Top McCain adviser: offshore drilling will have ‘no immediate effect’ on gas prices.
Top McCain adviser: offshore drilling will have ‘no immediate effect’ on gas prices.
In a speech that pleased oil executives yesterday, Sen. John McCain (R-AZ) explained his flip-flop in favor of ending the federal ban on offshore oil drilling by saying he was trying to “address the concerns of Americans who are struggling right now to pay for gasoline.” But McCain’s message was contradicted yesterday by his top economic adviser, Douglas Holtz-Eakin, who told reporters that new offshore drilling wouldn’t help lower current gas prices:
Douglas Holtz-Eakin, a senior advisor to McCain’s campaign, acknowledged in a conference call to reporters that new offshore drilling would have no immediate effect on supplies or prices.
The Energy Information Administration says that new offshore drilling wouldn’t have “a significant impact” on gas prices until 2030.
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Way to drum up a HOT-HOT-HOT campaign issue, McStupid!!
June 18th, 2008 at 1:44 pmMcIIIrd says ~ “Quick, draft that little jerk!”
June 18th, 2008 at 1:46 pmThere is a ton of mis-information on this issue. THERE IS NO DRILLING BAN. There is only a leasing ban!!
80% of all off potential off-shore site are already drillable. There’s only a ban on giving out further leases for the unclaimed sites. The oil companies want to monopolize all that property, then wait on it. Why would they want to drill more oil to bring down the price for us when they are making record profits right now?
PLEASE WOULD SOME MORON RIGHTY ANSWER THAT FOR ME?
June 18th, 2008 at 1:46 pmBut it would have an immediate positive effect on the profit margin of oil companies…..thus the motivation….
June 18th, 2008 at 1:46 pmWell, duh. Unfortunately most Americans still think Saddam Hussein was involved in 9/11, so I imagine most people won’t understand this nuance.
June 18th, 2008 at 1:47 pmOh Oh….Here comes another flip-flop by McSame. “I was against drilling before I was against drilling. Is that clear enough for you?”.
June 18th, 2008 at 1:49 pmJust a few days ago McCain said: ” If you line up all the economists, they couln’t reach a conclusion.” Wonder how “top economic advisor Holtz-Eakin feels about that comment.
June 18th, 2008 at 1:50 pmThat must be because China is drilling there and taking all the cheap gas off the top.
June 18th, 2008 at 1:52 pmEnding the federal ban may not have an immediate effect for you and I, but Halliburton’s stock will take off like a rocket.
June 18th, 2008 at 1:56 pmCan someone please drag Al Gore out of his “eco-friendly” house to fix this energy crisis once and for all?
June 18th, 2008 at 1:58 pmSo when are the oil companies going to start drilling in the 65,000,000 acres they already hold the leases to?
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The Responsible Federal Oil and Gas Lease Act of 2008 (H.R. 6251) is a direct response to the facts outlined in the recent House Natural Resources Committee Majority Staff report, “The Truth About America’s Energy: Big Oil Stockpiles Supplies and Pockets Profits”, that illustrate how energy companies are not using the federal lands and waters that are already open to drilling. The legislation is co-sponsored by Reps. Rahm Emanuel (D-IL), Maurice Hinchey (D-NY), Ed Markey (D-MA), and John Yarmuth (D-KY).
The 68 million acres of leased but inactive federal land have the potential to produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day. This would nearly double total U.S. oil production, and increase natural gas production by 75 percent. It would also cut U.S. oil imports by more than one-third, reducing America’s dependency on foreign oil.
http://resourcescommittee.house.gov/index.php?option=com_content&task=view&id=389&Itemid=1
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They don’t need MORE leases. They need to use the ones they already have.
June 18th, 2008 at 2:01 pmWhy would they want to drill more oil to bring down the price for us when they are making record profits right now?
#3 – Bravo. This is the question all of us need to have at the ready when dealing with wingnuts and the willfully ignorant.
It’s all about the leases. There’s accessible and drillable (today) oil in places that the oil companies already “own” – approximately 60 million acres – why don’t they drill their first if it’s about producing oil?
It’s all about the leases.
My fear is Bush will his an executive order to make his oil masters happy with this bullsh*t.
June 18th, 2008 at 2:02 pmDouglas Holtz-Eakin remembered that ONLY the Truth will set one FREE!
