Alaska Oil Drilling Won't Lower Price of Gas

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Oil drilled in Alaska:

a) goes to Opec and does NOT mean Americans get to pull their car up to an American Oil Only gas pump.

b) goes to Opec and means that other countries simply lower their output to keep prices high (like they did just the other day when the price per barrel started to come down) and therefore drilling more at home won't lower prices at the pump or help the economy

c) goes to Opec, and since our overall supply is lower than middle east countries, we will be putting what we have into a joint barrel allowing them to hold back / retain their supply - leaving us strategically focked when we run out and still haven't developed renewables or alternative sources cause we were into "Drill Baby Drill"

Also, Palin, as Governor significantly raised taxes on oil drawn from Alaska that allowed her to send a $1200 check to Alaskan citizens. The rest of us got nothing, despite being the ones that paid for their "rebates" in the end at the pump. Does the oil in Alaska only belong to Alaskans?

Discuss and refute.

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Type: Discussion • Score: 8 • Views: 4,225 • Replies: 22

@squinney,

Any additional drilling only serves to alter the price of oil due to speculation. No significant change in oil supply can be made in under a decade.

It's ok to drill if you want to worry the speculators to urge the price down, but the long term strategic energy goals should be toward other natural sources.

Ultimately there is a limit to how high oil prices can go because there is an economic ceiling created by the present cost of renewable energy sources (wind, solar, geothermal, etc). On a large scale, oil will always cost less than those sources (because nobody would use oil if clean energy sources worked as well and cost the same), so as the cost of delivering renewable energy goes down (due to manufacturing improvements and increased infrastructure), the price of oil will go down naturally.

Eventually we'll stop burning oil and just use it to lubricate things and to make plastic.

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@squinney,

Sure it will.

3 Replies

@H2O MAN,

H2O MAN wrote:

Sure it will.

Well, if you start today and get the gas at the pump tomorrow - it certainly will have an effect ... for a couple of months, perhaps even a year ....

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@H2O MAN,

now there's a refute and discussion...

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@squinney,

How does oil drilled in Alaska go to OPEC?

I'd like to see how that happens as I am curious about that considering America is not a member of OPEC.

1 Reply

@McGentrix,

You are correct. My bad. I was meaning the world market but it looks like right now only about 7% is exported.

If more drilling is allowed, there are lobbiests on the ready to push for exporting.

http://seattletimes.nwsource.com/html/localnews/2002245699_export17m.html

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@H2O MAN,

Quote:

Sure it will.

When a new meme comes down the pipeline to the brainless wonders they don't stray from the mantra.

1 Reply

@JTT,

Just an FYI JTT.... those "brainless wonders" you are talking about are surely Democrats.... it isn't difficult to see that. GUBMINT HELP ME!! I'M STUCK ON AN ESCALATOR.

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@squinney,

Why are we not looking at coal to gasoline? A plant would cost 3 billion. Big whoop congress spends that on holiday.

I would also like to see more CNG in use.

Rapid deployment of CNG would help allot and make the greenies happy too.

Drilling lowers cost of oil because it adds more oil to the market. Actually just threatening to drill helps.

2 Replies

@Runamuck,

Natural gas does seem to be in the pipeline, so to speak. From what I have read there is a lot more of that than oil in the US.

Anyone know if oil in Alaska belongs to Alaska? Do Texas and Oklahoma handle their oil in a similar way to Alaska? I tend to think of oil in those states being more independently owned rather than state.

1 Reply

@squinney,

Significantly increasing the amount of gas on the market would certainly lower the price. That's standard economics. If we start drilling today, the benefits would be way down the road, but that's hardly an argument not to do it.

1 Reply

@squinney,

Most of Alaska is owned by the federal government.

http://img225.imageshack.us/img225/9079/m1bw8.jpg

By rosborne979

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@Runamuck,

I am investigating converting my truck to CNG right now. there are pros and conds and this early stage of development but it CAN be done with a failry quick recovery of initial out of pocket expense, especially for someone who has to drive a lot like me. You can't wait until conditions are ideal to make a change because conditions are and never will be ideal for anything. You have to wade in.

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@Brandon9000,

brandon wrote :

Quote:

Re: squinney(Post 3400760)
Significantly increasing the amount of gas on the market would certainly lower the price.

so what would be the % increase in word oil supply when the ADDITIONAL alaska oil comes online ?
couldn't find a proper answer on google - probably have to change my question .
anyone have any idea ?

3 Replies

@hamburger,

Quote:

The report, issued by the Energy Information Administration, or EIA, said that if Congress gave the go-ahead to pump oil from Alaska’s Arctic National Wildlife Refuge, the crude could begin flowing by 2013 and reach a peak of 876,000 barrels a day by 2025.

But even at peak production, the EIA analysis said, the United States would still have to import two-thirds of its oil, as opposed to an expected 70 percent if the refuge’s oil remained off the market.

http://www.msnbc.msn.com/id/4542853/

america consumes just over 20 mil barrels a day

1 Reply

@hawkeye10,

hawk :

thanks for the info .
hbg

0 Replies

@hamburger,

hamburger wrote:

brandon wrote :

Quote:

Re: squinney(Post 3400760)
Significantly increasing the amount of gas on the market would certainly lower the price.

so what would be the % increase in word oil supply when the ADDITIONAL alaska oil comes online ?
couldn't find a proper answer on google - probably have to change my question .
anyone have any idea ?

One thing I'm convinced of is that when the supply of a commodity goes up, the price tends to be less than it would have been.

0 Replies

@hamburger,

Quote:

so what would be the % increase in word oil supply when the ADDITIONAL alaska oil comes online ?

I have heard that the number is 5%. And that's for all of the US including offshore resources, not just Alaska (I believe that number is for OIL only, not Natural Gas or Coal).

0 Replies

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http://www.pickensplan.com/index.php

0 Replies

Alaska Oil Drilling Won't Lower Price of Gas

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