Offshore Drilling a Potent Issue for McCain

[Denise]

WASHINGTON -- America's paralysis over the oil crisis is a textbook example of the ideological divide that has polarized our politics and hurt our economy in the process.

Reducing the price of $135-a-barrel oil and $4-a-gallon gasoline is not that hard to do. This is not brain surgery or nuclear physics. We have it within our power to bring down the price of both by tapping into our vast resources and technology -- now.

That's what Sen. John McCain is proposing to do. Last week, he called for ending the ban against drilling on the outer continental shelf to extract the billions of barrels of oil that lie beneath the ocean and licensing new refineries to turn it into gasoline. Both would not only boost U.S. oil and gas supplies, they would bring down the price of both -- and faster than his critics say.

Just the declaration of this policy by the government would send a clear signal to oil traders and speculators accused of manipulating prices on the open market. They are betting that oil production and gas inventories will remain largely at present levels. That means that as demand rises, traders have been able to bid up prices -- as they would with any finite commodity whose prices rise when demand threatens to exceed supplies.

McCain's plan would break the back of that practice by doing what the traders think we won't: increase oil and gasoline inventories that would bring down the price of gas at the pump. He has also called for licensing 45 new nuclear-power plants, which would further reduce demand for coal and oil and lower fuel prices even more.

Sen. Barack Obama, on the other hand, wants none of this. He is flatly opposed to increased oil exploration and drilling. His energy agenda is all about slapping windfall-profits taxes on U.S. oil companies, and spending that money on new clean, un-invented technologies.

He has further suggested that he would raise taxes on coal and natural gas, too -- money that he would spend on other speculative government energy-research schemes that would push the solution to our energy problems decades into the future.

Equally worrisome, Obama sent an unambiguous signal last week that he was not that bothered by the run-up in gas prices. He wants prices to rise but just not as fast, he said.

In an interview with CNBC, John Harwood asked him, "So could these high prices help us?"

Obama's reply: "I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money into their pockets, but also by encouraging the market to adapt to these new circumstances more quickly, particularly U.S. automakers, then I think ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now."

The freshman senator was parroting the environmentalist line that oil and gas prices need to rise to much higher levels to make new heavily subsidized technologies financially cost-effective.

Even Obama's news-media friends find his benign approach to higher gas prices beyond the pale. "The mantra from the Democratic Party -- from the presumptive presidential nominee, Sen. Barack Obama, on down -- has been a variation on 'We cannot drill our way out of this energy crisis,'" the Washington Post editorialized this week.

While the industrialized nations of the world are drilling deep-water oil wells to meet their own energy needs, "it's hard to explain why the United States should rule out careful, environmentally sound drilling off its own coasts," the Post said. Exactly.

Democrats have criticized McCain for flip-flopping on his long-held opposition to drilling offshore (though he still opposes drilling in the Arctic National Wildlife Refuge). But his change of heart proved that he was not rigidly wedded to some fixed ideological position in the face of an untenable situation.

So, as oil and gas prices continued to spiral upward this week, McCain was, as Abraham Lincoln said, thinking anew so we can act anew, bringing market forces to bear on a supply-and-demand solution. Obama, however, remained stuck in a bureaucratic, liberal mind-set that sees higher taxes, increased federal regulations and costly business mandates as the only answer to all our energy ills.

It is more than likely that gas prices are going to rise higher between now and Election Day and play a larger role in the presidential-campaign debate.

McCain clearly occupies the higher ground in this debate, and Obama faces increasing public opposition to his anti-drilling position. "Nearly all voters are worried about rising gas and energy prices, with 79 percent very concerned and 16 percent somewhat concerned," according to a Rasmussen poll.

A solid 64 percent of Americans believe that gas prices will go down if offshore oil drilling is allowed, Rasmussen said. This is a powerful issue for McCain and maybe the deciding issue of the campaign if forecasts of $5- to $6-a-gallon gas prices become a reality in November.

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[Neil D]

Just so you know, TownHall is a conservative Republican website that advocates...well, what else, but republican and conservative values.

NPR gave a report on this relatively newly discovered site.