June 18th, 2008 at 2:03 pmOil for Vall! Oil for Vall!
June 18th, 2008 at 2:06 pmAl won’t be back to save us. We have to save ourselves. Why would he help us? We turned our backs on his just as we have all decent democrats in recent history…..
June 18th, 2008 at 2:06 pmGreat quote.
June 18th, 2008 at 2:17 pmWow, Obama gives an intelligent response…..why can’t the right seem to master this simple skill?
Fred Says:
CommonMan Says:
Al won’t be back to save us. We have to save ourselves. Why would he help us? We turned our backs on his just as we have all decent democrats in recent history…..
Excellent point, Fred. I wish he’d quit dispensing lies about the effect of global warming while living contrary to how he instructs others to live.
June 18th, 2008 at 2:19 pmYeah right, he’s the lyer & hyocrite! People like you contributed to what is happening now, not Al Gore.
There will be many tell all books written in the near future and none of them will reflect well on the bush admin. Al Gore will continue to contribute…..too bad the bush’s are such greedy creeps.
June 18th, 2008 at 2:29 pmDon’t overlook the direct financial incentive to oil company executives from the “opening” of ANWR even if they don’t put a drill bit into the ground. One metric by which the integrated oil producers are measured is reserves (oil still in the ground). If say Exxon or BP gets to claim a chunk of the ANWR reserve on its books due to a lease the company becomes more valuable — as do the exec’s options and/or restricted stock units — without having to do anything more strenuous than write a big check to the RNC.
June 18th, 2008 at 2:35 pmMore bad news for McIIIrd
Boeing wins key round in tanker protest
Didn’t McIIIrd support shipping these jobs to Airbus?
June 18th, 2008 at 2:47 pmRUC,
June 18th, 2008 at 2:54 pmYes, the traitors of the gop want to ship our jobs overseas to please their corporate masters….damn good Americans aren’t they? Who will defend this practice? va voter?
RUCerious Says:
More bad news for McIIIrd
Boeing wins key round in tanker protest
Didn’t McIIIrd support shipping these jobs to Airbus?
“My friends, I never said that!”
June 18th, 2008 at 3:08 pmHas Roger2 started to see the light or did his ‘cut andpaste machine’ copy the wrong article?
HMMMMM!
June 18th, 2008 at 3:10 pmpaleolib Says:
Don’t overlook the direct financial incentive to oil company executives from the “opening” of ANWR even if they don’t put a drill bit into the ground. One metric by which the integrated oil producers are measured is reserves (oil still in the ground).
Exactly! All they have to do is run some aerial surveys and some 3-D Seismic and model the potential and add it to the books.
A few million will yield billions in stock value.
June 18th, 2008 at 3:12 pmI’m sure this guy won’t have a job come sun down. He accidently told the truth and that’s not allowed in the Republican party.
June 18th, 2008 at 3:19 pmIt sounds like the report from TP is suggesting we need to start drilling right now. TP itself is saying that drilling will have a “significant impact” by 2030. Does the left have a problem with us planning for our future?
June 18th, 2008 at 3:35 pmNo, that’s why we are planning on taking our country back and fixing everything you screwed up.
June 18th, 2008 at 3:39 pmSeriously rr, how long did you have to study that article to be able to twist their words into such a tangled mess? Think you are fooling anyone with your bs?
June 18th, 2008 at 3:41 pmFred Says:
Yeah right, he’s the lyer & hyocrite! People like you contributed to what is happening now, not Al Gore.
Fred,
Kindly elaborate how “people like me” have contributed to what is happening now. And while you are at it, if you could explain how Mr. Gore’s high energy-consuming house is not contributing to the problem, I’d appreciate it.
Thank you.
June 18th, 2008 at 4:44 pmThe Shadow Says:
I’m sure this guy won’t have a job come sun down. He accidently told the truth and that’s not allowed in the Republican party.
Yes, only Republicans lie.
June 18th, 2008 at 4:50 pmRoger_Roger Says:
Does the left have a problem with us planning for our future?
I’m all for planning for the future by investing our resources in developing alternative energy sources. Something, you know, more sustainable and less polluting.
June 18th, 2008 at 4:55 pmUnfortunately, if anyone thinks that alternative energy sources will result in lower gasoline prices, they will be very disappointed. France derives 85% of its power using nuclear energy, yet they pay about $6.50/gallon before taxes. Denmark gets 20% of its energy from wind power and pays $6.95/gallon before taxes.
