How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?

Separate studies by the House Committee on Natural Resources and the Wilderness Society, a conservation group, show that roughly three-quarters of the 90 million-plus acres of federal land being leased by the oil companies onshore and off are not being used to produce energy. That is 68 million acres altogether, among them potentially highly productive leases in the Gulf of Mexico and Alaska.How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?
FINALLY! Now someone is talking sense. Drilling for oil will not bring down the price of gasoline. It will take at least two years for those new wells to come up to full capacity and by then the world demand for oil will have increased. Not only that, the oil will inevitably end up on the world market, since deregulation ensures that market forces dictate the price (not cost) thru speculators who determine where the oil goes.How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?
You are allowing Democrats and tree huggers to blow smoke up your nose. The coalition of energy companies has been running a public service announcement, which states that we have enough oil in the US reserves to power 60 million cars for 60 years and enough natural gas to heat 160 million homes for 60 years.


In the outer continental shelf, the estimated reserves are 68 billion barrels of oil. Congress will not let oil companies drill for it.


The claim about oil leases is more smoke screen. Oil companies are not going to drill where there is no oil.
After we go get it, its going to take time to refine it you're looking at probrably 15 years if we started tomorrow.





How about using intelligence to find a better source of oil, i mean hemp oil grows from the ground takes 6 months to mature and can be used for all the samethings that crude oil can be used for.





It takes crude oil about 6 million years to mature, it takes hemp 6 months to grow. I'm no genious our government is well aware of this fact, but greed is a major factor.
Your 3% figure is based only on the permitted land that the government uses for its estimates. There are over 50 million acres of land where known oil exists that the government does not include in its figures.





Ten years ago people said the same thing you are and guess what?


We still get our oil from the most screwed up part of the world.





Instead of kissing butt in the middle east we need to take as much control of our own destiny as we can.





Drill, here, drill now!
You answered your own question. 90 million plus acres of federal land being leased by the oil companies onshore and 'OFF'; are not being used. Why/ Because we have a ban on drilling. If we lift the ban we will NOT have enough oil to stop buying foreign oil, but we could buy LESS. We also need to find alternative sources, but we do need to drill for oil here too.
';House Committee on Natural Resources and the Wilderness Society, a conservation group';


You don't think that they have a kind of bias in their reporting do you?





Face it you don't like being thrown under the bus because people really want cheaper gas over the supposed threat to the envoirment.
It increases supply. Oil prices fell yesterday because China is reducing subsidies on gasoline in China ( increasing gas prices which will reduce demand ).





Supply and demand:


The economic theory of market value where price is determined by the interaction of sellers and buyers to reach an equilibrium price which both are willing to accept.


http://www.smallbusinessdictionary.com
Yes that's right


and


The Oil Companies wanted those leases because they look like the Best possible sites for new production.


(6x better than ANWAR says the oil companies own experts)





The oil companies know that all the drilling in the world wont bring down prices now.
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It doen't it takes a long time to drill and there's a shortage of oil rigs. The solution is to look for alternate sources of energy and price controls
It makes the people in Texas rich and that's all Bush ever cared about was the millionaires. His buddy's are the only people who benefitted from his reign and this is the best exit strategy he could pull off.
More drilling works, cuz we'd have more oil than we have now.





You have heard of supply and demand, well we'd be increasing supply.
There isn't a shortage but it would increase supply thus supposedly lowering prices (hahaha).
it doesn't. this is just a last ditch effort to give big oil what they've been wanting for a long time.
Its just ANOTHER way for the G O P and Bush to funnel EVEN MORE MONEY into the oil men in Texas's bank accounts
I think that is only one side of the story.

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How long US can survive without world oil supply ?

13.5 SECONDS. GIVE OR TAKE A FEW.How long US can survive without world oil supply ?
We still produce about 50% of our oil domestically. It would be a lot more, if we could drill more in Alaska, the Gulf of Mexico, and the California coast. In addition, we have TONS of shale.








Here's what would happen if the world embargoed the US.


There would be incredible inflation, and economic turmoil, but in a about a year, the automakers would move to save their markets by introducting plug-in hybrids that get +200mpg (existing technology)


Then in a few years, the resources named above would be generating oil, there would be more nuclear plants, additional natural gas and coal gas, and ethanol to supplant foreign oil.


In a few more years, a desperate push would yield hot Fusion power.





Abroad, international oil producers would see their prices collapse and would fall upon desperate times as demand slackened and price wars would ensue between current oil exporters (north sea, russia, venezuela, mid -east) They would all be begging us to come back and boost the price of oil again.





