Drilling here, drilling now has no impact at gas pump

oilprod

Remember when “Drill here, drill now” was supposed to solve our energy problems?

Well, we are drilling here. We are drilling now.

As the Wall Street Journal reports, crude oil production in the United States is expected to jump 12 percent in 2012 and another 8 percent next year. Domestic crude-oil production through the first seven months of 2012 — July is the most recent month for which numbers are available — is 21 percent higher than it was in the same period in 2008.

That influx of oil onto the American market has driven the price of West Texas crude, the benchmark for U.S. oil, down by 7 percent. But as the WSJ also notes (subs. req.):

… gasoline prices currently average nearly $4 per gallon nationwide. Rising U.S. crude production may seem like an attractive antidote, but it is proving ineffective on its own at a time when the world’s appetite for energy remains voracious and Middle East tension is a reminder that supplies could be disrupted.

“Even the significant increase in U.S. production is a small part of the world oil market,” said Severin Borenstein, co-director of the Energy Institute at the Haas School of Business.

Refiners that process the cheaper crude are selling gasoline and diesel into a global market driven more by higher international prices for crude, which are up around 7% in 2012.

Some are benefiting. Refiners in the Midwest—near where much of the new oil is produced or stored—can often pay less for the raw crude than do rivals in U.S. coastal areas and abroad, but can charge market prices for the sought-after gasoline and diesel they churn out.

HollyFrontier Corp., which owns refineries in Oklahoma, Kansas and elsewhere, saw net income jump 149% to $502 million year over year in the second quarter. Tesoro Corp., which operates a refinery in North Dakota, where crude production has roughly quadrupled in four years, reported a 77% leap to $393 million in the same period.

In other words, significant, sustained increases in domestic oil production have had and will have little or no effect on the price of gasoline at the pump, because gasoline at the pump is sold at the world price for that commodity. In fact, the financial benefit from increased domestic drilling is being enjoyed almost exclusively by refiners in the form of considerably enhanced profit margins.

Because that’s how the oil markets work.

– Jay Bookman

441 comments Add your comment

stands for decibels

October 15th, 2012
10:53 am

Remember when “Drill here, drill now”

you forgot the third line:

“PAY LESS”.

getalife

October 15th, 2012
10:55 am

The demand from China and India are back up.

Business is booming again.

Brosephus™

October 15th, 2012
10:58 am

Jay

If I knew it wouldn’t get you in trouble, I’d send you my “Drill Baby Drill” and “Drill here, Drill now” tshirt ideas.

You’ll never get the supply side disciples to understand that we can’t effectively control our prices anymore because of the global impact of supply/demand.

They BOTH suck

October 15th, 2012
10:58 am

But, but, but according to one of our regulars, Bush just spoke and the gas prices went down faster than Moses parted the Red Sea………..

Erwin's cat

October 15th, 2012
10:59 am

and in other news…water is wet!

Thulsa Doom

October 15th, 2012
10:59 am

Uh oh. We better quit drilling. Can’t have those r

Stevie Ray..Clowns to the left and Jokers to the right..here I am...

October 15th, 2012
10:59 am

So what about less dependence on foreign oil…? Will that not happen as well?

Lord Help Us

October 15th, 2012
10:59 am

The Koch brothers are doing very well under President Obama.

However, that extra 10-15% they are making due to the price of crude will still MAKE them cut jobs if their taxes go up 3-4%.

Lord Help Us

October 15th, 2012
11:01 am

‘So what about less dependence on foreign oil…? Will that not happen as well?’

Doesn’t matter with a commodity product.

Granny Godzilla - Union Thugette

October 15th, 2012
11:01 am

“In other words, significant, sustained increases in domestic oil production have had and will have little or no effect on the price of gasoline at the pump, because gasoline at the pump is sold at the world price for that commodity. In fact, the financial benefit from increased domestic drilling is being enjoyed almost exclusively by refiners in the form of considerably enhanced profit margins.

Because that’s how the oil markets work.”

And of course democrats, liberals, progresives, greens and people with
a brain have known that all along.

