Oil Drilling Update
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| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $0.17 | ---- | $45.90 |
| Gold | ---- | ---- | $903.10 |
With oil prices scraping the bottom of the barrel, pun intended, there wouldn't appear to be much incentive to pursue the development of new oil resources. And in tough economic times worldwide, the necessary investment required would appear to be prohibitive.
As the U.S. seeks to get its economy going by building roads, bridges and bicycle paths, Brazil has decided to create jobs and move toward energy independence by investing in its energy infrastructure and the liquid gold that lies just off its pristine beaches.
Brazil's state-owned energy giant, Petrobras, announced on Friday that it plans to spend $174.4 billion on developing its huge recent offshore oil finds through 2013. A $28.6 billion spending plan for this year will be financed in part on loans from Brazil's state development bank.
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | ---- | $8.89 | $77.70 |
| Gold | ---- | ---- | $850.90 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | ---- | $1.44 | $86.99 |
| Gold | ---- | ---- | $913.40 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | ---- | $1.11 | $88.95 |
| Gold | ---- | ---- | $907.50 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | ---- | $1.44 | $86.99 |
| Gold | ---- | ---- | $913.40 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $6.07 | $87.81 |
| Gold | ---- | ---- | $856.30 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $0.09 | $93.88 |
| Gold | ---- | ---- | $836.60 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $4.56 | $93.97 |
| Gold | ---- | ---- | $836.30 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $2.11 | $98.53 |
| Gold | ---- | ---- | $870.70 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $4.27 | ---- | $100.64 |
| Gold | ---- | ---- | $871.70 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | ---- | $10.52 | $96.36 |
| Gold | ---- | ---- | $908.10 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | ---- | $1.13 | $106.89 |
| Gold | ---- | ---- | $880.60 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $2.29 | $---- | $108.02 |
| Gold | ---- | ---- | $878.10 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $ | $0.47 | $96.70 |
| Gold | ---- | ---- | $853.80 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $6.01 | ---- | $97.16 |
| Gold | ---- | ---- | $865.90 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $5.47 | $95.71 |
| Gold | ---- | ---- | $788.20 |
| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $1.71 | $100.87 |
| Gold | ---- | ---- | $744.70 |
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| Commodities | Up | Down | Last |
|---|---|---|---|
| Oil Futures | $---- | $0.68 | $102.58 |
| Gold | ---- | ---- | $754.00 |
Even The Mere Threat Of Drilling Will Bring Down The Price Of Oil
By DON M. CHANCE
Monday, August 25, 2008
One of the most contentious issues of late has been the question of whether increased drilling for oil would reduce the price of oil today.
Full article Investor's Business Daily
Excerpts:
Certainly increased drilling will not bring an immediate increase in the supply of oil. But many people, even so-called experts, believe that the effect on the pump price would not be felt until the oil is actually at the pump, possibly years later.
In fact, the price will fall well before the first hole is drilled. Even the possibility of increased drilling will bring down the price of oil. It already has.
Almost everyone knows that supply and demand determine price in a market. But that knowledge seldom goes beyond understanding how supply and demand themselves are determined.
Alaskans Support Development
Full article ANWR.ORG
Excerpts:
More than 75% percent of Alaskans support exploration and production on the Coastal Plain of ANWR. Polling conducted in April of 1995 by the Dittman Research Corporation demonstrated that a vast majority of Alaskans support opening ANWR to oil and gas exploration. Arctic Power, the non-profit citizens organization representing Alaskans promoting Coastal Plain development, has over 10,000 members and endorsements from groups spanning the economic spectrum including miners, fishermen, tourism operators, labor unions, banks, teachers and many others.
By a HUGE margin, Alaskans support opening ANWR to oil and gas exploration.. A recent poll asked Alaskans:
"Do you believe oil and gas exploration should or should not be allowed within the ANWR Coastal Plain?"
75% Should
19% Should Not
The support came from all geographic regions of Alaska
WALL STREET JOURNAL
Let's Drill Our Way To Lower Taxes
By ANDREW MOYLAN
August 16, 2008; Page A9
Full article Andrew Moylan WSJ
Excerpts:
The Congressional Research Service recently estimated the potential federal revenue from Arctic National Wildlife Refuge (ANWR) oil development at $191 billion over 30 years -- roughly $18.36 per barrel, based on projections of recoverable reserves. Applying that formula to the 107 billion-plus barrels of recoverable oil that federal agencies estimate is in ANWR, the nearby National Petroleum Reserve and offshore tells us that sensible drilling could yield nearly $2 trillion in overall revenue over 30 years, or an average of about $65.5 billion per year.