[John317]

Just so you know, TownHall is a conservative Republican website that advocates...well, what else, but republican and conservative values.

NPR gave a report on this relatively newly discovered site.

More to the point, in what ways do those two sources differ significantly or contradict one another as far as this topic is concerned?

So let us discuss the facts in the case, first, and then look to see who we believe is right on this issue-- Obama or McCain?

[Denise]

teehe ok...who would want to start? I'm not a good starter, lol

[carolaa]

Just a few disconnected thoughts, more or less related to the subject:

Most of the experts I've heard say McCain's plan would take 10 years to implement.

Those who believe fossil fuels cause or contribute to global warming are dumbfounded at the suggestion that we increase oil drilling.

I read today that Bush halted all use of solar power on government land for at least 2 years.

[Dr. Shane]

Quote:

Most of the experts I've heard say McCain's plan would take 10 years to implement.

Those are Democratic talking points. Getting news from a variety of sources will expose one to "experts" that have a different opinion.

Quote:

Those who believe fossil fuels cause or contribute to global warming are dumbfounded at the suggestion that we increase oil drilling.

The entire world is drilling more except the US. Brazil is going crazy with drilling more wells. China is looking all over for new places to drill. African countries are drilling for oil. Russia and central Asian countries are drilling more. Mexico is drilling more. Canada is drilling more.

Why is it that Americans feel it is OK to ask the Saudis to drill for more oil but we don't want to drill for it here? Do we think the Saudis are going to care for environmental concerns more than Americans?

Quote:

I read today that Bush halted all use of solar power on government land for at least 2 years.

I would have to read the details in that story. President Bush is responsible for the biggest expansion of wind-turbine power in history.

[Bravus]

I've definitely heard oil industry analysts say that if you approved drilling there now it would take 3-5 years for oil to start flowing. That puts it beyond a McCain first term anyway, and given his age he's unlikely to seek a second.

So keep telling your friends and neighbours, when this issue comes up, how far off a solution it is - because I suspect that 64% support is because they think it would instantly lower gas prices.

[Dr. Shane]

One of the reason speculators are driving up the cost of oil is fear of future shortages. If they know additional supply is going to come online in the relatively near future (3- 10 years) that could result in immediate results in the price of oil.

Here in Texas, from the time a company wants to start drilling it takes about 18 months to get new oil to the market. That includes the paperwork required before a drilling rig ever starts drilling. Off shore drilling is going to take a bit longer but that is because of the paperwork. If the government wanted to speed that process up it is within their power to do so.

[Dr. Shane]

Oil from Anwar is what I believe would take 10 years to get online because the infrastructure is not yet in place. However McCain is not pushing Anwar. McCain is talking about off shore (which are not visible from the shore). Where I live we have an offshore oil industry that provides a lot of good paying jobs to a lot of people. I don't know why we want to send all those high-paying jobs off to the Middle East when we could be paying our own workers here.

[carolaa]

I would have to read the details in that story. President Bush is responsible for the biggest expansion of wind-turbine power in history.

This was on Democracy Now yesterday:

Moratorium Placed On New Solar Energy Projects on Fed Land

Solar energy companies have been dealt a major setback. The New York Times reports the Bush administration has placed a nearly two-year moratorium on the construction of new solar energy projects on public land. The Bureau of Land Management says it needs until the spring of 2010 to study the environmental impact the solar projects will have on land in Arizona, Nevada, California and other western states. Critics of the moratorium say it could paralyze the solar energy industry. Senate Majority Leader Harry Reid of Nevada said: “This] is the wrong signal to send to solar power developers, and to Nevadans and Westerners who need and want clean, affordable sun-powered electricity soon.” Some environmental groups have praised the government for assessing the implications of large-scale solar development. Meanwhile the amount of oil drilling and gas drilling on public land has reached a new high. The Wilderness Society recently reported that more than 44 million acres of public lands are leased for oil and gas development. Last year the Bush administration approved over 7100 drilling permits, a new record.

[carolaa]

Quote:

Those who believe fossil fuels cause or contribute to global warming are dumbfounded at the suggestion that we increase oil drilling.

