Reality Check On Offshore Drilling

Most Americans Support Lifting The Ban, But Experts Say Gas Prices Wouldn't Change

(CBS)  With gasoline hovering around $4.00 a gallon, a new poll shows two out of three Americans now agree with President Bush - that Congress should permit drilling on the outer continental shelf, CBS News correspondent Bill Whitaker reports.

"Experts believe that currently restricted areas … could eventually produce up to 18 billion barrels of oil," Mr. Bush said in a recent speech.

Even in Santa Barbara, Calif., where a huge oil spill from an ocean rig blowout in 1969 turned most Californians against offshore drilling, some people are having second thoughts.

"Well, if it doesn't hurt the environment too bad and it lowers gas prices, I'm all for it," said driver Sean Scott.

According to the federal government's own Department of Energy, drilling off America's coasts would not have a significant impact on domestic oil production or prices before 2030. And off-shore leasing wouldn't even begin before 2012.

Why? Because the leasing process is cumbersome. And currently, there aren't enough rigs or workers or refineries to handle more oil.

Then there's this. Most of the U.S. offshore oil, almost 10 billion barrels, lie off the coast of California. But at the current rate of U.S. consumption - about 20.7 million barrels a day - that would be burned up in 16 months.

"It would have a pretty modest effect even when it did start flowing," said U.C. Berkeley energy researcher Severin Borenstein.

Borenstein says it might drop pump prices as much as 25 cents a gallon in 10 years or more, but: "I think it is very unlikely that we will ever see oil prices that get us back to $2 a gallon or even $3 a gallon."

Opponents of the drilling say what's off our shores is a drop in the bucket.

Supporters say when the bucket is running dry, any little bit helps.

[geneonlbk]

Why can''t the Bush people show some sort of concern for our environment? The more oil we burn the faster we destroy our fragile planet. Bush should be creating national alternative energy policies and creating a national Marshal plan to get us off expensive foreign oil in tfive years. The technology already exists to generate solar and wind power and power our cars with on-board hydrogen generators.

[shameonbush]

CBS ends their story about off shore drilling by stating," Supporters say when the bucket is running dry, any little bit helps."
I don''t believe there is a shortage, we haven''t dipped into our reserves so where is this urgency coming from? We should NOT allow off shore drilling, it''s unnecesary at this time and we need our oxygen resource far more than our oil resource. We cannot live without oxygen. Most of the oxygen on our earth is produced by algae in the ocean. If we unleash the oil companies on our oceans, we are risking the future of our children. We simply cannot allow this.

[nordeck52]

Borenstein says it might drop pump prices as much as 25 cents a gallon in 10 years or more, but: "I think it is very unlikely that we will ever see oil prices that get us back to $2 a gallon or even $3 a gallon."


That''s because this guy''s in California. Prices there are higher than the rest of the country. On the other hand, here in Virginia we have prices as low as $3.59 and counting! Over in California, the prices may not hit $3 a gallon again, but in the rest of the country they just might!

[smurfcrusher]

I''m not impressed with T-Bone Pickens.

He supported the "Swift Boat Veterans for Truth" to the tune of $1Million who wrongly impugned then presidential candidate John Kerry''s military service.

I would cheerfully support other people''s alternative energy suggestions - but it needs to be someone with integrity and good judgment.

Payback is a b i t c h.

I think the last thing we need is to put our energy future in the hands of some egotistical Texan. I think we learned that''s not a wise decision.

"Reality Check On Offshore Drilling
Most Americans Support Lifting The Ban, But Experts Say Gas Prices Wouldn''t Change "

...Irrelevant. The Grand Oil Party (GOP) needs to pay their friends in the oil industry back, right? A $10B tax cut wasn''t enough for them... Neither is Exxon-Mobil''s record-breaking $11.6 BILLION dollar profit, while the rest of us struggle with $4 per gallon gasoline.

Come November, I think change will be GOOD!