Then we would be totally energy independant because of NEED spawning innovation. This is the history of free markets. The ';invisible hand'; spoken about by Adam Smith would come to the rescue although hard times could not be omitted.





Here's a question: What would the mid east do when we were no longer interested, and they no longer had US oil money, US foreign aid, and US intervention in Israel's self defense reactions?How long US can survive without world oil supply ?
Problally not much but if we can over through the oil companys and set up home biodesel factory we all can live alot better
It is impossible for us to survive without the world oil supply. A lot of people think that the only thing we use oil for is gasoline. That is far from true. Petroleum is also the raw material for many chemical products, including solvents, fertilizers, pesticides, and plastics. So all those liberals that suggest the answer to this problem is by using ethanol, or vegetable oil for cars, let them know that this will not solve our oil dependency ';problem.';
forever if our corrupt oil company owening pollititions will allow the use of more economical and ecological fule sources like hydrogen,and methane

If demand exceeds supply, then how are the oil companies making record profits?

I would think they wouldn't be getting record profits, but only the same profits like prior to demand exceeding supply or even less profits.If demand exceeds supply, then how are the oil companies making record profits?
demand exceeds supply, therefore the price rises.If demand exceeds supply, then how are the oil companies making record profits?
That Econ 101 course was an 8:00 am class wasn't it?
Then, they can set the prices and be sure that cost of production and inventory will be far far later than the selling price at the pump.
If demand exceeds supply, customers are willing to spend more to outbid other potential customers.





Demand exceeding supply means there is more money trying to buy less product. This indicates higher prices for the raw materials to me. Higher prices are likely to cause more profits to be made by the seller, aren't they?
low supply equals high prices, like if a rare car is made like only 500 or so they are sold way above standard car prices i.e. low supply, high demand. plus the oil companies rip everyone off.
I suggest taking a course in economics.








Key phrase '; demand exceeds supply';








Boy that was tough








Thanks for the attempt at giving me an economic lesson. After reading it I stand by my statement that you need to go take a course on economics.








the reason for the profits is clear to see. Take away your biased view of the oil companies and you might for once see the truth.
I think oil is being sold on a futures market and when is Exxon-mobile going to pay windfall profit taxes in our country..? that alone should just about cover next year's war budget...heck we are fighting their war and our guys are dying to make the region ours...And now we have to worry about war in Iran!! will we vote a peace advocate to office or maybe a Ron Paul is best...If we don't have taxes to pay there can be no war and we can take care of our own local bridges and roads, schools(which are 90% funded locally already) so what else do we need government for? Oil company wars....?
That is the exact reason. It costs the same to get the oil and you get to raise your prices if you have more demand than supply. They would lose money if they do not have high demands because you lose money because you have oil going no were. It is a basic rule of economics
You need an economic lesson. When demand exceeds supplies, they raise prices to gain more profits. Businesses love it when demand exceeds supplies. That's when they make record profits.
You are correct--almost. The supply/demand curve presumes a free market. The oil industry is anything but Foreign oil is controlled by state institutions, not private enterprise--and those states openly operate as a cartel, and fix output levels as a routine practice. Our domestic supply is controlled by a half-dozen countries--all of whom are closely linked to those foreign governments (controlled outright, in the case of Citgo).





And the pricing/market structure is rigged--openly. There are a lot of factors-but here's the single biggest one:





When the market price of oil is raised,,, lets assume the oil companies raise the price of gas by the same amount (actually, they are raising it quite a bit mor--and I won't argue that. Just look at the numbers. Here's a hint: there are 55 gallons per barrel, so you can figure out how much extra the oil companies are paying. Add about 20% for tax add-ons. That accunts for about 1/2-2/3's of the increases we've seen).





BUT--in addition to the above--the oil companies only have to pay that higher price onabout half the oil they produce--that which they have to buy off the world market. They own all the domestic supply--and hence have zero increased cost on that part.





so--we've seen an increase over the last few years of between $1.50-2.00/gallon. Maybe 50 cents of that is due to the rise in world oil prices. The rest has been tacked on by the oil companies because they are totally unregulated and can get away with it.





And because we--as citizens and consumers--have been stupid enough to let them get away with it.





