Think Progress

Rove Baselessly Claims EIA Agrees That Oil Drilling ‘Would Bring Down Prices’»

Last night on Fox News, former top Bush adviser Karl Rove showed up on Hannity & Colmes to discuss the political topic du jour: gas prices and energy policy.

Co-host Alan Colmes noted that conservatives like Rove just want to drill for more oil with the “hope that seven years from now we bring down the price which Bush’s Energy Department says it wouldn’t do.” Rove then became agitated, saying to Colmes: “You’re wrong on your facts”:

ROVE: First of all the EIA does say that drilling would bring down prices. You’re wrong on your facts.

COLMES: That’s what they said.

ROVE: No, no no. That’s simply wrong. The Energy Information Agency [sic] which is a respected nonpartisan branch of our government does say if we expanded supply, it would reduce the price.

Watch it:

But its actually Rove who is wrong — or misleading at best. The group Rove cites to back up his “facts” — the Energy Information Administration — says that new drilling won’t start until 2018, and won’t ever have much impact on oil prices. The EIA’s assessment of offshore drilling:

For the lower 48 OCS [Outer Continental Shelf], annual crude oil production in 2030 is projected to be 7 percent higher—2.4 million barrels per day in the OCS access case compared with 2.2 million barrels per day in the reference case (Figure 20). Because oil prices are determined on the international market, however, any impact on average wellhead prices is expected to be insignificant.

The EIA’s assessment of drilling in the Arctic Refuge in Alaska:

ANWR oil production is not projected to have a large impact on world oil prices. […] Assuming that world oil markets continue to work as they do today, the Organization of Petroleum Exporting Countries (OPEC) could neutralize any potential price impact of ANWR oil production by reducing its oil exports by an equal amount.

And if Rove is going to cite the EIA for his misleading claim that U.S. drilling will reduce oil prices, he should at least get the name right. Its the Energy Information Administration, not the Energy Information Agency.

Digg It!




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83 Responses to “Rove Baselessly Claims EIA Agrees That Oil Drilling ‘Would Bring Down Prices’”

  1. SP Biloxi Says:

    “Rove Baselessly Claims EIA Agrees That Oil Drilling ‘Would Bring Down Prices’”

    Tubby McTreason is full of hot air and beyond nauseating to hear. And said this on what? Fox News? Can’t wait for this criminal clown to get arrested by Congress. Pass the popcorn please.


  2. spencers mom Says:

    Rove has never felt the burden of facts.

    PEACE


  3. Dr. Hussein Matt Says:

    Don’t let facts and reality stand in way of yet another obtuse rant by this fat, lying, criminal, pile of rat feces.


  4. Uncle Ho Says:

    KKKarl used the word facts? Isn’t he the one that said “we’re an empire now, we create our own reality”?

    BTW- Why hasn’t he been arrested for contempt of Congress yet?
    Conyers? Pelosi? Anyone?


  5. DieNowForPeace Says:

    Alright, who let the fat pig out of his pig-pen?


  6. Badmoodman Says:

    Rove’s pearls of wisdom are mere fish-in-a-barrel for TP.


  7. trollsbwild Says:

    Like a junkie, Karl needs his lies to stay alive. Either that, or he orgasms every time he lies.


  8. Uncle Ho Says:

    I wouldn’t invite Rove into a hog wallow-he’d dirty it up.


  9. Max-1 Says:

    ANALYSIS- US oil firms seek drilling access, but exports soar
    By Tom Doggett

    WASHINGTON, July 3 (Reuters) - While the U.S. oil industry wants access to more federal lands to help reduce reliance on foreign suppliers, American-based companies are shipping record amounts of gasoline and diesel fuel to other countries.

    A record 1.6 million barrels a day in U.S. refined petroleum products were exported during the first four months of this year, up 33 percent from 1.2 million barrels a day over the same period in 2007. Shipments this February topped 1.8 million barrels a day for the first time during any month, according to final numbers from the Energy Department.

    The surge in exports appears to contradict the pleas from the U.S. oil industry and the Bush administration for Congress to open more offshore waters and Alaska’s Arctic National Wildlife Refuge to drilling.

    “We can help alleviate shortages by drilling for oil and gas in our own country,” President Bush told reporters this week. “We have got the opportunity to find more crude oil here at home.”

    (continued)


  10. Jim Wolf359 Says:

    Colmes is such a tool. If he really had a backbone, he would have really handed Rove his head. Then again, he does work for Faux Noize.


  11. tokin librul Says:

    Karl Rove is a lying jack-off.
    On Faux News.

    Why, oh, WHY do you give a shit about anything he says?

    everybody in the country who watches Faux News could be raptured, right now, and apart from a 20-point rise in the national IQ, there would be NO consequences.

