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2008-06-18 Home Front: Politix

McCain wants to lift ban on offshore drilling

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Posted by Fred 2008-06-18 00:00|| || Front Page|| [11128 views ] Top

#1 Me too. And if the Ruskies can develop the Arctic shelf...

Posted by McZoid 2008-06-18 01:06|| 2008-06-18 01:06|| Front Page Top

#2 OTOH RENSE > WHEN MCCAIN DROPS OUT [health].

Posted by JosephMendiola 2008-06-18 02:23|| 2008-06-18 02:23|| Front Page Top

#3 The real war on terror.

Posted by g(r)omgoru 2008-06-18 06:26|| 2008-06-18 06:26|| Front Page Top

#4 McCain would consider incentives for states that allow coastal exploration

The 'incentives' are already there. If you get a oil or gas royalty check from BP, Shell or any producer, you'll see that Uncle Sam also taxes production at the wellhead.

Posted by Besoeker 2008-06-18 07:31|| 2008-06-18 07:31|| Front Page Top

#5 W will call for the same today, apparently, so all the pressure at the pump will bear down on the Congressional Donks. Chickens coming home to roost, baaaaby

Posted by Frank G">Frank G 2008-06-18 09:32|| 2008-06-18 09:32|| Front Page Top

#6 That is the one reason I give myself to rationalize voting for McCain. Unlike Obama, McCain seems "trainable" to recognize reality.

And although I do not like it (screws with the market economics of production), I will not fuss that much for them piggybacking an excise tax for the states on new oil production, and a requirement for some portion of the profits to be reinvested exclusively for energy R&D by the energy companies (fuel cells, hydrogen economy distribution issues, nukes).

Just exploring and threatening production is enough to put a brake on the price increase rate.

People playing the markets with margins on futures will pull back hard, since the "guarantee" of continued conditions of "weak dollar, strong demand, short supply" will no longer be so certain. The first movers advantage will start an avalanche of exits for the bulls, and shorts will do their job to punish the ones who stay in too long.

If the Dems (and McCain) actually understood the markets, they'd not be talking as stupidly as they are.

Posted by OldSpook 2008-06-18 09:50|| 2008-06-18 09:50|| Front Page Top

#7 The Dems and enviros who oppose exploratio nand production now say "Drilling now will not change the price in the near toerm".

Well, sorry, yes it will.

It changes the probabilities from very favorable to less favorable for continued high rates of price increase in petroleum, thus increasing the risk in long or bull positions. This will get some people out of the oil futures market and into other commodities or sectors.

If you can add to this some measures to strengthen the dollar (which are rumored to be coming fromthe Fed), plus Saudi increased output (and Iraqi output as well), then its enough to tell the smart money to get out. And departing a market is a forst movers advantage - the ones that exit first will make the most profit - those exiting last will be holding the bag as prices drop due to slack futures demands and fewer buyers for futures. This will cause the futures to drop, and that in turn will cause a whole chain of events that will likely push oil down by as much as $40 or so a barrel (below $100) in a span of a few months.

Its market capitalism. Too bad the Dems and Obama are so fricken blind to these basics of how our economy works, and believe that their enviro-socialist diktats can overrule reality and the laws of supply and demand.

And aside from all that - even if there is no short term impact, there certainly will be a LONG TERM impact. Arent the Dems and Obamessiah supposed to be "for the children" (i.e. for the future and long term vision)? Isn't acting NOW to ensure a decent cost, US based petroleum supply good for the country in the future a good act in the long term?

Then why are you voting against the LONG TERM interests of the nation?

Posted by OldSpook 2008-06-18 09:57|| 2008-06-18 09:57|| Front Page Top

#8 Aren't the Dems and Obamessiah supposed to be "for the children" (i.e. for the future and long term vision)? Isn't acting NOW to ensure a decent cost, US based petroleum supply good for the country in the future a good act in the long term?

You are assuming that the dhimocrats can think beyond the short term power gain for themselves.
Or that they want to improve your life.

Mostly I think they just want to improve their power over your life at your expense.

Posted by DarthVader">DarthVader 2008-06-18 10:03|| 2008-06-18 10:03|| Front Page Top

#9 Darth, thats what I was calling them out on - shows their true colors as power-mongers in the pockets of the enviros and other collectivists.

Posted by OldSpook 2008-06-18 10:23|| 2008-06-18 10:23|| Front Page Top

#10 The Democrats and envoros know full well the basics of how the economy works. They are using it to keep the peasantry on the plantation so that they can enjoy their private-jet-set lifestyle.

They are looking to the future - just not _your_ (or america's) future but theirs.

Just look at Al Gore.

Posted by CrazyFool 2008-06-18 10:39|| 2008-06-18 10:39|| Front Page Top

#11 This is what I would consider a medium range plan - as I understand it takes years to get these things up and running, nevermind the preliminary paperwork and subsequent attainment of production capacity.

Posted by swksvolFF 2008-06-18 10:51|| 2008-06-18 10:51|| Front Page Top

#12 OS is right, IMHO. The mere promise to open drilling and refinery production domestically (as pushed by W this AM) will drive prices down as speculators don't want to get caught with overpriced futures

Posted by Frank G">Frank G 2008-06-18 11:04|| 2008-06-18 11:04|| Front Page Top

#13 Democrats oppose this idea because they are afraid someone might make a buck out of all this, and that would be bad. Nevermind the fact that they are all filthy rich too and undoubtedly heavily steeped in energy investments at this time.

Posted by bigjim-ky 2008-06-18 12:27|| 2008-06-18 12:27|| Front Page Top

#14 This says it all. If not now then WHEN?

(mods, if you can, try to put this local so I'm not being evil by hotlinking IBD).

Posted by OldSpook 2008-06-18 13:33|| 2008-06-18 13:33|| Front Page Top

#15 If we were really fighting this war we would have invaded and occupied "Saudi" oil fields years ago.

Posted by Excalibur 2008-06-18 15:18|| 2008-06-18 15:18|| Front Page Top

#16

this month's cover of wired mag

Posted by 3dc 2008-06-18 16:11|| 2008-06-18 16:11|| Front Page Top

#17 Increased drilling is already happening. Just in Ohio oil and natural gas sales topped over US$ 1 billion in 2007, partially on an ongoing increase in the number of wells drilled. link

Posted by trailing wife ">trailing wife 2008-06-18 16:56|| 2008-06-18 16:56|| Front Page Top

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