[plainjean]

90% of this offshore oil will be sold in all likelihood to Red China to quench that country''s insatiable thirst for gasoline. Once again, the commercial being played by T. Boone Pickens is right on the money. Nice interview of Pickens by Katie Couric.

[plainjean]

T. Boone Pickens has it right. We cannot drill our way out of this crises. What America is experiencing now is the "calm before the storm." Just wait until Red China completes its interstate transportation system adding 400 million Chinese motorists who are not currently behind the wheel. And to think there are those who want to trash the last remaining unspoiled wilderness and beaches in North America for a fix to their addiction to OIL and their "need for speed." CONSERVE!!!! A ten percent reduction in usage translates to a similar reduction in the price-at-the-pump! When are the American people going to pull their heads out of their A$$e$ and realize drilling for more oil is NOT the solution!!!!

[the53rdcalypso]

Offshore drilling really is a cure all. Poverty, depression, impotency, you name it, the Republicans will solve it with this one: http://www.236.com/news/2008/07/30/poor_depressed_impotent_offsho_8035.php

[promaclaura]

I want to do everything, people in Florida are now willing to drill offshore, people living next to Anwar want to start drilling. The only ones that don''t are trying to make it a democrat/republican issue and they just happen to be in the minority with Barack. If Barack had supported this they would be all in support of it. So far the naysayers come across as "Bush and oil-men are trying to get us". Stop being so paranoid and join the majority who don''t feel threatened by a man who is leaving office. Also, pretty soon it will only be the locals enjoying the coast''s. It takes cars and planes to get to these locations and since it takes hours to recharge an electric car, it would take forever to get there. I live in Michigan and believe me it is hurting our Great Lakes Industry, nobody pulling their RV''s up here. Can RV''s be pulled by an electric car?

[amazedd]

And yet, said tourists cant''t wait to fly Emirates and live in some oil rich country.
Curiouser and curiouser!

[amazedd]

What, do you think that in ten years time there''ll be no need for oil?
Maybe what worries some is ''the greatest transfer of wealth in human history'', from the pockets of the consumer to the coffers of the sheiks. In ten years time, or whenever, all the money will not be going to the usual suspects at Opec, it will be staying in the local economy; providing jobs and profit for all those involved.
However, the sheiks, and their paid acolytes amongst us, obviously do not want this to happen. Not now, not in ten years, not ever.
But, what happens if the Gulf gets shut down because of something Iran does, what then? Putting all your eggs in one basket is silly enough, putting them in the hands of basket case sheiks is sheer folly!

[labrat9999]

We can keep playing this stupid game about where in the world is oil until the cows come home but it ain''t going to change a thing. We as Americans need to look at this problem straight on...we are running out of oil. It will either be today, tomorrow, next year of the year after but eventually we will be looking at the same problems again in the future. So why not be smart and get ahead of the problem now? I think unfortunately too many American are always looking for a quick fix and not the long term solution. This is part of the problem with our auto industry that wasn''t willing to change and start looking at other types of vechicles other than gas gosling SUVs. America is one of the greatest countries in the world but we need to start being the greatest innovators in the world instead of looking for excuses for are own stupidity. The sooner we move off oil the sooner we can start becoming the world leader again instead of kissing up to the Arab world!

[davideo2]

Ok, since oil prices won''t come down for a few years we should wait until then... Won''t we then be wishing we had drilled now?

Hybrids and electrics are just toys. You cannot run airliners or trains with either. The power density just isn''t there. Probably never will be. The best electric plane you could possibly ever make will be propeller driven; a complete throw back from the jet age.

Tarballs from offshore drilling hurting the tourist trade on the coasts? Hah! I live on a coast. The tarballs here are all from natural seepage. They keep the water around the existing rigs cleaner than the rest of the area so they don''t get shut down.

And, if the tourists can''t afford gas, how are they going to get here in the first place???