Meanwhile, the "cost" in lost tax collections of protecting 22 million families from the AMT this year stands at about $62 billion. That figure is sure to balloon in the future as more and more Americans are ensnared by the complex system. Tax-hungry politicians defend the AMT by pointing to all the federal revenue that would be lost by ending it. (Never mind the fact that AMT revenue is ill-gotten in the first place, or that the estimated "costs" of its repeal to the federal budget ignore the benefits to economic growth and resulting additional revenues.) While oil and gas development won't fill government's coffers overnight, it will provide a down payment in the near-term, and big windfalls in the out-years that can help deal with some of the most intractable tax problems we face.
We helped create our energy supply problem by putting resources off-limits. Let's develop those resources and use the revenue to help alleviate tax burdens in this difficult economy. More supply, lower gas prices, greater energy security, and lower taxes. What are we waiting for?
Exxon CEO Gives Positives of Big Oil
INVESTOR'S BUSINESS DAILY
August 14, 2008
Executive Privilege
Excerpts:
...Naturally, politicians and the public, provoked by a financially ignorant media, reacted as if the company had stolen the money.
Barack Obama called the earnings "outrageous."
Sen. Charles Schumer, Democrat from New York, called oil industries "the most selfish group of companies that I've ever seen — and the most hypocritical" and said it was "Christmas in July" inside the Big Oil boardrooms...
..."I saw someone characterize our profits the other day in terms of $1,400 in profit per second," Tillerson told Gibson.
"Well, they also need to understand we paid $4,000 a second in taxes, and we spent $15,000 a second in cost. We spend $1 billion a day just running our business. So this is a business where large numbers are just characteristic of it."
We can't think of anyone who would be willing to pay $4,000 in taxes for every $5,400 they earn in salary or wages. Yet many in our country believe it's OK, even desirable, for oil companies to do just that...
REAL CLEAR POLITICS
August 13, 2008
The Great Energy Confusion
By Robert Samuelson
Full article Robert Samuelson RCP
Excerpts:
WASHINGTON -- Forget about a candid national conversation on energy. As John McCain and Barack Obama campaigned last week, that much seemed clear. To lower oil prices (which were already dropping), Obama proposed releasing 10 percent of the Strategic Petroleum Reserve. This is an atrocious idea. The SPR was intended as insurance against a catastrophic loss of oil from wars, embargoes, terrorism or natural disasters. It should not be manipulated cynically for political advantage. Earlier, McCain suggested suspending the 18.4-cent-a-gallon federal gasoline tax; that was another bad and expedient idea.
No doubt Obama and McCain want to relieve Americans' discomfort at the pump. The trouble is that Americans should feel discomforted. We want a return to cheap, secure oil; we want painless pathways to lower greenhouse-gas emissions. These are fantasies; they should not be indulged.
In 2006, coal, oil and natural gas provided 85 percent of U.S. energy. In 2025, regardless of what we do, they will almost certainly remain the leading energy sources. We will still import huge volumes of oil and face global disruptions. And any serious effort to curb oil use and greenhouse gases will require high energy prices -- whether imposed by the market or taxes -- to induce conservation and conversion to nonfossil fuels.
on the Internet-Learn More-Click Photo
New Energy Sources is Urgent National Need
Agree--81%
Disagree--9%
Finding New Sources--65%
Reducing Usage--28%
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Oil Drilling Update
OIL DRILLING UPDATE August 6, 2008
Obama: What Is A "Windfall" Profit
WALL STREET JOURNAL
August 4, 2008
Full article Wall Street Journal
Excerpts:
...Take Exxon Mobil, which on Thursday reported the highest quarterly profit ever and is the main target of any "windfall" tax surcharge. Yet if its profits are at record highs, its tax bills are already at record highs too. Between 2003 and 2007, Exxon paid $64.7 billion in U.S. taxes, exceeding its after-tax U.S. earnings by more than $19 billion. That sounds like a government windfall to us, but perhaps we're missing some Obama-Durbin business subtlety.
Maybe they have in mind profit margins as a percentage of sales. Yet by that standard Exxon's profits don't seem so large. Exxon's profit margin stood at 10% for 2007, which is hardly out of line with the oil and gas industry average of 8.3%, or the 8.9% for U.S. manufacturing (excluding the sputtering auto makers).