The entire world is drilling more except the US. Brazil is going crazy with drilling more wells. China is looking all over for new places to drill. African countries are drilling for oil. Russia and central Asian countries are drilling more. Mexico is drilling more. Canada is drilling more.

It sounds like most of the world doesn't believe that fossil fuels cause or contribute to global warming.

[carolaa]

Here in Texas, from the time a company wants to start drilling it takes about 18 months to get new oil to the market. That includes the paperwork required before a drilling rig ever starts drilling. Off shore drilling is going to take a bit longer but that is because of the paperwork. If the government wanted to speed that process up it is within their power to do so.

That makes me chuckle. I have never seen such a slow, political, error-prone, bureaucratic place as Texas. I love Texas for other reasons, but not for its effeciency in getting paperwork done. But I guess if you're an oil company, things happen quicker for ya.

[Denise]

Quote:

The entire world is drilling more except the US. Brazil is going crazy with drilling more wells. China is looking all over for new places to drill. African countries are drilling for oil. Russia and central Asian countries are drilling more. Mexico is drilling more. Canada is drilling more.

Why is it that Americans feel it is OK to ask the Saudis to drill for more oil but we don't want to drill for it here? Do we think the Saudis are going to care for environmental concerns more than Americans?

That's the way I see it Shane....everyone is drilling for oil, except US....it doesn't make sense for us to ask the Saudis to drill for more oil, when we have plenty here....from what I heard, it is the environmentalists that has kept us from drilling, and also the Congress....but that may change, I hope. If not, gas will continue to go up....and I am sick of looking at the gas prices so high as many other Americans are as well....can't hardly even afford to go on a 40 mile drive to the store, bank, etc. without planning everything in one day.

[Bravus]

Better get used to that, Denise - oil prices may drop a little, but we're never going back to really cheap fossil fuels again, because demand for a finite resource is rising at a much faster rate than supply. More drilling will increase supply, but also haste the days when we realise that the resource is finite, when it gets *really* expensive.

More drilling is not the answer, finding alternative sources of energy is the answer. If we were able to stop burning oil for fuel entirely and save it as an industrial feedstock our grandchildren would think much better of us... and we could also end up in a situation where energy is cheap. My personal favourite scenario is fusion + hydrogen economy. Fusion is currently believed to be about 40 years off (there's a well defined timetable), but more money could accelerate that.

[Denise]

Quote:

Better get used to that, Denise

No, I won't get used to that.... hee hee (only kidding)

Well....IMO, more drilling is the answer and for many others...and many others may think otherwise....and that's ok, but still I see the more drilling the answer.

[doctorj]

Better get used to that, Denise - oil prices may drop a little, but we're never going back to really cheap fossil fuels again, because demand for a finite resource is rising at a much faster rate than supply. More drilling will increase supply, but also haste the days when we realise that the resource is finite, when it gets *really* expensive.

We are very slow learners. The world has experienced an oil crisis before. That hiked the price up a bit, but then oil prices dropped . . . and when it dropped America went back to building really big vehicles . . . the SUV for example.

We didn't learn from the past experience . . . and likely the world will be very slow to building more efficient energy users. What we need today is a "water" vehicle, which extracts the hydrogen and gives off no harmful emissions . . . just water vapour.

Honda is already producing such a vehicle.

More drilling for oil is not the answer.

[Dr. Shane]

I see that both sides are right and both sides are wrong.

Drilling is the answer in the short term and developing alternative energy is the answer in the long term.

[doctorj]

Drilling is the answer in the short term and developing alternative energy is the answer in the long term.

That is if you call 18 months short term, as it will take all of 18 months for new oil to come onto the market. In the meantime what do we do? Sit on our butts and wait for new oil to come to market. Or go out and buy a hydrogen automobile today?

I think alternative energy sources is the short term and long term option. More drilling for oil is only going to "fuel the fire" so as to speak! We need to cease using oil as much as is possible. The greater demand for alternative energy sources the better -- greater demand will bring about greater uptake of alternative energy.

