Republicans concede: Lifting Moratorium = Pointless

reply to post by Andrew E. Wiggin

*sigh*

Another liberal that doesn't understand how the economy works.

The "psychology" Bush is speaking of is the speculation that has run up prices. Lifting both bans and drilling for oil TODAY will drop prices TOMORROW the same way that speculation has increased prices. Speculators have bid up prices because the world demand is growing every day and we have LESS supply today than we did yesterday. So, the speculators do their job: they bet that the price will increase. They BUY CONTRACTS TODAY because they BET THEY WILL INCREASE TOMORROW because of the supply shortage. If we drill today and supply is increased, they will SELL the high price contracts because they will bet that the price will decrease.

This is how the futures market works. You buy contracts weeks or months in advance so when you're a business like an airline, you already have the jet fuel bought and paid for. This is how Southwest Airlines is turning a profit - they own $100/barrel contracts, so they were buying jet fuel at $100/barrel prices instead of $145/barrel prices like the other guys.

Again, you clearly don't understand the economy. You're incredibly ignorant, yet you still whine. Drilling today will cut the price tomorrow....and the day after that, and the day after that and the day after that. Bush lifts the moratorium, oil plummets the most in one week in history - over $16/barrel. You don't have to produce A SINGLE DROP OF OIL for prices to fall $70/barrel. If we start drilling like crazy and get off OPEC's oil, oil prices will get cut in half in mere weeks because the speculators will bid the price down in the futures market as they KNOW more supply is coming. They know our future is secure, so the FUTURES MARKET will reflect lower prices.

Get educated please. "So we feel better about it"? Did you seriously just say that? I'm honestly embarrassed for you, sir

[edit on 19-7-2008 by ChocoTaco369]

reply to post by Cowgirlstraitup7

I'm afraid that you're the one that is spouting crap without research. We DO NOT have the land and the permits. Harry Reid is a liar. Yes, the oil companies own land they don't drill on. Do you know why?

Because owning a land lease does not give you the right to drill. Oil companies own countless land leases where they are allowed to EXPLORE for oil but they aren't allowed to drill. There is more than one kind of lease - there are leases that allow you to explore, leases that allow you to drill test wells and leases that allow you PRODUCE OIL. The leases that Harry Reid is talking about - the millions of acres of land oil companies have leases for - are the leases that allow them to explore and drill test wells, but NOT allowed to produce.

On top of that, the fields that they CAN produce on, they can't use all the land because there just isn't oil there. An oil company could own 10,000 acres in an area but there's only oil under 1,000 of those acres. Harry Reid adds the 9,000 acres where there's no oil into his quota of XX million acres the oil companies don't drill on.

The oil companies are doing everything they can do drill. The problem is, the area that they lease that they aren't drilling on CAN'T be drilled on because they're either not allowed to produce or there is no oil there.

Harry Reid, Nancy Pelosi, Barack Obama and the rest of the Democrats lie right to your face. They give you a half truth and they don't explain to you the reason why they don't drill on the land. You support a group of liars. Why ANYONE would trust these Democrats is beyond me. The only reason why they have any support is because of misinformed individuals. I hope you gain something out of my post, I really do. Education is the key, my friend, and I PROMISE YOU, if you actually take the next couple months to read about these Democrats you support, you'd no longer vote for them if you actually loved America. If you have any questions, please U2U me. I'd be more than happy to explain to you the half-truths and outright lies that come out of their mouths.

As for the electric car, it isn't feasible. They only go for ~40 miles between charges and then you have to plug them in. If everyone in America had a car charging overnight, the entire power grid would go down. We simply don't have the electricity - which is generated by coal BTW - to support the electric car. The internal combustion engine won because there were refueling stations everywhere and they'd go a lot further than an electric car. Gasoline technology is much more powerful and efficient by comparison to electric technology.

[edit on 19-7-2008 by ChocoTaco369]