    Rove is a fat lil dickweed who deserves to have all his moving parts jellied with the judicial application of baseball bats to joints, such that when he wants to write he has to tie a fuuking stick to his forehead and tap it out in Morse code.


  12. Keith H. Says:

    You heard it here first folks, straight from the highly respected man you can trust to speak the truth, karl rove.
    He only has your children’s best interest in mind.
    Tune in after the break and we’ll discuss this issue with bill kristol.


  13. ralph the wonder llama Says:

    Y’know, in an orderly world, twerps like Rove would lose credibility whenever they spewed lies on TV.

    Unfortunately, in wingnut world, it seems to enhance their credibility.


  14. Cal Malenky Says:

    Is Rove on TV EVERY day? Only Fox would give this lyin’ sack o’ sh*t that much exposure.
    Obama has to be good enough to beat not only John McCain, but Karl Rove, the entire Fox News Network, Rush Limbaugh, Sean Hannity, Bill O’Reilly, Fox & Friends, Glenn Beck, etc. , etc. You get the picture.

    McCain isn’t even held accountable for his own inconsistencies and is seldom asked to support his claims. He thinks that saying something makes it so. Maybe his friend George taught him how that works.


  15. Tweedster Says:

    I’m waiting for cera (jason hendler?) to come on here spouting his “common sense theory” that by not allowing for offshore drilling, rising gas prices have forced Winnebago sales to plummet resulting in job loss across Iowa, and the country.


  16. Cal Malenky Says:

    Colmes is doing as he’s told. He’s a punching bag for Sean Hannity and right-wing guests. Look at him he looks like a (shudder) vegetarian, all skinny and nerdy. Sean, on the other hand looks like Roger Ailes’ idea of a read-blooded, meat-eating American, a scrappy square-headed Irishman with a loud Mel Blanc cartoon voice.


  17. jpopphan Says:

    “Assuming that world oil markets continue to work as they do today, the Organization of Petroleum Exporting Countries (OPEC) could neutralize any potential price impact of ANWR oil production by reducing its oil exports by an equal amount.”

    This is a KEY POINT, folks, when you come up against those hardheaded conservatives who swear that “all of that oil up there in Alaska” is the answer to all of our problems. We must remember that OPEC is a cartel. Oil is not traded on the open market the same way that other commodities are. The producers control the amount of oil they release into the marketplace to artificially keep prices high. No matter what we do in the US, OPEC will do anything and everything it can to offset a drop in price.

    It is long past time for us to stop buying oil that is sold in the traditional market. We need to start buying directly from the oil producing nations and cut out the middlemen, the speculators, etc. A nationalized energy company for the United States would be in a much better position to negotiate for fair prices than are the current Big Oil companies and the countless speculators who sh!t their pants every time someone in the Middle East sneezes.

    Drill, drill, drill is not the solution. At best, it is “relief” that is at least a decade away. We must start doing something - NOW - to affect the inflated price of petroleum.

    All the cons laughed when Obama recommended that we all keep our tires inflated properly - as if that was all that Obama had to say on the subject - but turns out it’s true! Small steps such as this, and as well as those that were recommended by President Carter back in the late 1970’s, will bring us closer to price relief. More drilling = more costs + long wait + more profit for Big Oil.

    It’s time to put that profit right back into the pockets of consumers. Nationalize our energy industries now!


  18. VerbalKint Says:

    Rove is a psychopath.


  19. Tweedster Says:

    Karl Rove should donate his corpulent frame to help solve America’s energy crisis. The methane he produces, coupled with the large reserves of blubber could keep the Times Square Christmas tree lit up for two years straight.


  20. RandomChaos Says:

    Funny> Last night I used the EIA report to refute Opie the obamagr8 troll’s contention, in another thread, that opening ANWR up would bring prices down emmediatly and the oil would be in our gastanks in a couple years.
    WHY DID THAT POST GET REMOVED?


  21. Bob Says:

    Doesn’t it take production to bring prices down? I guess if you assume that drilling results in production 100% of the time, then yes, drilling would bring down prices. That would not be a good assumtion because it is not uncommon to drill a dry well. The biggest problem is how simplistic they try to make it. It is not simply a question of drilling or not and that drilling having a direct impact on prices. Has kr ever been right about anything? When did the politics guy suddenly become the oil expert? He didn’t, he’s just full of sht.


  22. flavorino Says:

    Why is an unindicted criminal giving his version of reality on tv?
    This guy spews endless bulls*** on tv, but seems to have a problem when it comes to speaking under oath or in front of Congress.
    He had to go to the grand jury 5 times to get his story straight in the Plame outing and avoids speaking under oath like the plague.
    He broke into politics and caught the attention of the Bush family when the FBI investigated a little incident where he posed as a Democrat and stole their stationary to use in a dirty political trick.
    And on top of everything else, he is a traitor who committed treason by revealing the name of an undercover agent who was working on nuclear proliferation containment.
    Again, WHY IS HE SPEWING HIS REALITY ON TV?


