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.

“….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?

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

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.

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.

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.

Yes, only Republicans lie.

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.

Roger_Roger Says:
Does the left have a problem with us planning for our future?

No, that’s why we are planning on taking our country back and fixing everything you screwed up.

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.

HMMMMM!

Didn’t McIIIrd support shipping these jobs to Airbus?

“My friends, I never said that!”

Didn’t McIIIrd support shipping these jobs to Airbus?

CommonMan Says:
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.

Yeah 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.

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.