Stevie Ray..Clowns to the left and Jokers to the right..here I am...

October 15th, 2012
11:02 am

GETALIFE

I agree that since demand will go up given the industrial growth of China and India, price isnt’ going down again soon…although the near term demand estimates are not as high as originally anticipated..

http://www.marketwatch.com/story/strong-dollar-leans-on-oil-in-asia-2012-10-15

DannyX

October 15th, 2012
11:03 am

“Refiners that process the cheaper crude are selling gasoline and diesel into a global market driven more by higher international prices for crude, which are up around 7% in 2012.”

That about says it all. What a fantasy world Republicans live in.

Lord Help Us

October 15th, 2012
11:03 am

Countries like Iran and Saudi Arabia do not have cost increases relative to this spike in oil prices.

They get pure profit.

Doggone/GA

October 15th, 2012
11:03 am

“So what about less dependence on foreign oil…? Will that not happen as well?”

No, the US does not have enough usable reserves to even get us close to filling out domestic needs. Plus, even if we did the only way to achive a reduction would be to require domestic oil products be only sold in the US. Is that what we need, more government interference in the markets?

Thulsa Doom

October 15th, 2012
11:04 am

Uh oh. We better quit drilling. Can’t have those refiners making money. Nevermind the jobs and tax revenue that drilling brings. Matter of fact maybe we ought to just quit drilling period. We will check see what happens to oil prices then.

Marty Huggins'

October 15th, 2012
11:04 am

Producing oil here may not have much of a price changing effect on the global market.

However more production of oil here would allow us to curb many of the cost direct or indirect related to importing as much of our oil as we do now.

http://www.iags.org/costofoil.html

Stevie Ray..Clowns to the left and Jokers to the right..here I am...

October 15th, 2012
11:04 am

LORD,

I’m not suggesting it will have an impact on price…I’m suggesting that there is value in becoming less oil dependent from governments that hate us more every day…this fact is a reflection of failed foreign policy..

stands for decibels

October 15th, 2012
11:05 am

Bush just spoke and the gas prices went down faster than Moses parted the Red Sea…

He didn’t speak, he “jawboned.”

Stevie Ray..Clowns to the left and Jokers to the right..here I am...

October 15th, 2012
11:06 am

DOGGONE,

So you are suggesting that growing domestic supply will not decrease our dependence in any way, shape or form?

Joe Hussein Mama

October 15th, 2012
11:06 am

M. Huggins — “However more production of oil here would allow us to curb many of the cost direct or indirect related to importing as much of our oil as we do now.”

Why? Oil produced here doesn’t necessarily stay here — it gets sold on the world market.

DownInAlbany

October 15th, 2012
11:06 am

One word that all liberals are allergic to: independence

Redneck Convert (R--and proud of it)

October 15th, 2012
11:06 am

Well, it’s all a plot to make me drive one of them weeny little economy cars instead of my Ford F-450. The libruls pull stunts like this every once in a while, going way back when they tried to make us measure things in centimeters and meters instead of inches and feet and yards. Well, I don’t care what they charge for gas, I’m going to keep right on driving my full-size pickup. And you can take your facts and stick them where the sun don’t shine. I got my opinion and my opinion is we need to sink a oil well in every back yard and national forest and anywhere else there’s oil.

Have a good Monday everybody.

Joe Hussein Mama

October 15th, 2012
11:08 am

S. Ray — “So you are suggesting that growing domestic supply will not decrease our dependence in any way, shape or form?”

The only way that could happen is if we nationalized our petroleum industry and *kept* all the oil we produce for domestic comsumption. And I’m pretty sure that neither the petroleum corporations nor the GOP movers and shakers want that to happen.

Erwin's cat

October 15th, 2012
11:08 am

Although the right could use the argument of the left’s argument regarding the economy..

“just think how bad it could have been if we didn’t…”

Granny Godzilla - Union Thugette

October 15th, 2012
11:08 am

DownInAlbany

October 15th, 2012
11:06 am
One word that all liberals are allergic to: independence

.
.
Heavens that is just plain silly.

