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Originally Posted by aggie99
Quote:
Originally Posted by OH-JJ
Quote:
Originally Posted by aggie99
The bigger issue is that even if they started drilling right now in the Gulf (which won't happen because propsecting isn't permitted and they need to find it) we wouldn't see the first barrels of oil for at least 3 years and most probably 5 years. Granted we will still be dependent on oil in that timeframe but Bush is using the current economy and demand crisis to gain public support and push this through congress. I wonder if he has any private interest in this after his presidency ends? (Not trying to start a conpsiracy theory, just wondering)
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Sorry that is completely incorrect.
from that time the oil companies say go, they will be pumping oil in less than six months.
there will be a short delay while they double the crane capsity of some of the rigs. and they will be recalling the drill ships that are currently loaned out drilling core samples.
but within the year there will be many wells pumping oil.
but the even faster result will be OPEC will be scared and they inturn will drop there prices. |
I am only quoting a CNN article:
Experts say offshore oil drilling would not have an immediate impact on oil prices because oil exploration takes years.
"If we were to drill today, realistically speaking, we should not expect a barrel of oil coming out of this new resource for three years, maybe even five years, so let's not kid ourselves," said Fadel Gheit, oil and gas analyst with Oppenheimer & Co. Equity Capital Markets Division.
Bush lifts executive ban on offshore oil drilling - CNN.com |
But what you are trying to impact is the futures market which is impacted by the scarcity of foreign production. Just the potential of additional domestic production will take some of the escalation out of the commodities market.
You are correct that it would take a minimum of 3 years for the oil we know about say off the coast of Virginia. Production could be increased off the California coast even faster where the infrastructure is already out there, and could be connected through the use of tie backs.