  23. raynman Says:

    I like some of the arguments I’m hearing. It’s like the teenager who comes in saying, “we need a new car and we need it now” and then totally ignores the fact that he was the one who took the old car and trashed it.

    Part of the reason why the EIA’s old predictions on oil prices did not hold true was the disasterous foreign policy created by the very same administration that is now advocating new strategies to decrease the price of oil.

    I think its time we took the keys away.


  24. RandomChaos Says:

    obamagr8 Says: @21
    So? This only skews the amount of money it would take in investments to drill and pump. Not refine.
    As well, it does nothing to refute the simple fact that it will do nothing immediatly as your chimpy king and you claim.


  25. robbez_92107 Says:

    Under this administration, there is NO “nonpartisan branch of the government.”

    That’s what the “permanent Rethuglican majority was about, right, piggy?

    How’s that working out for you?


  26. robbez_92107 Says:

    How many giveaways to Big Oil is enough?

    McSame/Exxon 2008!


  27. Tweedster Says:

    obamagr8
    For now, suffice it to say that Time’s attempt to rehabilitate Obama’s tire-inflation gaffe is a failure.

    I noticed you threw this in and didn’t really explain it. Do you disagree that proper tire inflation and regular car maintenance enhances gas mileage?


  28. RWeSafer Says:

    He is starting to drink his own kool-aid.

    He needs relevance and it’s becoming harder and harder to come by. If he doesn’t get it soon, he will be biting the heads off chickens in no time (or did he already start that routine?)…

    Americans cannot be trusted — especially this one.


  29. RandomChaos Says:

    Funny, alot of economists told us that it would only be around $80 per Barrel this year. Which is why the EIA used those numbers.
    Guess we can’t trust those damn economist to get it right either, just like the current mis-administration.


  30. Tweedster Says:

    obamagr8 Says:

    And dozens of economists will tell you that a perceived future increase in supply will reduce prices now.

    Since additional oil drawn by these big companies will go onto the world market, how can you be certain that the reduction in price will be of any major significance when balanced against the toll it will take on the environment?


  31. stjack Says:

    to be fair, the report assumes that the land won’t be opened up for drilling until 2018, which could change. the bigger point, though, that it would take at least twelve years before the oil came into the market, and that it would even then have a minimal — if any — impact on prices at the pump.

    i posted a link to this on redstate.com the other day and got banned. and then posthumously mocked by the moderator. i’ve been so broken up about getting banned (twice) i can’t sleep at night.


  32. Tweedster Says:

    35 cont.

    Specifically when it comes to domestic gas prices.


  33. DieNowForPeace Says:

    Why hasn’t someone waved a hotdog under his nose then throw it into on-coming traffic?


  34. Zimzone Says:

    Trolls quoting powerline on TP. Jesus H. Christ.

    Powerline was financed by TCF, a Twin Cities bank, to perpetuate, propose & pull for The Bushstapo. They’ve been rewarded handsomely for their perverted facts & fetishes.

    NOT ONCE does the Troll or powerline note that much, if not most of the oil from Alaska’s North Slope goes to Japan. NOT ONCE.

    1.8 Billion barrels a year going to anywhere but the USA right now is unacceptable. Do we want to increase this travesty?

    Really?


  35. DieNowForPeace Says:

    attempt to rehabilitate Obama’s tire-inflation gaffe is a failure.

    Your “gash” is leaking.

    Put a tampon in it please.


  36. DieNowForPeace Says:

    1.8 Billion barrels a year going to anywhere but the USA right now is unacceptable. Do we want to increase this travesty?

    Since the GOP enjoys sucking big oil’s little dick, I’d say the prevailing answer would be “yes”?


  37. ralph the wonder llama Says:

    I see the RNC is designing their trolls with considerably more stamina than sense these days.

    That’s a sound policy for them. Stamina is a whole lot cheaper to implement than sense. Plus when someone with sense encounters the kind of talking points the GOP is left with these days, they tend to rebel.


  38. Tweedster Says:

    Doesn’t seem likely since “they’re talking” about billions of barrels of oil…….and given that not every car on the road has low tires or bad plugs.

    I’m not sure of the pr


  39. ralph the wonder llama Says:

    I notice the troll highlighted this statement:

    There is little direct knowledge regarding the petroleum geology of the ANWR region.

    The troll obviously doesn’t recognize that this statement means that here could be far less oil under the ground than even the Department of Energy estimates.

    Anyone who recites the GOP talking points that ANWR will solve our energy crisis as if it were gospel is not even building a foundation. They’re building an argument on sand.


  40. Tweedster Says:


    ombamagr8
    Doesn’t seem likely since “they’re talking” about billions of barrels of oil…….and given that not every car on the road has low tires or bad plugs.