Do you want us to NATIONALIZE oil?

stands for decibels

October 15th, 2012
11:08 am

Uh oh. We better quit drilling. Can’t have those refiners making money. Nevermind the jobs and tax revenue that drilling brings. Matter of fact maybe we ought to just quit drilling period. We will check see what happens to oil prices then.

We hope you’ve enjoyed this episode of Strawman Theater.

This program is made possible by the Koch Foundation, a grant from Exxon/Mobile, and by the generous support of people like you.

Joe Hussein Mama

October 15th, 2012
11:10 am

DownInAlbany — “One word that all liberals are allergic to: independence”

Not in the least. But drilling more oil won’t make us independent in and of itself.

Even if we produced every drop we need here at home, it wouldn’t matter under our current system because we *sell it all* on the open market. It doesn’t stay here unless we’re the top bidder for it.

Ahem

October 15th, 2012
11:10 am

from “downstairs” but with a connection here, except not commenting on pump prices, but rather the bigger economic picture

“Those are the two choices, laid out in stark, direct terms.”

– Jay Bookman

Actually, those are two (of a myriad of) choices, laid out solely in the words of Jay Bookman and offered seemingly in a vacuum, without any consideration of increased revenue generated by a more robust economy, which includes more folks working and paying in to the treasury. If one believes that all money is the result of some sort of government activity, then one misses the point of why we must have someone in the presidency that fully understands our economy and thus, the huge upside influences resulting from homegrown energy, as one example.

Lord Help Us

October 15th, 2012
11:10 am

‘I’m suggesting that there is value in becoming less oil dependent from governments that hate us more every day…this fact is a reflection of failed foreign policy..’

The premise of the article, IMO, is how shallow and vacuous the ‘drill here drill now’ cry from the GOP has proven to be. Yet, it was yelled emphatically and the ‘brains’ of GOP economic policy pushed it as a tough sounding policy to extort their sheep. And, it was BS.

As usual, the GOP pays no price for misleading their sheep…

Thulsa Doom

October 15th, 2012
11:10 am

And here i thought that pencil neck convert drove a prius.

Marty Huggins'

October 15th, 2012
11:10 am

Joe Hussein Mama
October 15th, 2012
11:06 am

Read the link.

With an increase to the amount of oil in the world market at any time would take away a dependence on countries with questions and questionable leaders.

It wouldn’t lower gas prices at the pump.
It would lower cost associated with being dependent on others for oil.

DownInAlbany

October 15th, 2012
11:11 am

Do you want us to NATIONALIZE oil?.

Now, that’s a stupid question, there! Or a stretch, at least…

Brosephus™

October 15th, 2012
11:11 am

So you are suggesting that growing domestic supply will not decrease our dependence in any way, shape or form?

Two words….. global market.

Oil companies will sell to the highest bidder regardless to where that oil ends up. If China or India is willing to pay more, what makes you think a domestic oil company is going to forego a larger profit by simply selling oil here at a lower price? It’s all supply vs demand, and we have a lot less effect on prices because of the global supply/demand matrix. The only way to change that is to go full tilt on regulations and nationalize our oil industry.

Doggone/GA

October 15th, 2012
11:11 am

“So you are suggesting that growing domestic supply will not decrease our dependence in any way, shape or form”

Yes. A slight decrease might happen, but effectively it doesn’t matter.

Joe Hussein Mama

October 15th, 2012
11:13 am

M. Huggins — “Read the link.”

Already did, thanks. It speaks only to indirect costs.

“With an increase to the amount of oil in the world market at any time would take away a dependence on countries with questions and questionable leaders.”

How, exactly?

“It wouldn’t lower gas prices at the pump. It would lower cost associated with being dependent on others for oil.”

Assuming that the oil that we used to protect continued to make it to the world market.

DownInAlbany

October 15th, 2012
11:14 am

But drilling more oil won’t make us independent in and of itself.

Something we agree on, but, we’ve got to start somewhere.