[carolaa]

I think alternative energy sources is the short term and long term option. More drilling for oil is only going to "fuel the fire" so as to speak! We need to cease using oil as much as is possible. The greater demand for alternative energy sources the better -- greater demand will bring about greater uptake of alternative energy.

I pretty much agree. Actually, I totally agree, but I'm about as selfish as everyone else when it comes to not wanting my lifestyle disrupted, so I guess I agree with mixed feelings. Anyway, I came across the following today (bolding mine):

Fast Facts on Drilling and Gas Prices

Drilling will not lower gas prices today or solve our energy crisis.

Even the U.S. Energy Information Administration has said that massive exploitation of new oil deposits will not produce oil for nearly a decade -- and then will not lower gasoline prices by more than a few cents per gallon.

Under the Bush Administration, drilling permits have risen from 3,802 to 7,561 between 2002 and 2007. Eight years of increased oil leasing and production on America’s public lands has left us with nothing but high gas prices for consumers and record profits for Big Oil companies.

More drilling would not affect world oil prices. The US has less than 3% of the world's oil reserves, yet we consume almost 25% of the world's oil.

Expanded drilling threatens permanent damage to wildlife.

Offshore drilling threatens dolphins, whales, sea turtles and other imperiled wildlife. Drilling discharges mercury and other toxins into our fragile ecosystems. Such pollution can destroy beaches, and poison and kill the marine wildlife that we all care about. The noise from drilling is also incredibly disruptive to marine mammals. So while oil companies like ExxonMobil would continue to swim in record profits, dolphins and whales could become fatally disoriented, beach themselves and die.

Drilling in the Arctic National Wildlife Refuge threatens polar bears and other Arctic wildlife. The noise and disturbance caused by drilling in the Arctic Refuge -- the most important onshore denning habitat for America’s struggling polar bears -- could cause polar bear mothers to abandon their cubs to die.

Expanded drilling perpetuates global warming. Such drilling would further extend America’s dependence on climate-changing fuel sources that are threatening the very survival of polar bears and other animals.

We need real solutions that will end our dependence on oil once and for all.

It’s time to take back the giveaways to Big Oil and secure our energy independence by investing that money in clean, renewable energy, energy efficiency, increased public transportation and the technologies needed to get our cars going further on a gallon of gas.

A bold national commitment to renewable energy will put our economy back on the right path by bringing energy costs under control, creating over 820,000 new jobs, and making us more energy independent.

Congress should stop giving tax breaks to Big Oil and start funding constructive alternatives that can make a difference in people’s lives NOW!

[doctorj]

I pretty much agree. Actually, I totally agree, but I'm about as selfish as everyone else when it comes to not wanting my lifestyle disrupted, so I guess I agree with mixed feelings.

I am afraid that our lifestyles are going to be disrupted regardless of anything. Global warming is upon us and we need to change from our wasteful lifestyles to become better managers of what God has given us. Yes, I see what needs to be done to slow down global warming is a stewardship issue. God has given us nature and it is our job to protect nature instead of disrupting it.

However, we know the world is tainted by sin and the old natural world is groaning under the pressure placed on us sinners. Notwithstanding, God has given us the natural world to care for, not to destroy. Drilling for more oil is not good for nature. We need to work with nature, using windfarms, solar heating, and similar. Our lifestyles need to change to look after what God has given us.

[Dr. Shane]

Originally Posted By: Shane

Drilling is the answer in the short term and developing alternative energy is the answer in the long term.

That is if you call 18 months short term, as it will take all of 18 months for new oil to come onto the market. In the meantime what do we do? Sit on our butts and wait for new oil to come to market. Or go out and buy a hydrogen automobile today?

[carolaa]

I am afraid that our lifestyles are going to be disrupted regardless of anything. Global warming is upon us and we need to change from our wasteful lifestyles to become better managers of what God has given us. Yes, I see what needs to be done to slow down global warming is a stewardship issue. God has given us nature and it is our job to protect nature instead of disrupting it.