    Sorry about the last hiccup!

    Anyway, I’m not sure about the process, but maybe proper inflation and maintenance will save the amount of oil this new drilling would open to over the 12 years it would take to get fully operational and viable.


  41. 5th Estate Says:

    #21 mindless obamagr8 C+V troll:

    “That’s right: the EIA, writing in early 2007, assumed that oil prices would decline from their 2006 peak; that in 2008, the price of crude oil would be around $60 a barrel; that it would continue to decline until around 2013 to a low of about $50 a barrel; and that the price would then gradually increase to a little under $60 a barrel by 2030. Those were the assumptions on which EIA concluded that it would not be economically profitable to get most OCS oil out of the ground.”

    From the EIA source:

    ( http://www.eia.doe.gov/ oiaf/ archive/ aeo07/ issues.html )

    “In the reference case, increased non-OPEC and OPEC supplies are expected to cause a price decline from 2006 levels to under $50 per barrel (2005 dollars) in 2014. After that, a gradual rise in oil prices, averaging 1.1 percent per year in constant dollar terms or about 3.0 percent in nominal terms, is expected through 2030. The AEO2007 reference case world oil price in 2030 is $59 per barrel in 2005 dollars, or about $95 per barrel in nominal terms.”

    OPEC and non-OPEC oil production has not increased, invalidating this projection.

    “The high and low oil price cases in AEO2007 are based on different assumptions about world oil supply. The AEO2007 reference case uses the mean estimates of oil and natural gas resources published by the U.S. Geological Survey (USGS) [60]. The high price case assumes that the worldwide crude oil resource is 15 percent smaller and is more costly to produce than assumed in the reference case. The low price case assumes that the worldwide resource is 15 percent larger and is cheaper to produce than assumed in the reference case.

    Neither of these these estimates assume market speculation or disruption to delivery of oil, only USGS-estimated crude resources ( i.e. unrefined oil, in the ground, available for refinement).

    “The AEO2007 reference case represents EIA’s current best judgment regarding the expected behavior of key members of OPEC. In the reference case, OPEC members increase production at a rate that keeps world oil prices in the range of $50 to $60 per barrel (2005 dollars) over the projection period, reflecting a view that allowing oil prices to remain above that level for an extended period could lower their long-run profits by encouraging more investment in non-OPEC conventional and unconventional supplies and discouraging consumption of liquids worldwide.

    OPEC has not increased porduction to control oil prices and long term profits, they have maintained production to maximize SHORT TERM PROFITS—which coincidentally they can invest and and have invested in buying up American real-estate (the Chrysler building for example) and in maintaining influence in US politics at bargain prices.

    When we read wildly inaccurate reporting in the mainstream media, it’s often hard to tell whether the reporter is incompetent, or is deliberately trying to deceive. You can make your own guess. “…says PowerLine, a site that is no stranger to incompetence and deception in its own ranks ( which it lauds as brilliance in the knowledge that it’s subscribers are easily baffled by bullshit) and from which Obamagr8 unthinkingly and reactively cut-and-pastes without a thought.


  42. stateofthedivision Says:

    And scheduled to appear tomorrow at the Capital to help Republicans turn darkness to light, Coach Sanders and Uncle Al.

    http://stateofthedivision.blogspot.com/ 2008/ 08/ darkness-to-light-in-capital.html


  43. Zimzone Says:

    5ht estate…Zing!

    I don’t talk to Trolls. (Sometimes I forget.)
    Thanks for taking time to cram facts down it’s craw.

    When they start dragging f’n powerline in here, it’s time to push back.

    Google Gull Island Alaska & Oil sometime…


  44. ralph the wonder llama Says:

    obamagr8 Says:

    And there’s only one way to find out: Lease it, just as Congress originally intended back in 1980. Drill for oil. Let the oil companies do their jobs and then take the associated lease payments, royalties and taxes and plow them into alternative energy research.

    How about we find out what’s under the 68 million acres already under lease first?

    And let’s make sure we collect all the royalties due the American people this time, hm?


  45. katy Says:

    a reminder:

    Win Points for McCain!
    Rewards Program for Online Commenters
    By Paul Farhi
    Washington Post Staff Writer
    Thursday, August 7, 2008; Page C01

    Spread John McCain’s official talking points around the Web — and you could win valuable prizes!
    […]
    http://www.washingtonpost.com/ wp-dyn/ content/ article/ 2008/ 08/ 06/ AR2008080603589.html

    this is no time for the playground.

    PUSH BACK ONLY. JUST THE FACTS.
    .

    aka - John McCain’s “Frequent Lyer” Program
    h/t stateofthedivision


  46. RUCerious Says:

    Rove lies like this ad nauseum. If we HAD a journalism profession in this country, someone would dog this bastard every step, calling his BS and get in his face 24X7.

    Ruck Fove!