It would have been nice though, if O had simply allowed more drilling than he did. Would have at least created some much-needed jobs, if nothing else.

Doggone/GA

October 15th, 2012
11:15 am

“With an increase to the amount of oil in the world market at any time would take away a dependence on countries with questions and questionable leaders”

You’re leaving out of the equation…as too many cons do…that if WE increase our production then other oil producing countries can DECREASE theirs. Leaving NO NET INCREASE in oi being sold.

Thulsa Doom

October 15th, 2012
11:15 am

Sfd

No strawman sir. The oil industry generates jobs and big time tax revenue. Do u deny that?

Ahem

October 15th, 2012
11:15 am

A “Koch” with more wrinkles.

George Soros, the billionaire liberal, moves back into political giving in a big way, donating $1 million to Super PAC backing Obama.

East Cobb RINO, Inc. (LLC)

October 15th, 2012
11:17 am

Off topic but I need something ’splained to me. In this AJC poll …

http://www.ajc.com/news/national/georgia-statewide-poll/

The last question on the likely voters horse race tab states: Overall, what do you think is the best way to reduce the federal budget deficit: by cutting federal spending, by increasing taxes, or by a combination of both?

65% of responders answered “combination of both”. And yet the same poll shows only 43% of these plan to vote Obama. I guess the other 22% are voting for one of the versions of Mitt that supports this approach.

Thulsa Doom

October 15th, 2012
11:18 am

That’s an absurd argument that if we increase production other countries will decrease production.if if if. Geez.

Granny Godzilla - Union Thugette

October 15th, 2012
11:18 am

DownInAlbany

October 15th, 2012
11:11 am
Do you want us to NATIONALIZE oil?.

Now, that’s a stupid question, there! Or a stretch, at least…

.
.
.
Nope that’s the simplest and most logical question if you really want independence.

Your duck and weave needs work.

stands for decibels

October 15th, 2012
11:19 am

No strawman sir. The oil industry generates jobs and big time tax revenue. Do u deny that?

I deny that there are vast legions of America-hatin’ librulz trying to literally destroy the entire American oil exploration and refining industry, which is what the premise of your silly post @ 11.04 appears to rest upon.

Although, perhaps more than a strawman argument, it’s a false dichotomy? Dunno. It’s “the soup that eats like a meal,” I guess.

Bill Orvis White

October 15th, 2012
11:19 am

What none of you secular progressives see is that a President Romney will stare down the world market oil system thereby reinventing it — so that we will have ready access to our own oil. Once we pull our oil from ANWR and the Gulf, there will be no need to deal with our good Arab friends in Saudi I take heat for this, but the Saudis are good friends with the honorable Bush family who kept oil flowing to us thus keeping those gas price$ lower. Do you remember when we had common sense lower gas prices at the pump? Thank the honorable Bush family for those good prices. Those prices will return under the Romney Administration. Folks, help is on the way! Once I explain that logic to my friends and family, a light bulb comes on – showing that Bill’s right. Amen, Bill

Thulsa Doom

October 15th, 2012
11:21 am

They do loves they Koch card they do. I think it outplays the soros card by 47-1.

DownInAlbany

October 15th, 2012
11:21 am

Granny, I have not advocated for nationalization. What are your thoughts on it?

td

October 15th, 2012
11:21 am

That 8 to 12% is all on private land. Open up our public lands and increase the output by 30 to 40% and see what happens to the prices. What happens if you give incentives to domestic oil companies to keep the oil at home?

On a second note to your theory Jay. How many high paying jobs are produced if we open up the public lands? Can you tell us how many were lost when Obama shut down oil drilling in the gulf?

Marty Huggins'

October 15th, 2012
11:21 am

Joe Hussein Mama
October 15th, 2012
11:13 am

If we equalled the amount there would be no need to protect the oil we currently do. We would cover that lost amount.

I happen to believe if we lowered the percentage of the amount of oil produced by the OPEC countries from 40% to around 30% that would lower their weight at the negotiating table and less likely for them to just turn off the spout just to raise prices.