I’m not saying we should not explore alternative energy sources, obviously we should. Just giving a reality check that it won’t necessarily mean lower prices at the tank. And no, I don’t think merely drilling will solve all of our problems.
June 18th, 2008 at 5:10 pmDoesn’t oil from Alaska go to Japan anyway?
June 18th, 2008 at 6:00 pm“….yet they pay about $6.50/gallon before taxes. ”
Citation?
From what I read, they’re paying $6.50 a gallon BECAUSE of taxes.
I’d pay more for my gas if it meant that I was getting my health care covered as I did it, instead of paying $4 a gallon “before taxes” and then STILL have to pay health care on top of it.
Nobody who cites European high prices for gas ever seems to mention the returns those taxes pay for.
June 18th, 2008 at 10:43 pmpiltdown Says:
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“….yet they pay about $6.50/gallon before taxes. ”
Citation?
From what I read, they’re paying $6.50 a gallon BECAUSE of taxes.
I’d pay more for my gas if it meant that I was getting my health care covered as I did it, instead of paying $4 a gallon “before taxes” and then STILL have to pay health care on top of it.
Nobody who cites European high prices for gas ever seems to mention the returns those taxes pay for
So you want a free hand out for health care? What is this a socialist state now? The only free healthcare should go to kids and elderly and people with severe disabilities. If you are mentally able and physically able to work, then get a job that has benefits or pay the 300 a month and get your own. Why do people in this nation feel entitled to things that they dont work for?
Now, Alternative energy should absolutely be researched but lets be real here. We can not have 3-5 different forms of alternative energy for our cars, the infastructure to distribute that will take YEARS to get in place. The drilliing will not drop the price of gas all that much if any, BUT it will stabalise the price at the very least.
Both parties share the blame for the mess we are in today because of short sightedness. I still have to make a decision each week as to how much gas I can afford to put in my car and how much food I can buy. Now think about those on fixed incomes and how much harder it is on them. If we DO nothing at all, then we still have failed. There is no right or wrong answer here, but if the reserves are there, and we are in an emergency, then we MUST look into what can be done to stem the tide, until alternatives are in place that will not effect our food supply and still meet the needs of our driving habits. I still think we should drop the national speed limits to 55 for a short term assistance to lower demand. go to Edmunds and cars.com to read about thier studies on the effects of driving slower and the increase of gas mileage. You might be shocked
June 19th, 2008 at 1:34 amMr. Bungle, piltdown, & lokidog
Some information for you.
Offshore oil leases run five years then they expire. A company can renew the lease for 3 years if they pay an additional lease fee. After that they can only get an additional term if they have drilled a potentially productive well and need time to get infrastructure in place. What normally happens is, after the lease is obtained, the companies get their seismic info together and determine whether or not the lease has potential. If it does, the prospect goes into the drilling program so it can be drilled before the lease runs out. If not, the five years run out and the lease goes back into inventory with the government. It is very rare that the 3 year extension is picked up.
Companies working offshore are setup to evaluate, drill and bring on line new production as rapidly as possible. But, it takes years none-the-less. Managers are compensated to manage and develop the lease assets to maximize profit. To not do so is a formula to be replaced or fired.
It’s a currently popular misconception that oil companies are sitting on leases. It’s just not true. And congressmen not being adequately informed is not unusual, regardless of party affiliation.
Go to the U.S. Dept of the Interior website. You can find a lot of information on offshore leasing and leasing on federal land in general. It’s not a perfect system, but it actually works pretty well.
Right now supply and demand are out of kelter, with demand somewhat outstripping supply. And due to speculation the problem has been multiplied beyond normal market force impact. But demand is dropping in an interesting way. The Federal Highway Admin announced yestereday that U S citizens have driven more than 4 billion (yes, billion) fewer miles in the last 6 months than the same period last year. The same is happening throughout the world. Yesterday China announced they were increasing the price of gasoline in their country. Supply and demand will become realigned and the price of fuel will come down. Wish I could tell you how much, but I can’t. I’ll guess 50 cents by the end of the year and a dollar within a year.
Yes we need alternatives. Our grandkids don’t need to be so reliant on oil. We’ll figure it out, but it will take time.
June 20th, 2008 at 4:49 pm