  47. 5th Estate Says:

    Obamagr8…

    The arguments for more drilling are that profits by foreign oil producers weaken the US economy and subject it to economic blackmail, some of those profits help finance terrorist organizations, and that high US gas prices due to demand and a falling dollar domestic US economic engine of consumption.

    As all this has transpired under Republican policies over the last 7-1′2 years and that Obama’s/Democrat policies are the opposite of the GOP ones, doesn;t it follow that the former policies are crap and dangerous and the latter the smart choice?

    BTW I’m asking a rhetorical question–I’m not interested in your answer at this time.


  48. ralph the wonder llama Says:

    obamagr8 Says:
    5th Estate, you seem to be saying that OPEC did not increase production. Not true:

    OPEC boosted output for the third consecutive month in July as top oil exporter Saudi Arabia raised production to its highest level since 1981.

    This troll read that extended, well-sourced and referenced post from 5th and this is what it got out of it?

    Pathetic.

    Obie, you seem to be saying that you’re a logic-challenged nincompoop who deliberately misreads others’ posts to what you perceive is your advantage.

    I will not challenge that.


  49. ralph the wonder llama Says:

    obamagr8 Says:
    How about we find out what’s under the 68 million acres already under lease first?

    Sure. Where’s the first one we should develop? Which tract?

    Let’s leave that up to the people who hold the leases, huh?

    I presume they know where their holdings lie, right?


  50. The Republic of Stupidity Says:

    Ralphie, you understand that and I understand that, but clearly OBgr8 doesn’t…


  51. gummitch Says:

    obamagr8 Says:

    I’m sure they do which is why the whole “drill the acres you already have” argument is such a sham.

    There are already laws on the books requiring oil companies to give back leases they aren’t working.

    A sham?

    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.

    The Rahall bill would force oil and gas companies to either produce or give up federal onshore and offshore leases they are stockpiling by barring the companies from obtaining any more leases unless they can demonstrate that they are producing oil and gas, or are diligently developing the leases they already hold, during the initial term of the leases.

    Coal companies, which are issued leases for 20-year terms, are required, as a result of the Federal Coal Leasing Amendments Act of 1976 to show that they are diligently developing their leases during the initial lease term. The law was enacted in an effort to end rampant speculation on federal coal as a result of the energy crises of the 1970’s.

    Oil and gas companies, however, are not required to demonstrate diligent development. Because of this, oil and gas companies have been allowed to stockpile leases in a non-producing status, while leaving millions of acres of leased land untouched. The Rahall legislation directs the Secretary of the Interior to define what constitutes diligent development for oil and gas leases.

    There is also a link there to the staff report. You might want to read there before you make an even bigger fool of yourself.


  52. DieNowForPeace Says:

    obamagr8 Says:

    Nice plagiarism, as usual, not an original thought in that tiny head of yours.


  53. DieNowForPeace Says:

    Spread John McCain’s official talking points around the Web — and you could win valuable prizes!

    Only inbred chickenhawks (who must be half-breeds with the Ostrich) feed on McBush’s talking points.


  54. ralph the wonder llama Says:

    obamagr8 Says:
    I’m sure they do which is why the whole “drill the acres you already have” argument is such a sham.

    There are already laws on the books requiring oil companies to give back leases they aren’t working.

    Then why are they still holding them?


  55. ralph the wonder llama Says:

    Nicely done, gummitch.


  56. gummitch Says:

    ralph the wonder llama Says:

    Then why are they still holding them?

    See above. The troll is wrong, imagine that! No such laws exist.


  57. dbadass Says:

    obamagr8:
    Did you figure out where those acres are yet?


  58. gummitch Says:

    obamagr8 Says:

    Then why are they still holding them?

    A. They are legally entitled to.

    You just claimed that there were laws the prevented them from holding land they weren’t working. Now you say they’re “legally entitled” to hold that land.

    Which is it?


  59. 5th Estate Says:

    Obamagr8: From your source:

    OPEC is unlikely to change oil output in September to reverse the recent price fall unless the slide continues to below $80 a barrel, an OPEC source said on Tuesday.

    Now that’s some interesting reporting, because increasing oil production (which you argue OPEC has done) wouldn’t reverse “the slide” in oil prices but accelerate it ( supply and demand), so THAT doesn’t make any sense at allm but I guess you didn;t read that part, right at the beginning.

    Anywhoo to continue with the source you provided:

    “At the moment, and at this price level, there is no movement within OPEC to do anything,” the OPEC source told Reuters. “I don’t think ministers will change output. I think at less than $80 for OPEC oil, maybe they would do something.”

    In other words OPEC has no intention of increasing production and if oil prices drop below $80 a barrel, the implication is that they will REDUCE production, to reverse “the slide.”

    As that appears to be their stratagey–to do nothing for the present and lokely increase production if the price drops to $80, why would OPEC increas production now and thus reduce the cost of oil as you have claimed?