O

stands for decibels

October 15th, 2012
11:22 am

Nope that’s the simplest and most logical question if you really want independence.

furthermore, I don’t believe Downinalbany’s faux-naive question in the least. I’m sure he’s heard lefties posit that if we were really to control gasoline prices in this country, we’d have to nationalize our oil production/refining industries.

And instead of acknowledging as much, he’s playing dumb, now.

But I could be wrong. Lots of people just post crap and don’t bother listening to others at all; maybe that’s his problem.

Lord Help Us

October 15th, 2012
11:22 am

‘President Romney will stare down the world market oil system thereby reinventing it — ‘

Bill’s losing his touch…he opened the kimona with this doozy…

Redneck Convert (R--and proud of it)

October 15th, 2012
11:22 am

When you think about it, drilling more here would help get rid of Sin. About every time you fill up at a gas station, you’re paying for some Towelhead sheik to take another pretty woman off of the market. And notice they don’t ever take the ugly ones. No, he’s taking our money and doing Bigamy! I hear some of them over there have 100s of wifes, not to mention all the concubines. So by drilling for our own oil we could cut way back on some of the low-life living some of them people do. Why, drilling for our own oil is a downright Christian thing to do! Not to mention profitable.

Marty Huggins'

October 15th, 2012
11:23 am

Joe Hussein Mama
October 15th, 2012
11:13 am

If we equalled the amount there would be no need to protect the oil we currently do. We would cover that lost amount.

I happen to believe if we lowered the percentage of the amount of oil produced by the OPEC countries from 40% to around 30% that would lower their weight at the negotiating table and less likely for them to just turn off the spout just to raise prices.

Lord Help Us

October 15th, 2012
11:24 am

‘That 8 to 12% is all on private land. Open up our public lands and increase the output by 30 to 40% and see what happens to the prices. What happens if you give incentives to domestic oil companies to keep the oil at home?’

And, while you’re at it, decrease tax rates to 5% instead of the measly cuts we got from Bush…then you will really see jobs and revenue increases.

Same crap, new day…

Thulsa Doom

October 15th, 2012
11:26 am

Sfd

Relax man. Its just sarcasm. I probably should have used the kamsPam disclaimer to tell u not to take it to seriously.

Rightwing Troll

October 15th, 2012
11:26 am

“So what about less dependence on foreign oil…? Will that not happen as well?”

You can’t be a “free market” person AND believe that we should keep our oil on our shores… the two positions are diametrically opposed. So, the answer to your question is NO.

bman

October 15th, 2012
11:27 am

if we stopped with the drilling here/now thing, would prices stay the same? How do we know prices aren’t lower than they would be if there were no drilling here?

I admit I know next to nothing on this, but there seems to be no evidence either way.that would put this in the speculation category.

stands for decibels

October 15th, 2012
11:28 am

Relax man. Its just sarcasm.

…as was my PBS-style sign off. I can dig it.

(although I apologize for misspelling “Exxon/Mobil”)

Rightwing Troll

October 15th, 2012
11:28 am

Any body else notice the flatline that was the years 2006-2009 and the gradual incline since 2009.

Why did W hate oil production… and America… so much???

Granny Godzilla - Union Thugette

October 15th, 2012
11:29 am

down in albany

best get your thoughts straight…..
“One word that all liberals are allergic to: independence”

Doggone/GA

October 15th, 2012
11:29 am

“if we stopped with the drilling here/now thing, would prices stay the same?:

Yes, they would

“How do we know prices aren’t lower than they would be if there were no drilling here?”

Because the price is set by “he who bids more gets the goods” – that’s what “open market” means. It’s essentially an auction and the highest bidders get the most gas

Lord Help Us

October 15th, 2012
11:30 am

‘there seems to be no evidence either way.’