THAT'S why oil company profits are so high.
Since they have the same amount of supply, the price per capita (per barrel) has gone up. If someone has a product that increases its demand, but doesn't increase production on that product (supply), you will still make a bigger profit on the same amount of that product (oil), because its logical to set the price higher for a set amount of oil than before. Get it now?
they demand a higher price for their supply!!!








well actually the oil companies have explained that they need all that cash to explore and build more refineries to bring us more of their product , therefore lowering the prices for their product!!!





but there is some question about this because there hasn't been any new refineries built and the old ones are breaking down.!!





so there is a big mystery there that was just swept away and nothin else was done after congress supposedly got tough and questioned them!!!





me thinks, and so do a lot of other people that they are lying their a** off!!!





hey crabby blind guy!!!


FAR OUT FRIGGIN ANSWERE!!!


thats what i was trying to say, but i was home schooled!!!!

Why is it so hard for people to understand that the U.S. needs to protect it's oil supply?

Do you really think we would have given a crap about Iraq invading Kuwait in the early 90's if there was no oil in the region? We had to stop Saddam before he took over Saudi Arabia as well...It's called reality. That war led to the situation we are in now. Get a grip people...I commend McCain for stating the truth.Why is it so hard for people to understand that the U.S. needs to protect it's oil supply?
The same reason why people don't understand why we need to protect our country. They are delusional and live in a land of rainbows and bunnies.Why is it so hard for people to understand that the U.S. needs to protect it's oil supply?
Why is it so hard for Bushies to understand we need to get rid of oil once and for all and yes, the technology does exist.





Horizontal wind turbines and/or solar power on everyone's rooftops charging batteries during the day so we can recharge our electric cars during the night would take America off the oil dependency once and for all...BUT NNNNNNOOOOOOOOO!!!!!!!





The GOP is here to make SURE THAT NEVER HAPPENS!!!!





The GOP is public enemy #1 in America and the truth will come out and the GOP can't stop it no matter what they think!
So why won't you admit that Oil was one of the main (if not THE main) motivation for invading Iraq the second time around?





Or to put it another way, isn't McCain admitting that Reverend Wright's thesis - that America is an imperial power that goes to war to try and control all of the world's resources - correct?
So why all of the beating around the ';bush';.





If we are ';protecting'; ';our'; oil supply why not say so.





Or do you mean that we should overtly invade the Middle East and steal ';their'; oil supply.





If that is what you mean why don't YOU say so.





If this is a simple concept that everyone should understand...why not just lay the cards on the table instead of hide behind WMD, get Saddam, spread Democracy, and ';protect our oil';.
Yeah! What's OUR oil doing underneath THEIR sand???


After all, WE deserve it, not THEM!!


That's why the #1 Bush non-military 'benchmark' wants to force the new Iraqi Parliament to surrender two-thirds of its oil fields to American oil companies, virtually allowing them to steal Iraq's most valuable economice resource.


Maybe we should have - a long time ago - learned to become less dependent on oil. Perhaps we should be more willing to share the world's natural resources with the rest of the world instead of making up 5% of the global population while squandering 55% of the world's natural resources.


But, no we'd rather drive around in our gas-guzzling SUVs and Hummers; we'd rather not bother to REuse, REduce or REcycle; we'd rather not have to conserve energy or worry about global warming. Just go on wasting and taking from the Earth just ';because we can';.


Why is it so hard for people to understand that the U.S. doesn't OWN the entire world?? -RKO- 05/02/08
People have problems with the war and the oil connection because we all new it and the Bush administration never presented it. This war was supposed to protect our freedoms (?) and share the gift of democracy with Iraqis. The only way we can loose our freedoms is if we allow our own government to take them away.





The truth would be a welcomed change, we'll see.
It is like most Americans today just lash out at those they feel are causing their problems. No one tries to look ahead to see what is coming and prepare for it. No one tries to find a way to make things work when adversity strikes. All people do is lash out and scream';you did this, now fix it';. I listen to people and read what is written here and that is what I see. In life I have learned that every bed of roses has thorns, so I do not wait to get stuck. Anyone with half a brain could have seen all this coming years ago and planned for it. I did and came out on top. And everyone says us hillbillies are dumb.
well, cause that means you have no soul and are no part of Humanity or the Human Race, and people like you most likey DID come from monkeys humpin, or rocks collidin in space,


and you have sould your soul for Fascism~!!!!





me and my fellow Human beings have a Spirit and a soul, and will make every effort to make sure clones like you are not in control of things~!!!
Ya, starting a half assed/half hearted war in Iraq and Afghanistan and really pissing off a lot of really tough Arab types is just a GREAT WAY of protecting our oil supply!!





Does the White House pay you to write this stuff?





Take a look at the price of gas before the war started and now. Did we protect our oil supply?
We already know...


It's not OUR decision to make a big F-ing mess in Iraq


when our leaders are getting a kickback from it all.