    The drop in prices was mostly due to a lull in July in the political tension between the West and Iran over Tehran’s nuclear program, the source said.”

    So according to this report which you are hanging so much on, increased production has much less to do with the oil price-drop than any increase in production.

    That could easily be reversed and problems in OPEC member Nigeria could also push prices higher, the source added.”

    Again political issues seem to have a significant effect on oil prices (Well duh!)

    Militant attacks have cut about a fifth of Nigeria’s output.
    Concerns that slowing economic growth in top consumer the United States could further curb demand had contributed to oil’s fall, but the slide had little to do with market fundamentals, the source said.

    Again politics, not production.

    OPEC boosted output for the third consecutive month in July as top oil exporter Saudi Arabia raised production to its highest level since 1981.

    Now that’s the money-shot, isn’t it?

    Saudi Arabia raised its production level, and as part of OPEC it follows that OPEC therefore raised its output, ergo oil production HAS increased, you are right and I am WRONG!

    Except that…

    The kingdom pushed its production to 9.7 million barrels per day, up from 9.45 million bpd in June in response to rising demand and what it saw as unacceptably high prices.”

    Saudi DID increase its production, in June and what happened? Oil hit $141,71 on June 27. On July 11 it hit $147. Evidnetly this “increased oil production” had no effect. And what was that increased oil production exactly? An extra 0.55 million barrels per day. US crude oil imports form OPEC in 2005 were 5,980,000 barrels a day, so the increased Saudi/OPEC production ( assuming it all went to the US) represents a 10% increase in supply. AGAIN, what happened? World prices STILL went up!.

    Since then as global market oil prices have come down, so too have prices at the pump. Us Avg. Retail Gas prices for regular grade had dropped from 4.064 (7/21) to 3.880 on 8/4, according to the EIA a reduction of 18 cents per gallon or about 4.1%.
    Current oil prices are hovering at $118-120 a reduction of about 18-20% compared to the $147 high.

    As evidenced by the above source you provided, the global price of oil and the price pf gasoline at the pump has damn all far less to do with supply and demand of oil itself, but of it’s estimated future availability due politics and policy and the ability to make a profit in trading shares rather than the commodity itself.

    The increase in oil production you cited is factually correct, but it is so minimal as to be irrelevant to the larger argument–a tiny increase in oil production doesn;t amount to a hill of beans.


  60. ralph the wonder llama Says:

    obamagr8 Says:
    Then why are they still holding them?

    A. They are legally entitled to.

    But –but — you said there was a law that said they HAD to get rid of them…

    B. In some cases, they are prohibited by court action from exploring.

    How many cases? You wouldn’t be dishonest enough to imply that a few isolated cases represent a significant portion of these leases, would you?

    No, I didn’t think you would…


  61. dbadass Says:

    It was a joke you clod…


  62. gummitch Says:

    obamagr8 Says:

    You just claimed that there were laws the prevented them from holding land they weren’t working. Now you say they’re “legally entitled” to hold that land.

    Which is it?

    The latter. What I said is there is an INJUNCTION in place preventing oil companies from exploring large offshore leases in Alaska. I didn’t say there was a law preventing it, you did.

    There are already laws on the books requiring oil companies to give back leases they aren’t working.

    In case you don’t recognize your own words, they’re up the thread a way.


  63. gummitch Says:

    obamagr8 Says:

    In case you don’t recognize your own words, they’re up the thread a way.

    gummitch, my statements are consistent. The oil companies can’t drill offshore of Alaska due to an injunction. No law, not yet.

    We’re not talking about Alaska. You made a blanket statement that laws already existed that prevented oil companies from holding undeveloped leases on public land. Then, when asked why they were still holding all that undeveloped land, you said they were “legally entitled” to do so.

    Those statements are inconsistent. Either there is a law, which is enforced, or they are not required to release the land, which would mean no such law existed.


  64. ralph the wonder llama Says:

    obamagr8 Says:
    How many cases? You wouldn’t be dishonest enough to imply that a few isolated cases represent a significant portion of these leases, would you?

    Depends on your definition of significant. Oil companies spent $2 billion on Beaufort Sea and $2.7 billion on the Chukchi Sea. The Beaufort Sea is some million acres and the Chukchi is 2.66 million acres.

    I’d call that significant but your mileage may vary - depending on your tire inflation.

    I see… so, assuming your facts and figures are correct (and there’s no reason to assume they are, as you haven’t been very trustworthy with your handling of facts and figures so far, but let’s pretend) then your contention is that 3.66 million acres out of 68 million is “significant”.

    Somehow I suspect that in another context — say as a percentage of energy supply that could be provided by wind, say — 3.6 out of 68 you would not find so significant.

    Just a suspicion I hold.


