Analysis: More drilling doesn't lower gasoline prices

[BooRadley]

Yeah, that's what we said.

[soylentgreen]

If drilling for more supplies of oil doesn't cause prices to go down, then ceasing all drilling worldwide won't cause prices to go up. Right?

[BooRadley]

If drilling for more supplies of oil doesn't cause prices to go down, then ceasing all drilling worldwide won't cause prices to go up. Right?

You swapped out domestic and "worldwide". D'oh.

The US has little oil that can be had by primary extraction. The rest of it is either oil sands or, worse, shale -- which is extremely difficult and costly to extract by any currently available processes.

I do hope we're able to find a good way to extract shale oil. That would be pretty awesome, but that's not currently available. In the mean time, we don't have enough oil to flood the global market in a serious way. There would probably be a quick drop in price when the speculators started dumping futures, but it would go back up and stabilize. If we pumped 100% of available, we might be able to affect the price by a few cents for a short while, but then we'd be out.

I'm more in favor of FLoP's suggest that we hold it until everyone else is out, thereby securing our global dominance.

[Cyclone Ranger]

Couldn't that be because the new new drills are just replacing the lowered output from the depleted, older ones?

A few other reasons include the fact that Mideast oil is much cheaper to explore and drill, and speculation in the futures market.

[Cyclone Ranger]

The key to it being "our" oil is that it is not subject to the whims of a bunch of thugs who hate us. The more we produce ourselves, the less we care if Achmadinnerjacket jumps up and down, yelling about the Great Satan.

The oil we drill domestically is too expensive to produce for retail use without energy prices skyrocketing. To keep consumer prices down, we must import OPEC's supply.

Domestic oil is fine for rubbers and plastics, bunker oil, jet fuel, and other industrial uses.

[antiquity]

The oil we drill domestically is too expensive to produce for retail use without energy prices skyrocketing. To keep consumer prices down, we must import OPEC's supply.

Domestic oil is fine for rubbers and plastics, bunker oil, jet fuel, and other industrial uses.

Why didn't I think of that?

[soylentgreen]

You swapped out domestic and "worldwide". D'oh.

The US has little oil that can be had by primary extraction.

I see the distinction. You're saying the US doesn't have enough capacity to impact prices. I get that. The only question...why is China drilling for oil off our shores?

[Cyclone Ranger]

Why didn't I think of that?

Because you're an idiot?

[Cyclone Ranger]

I see the distinction. You're saying the US doesn't have enough capacity to impact prices.

Unless we're willing to sell our entire supply at a decided loss.

[Chachma v'Oz]

Actually the best policy is to leave every drop of oil possible in the ground here, whenever possible, and burn everybody else's up.

That's been my position for a long time. As long as others are willing to sell us their oil, there's no sense using up our own. The obsession some people have with exploring/drilling/pumping/burning the only non-renewable oil we have when there is plenty to be had at the same market price from other sources is nuts.

[9ball8]

No rush to burn oil that is too expensive to extract at present, as others state. Think of the condition of the petroleum industry, once personal vehicles start to transition to electric. That collapses demand, which will be met by a shrinking supply. The worst-performing refineries and extraction sites will be shut down, first in the US, then the rest of the world. We should worry about making that transition, not wringing our hands about how expensive oil products will be. There is truly little we can do about the price of oil if the world maintains extremely high demand, a truth which just won't be accepted by some conservatives.

Oil will still be around for a long time to come. It just won't be dominant in the economy. More significant than buggy whips, since we'll need plastic & specialty fuels for certain applications. Good news for people who don't want to give up the infernal combustion engine, too. Just means gas stations will be harder to find, so carrying an extra supply could be necessary for road trips.

[BooRadley]

The only question...why is China drilling for oil off our shores?

Link?

[antiquity]

Because you're an idiot?

Should I be insulted by your brilliance and vast knowledge of everything under the sun and beyond.

You are one of the biggest jokes on this website being ganja is the other that is.

[Cyclone Ranger]

No, you should be insulted to be called an idiot, unless you simply concede the point. Which, apparently, you do.

[antiquity]

No, you should be insulted to be called an idiot, unless you simply concede the point. Which, apparently, you do.

From this idiot (only because I respond to your idiotic posts) to another I thank you for being a bigger idiot and troll who thinks running a slum dwelling and living in a NYC penthouse and can look down on us common folk with such insight of all things known to man......

[Cyclone Ranger]

The only thing idiotic about my post was your typically laughable inability to understand it.

[antiquity]

Isn't that a smug on your penthouse window? Or is the drool flying when you type on your computer this morning.

[antiquity]

The only thing idiotic about my post was your typically laughable inability to understand it.

so you admit your posts are idiotic?

[Cyclone Ranger]

I rest my case.

[antiquity]

You never had one.