However, we know the world is tainted by sin and the old natural world is groaning under the pressure placed on us sinners. Notwithstanding, God has given us the natural world to care for, not to destroy. Drilling for more oil is not good for nature. We need to work with nature, using windfarms, solar heating, and similar. Our lifestyles need to change to look after what God has given us.

I totally agree with you on this. And I don't think we have 10-20 years to get it figured out. Whether global warming is caused by fossil fuels or not, I don't know, but if it is, it's just insanity to keep drilling even one more day.

[Dr. Shane]

Drilling will not lower gas prices today or solve our energy crisis.

[carolaa]

Originally Posted By: carolaa

Drilling will not lower gas prices today or solve our energy crisis.

If we say that enough perhaps people will believe it. One problem: the American people are not buying it. Polls show Americans are increasingly supporting more exploration.

Well, I know people are having a hard time trusting what the government says these days, but I think the real reason people are supporting more exploration is because they think it will lower gas prices quickly and will help solve our energy problem.

Originally Posted By: carolaa

The US has less than 3% of the world's oil reserves, yet we consume almost 25% of the world's oil.

I don't know how we can conclude that. We just discovered almost as much oil in North Dakota as what is in Saudi Arabia. If everything the US has is only 3% of what the world has than the world is not going to run out of oil for centuries.

Frankly, I'm not sure what they mean by "reserves."

Originally Posted By: carolaa

Expanded drilling threatens permanent damage to wildlife.

Offshore drilling threatens dolphins, whales, sea turtles and other imperiled wildlife. Drilling discharges mercury and other toxins into our fragile ecosystems. Such pollution can destroy beaches, and poison and kill the marine wildlife that we all care about. The noise from drilling is also incredibly disruptive to marine mammals.

OK, if this is true how do we stop the rest of the world from off-shore drilling? If anyone can drill safely and protect the environment America can. So before we worry about stopping drilling in America, should we stop other countries first?

Ha, we can't even get other countries to stop hunting whales, let alone care about disorienting them. But that doesn't mean we have to be contributors to the problem. I'd like to see us be good examples and lead the way in taking care of God's creation. Now that's something I could be proud of.

Originally Posted By: carolaa

It’s time to take back the giveaways to Big Oil...

That is a sure way to increase the price of gas.

Originally Posted By: carolaa

A bold national commitment to renewable energy will put our economy back on the right path by bringing energy costs under control, creating over 820,000 new jobs, and making us more energy independent.

Drilling more will create more jobs in the private sector without costing tax payers one penny. In fact it will increase revenues, decrease our trade deficit and strengthen the dollar. The increased revenues can be used to invest in alternative energy.

Somehow I don't think the increased revenues would be used to invest in alternative energy. In fact, I think that increased drilling would delay any sense of urgency and would postpone alternative developments.

[Dr. Shane]

Somehow I don't think the increased revenues would be used to invest in alternative energy. In fact, I think that increased drilling would delay any sense of urgency and would postpone alternative developments.

The same government that has banned drilling off shore can make sure revenues generated by off-shore drilling are invested in alternative energy.

The real reason so many liberals do not want more drilling is because they fear it will lead to lower gas prices and thus Americans will not support alternative energy sources.

In all our worry about saving sea turtles and dolphins we might want to remember that human beings in developing countries are dying because of the price of food caused by the price of oil. If drilling in ANWR saves the lives of thousands in Asia and Africa, would that be worth it?

People are dying and it isn't the oil companies killing them. It is the price of oil driven in part by speculators. Speculators fear future oil shortages. Please read that again. Speculators fear future oil shortages. Speculators buy oil futures. When we talk about speculators we are talking about the future. So if drilling off shore or in ANWR is going to increase our oil supply in the future that is going to impact what speculators are doing today. I am certain of one thing. Increasing drilling isn't going to increase the cost of oil. This really is a life and death issue.

Our local Target store has an oil well in its parking lot. It is partitioned off with a chain-link fence. Customers park next to it. A local movie theater is the same way. It doesn't take a lot of space to drill for oil. It is done environmentally responsible. It us unconscionable to let people in third world countries die because we are afraid of an oil spill that we don't even know will happen.