ANWR: $0.75 Less Per Barrel in 2025

B

Bonestorm

Thrillhouse
Seventy five pennies per barrel of oil in 2025. That's the cost-saving from opening ANWR according to the Department of Energy:

If Congress were to open up the Arctic National Wildlife Refuge to drilling, crude oil prices would probably drop by an average of only 75 cents a barrel, according to Department of Energy projections issued Thursday.

The report, which was requested in December by Sen. Ted Stevens, R-Alaska, found that oil production in the refuge "is not projected to have a large impact on world oil prices."

But the report also finds that opening ANWR could have other benefits, particularly in Alaska, where tapping the resources in the Arctic refuge could extend the lifespan of the trans-Alaska pipeline. It estimates that if Congress agreed to open ANWR this year, Alaskan oil could hit the market in about 10 years.
Click to expand...


My sense is that it doesn't matter that opening ANWR will have virtually no impact on the price of oil. Congress will eventually open it upto drilling anyway so as to appear to be "doing something" about the price of oil even though what they propose to do will have no impact on price. At least they can say that they "did something."

Decreasing demand is the only way to deal with this increasingly problematic issue.


Article: http://www.mcclatchydc.com/251/story/38223.html

DoE Report (pdf): http://www.eia.doe.gov/oiaf/servicerpt/anwr/pdf/sroiaf(2008)03.pdf
 
And other areas? Colorado shale for instance. What difference could it be making currently? What if we were aggressively working to provide as much as we could while we worked on a solution to the need at the same time? Could we, in fact, make a difference for the US if we did indeed work that way?

I'd bet we could.
 
they may have said that but the paper its written on you might as well whipe your ass with it.
We are starting to have this rise called an oil crisis, you want to keep oil off the market in crisis times and family's are passing up vacations. Good luck with the announcement.
 
Dungheap said:
Seventy five pennies per barrel of oil in 2025. That's the cost-saving from opening ANWR according to the Department of Energy:




My sense is that it doesn't matter that opening ANWR will have virtually no impact on the price of oil. Congress will eventually open it upto drilling anyway so as to appear to be "doing something" about the price of oil even though what they propose to do will have no impact on price. At least they can say that they "did something."

Decreasing demand is the only way to deal with this increasingly problematic issue.


Article: http://www.mcclatchydc.com/251/story/38223.html

DoE Report (pdf): http://www.eia.doe.gov/oiaf/servicerpt/anwr/pdf/sroiaf(2008)03.pdf
Click to expand...

Now lets look at it another way....

The estimated range of recoverable oil in ANWR is 5.7 billion to 16 billion brls. At todays market price of $131/brl that equates to between $746 billion and $2.096 trillion that would stay in the US rather than go to foreign countries (some of which are hostile to the US).

Further... when we look at other recoverable oil in the US, it amounts to about 120 billion brls (estimated). At todays market price that equates to 15.72 TRILLION DOLLARS.

Yeah, lets not tap our own resources.
 
Damocles said:
And other areas? Colorado shale for instance. What difference could it be making currently? What if we were aggressively working to provide as much as we could while we worked on a solution to the need at the same time? Could we, in fact, make a difference for the US if we did indeed work that way?

I'd bet we could.
Click to expand...

Well said. In this area several investors lost their shirts when drilling was stopped because the world price of oil made further efforts unprofitable. (Late '80s?) Now that the price of oil has increased to its current level I expect to see those wells reopened.
 
Superfreak said:
Now lets look at it another way....

The estimated range of recoverable oil in ANWR is 5.7 billion to 16 billion brls. At todays market price of $131/brl that equates to between $746 billion and $2.096 trillion that would stay in the US rather than go to foreign countries (some of which are hostile to the US).
Click to expand...

By the time it would hit the market, we should've transitioned to renewable energy in the first place.
 
Watermark said:
By the time it would hit the market, we should've transitioned to renewable energy in the first place.
Click to expand...