Seriously? Dude, look at the chart above…

Thulsa Doom

October 15th, 2012
11:30 am

pencil neck convert is concerned about polygamy and what goes on in foreigner bedrooms. Well i guess every lib has to have a cause they do.

zeke

October 15th, 2012
11:30 am

We do not need to nationalize our oil and gas production, distribution or sales! What we need to do is nationalize the oil production in Venezuela, Libya, Saudi, Kuwait, Iraq and IRAN!!! Whatever it takes!

zeke

October 15th, 2012
11:32 am

DRILL BABY DRILL! DRILL HERE DRILL NOW! THE MORE WE DRILL AND PRODUCE THE BETTER FOR US AND OUR ECONOMY!!!!!!!

Dirty Dawg

October 15th, 2012
11:32 am

Those that blame the President – any President – for the price of gasoline should ask themselves, ‘If he could control the price at the pump, why would he, in an election year, allow it to be so high?’ Fact is the ‘final solution’ is one I doubt a Capitalist Society would tolerate…what Chavez did in Venezuela, nationalize their domestic oil production. And instead of all the profits going into ‘big oil’s’ pockets he turned it into raising the standard of living for hundreds of millions of Venezuelans, providing education and healthcare for a huge portion of their people that never could get it before…but that’s way too ’socialistic’ for our tastes. We’d rather have folks like the Koch brothers take the money they make off ‘our’ crude oil – ‘our’ natural resource – and try and buy an election or ten, or twenty, or ever how any they want to. Tell you what my dream is…to wake up on Nov 7 to the realization that those ba$@?rds have pissed away a half a billion dollars trying to beat Democrats and nothing to show for it except a bunch of people that’ll never again buy anything made by Georgia Pacific…and they won’t even be able to write it off on their taxes. Of course as a Small Business – yes, because their company is basically owned by them, they qualify as a small biz – they’ll just take it as another business and move on. But at least I’ll feel better about it.

Kamchak ~ Thug from the Steppes

October 15th, 2012
11:32 am

but there seems to be no evidence either way.that would put this in the speculation category.

There’s your sign

Butch Cassidy (I)

October 15th, 2012
11:33 am

What’s all this “we” talk regarding “keeping our oil”? Did the United States suddnely go into business for themselves in regard to oil production? Did we bar the actual lease holders from the right to use their leases when and where they choose? Please, someone enlighten me.

USA Patriot

October 15th, 2012
11:33 am

Jeepers JB, where was this info back in ‘05 when Katrina hit? Oh yeah, we had a republican in office who was responsible for the price of gas rising because of his oil buddies. I think one item you’re missing about the price of gasoline is the world trades oil based on the US dollar which has been de-valued so much under this administration (due to higher deficits, out of control spending, and loans from China) that we (the US) are paying an effectively higher cost. So if we can get more value into the US dollar (lower spending, lower borrowing, lower deficits, etc.) we could see lower fuel prices. Good Day!

Marty Huggins'

October 15th, 2012
11:33 am

Doggone/GA
October 15th, 2012
11:15 am

Please don’t tell me what I am and what I am not doing!

If we produce more of a percentage of the worlds oil that would give us more of a voice in the discussion of prices. That will severely hurt the economies of many OPEC nations who have nationalized their oil fields. Over a period of time the continued increase by us and decrease by them would allow for us to have a greater voice in what oil prices would be for the global market.

My idea isn’t perfect but I find much more fault in an idea that does not try to get us more of a voice in global energy prices.

I also happen to think if more oil production takes place here then our entrepreneurs are the best in the world and would begin to see increase in private refineries around the country and there would be many entrepreneurs who would find a way to get the oil to citizens through their own way and not putting it on the global market.

Haven’t crunched those numbers I may be way off on that. But seems feasible.

Joe Hussein Mama

October 15th, 2012
11:34 am

DownInAlbany — “Something we agree on, but, we’ve got to start somewhere.”

How about we start with alternative fuels? If electric vehicles don’t work for you (wind, solar and nuclear being means we can use to power them), why not natural gas?

Seems to me that if we reduce our need for petroleum and withdraw our troops protecting it overseas, then we win two ways.

Dirty Dawg

October 15th, 2012
11:34 am

By the way Zeke…you can KMA!

when learning fails

October 15th, 2012
11:34 am

DownInAlbany

October 15th, 2012
11:06 am

____

Another example of an uninformed voter and how Georgia’s education system has failed some…move on UPtoAtlanta to get educated.