Saddam....Bahhh! He was washed up long ago.


He posed about as much threat as a bowl of chicken-noodle


soup does to the flu.





It's about control...The biblical reference';the key to the bottomless pit';.





It's about greed and control,bottom line.





But their time is coming...believe me.





Things must get worse before they can get better.
U.S. needs to protect it's oil supply,But it is under another nation. but it's ours?


Hmmm sounds rather imperialistic to me Buba, what say you? hand me another beer.
Oh, I say. Last year if Hillary or Barrack said the war was about oil, they were a traitor. Now McCain is a partriot for saying it.





Can anyone be as two faced and self deluded as your average republican?
Thank you. Everybody knew this war was partly about oil, it was about protecting our interests and not letting a madman continue to sit on 7% of the world's oil supply.
Damn right. There is no reason why Americans should pay more for oil and drive smaller cars like the rest of the world. We are god's chosen people.
What are you talking about?





1. Saddam and ';that war';--the Kuwait war-- had NOTHING TO DO with ';the situation we are in now.'; Saddam had nothing to do with 9/11--you do know that by now, don't you?


Don't you?





2.Saddam was NEVER a serious threat to Saudi Arabia. The US has had a strong presence in Saudi Arabia for decades, and Saddam exhausted his army and his resources invading Iran and Kuwait, remember? By the way, the US put Saddam in power in the first place, did you know that?





3. Why does the US feel it has the right to manipulate other countries' governments? Iraqis never asked for our help. Polls show that Iraqis were happier under Saddam than they are under US occupation. By the way, the US invasion has created 4.5 million Iraqi refugees out of Iraq's population of 26 million. Do you think these Iraqis went off on vacation? No! They are living off the charity of little countries like Finland and Sweden who have compassionately taken in 10,000s of refugees even though the refugees are straining their social service systems. And how many Iraqi refugees has the US taken in? Fewer than 1,000. I'll bet these charitable countries just LOVE the US for the burden they've created for their people.





4. And why is Iraq's oil ';our'; oil--';our'; US oil supply? Because we originally had an agreement with SADDAM'S government to exploit it??? Saddam, the same person we put in power, then decided to take out of power, and then he turned against us?





5. None of us can choose where we were born. You could have been born in Iraq. If so, the chances are high that you would have lost a mother, sister or friend as a result of the US invasion; or a home, business, or livelihood; or your family its orchards or livestock; or your town its infrastructure. Chances are you would have fled as a refugee, if you were wealthy enough, to live off the charity of a foreign country whose language you couldn't speak. How would you feel in their place? Are you capable of 'feeling in their place?'





Get a grip, question-asker. The reality is that the world doesn't like the US very much these days, and they have a good reason not to.
Yes the US helps the world you foolish liberal.

How do higher oil prices affect the supply of gasoline?

other things being equal supply of gasoline would decrease since its supply by gasoline producers equals oil demand.

Oil companies lied about the supply being low?

now we know the truth, (speculators drove the price up) whats to keep it from happening again?Oil companies lied about the supply being low?
they lie all the time, but sometimes the market condition makes their lies irrelevant. Oil companies lied about the supply being low?
Deregulation in the financial markets allowed investment firms to invest way beyond (leverage) their assets to back their gambles.





Not only did we get to suffer high energy prices, now we get to bail out


everyone that bought into the big money grab.





You know banks were highly regulated after the great depression for nearly identical reasons. Funny how we always have to relearn things.

Is there anyone left on earth who thinks there is a never ending supply of oil?

/ Some believe the fossils from which the oil comes are only the fossils which currently exist.





Others believe life ends constantly, therefore the fossils are replenished by new fossils from dead sea-dwellers.





You can choose whomever you wish, but at this time, no one really knows.





McCain/Palin 2008 Is there anyone left on earth who thinks there is a never ending supply of oil?
I do. It would appear that oil reserves are increasing more and more. Brazil just discovered a massive oil reserve just off their coast. Bigger than anything in the middle east.


Another massive reserve was found at the bottom of the Artic Ocean.Is there anyone left on earth who thinks there is a never ending supply of oil?
yeah aparently..there is this guy I work with who swears the earth keeps making it ???Wow, of coarse he doesn't beleieve in Dinasaurs or anything and is a complete Religious freak so he changes FACTS to fit the Bible..kind crazy .. I bet Palin thinks the same thing
nope, but there is an almost unlimited supply of natural gas.


and ways to produce electricity.





two great alternatives for vehicles.
maybe Sarah Palin. Perhaps she can address that in her next interview.

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