  65. pbg Says:

    People want electric cars; people want hybrids; people want both relief now (some desperately), but thy want out of the trap.
    I’ve had a Prius since 2005–where are the American hybrids? Where’s the EV-1.?The solutions people want aren’t available, not because of need for technical advancement, but because the auto companies dragged their feet and worse on electric and hybrid cars.
    People want cheaper gas–but they also want out of the trap. If gas goes back down to 3 bucks a gallon somehow, will people say ‘thank goodness that’s over with!” and fire up the SUV? Not the dumbest among us.
    They want out. They want the ability to get their energy from other sources.
    What people are saying in the short term is ‘give me some help until I can buy my electric car.” There’s not a whole lot that can be done, and Obsma’s said what there is conservation and the SPR.. John McCain an d the Mighty Wurlitzer have instead proposed a plan that will have absolutely no effect in the short term. It’s mind-bogglingly stupid.


  66. 5th Estate Says:

    obamagr8..,

    I have to say thanks for making the effort to substantiate your arguments–I really mean that. But do yourself a favor, don’t use PowerLine or the GOP sites as your sources—I don’t think any of the TP-ers here use Democratic Party websites to make their major arguments–”comnon” sources are the norm.

    The Reuters source was good direct link, though apparently you didn’t think too much about it’s content before linking to it. Going to your Powerline source provided a link to their EIA source which Powerline seriously bastardized which you used.
    In this environment where you are outnumbered and where the regulars here have a common broad encyclopedic knowledge-base derived from often non-partisan sources, I’d suggest you take a bit more time and consider your sources and your arguments a bit more carefully before you comment here–that way everyone;s time will be better served and we all might learn something valid that we didn’t know or appreciate before.


  67. ralph the wonder llama Says:

    obamagr8 Says:

    Or the third and correct option: The oil companies hold leases for a given period of time and then either produce oil or turn them back.

    Wrong. They hold the leases for a given amount of time, that’s correct. But then, that’s correct with all leases.

    You seem to be saying that whether those leases are renewed or not depends on whether they’ve produced or not. The article gummitch provided seems to say the opposite. Can you back up your contention using sources other than GOP websites, right-wing sites or extraction industry sites?

    thanks.


  68. ralph the wonder llama Says:

    Obie, you’ll forgive me if I don’t put too much stock in your conclusions based on “brief research”.

    As I said before, your handling of information hasn’t earned you a reputation as a trustworthy source.

    But beyond that, how does oil shale have anything to do with the legalities of the leases in question?

    Again, you seem to say that their renewal depends on production. gummitch offered an article that said something very different.


  69. ralph the wonder llama Says:

    So… you’re saying that your oil shale argument had nothing to do with the question.

    Thanks. That’s what i thought.

    And your “bone of contention” cut-and-paste says nothing about losing a lease. It just talks about extending it. From the language you posted, the lease could be presumably be renewed, which is different from an extension. it says nothing about termination. Nothing in that paragraph supports your “use it or lose it” contention.


  70. ralph the wonder llama Says:

    obamagr8 Says:
    Jayzus, maybe I gave you too much credit.

    1. The Democrats and Obama have repeatedly claimed there are 68 million acres of land that the oil companies have not drilled. They have not released any data on these leases; nobody has any idea if the number is accurate, how long these leases have been held, or if there is any potential for oil development on those lands.
    2. I took a quick look around, and from what I can see, there is a lot of land in the Rocky Mountain states leased that I suspected oil shale. My guess is that’s one reason why the oil companies are not developing some of the leases that they hold.
    3. What does that have to do anything? The Democrats and Obama save the oil companies should drill - but they are going to drill where they know there is oil shale. They don’t need to, what they need to do is wait until extraction processes become economically viable. If that exceeds the time limit on their leases, then the MMS can deal with it.
    4. I provided you extensive links on laws that are currently on the books that deal with termination of oil leases. You can investigate those links, you can look up the laws in question.
    5. Contrary to your last claim, title 30, subsection 188 ANB of the United States code speaks specifically about how leases can be forfeited and cancelled

    Well, Obie, you have to remember, I don’t speak Troll as well as I should. So I’m bound to take a while to catch up to what passes for your reasoning.

    Again, your oil shale material is a total dodge. You “took a quick look around” and you suspect that the land leased in the Rockies is for oil shale.

    For some reason, this evidence does not convince me, just like the Democrats’ claim of 68 million acres doesn’t convince you. Why do you think I should be convinced by less persuasive arguments than those you have dismissed already?

    You provided me with ‘extensive links” to laws that deal with termination of leases. Considering you made the claim that the leases were subject to termination if not explored, I’d think you’d be want to demonstrate its truth, rather than relying on me to hunt down the laws and explore the legal language.

    In fact, I find it a little strange that you were able to cite chapter and verse and excerpt the “bone of contention” sweet spot above, yet what you pulled says nothing about termination of a lease.