Lord Help Us

October 15th, 2012
11:36 am

‘the US dollar which has been de-valued so much under this administration (due to higher deficits, out of control spending, and loans from China) ‘

How much would the Ryan plan, enacted as it was passed in the House, lower the deficit over the next 5-10 years?

RB from Gwinnett

October 15th, 2012
11:36 am

I guess it must be Obama making his big oil buddies rich, eh libs?

Kamchak ~ Thug from the Steppes

October 15th, 2012
11:37 am

Joe Hussein Mama

October 15th, 2012
11:37 am

Doom — “That’s an absurd argument that if we increase production other countries will decrease production.if if if. Geez.”

OPEC member nations have proven it true over and over. They’re more interested in maximizing their revenue than in maintaining a steady supply stream. That’s why they set production quotas. Sure, some nations will cheat now and then, but OPEC always adjusts to account for world supply and prevailing cost targets.

stands for decibels

October 15th, 2012
11:38 am

About that chart–

what the heck happened in Sept 2008?

(I wanted to suggest that the oil industry was too mesmerized by Gov. Palin lustfully exhorting them to “drill baby drill,” but I’m pretty sure that wouldn’t account for it.)

Redneck Convert (R--and proud of it)

October 15th, 2012
11:38 am

Well, anybody know why Thelma Doom is in such a bad mood today?

Southern Pride

October 15th, 2012
11:38 am

I don’t think too many liberals, conservatives or people in the middle are missing the fact that world supply and demand is manipulating the prices of oil and refined products in this country. Oil from the U.S is now fueling the burgeoning economies and production facilities in China, India and other countries as American jobs are shipped overseas. What can we do about it? Do we make it illegal to ship domestic gasoline and diesel fuel from Gulf Coast refineries? Do we add exorbitant taxes to the exports? What does either possible solution say about our free market system? Hopefully, our leaders are in the process of coming up with solutions that will be as fair as possible to the industries that feed our fuel needs and those of other countries. There are no easy answers.

Joe Hussein Mama

October 15th, 2012
11:38 am

M. Huggins — “If we equalled the amount there would be no need to protect the oil we currently do. We would cover that lost amount.”

I seriously doubt that.

Ahem

October 15th, 2012
11:39 am

(I stipulate that I am not an economist; oil baron; or scientist)

It seems to me that any discussion trying to link more drilling to lower pump prices is a canard of sorts. As I understand things, it has a lot to do with refinery capacity and perhaps more so with speculative futures trading.

A possible solution, which could help our country in at least two significant ways, not to even mention direct employment, could be:

A. Convert our personal and commercial fleets to compressed natural gas, a fuel reported to be in great domestic abundance, as quickly as possible thus drastically reducing gasoline and diesel consumption.

B. Refine and export as much gasoline and diesel as possible, thus flipping the trade balance scales so dramatically that we boost our dollar; our econmy; and have “them” dependent upon us for a change.

C. Levy and earmark export taxes for the exclusive use as research funding for an alternative motor vehicle fuel so we don’t rely too heavily on natural gas, which is too valuable as a home heating fuel and as means for generating electricity.

Kamchak ~ Thug from the Steppes

October 15th, 2012
11:41 am

Well, anybody know why Thelma Doom is in such a bad mood today?

Does anybody really care?

getalife

October 15th, 2012
11:42 am

Bottom line.

The United States of America is back thanks to President Obama and it is insane to go back to gop.

Reward our President with your vote to thank him for saving our country.

USA Patriot

October 15th, 2012
11:43 am

LHU, not quite sure how much the deficit would go down so much as ANY form of reduced spending, not year-over-year budget reductions, but true reduced spending could only help.

Rightwing Troll

October 15th, 2012
11:43 am

“We do not need to nationalize our oil and gas production, distribution or sales! What we need to do is nationalize the oil production in Venezuela, Libya, Saudi, Kuwait, Iraq and IRAN!!! Whatever it takes!”

