new location (3 months)
- Build local infrastructure
- Begin testing

The largest drill platform in the Gulf of Mexico has been working on getting up for the past 2 years, and it has not produced a drop of oil yet. It had some Hurricane Dennis damage, and some structural design issues that needed to be worked through. The discovery well was drilled in 1999.
From start to finish (and it’s not quite there yet) the process has taken over 9 years.

By: dakine01

dakine01 — Mon, 04 Aug 2008 14:21:33 +0000

But perris, that’s part of the problem; to paraphrase Mr Rumsfeld a bit, we’re dealing with the poll that is not that poll that should be.

By: perris

perris — Mon, 04 Aug 2008 14:17:54 +0000

if we consider politics you might be right, however the politics now are surely favoring this direction.

reagan was possibly more damaging over all then bush and this is one of the reasons

in any event, the new licensing is no stop gap until they exploit their existing license, and believe me, even republicans agree with that point, they just don’t know that point exists