I doubt it.
Some progress will have been made, but when we have to start spending general funds in a few years to pay back the 3 trillion or so in 'borrowed" SS surplus....Plus all the very generous Federal retirement funds, disabled Veterans care, Medicare, etc....

But of course industry will take care of all of the transition to renewable energy sources...
 
Watermark said:
By the time it would hit the market, we should've transitioned to renewable energy in the first place.
Click to expand...

But what if we have not? Wouldn't it be better if we has the resources from oil drilling in ANWR? Regardless of how much renewable energy we are using, we are not going to be free from oil. The more oil we have, the better off we are.
 
Panama Panama City $2.19
Russia Moscow $2.10
Puerto Rico San Juan $1.74
Saudi Arabia Riyadh $0.91
Kuwait Kuwait City $0.78
Egypt Cairo $0.65
Nigeria Lagos $0.38
Venezuela Caracas $0.12

This data is a couple or years old....The US can deal with gas prices in the same manner as these countrys....government-owned oil company production....

FUTURE oil produced IN the US would be government owned and operated and not sold and not compete on the world market.....we need an energy policy that works...here it is...
The less we are slaves to the world oil market the better it is for our country.....

So screw your .75 per barrel on the world market for ANWR oil or any other oil that comes from within US territory....Socialism that works...lol
 
Damocles said:
And other areas? Colorado shale for instance. What difference could it be making currently? What if we were aggressively working to provide as much as we could while we worked on a solution to the need at the same time? Could we, in fact, make a difference for the US if we did indeed work that way?

I'd bet we could.
Click to expand...

C'mon Damo, you know those evil oil companies are buying up the ownership of all that is being developed. There is no hope but government take over, we know how good they are at running things. :cof1:
 
Big oil controls govt to a large extent. So they are going to take over themselves ?
Just a dog and pony show for a while, but eventually govt regulation of big oil will increase a lot.
 
Kathianne said:
C'mon Damo, you know those evil oil companies are buying up the ownership of all that is being developed. There is no hope but government take over, we know how good they are at running things. :cof1:
Click to expand...

Precisely.

Government doesn't work; the least it does, the better.

The reason for high oil prices is government interference. There are hidden taxes in every step of production, along with regulations which, for all intents and purposes, prohibit the construction of new refineries.

This is the government's fault. So-called "big oil" makes only an 8% profit margin today, just as it always has.
 
bravo said:
Panama Panama City $2.19
Russia Moscow $2.10
Puerto Rico San Juan $1.74
Saudi Arabia Riyadh $0.91
Kuwait Kuwait City $0.78
Egypt Cairo $0.65
Nigeria Lagos $0.38
Venezuela Caracas $0.12

This data is a couple or years old....The US can deal with gas prices in the same manner as these countrys....government-owned oil company production....

FUTURE oil produced IN the US would be government owned and operated and not sold and not compete on the world market.....we need an energy policy that works...here it is...
The less we are slaves to the world oil market the better it is for our country.....

So screw your .75 per barrel on the world market for ANWR oil or any other oil that comes from within US territory....Socialism that works...lol
Click to expand...

The US can't compete with oil from Peurto Rico?
 
Thornicus said:
Precisely.

Government doesn't work; the least it does, the better.

The reason for high oil prices is government interference. There are hidden taxes in every step of production, along with regulations which, for all intents and purposes, prohibit the construction of new refineries.

This is the government's fault. So-called "big oil" makes only an 8% profit margin today, just as it always has.
Click to expand...

11% profit margins. And it is up from earlier.
 
Thornicus said:
Precisely.

Government doesn't work; the least it does, the better.

The reason for high oil prices is government interference. There are hidden taxes in every step of production, along with regulations which, for all intents and purposes, prohibit the construction of new refineries.

This is the government's fault. So-called "big oil" makes only an 8% profit margin today, just as it always has.
Click to expand...

8% is more money when the price is higher. Hence, Oil Companies are incented for the price to be high.
 
You must log in or register to reply here.
Back
Top