Sigh!!!… another patriotic ‘murican who loves life and liberty so much he’ll send our troops off to foreign, sovereign lands and war to subjugate the citizens and take their oil… all so he doesn’t have to pay more for gas or drive a smaller car… where do you winguts get these people?

Joe Hussein Mama

October 15th, 2012
11:44 am

zeke — “DRILL BABY DRILL! DRILL HERE DRILL NOW! THE MORE WE DRILL AND PRODUCE THE BETTER FOR US AND OUR ECONOMY!!!!!!!”

–Jim Bob Duggar

getalife

October 15th, 2012
11:44 am

BTW, our President wants to cut big oil welfare but congress refused as usual.

Give failed congress the term limits they deserve too.

Thanks.

East Cobb RINO, Inc. (LLC)

October 15th, 2012
11:46 am

While I believe that increased drilling in US would have a minimal effect on oil prices overall, continuing the trend of of more drilling would at least create ‘Merican jurbs that pay better than average and could help balance the export/import ratio.

YouLibs

October 15th, 2012
11:46 am

We sit on about 3% of the world’s estimated reserves. We consume more than a quarter of the world’s production. You do the math.

Lord Help Us

October 15th, 2012
11:46 am

‘not quite sure how much the deficit would go down ‘

Take a look at the Ryan plan, and look at Romney’s 20% tax rate reduction promise, plus $2 trillion additional defense spending – then do a little math and you may be able to come up with an idea of ‘how much the deficit will go down.’

Rightwing Troll

October 15th, 2012
11:47 am

“Give failed congress the term limits they deserve too.”

I would happily embrace a Romney presidency if it meant turning out every single member of congress as well… I don’t care who gets voted in R’s or D’s…

Joe Hussein Mama

October 15th, 2012
11:47 am

M. Huggins — “If we produce more of a percentage of the worlds oil that would give us more of a voice in the discussion of prices. That will severely hurt the economies of many OPEC nations who have nationalized their oil fields.”

Not following you here. What “discussion of prices” are you talking about?

DownInAlbany

October 15th, 2012
11:47 am

stands for decibels….no, my problem is that I have a business to run and can’t be connected at all times, waiting with bated breath for your next comment!

What about jobs that additional drilling would bring?

(funny how you people conveniently gloss over sensible comments)

ByteMe - Thugs vs. Ilk... in 3D!

October 15th, 2012
11:47 am

So what about less dependence on foreign oil…? Will that not happen as well?

We’re now a net oil exporter (exports are higher than imports). Has it made our lives better? We out of the Middle East yet?

Marty Huggins'

October 15th, 2012
11:47 am

Joe Hussein Mama
October 15th, 2012
11:38 am

I shouldn’t have said no need.
Less need should have been substituted in.

Being that many of these countries and their rulers rely nearly solely on profits from oil to fund their lifestyles and their countries.

How long would these other countries be willing to forgo profit left on the table by reduced production meaning less sales?

Lord Help Us

October 15th, 2012
11:48 am

‘I would happily embrace a Romney presidency if it meant turning out every single member of congress as well… ‘

word…

ByteMe - Thugs vs. Ilk... in 3D!

October 15th, 2012
11:49 am

And Jay forgets to mention that there are literally thousands of unused oil leases already granted and millions of acres of land that can be drilled that the oil companies haven’t bothered to drill. But, hey, that’s not what the slogan implies, so the facts must be wrong.

Ahem

October 15th, 2012
11:49 am

“big oil welfare’

Essentially nothing but BS

getalife

October 15th, 2012
11:50 am

Lets face it, Vice President Biden told the truth about the gop in the debate.

They are full of crap and their sole purpose in life is to fight for Americans that do not need their help.

You would be miserable too if you realized this is a worthless existence in life.

Morality?

October 15th, 2012
11:51 am

Drill now……. for the security of the U.S. and the creation of private sector jobs. The pork barrel stimulus to the Obama funders on the green left has been a total waste of billions. Leave the gub’ment out of this pork barrel job creation.