It was in July of 2008 when President George W. Bush lifted the moratorium on off-shore oil drilling. Several months after, Congress followed suit by not renewing its restrictions. Before the ban was lifted, 85% of American coastal waters were off limits to off-shore drilling. More than 20 billion barrels of oil wait below the ocean floor to be tapped. This would end a need for Saudi oil for 30 years.
In an attempt to procure the production of domestic oil and natural gas, the government has started a new plan; A proposal to lease the rights to energy companies to drill off-shore. This constitutes the first step in beginning the production of domestic oil [off-shore].
Most of these restrictions were put in place by envro-geeks at a time when gas was cheap. Last summer $4.00 a gallon gas prices spurred on public outcry for cheaper energy. Polls showed that Americans supported off-shore drilling by huge margins, Americans were fed up.
But now it could be back to the drawing board for the energy companies. Many members of Congress are considering a new imposition of an off-shore drilling ban. Signs show that The President may have similar inclinations.
This is a mistake any way you slice it. Taking away our ability to become self sufficient is not a way to break our dependency on foreign oil. As I have stated in the past, the currency exchange rate on the dollar is horrid. Domestic oil avoids that obstacle and provides oil and therefore gas at a cheaper price; freeing up more capital for investment in alternative fuel sources.
We can not overlook the number of people such an undertaking will employ. Unlike the stimulus jobs President Obama is fixated on, these jobs will be much more permanent, pay more, and are provided by the private sector. Meaning they are paid for by the private sector.
Such measures would also facilitate severing ties with middle eastern nations who love our money but hate our way of life.
Come on Mr. President, think of all the money we’d save that could be spent on alternative energy sources if its not being spent on stimulus jobs.
How could this be a bad idea?
- Cuba and China are drilling oil 60 miles of Floridas’ coast. If we don’t drill it they will.
- New drilling technology boasts a 99% clean drilling record.
- Our Domestic Oil companies have to follow strict procedures regarding the environment that other countries do not.
- A withdrawal of dependency on foreign oil.
- Creates Thousands of new jobs.
- Creates millions of dollars in new tax revenue.
Have I forgotten anything?
The current democrat controlled Congress has nothing to gain from a renewed moratorium. Accept for a power grab, and another opportunity to taunt the republicans with another chorus of We won the election, we’re in control now. Lord knows Nancy Pelosi has sang that song far too much already.
It’s time to act in the best interests of the country instead of the best interests of their party!
Once again, its a Cracked World.
I just thought of something.
With more oil supply, would oil companies really begin drilling more oil immediately. I mean, why would they benefit from keeping a high supply. The result would be a lower demand which equals less money (plus the resources from drilling more would cost some).
It would be for the oil companies best interest to just ‘hold’ these reserves.
What do you think?
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Good questions,
Drilling their own oil is cheaper than buying it from some one else, after all the real money comes from refining it into usable fuels. Buying it to do so is more expensive than producing your own. You also have to consider the expenses of transporting it long distances. Imagine what insurance must cost to ship this stuff thousands of miles. If you think they don’t pay a premium to protect their assets think again.
Ask yourself “would you rather buy the raw materials to produce your product or produce your own?”
You make a good point.
This leads to the debate “Is it cheaper to outsource my raw materials?”
It would interesting to find a report on the numbers of the oil industry.
Anyways, nice posts about the offshore oil debate. Both were well written and fun to read.