Congress finds Big Oil holding back fields that could DOUBLE US output

[EV_Ares]

Rush Limbaugh and other right wing commentators have blamed high oil prices on limits on off-shore drilling near the US and in ANWR, but what makes people think big oil will pump more if we give them more oil fields?

Right now, they hold leases to federal land that they AREN'T DRILLING ON that could DOUBLE US oil output according to the House Committee on Natural Resources. They have introduced a bill to make them use those fields or lose them:

Washington, D.C. - In an effort to compel oil and gas companies to produce on the 68 million acres of federal lands, both onshore and offshore, that are leased but sitting idle, House Natural Resources Committee Chairman Nick J. Rahall (D-WV) today introduced legislation that gives Big Oil one option - either "use it or lose it."

The 68 million acres of leased but inactive federal land have the potential to produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day. This would nearly double total U.S. oil production, and increase natural gas production by 75 percent. It would also cut U.S. oil imports by more than one-third, reducing America's dependency on foreign oil.

The Rahall bill would force oil and gas companies to either produce or give up federal onshore and offshore leases they are stockpiling by barring the companies from obtaining any more leases unless they can demonstrate that they are producing oil and gas, or are diligently developing the leases they already hold, during the initial term of the leases.


If they didn't charge us less for giving them Iraq, why would they for ANWR?

Link to entire blog post: http://professorsmartass.blogspot.com/2008/06/big-oil-holding-back-fields-that-could.html

[DefenseLawyer]

1. Of course they don't want to increase supply. It's not a competitive market.

There is collusion among the small number of players in the market. No one has incentive to increase supply in order to get greater market share. They are more than happy to take their share of the pie at current profit margins.

[Vincardog]

2. All the production in the world will not make up for the refinery capacity they shut down.

[sam sarrha]

5. reserves are at a 15 yr high, last summer truckers were saying they were turned away at the Western

Hub.. couldn't off load another truck load while the media was saying the raising of the price of oil was due to shortages.. they were posting here

http://www.redorbit.com/news/business/1083991/hub_of_activity_cushing_interchange_oil_levels_can_affect_futures/index.html

[sam sarrha]

3. they have been drilling and capping for decades.. lots of oil, and 60% price is speculation..

we have oil riggers on both sides of the family.. drilling and capping today, got uncles drilled and capped 30 years, all over, WA to the east coast

[Pharaoh]

4. K&R

[4_TN_TITANS]

6. What about the King Abdullah philosophy

when he restricted new drilling so future generations would have resources? More just isn't the answer. Last night I was watching the clips of the man who proclaimed that America was 'addicted' to oil, sounding very much like a pimp who know just wants us to have another fix.