Facts on the Oil Problem

Facts on the Oil Problem

By Anthony Landaeta Jr.
Posted 06/28/08
http//anthonylandaeta.blogspot.com/

Yesterday I posted an article about the democrats and there problem with Big Oil and I received an email stating this about the article posted:

Do you actually read this stuff? IT IS ABSOLUTE BULLSHIT!!!!

OIL companys already have leases on land that they refuse to drill on. They also could well have increased refining, but it is more cost effective to create more demand by curtailing supply. Give me a break!!!!!

Well lets take a look at the issue! Why aren't the Oil companies drilling Oil? Oil companies have already leased 38 million acres in the U.S. and they are not drilling on them. WHY ? Whats the answer ? Does anyone actually believe that any smart business would go around buying these leases, Let's think about the entire Oil process. Oil companies must do a whole lot of research. They have geologists telling them the likelihood that oil will be found in a certain area. These geologists are very good at what they do. They can tell a lot from satellite, then they can tell more from seismic tests, even more from core samples. These tests go in order. But they can only do the seismic tests after the lease has been secured. Tell me first why would you lease land just for the fun of it? Do really think that the oil companies are going to lease land that they don't think will ever produce? Once the oil company decides there is a slight chance of oil being there, they get the lease so they can do more testing. After seismic testing and core samples are done if it does not look viable is it still cheaper to keep the lease and not drill. Another big issue is getting through all the red tape of environmental studies and Law suits which takes years and money to fight. The sierra club has been fighting Big Oil for years scrutinizing every environmental report submitted by the Oil firms. Just because the Oil companies get a lease it doesn't mean they can start drilling, the sierria club as well as other organizations are well organized do there best to keep the Oil companies in court in hopes they will give up. Example Wal-Mart purchased some land in my area 4 years ago and was to build a Super Wal-mart but citizen groups fighting wal-mart have kept them in the courts by scrutinizing every environmental study they have done.

Here are some articles on court cases over the years:

Appeals Court Blocks California Offshore Oil Drilling
Source: Copyright 2002, Environment News Service Date: December 3, 2002Byline: Cat LazaroffOriginal URL http://www.climateark.org/shared/reader/welcome.aspx?linkid=18211&keybold=ocean%20resources%20management

SAN FRANCISCO, California, December 3, 2002 (ENS) - For a second time, the courts have ruled against federal plans to resume oil and natural gas drilling off the California coast. A three judge panel from a federal appeals court has upheld a lower court ruling that the government illegally extended 36 undeveloped oil leases off the central California coast, effectively blocking the renewal of the decades old leases.
The panel agreed with the state of California and environmental groups who had sued the federal government because of the environmental risks posed by oil drilling. The ruling upholds California's right to review the oil drilling leases under its Coastal Management Plan. "Today's decision is a victory for all Californians, the environment, and states' rights," said California Governor Gray Davis. "The court's ruling is essentially a big stop sign to Washington. They should take the hint and halt further attempts to exploit California's spectacular coastal resources."
In June 2001, U.S. District Judge Claudia Wilken ruled that the federal Minerals Management Service (MMS) failed to comply with the Coastal Zone Management Act, a law that grants states the authority to review federal actions that may affect their coasts. The judge also found that the lease extensions were illegal because the service did not study the environmental consequences of drilling the leases, as required by the National Environmental Policy Act. The 9th U.S. Circuit Court of Appeals in San Francisco heard the case after the Bush administration appealed Judge Wilken's ruling. On Monday, a panel of judges from the appeals court upheld the lower court ruling in all respects. "This is a victory for the millions of people who visit, live and work by California's coast," said Drew Caputo, a senior attorney with the Natural Resources Defense Council (NRDC), a national environmental group that joined in California's legal challenge. "After losing twice in federal court, it's time for the Bush administration to stop fighting for more oil drilling and to start protecting California's coast."




JUDGE HALTS U.S. SWAP OF ISLAND IN ALASKA REFUGE
AP
A Federal district judge today voided a Federal land exchange that would have allowed oil companies to use an island wildlife refuge as a base for drilling in the Bering Sea. The United States Interior Department made ''serious errors of judgment'' in approving the exchange and misapplied Federal law controlling land exchanges, Judge James Fitzgerald ruled.
December 1, 1984
MORE ON OFFSHORE DRILLING AND EXPLORATION AND: WILDLIFE SANCTUARIES, OIL (PETROLEUM) AND GASOLINE, SUITS AND LITIGATION, DECISIONS AND VERDICTS, ST MATTHEW ISLAND (ALASKA), ALASKA, INTERIOR, DEPARTMENT OF THE, FITZGERALD JAMES, WATT, JAMES G

New Wave of Oil Drilling
By Dana Calvo Los Angeles times April 25, 2005
As Congress moves toward opening protected Alaskan wilderness to petroleum drilling, energy company activity is picking up in California’s coastal waters, where new exploration has been blocked for more than two decades.
Drillers are reworking wells and considering reviving old platforms in places where exploration is allowed. They’re attempting to extend the life of leases on undeveloped offshore tracts holding a combined estimated 1 billion barrels of oil and 500 billion cubic feet of natural gas that the companies have been forbidden to tap. http://articles.latimes.com/2005/apr/25/business/fi-drill25

I don't have all the anwers but I get tired of hearing the same statement below from all the Democrates:
OIL companys already have leases on land that they refuse to drill on. They also could well have increased refining, but it is more cost effective to create more demand by curtailing supply.

Answers like this won't help to solve the problems.

Mexico is paying $2.65 per gallon today

Why? Government subsidized gasoline

Should our government do this?

BORDER GAS
Mexico's subsidized gasoline draws Americans
Many crossing border to get cheaper fuel
By Adam B. EllickTHE NEW YORK TIMESWednesday, June 25, 2008

http://www.statesman.com/news/content/news/stories/local/06/25/0625bordergas.html

Anthony Landaeta Jr http//anthonylandaeta.blogspot.com//