    My last claim said simply: “your “bone of contention” cut-and-paste says nothing about losing a lease.”

    There is nothing contrary to that claim in either the paragraph you pasted, or the questionable information you have supplied since. I didn’t claim that Title 30, Subsection 226(e) of the United States Code says nothing about it. I said that the piece you chose to copy says nothing about it.

    Again, what I find curious is, why did you go to the trouble to chase down that provision, copy a section of it and paste it here, but you didn’t paste the section that you say supports your contention?

    Curious indeed.


  71. gummitch Says:

    obamagr8 Says:

    Speaking of forgetting, I notice that several folks made some erroneous claims and then just disappeared.

    Good lord, you mean there are people who don’t sit in front of a PC all day, banging away on blogs!?

    Maybe if the rest of us actually got paid for this . . .


  72. dbadass Says:

    what is this based on some basic research bullshit. I noted the location of many of these lease last night when you challenged others to tell you where they are. You are just entirely full of shit and not even amusing enough to bother to tinker with…


  73. ralph the wonder llama Says:

    obamagr8 Says:
    Curious indeed.

    What is curious is your habit of never actually taking a stand. Your tactic appears to be yelling, “Prove it!” on any point that catches your fancy without providing any evidence of your own.

    I’d ask you to provide links or data but you haven’t done anything except give the occasional reacharound to one of your tag team buddies.

    Man up!

    Not sure where you’re getting me “yelling” about anything. Obie.

    I notice that, rather than search the statute and come back with the relevant section that proves your point, you’ve tried to make this about me.

    Again, curious.

    Personally, when I have a good point to make and someone disputes it, I really enjoy finding solid evidence and presenting it triumphantly, in context and with a link.

    But that’s me…


  74. MrSquirrel Says:

    What the heck? Isn’t this guy a fugitive from justice? What’s he doing polluting the airwaves with his filthy amoral criminal presence? Why isn’t someone slapping the cuffs on him on the spot?


  75. ralph the wonder llama Says:

    I didn’t make a claim that required a link.

    When I do, I link, and quote.

    But this isn’t about me. I know you’d like it to be, but it isn’t. It’s about you and your willingness to copy-and=paste a portion of a statute that doesn’t say what you claim it says, and your strange unwillingness to go back to the same statute and copy-and-paste the section that would prove that the claim you made over six hours ago isn’t a crock of shit.


  76. ralph the wonder llama Says:

    Any lease … shall be subject to cancellation by the Secretary of the Interior after 30 days notice upon failure of the lessee to comply with any of the provisions of the lease….”

    And those provisions are…?

    Jeezus, it’s like pulling teeth with you. I finally get you to copy a section that at least mentions “cancellation”, but you still haven’t shown where a lease can be cancelled for failure to drill, which was your contention.


  77. dbadass Says:

    Still not worth a tinker’s damn


  78. DieNowForPeace Says:

    obamagr8 Says:

    I can see you’re going BIG on the McBush point system - if you’re lucky, you’ll get a lifesized inflatable McBush, complete with a rohypnol and a condom.

    “It’s like a dream come true…”


  79. DieNowForPeace Says:

    … and once again, more proof that McBush supporters actually are vastly dumber than him.


  80. ralph the wonder llama Says:

    No, you’re not beginning to see the problem. You’re still trying to pass off a provision for extension of a lease as a provision for a termination of a lease.

    Nowhere in any of the materials you have copied is there any mention of the specific provisions for canceling a lease.

    Whenever the lessee fails to comply with any of the provisions of the law, — this can mean almost anything: fraud. Failure to pay royalties due. Some kind of sub-lease that may not be allowed by the primary lease. No provision like this is described in the language you have presented, Obie. Nothing.

    Then you’re trying to get away with confusing a provision for extending a lease with a provision for canceling a lease.

    It’s not working for you, son. It’s really not working for you.

    In a way, I hope you are being dishonest and trying to put something over on us. At least that would mean you’re clever enough to know what’s going on. The alternative is too sad to think about. I’d hate to think of you sitting at home, getting more and more frustrated because you can understand why no one buys your story, and you can’t even understand our explanations why we don’t buy it.


  81. ralph the wonder llama Says:

    ‘Night all.

    Good luck, Obie.


  82. chiefeditor Says:

    We’ve just posted ringtone-ready audio from this interview over at Entertonement.


  83. Musk Says:

    It’s not worth going through the steps to find out if he is wrong. If he says something is “simply wrong”, you can always assume that he’s lying . . . a lying turd blossom. Why this man is given the time of day to express his opinion is beyond me. We used to have kind of a built in unstated method of handling these criminal retards. We basically withdrew all “social” support for these hideous people, and they usually just withered on the vine and permanantly dropped out of sight. It always seemed like a good system . . . and it usually was . . . then Fox came along.


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