Missed in the offshore oil ...

[Libsmasher]

.... debate.

Experts say there is 18 billion barrels of oil on the continental shelves.

At (say) $130/barrel, that's

$2.3 trillion dollars.

$2.3 trillion dollars that wouldn't be added to our balance of trade deficit if the oil is recovered. Our balance of trade deficit is one of the main things that is weakening the dollar, and pushing up the cost of oil, since it is still mostly priced in dollars. Simply looking at how much oil would be gotten off shore, and how it would effect world prices only based on increased supply, is a typical simpleminded static analysis.

 

[UShadItComing]

That's right libs and they're going to get at it and bring it home in a super tanker next year. It's always just bee a commie plot to stop the drilling for it because the commies want the US to spend 700 billion a year on foreign oil and break the US economy. The US doesn't need Canada's oil or Venezuela's oil or ME oil, the US has all it needs. McCain said so and they're trying to pretend that Obama is the one to eliminate demand for ME and Venezuela's oil. Commies!

And Balack Obama wants people to inflate their tires and save 3 or 4% on gas! Hahahahaha!

me and you libs!

 

[Sihouette]

Trillions of dollars for who?

Oh, that's right. BigOil.

We don't reward criminals, we punish them. (See Congressional Hearings on GW Bush et al lying to Congress to get permission to invade Iraq)

We know who is behind the invasion of sovereign Iraq and why. No cookies for bad kiddies..

 

[UShadItComing]

libs deserves one cookie for bringing this up don't you think?

And I don't think you should say that Bush lied about the WMD's because they did find two old artillery shells which had some mustard in them or somthing!

 

[Sihouette]

Hmmm...injecting nonsense into a discussion to downplay it's veracity.

Haven't seen that one before US. But then exposing it for what it is sort of detracts from its potentcy, wouldn't you say?

 

[Libsmasher]

Any comments from someone with an IQ over 80?

 

[BigRob]

Any comments from someone with an IQ over 80?

You will need to factor in the total cost of extracting the oil before you can claim a 2.3 trillion dollar profit will come. Also oil has been trading down closer to $120 and encountering resistance in this area. I do not think we will see $130 a barrel for oil for a bit longer, and if we do I do not think it is going to stay at that point. Added to that, demand is slacking to a small degree, and the price is adjusting.

All of that said, there is still plenty of profit that can be made from drilling in the OCS.

 

[Libsmasher]

You will need to factor in the total cost of extracting the oil before you can claim a 2.3 trillion dollar profit will come. Also oil has been trading down closer to $120 and encountering resistance in this area. I do not think we will see $130 a barrel for oil for a bit longer, and if we do I do not think it is going to stay at that point. Added to that, demand is slacking to a small degree, and the price is adjusting.

All of that said, there is still plenty of profit that can be made from drilling in the OCS.

Thanks for you comment, but the numbers I quoted were revenue, not profit. I'm also not concerned with an exact price per barrel, clearly the price for the forseeable future would indicate trillions of dollars of revenue for american companies that would bolster the dollar. (Note: I heard on the news that one thing weakening the price currently is that for the olympics the chinese have taken a million cars off the road in Beijing alone.)

 

[BigRob]

Thanks for you comment, but the numbers I quoted were revenue, not profit. I'm also not concerned with an exact price per barrel, clearly the price for the forseeable future would indicate trillions of dollars of revenue for american companies that would bolster the dollar. (Note: I heard on the news that one thing weakening the price currently is that for the olympics the chinese have taken a million cars off the road in Beijing alone.)

I doubt that has much to do with it. One million cars is not all that much. I think we are seeing more of a demand decline worldwide (not major, but a decent one). Added to that was that in recent supply estimates the supply beat what was expected. Also, the Saudi's upped their production. Granted, the price of crude is most tied to light sweet crude, which is why when a pipeline is damaged in Nigeria you see more of a reaction than other news. It is still a volatile market that money can be made in.

 

[UShadItComing]

You will need to factor in the total cost of extracting the oil before you can claim a 2.3 trillion dollar profit will come. Also oil has been trading down closer to $120 and encountering resistance in this area. I do not think we will see $130 a barrel for oil for a bit longer, and if we do I do not think it is going to stay at that point. Added to that, demand is slacking to a small degree, and the price is adjusting.

All of that said, there is still plenty of profit that can be made from drilling in the OCS.

Are you more sure about this than you were about real estate peaking Bob?

 

[Andy]

Trillions of dollars for who?

Oh, that's right. BigOil.

We don't reward criminals, we punish them. (See Congressional Hearings on GW Bush et al lying to Congress to get permission to invade Iraq)

We know who is behind the invasion of sovereign Iraq and why. No cookies for bad kiddies..

If I have to choose someone to get my money, between BigOil, Imports, and Government... I'll choose BigOil.

Bush didn't lie, Rockefeller proved that.

Iraq was invaded based on the intel at the time plus his kicking out the UN and not abiding by the ceasefire he signed.

 

[Andy]

And I don't think you should say that Bush lied about the WMD's because they did find two old artillery shells which had some mustard in them or somthing!

He didn't lie anyway because the Rockefeller report proved conclusively that the intel at the time indicated exactly what he said.

 

[Andy]

You will need to factor in the total cost of extracting the oil before you can claim a 2.3 trillion dollar profit will come. Also oil has been trading down closer to $120 and encountering resistance in this area. I do not think we will see $130 a barrel for oil for a bit longer, and if we do I do not think it is going to stay at that point. Added to that, demand is slacking to a small degree, and the price is adjusting.

All of that said, there is still plenty of profit that can be made from drilling in the OCS.

The real kicker isn't profit. I could care less on specifically how much profit the company makes. (unless it's exxon, got stock in that). But key to this whole point is.... where is the money going? If it is here in the US, that's money going to jobs and workers here in the US. Investment into the US instead of Canada is a great thing. We should support this regardless of what margin it brings.

 

[Andy]

Are you more sure about this than you were about real estate peaking Bob?

Maybe, but likely not as sure you were that insurance rates in Alberta are higher.

 

[UShadItComing]

Maybe, but likely not as sure you were that insurance rates in Alberta are higher.

That's right Andy and I'm going to keep looking and looking to find the one honest link on the internet that shows that Alberta has cheaper insurance than ICBC commies.

You and me will do it Andy.