[xyno-2009]

I found this quote from Exxon''s earnings announcement today very interesting:

Chief Executive Officer Rex Tillerson, 56, is spending $52 million a day to search for new fields after reserves fell in 2007 by the most in at least a decade.

[briannorwood]

If you are wondering why Jeb Bush and Arnold Schwarzenegger are against offshore drilling, just Google the term "tarball".

If you have ever been to Galveston, you surely know all about them.

Yes, there may be billions of dollars for the oil companies offshore, but there are trillions of tourist dollars onshore up and down both coasts.

All I''m saying is that the topic is worth discussion, but is not nearly as black and white as the oil companies and their GOP supporters would have us believe.

[lilvinnyb]

1. The purpose of offshore drilling is not to totally replace the imports...its to supplement and if necessary, replace. So the argument that it would be used up in 16 years is nonsensical because it assumes that the supply is the ONLY source of oil.

2. The speculative market would immediately react to more drilling, speculating that there will be increased supply, the prices would drop.

After bush pushed for offshore drilling, the price dropped 11 dollars a barrel in 3 days.....who says theres no immediate impact. My latest drive by a gas pump currently shows supreme at 4.11...last week it was 4.22. Fact it...the drilling argument is working...the "alternative energy ***" is what will take 30 years.

The real "BS" are those people who think that a highly industralized economy will run on solar and wind power. The real "BS" are those who pushed for more Ethanol, only to have the price of corn skyrocket...driving up the price of ALL our groceries.

[bigwhtpony]

Why do you expect this to change, especially considering the present condition of the dollar?
Posted by rf35 at 11:38 AM : Jul 31, 2008

It doesn''t have to change. The additional oil on the open market would lower the price (see Economics 101 - Supply and Demand.)

[rf35]

And frankly I''d rather we be drilling and producing our own oil rather than supporting the sheiks in the Middle East.
Posted by WellHell3

Of course you realize that we do not use a single drop of oil currently produced domestically. Every last barrel is exported. Why do you expect this to change, especially considering the present condition of the dollar?

[bigwhtpony]

It can be done but it needs to be done responsibly and with some independant oversight.
Posted by fedupwithit1 at 10:18 AM : Jul 31, 2008

This is a reasonable and cogent point. Everyone can agree on this. Thank you!

[bobnjersey]

[Most Americans Support Lifting The Ban, But Experts Say Gas Prices Wouldn''t Change]

another example of the stupidity of the american electorate. they''re for anything as long as they''ve heard it''s good for ''them''.

they can''t tell you a thing about political process, what bills are approved, what''s actually hidden in these bills, who''s in what position, or how any of this might affect them ... but they''ll answer a stupid poll question w/ certainty.

they know the contestants on american idol, the finalists on dancing w/ the stars, each seasons winner on survivor, and the era of every pitcher in mlb ... but not anything that''s really important ... that which affects their lives ... and the lives of their children.

[beamer297]

Folks- What about the 96 million acres already leased for drilling but big oil would''t drill, but want additional acreage to grab so that *** Cheney and THE REPUBLICANS will be filthy rich for eternity. Why not drill on the areas now availaible before asking for more. Exxon just reported $11B dollars inprofit. The name of the game that is driving up oil prices is is greed, falling dollar, huge deficits, poor economic management by Bush and the GOP, wasteful wars. Do you want McCain and the RepublicanS to manage this economy after the 8 years of mess, $10 trillion dollars of debt. Vote for a CHANGE this November if you love America. What you are watching is the begining of the decline of once a great or attempted great empire. Like the Roman, British, Persian etc- the days are numbered especially with people electing the wrong LEADERS based on idiology. America open your eys in November or you will be lied to again. A gallon of gas was around $2 dollars 8 years ago, now it is over $4/gallon. It is the same for grocery, college tuition, all raw material etc. The ever decrasing buying power of the dollar and a lot of the economic miamanaged must be blamed on MaCain and his support of Bush idiology. They are fooling you again about drilling- EXXON and CO. drill on the 96 million acres that are avalaible before making this an election issue.