If that's what constitutes windfall profits, most of corporate America would qualify. Take aerospace or machinery -- both 8.2% in 2007. Chemicals had an average margin of 12.7%. Computers: 13.7%. Electronics and appliances: 14.5%. Pharmaceuticals (18.4%) and beverages and tobacco (19.1%) round out the Census Bureau's industry rankings. The latter two double the returns of Big Oil, though of course government has already became a tacit shareholder in Big Tobacco through the various legal settlements that guarantee a revenue stream for years to come...
In 2006, coal, oil and natural gas provided 85 percent of U.S. energy.
It is a virtual certainty that, at best, that figure will be only slightly reduced, by 2025 or 2030, no matter what we do.
Therefore, getting the most oil in the shortest time at the most affordable price is absolutely critical.
For wind, solar and some biomass to achieve a figure of even 7% of total consumption by 2030, those sources would have to increase 7 times faster than what the government's projection says they can increase.
Big Oil in 12th place (out of 25) in Earnings To Net Sales
Top 5 listed below.
Pharmaceuticals & Medicines---25.9%
Beverage & Tobacco Products---17.8%
Chemicals ---15.7%
Computer & Peripheral Equipment 13.7%
Elec. Equip. Appliances & components 12.1%
___________________________
Oil & Natural Gas (12th) ---7.4%
The Energy Information Agency has a notoriously poor record for predicting future energy prices.
Liberals and the enviroloons, use a ridiculous and badly misrepresented statement the EIA puts out claiming little help in prices from offshore drilling.
The claim is based on costs in the much deeper, much more expensive areas in the Gulf of Mexico.
In the Santa Barbara Channel we have leased areas under the moratorium that are essentially ready to go and at far less expense.
In short drilling would have an enormous impact very soon, saving the nations trillions of dollars over several years and saving taxpayers, business and individuals, amounts that would bring enormous relief
Have we reached the end of the road for oil?
By David Strahan
Last Updated: 2:14am BST 09/08/2008
Full article David Strahan
...Rising energy prices are not only driving the economy into recession, but also fuelling inflation, which is running at 3.8 per cent, almost double the Bank of England's target...
... Barclays Capital forecasts a range of $115-$140 a barrel, while Goldman Sachs and CIBC predict $200 in the next few years. Although the outlook for oil demand might be poor, the prospects for supply could be worse...
... the world has been discovering less for the last 40 years; for every barrel we discover we consume three; output is in terminal decline in 60 of the 98 oil-producing countries; and hundreds of billions of dollars in investment since the turn of the century have failed to stem declining production at many of the world's biggest oil...
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Say Watt, Senator?
INVESTOR'S BUSINESS DAILY
August 06, 2008
Energy Policy: Barack Obama wants a million electric cars on the road by 2015. Where's he going to plug them in? John McCain has the answer — a renewable energy source called nuclear power.
To help power them, Obama also said he wanted 10% of our electricity to come from renewable sources by 2012 and 25% by 2025.
Actually, about 20% of our electricity already comes from a renewable resource — nuclear power — and John McCain wants to up that percentage significantly.
OIL DRILLING UPDATES
Obama: What Is A "Windfall" Profit
WALL STREET JOURNAL
August 4, 2008
Full article Wall Street Journal
Excerpts:
...Take Exxon Mobil, which on Thursday reported the highest quarterly profit ever and is the main target of any "windfall" tax surcharge. Yet if its profits are at record highs, its tax bills are already at record highs too. Between 2003 and 2007, Exxon paid $64.7 billion in U.S. taxes, exceeding its after-tax U.S. earnings by more than $19 billion. That sounds like a government windfall to us, but perhaps we're missing some Obama-Durbin business subtlety.
Maybe they have in mind profit margins as a percentage of sales. Yet by that standard Exxon's profits don't seem so large. Exxon's profit margin stood at 10% for 2007, which is hardly out of line with the oil and gas industry average of 8.3%, or the 8.9% for U.S. manufacturing (excluding the sputtering auto makers).
If that's what constitutes windfall profits, most of corporate America would qualify. Take aerospace or machinery -- both 8.2% in 2007. Chemicals had an average margin of 12.7%. Computers: 13.7%. Electronics and appliances: 14.5%. Pharmaceuticals (18.4%) and beverages and tobacco (19.1%) round out the Census Bureau's industry rankings. The latter two double the returns of Big Oil, though of course government has already became a tacit shareholder in Big Tobacco through the various legal settlements that guarantee a revenue stream for years to come...
New Energy Sources is Urgent National Need
Agree--81%
Disagree--9%
Finding New Sources--65%
Reducing Usage--28%
Oil Drilling Update To Editorials
