Should oil companies have to drill on land they already have leased before they ask for more leases?

[sidney]

Here's what some in Congress and other experts say<br />
Congressman Ben Chandler"Some of my colleagues want to give oil companies still more land for drilling such as the Arctic National Wildlife Refuge (ANWR) in Alaska, but I do not think the solution is to give them more acreage to drill for resources they can already access. Even if additional public lands were opened up for the offshore drilling of oil, it would have little if any immediate impact on the price of gas. In fact, a 2007 study by the Department of Energy concluded that opening up offshore drilling ?would not have a significant impact on domestic crude oil and natural gas production or prices before the year 2030.?<br />
http//chandler.house.gov/ArticleDetails.aspx?NewsID=1465<br />
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Speaker Nancy Pelosi<br />
"There are 68 million acres of federal land already leased by oil companies for energy production now but sitting idle. That?s 75% of leased lands, sitting idle. Oil companies should drill what they have leased?and lease lands already open for drilling first. But instead, President Bush and Congressional Republicans want to make this a fight about our beaches and our threatened wilderness areas, in an apparent attempt to help the oil companies lock up more public lands before he leaves office."<br />
http//www.speaker.gov/legislation?id=0234"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."<br />
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After eight years, President Bush and [Vice President] Dick Cheney have turned the GOP into the Gas and Oil Party. That's the legacy that they are going to leave," said Rep. Edward Markey of Massachusetts, chairman of the House Select Committee on Energy Independence and Global Warming."The White House has become a ventriloquist for the oil and gas industry, repeating the requests of the oil and gas industry that they be allowed to destroy the most pristine areas of our country," Markey added. <br />
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Congressional Democrats introduced a bill last week to compel oil companies to begin utilizing federal land they already lease. <br />
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"Oil companies are sitting on 68 million acres they have already leased from the American people for the purpose of oil and natural gas production," said Sen. Bob Menendez, D-New Jersey. "It is about time they use these resources already at their disposal instead of waiting for more federal handouts and pushing to drill in the Arctic National Wildlife Refuge or up and down our coasts," he added.<br />
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Opponents of offshore drilling say it would harm aquatic ecosystems by eroding wetlands, contaminating the water with chemicals, polluting the air, killing fish and dumping waste.<br />
http//www.cnn.com/2008/POLITICS/06/18/bush.offshore/<br />
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In addition, China is not drilling offshore here.<br />
Report No Chinese Offshore Drilling Near Cuba<br />
By Ryan Grim<br />
http//www.cbsnews.com/stories/2008/06/12/politics/politico/thecrypt/main4177282.shtml<br />
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<br />
I have not speculated at all and back up what I say with reliable sources. <br />
The oil and gas analyst for Oppenheimer, Congressman Ben Chandler, and many analysts agree that it would be years before offshore drilling would have any impact.<br />
http//www.boston.com/news/nation/articles/2008/06/20/new_offshore_drilling_not_a_quick_fix_analysts_say/<br />
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"The assertion that China was drilling "very close to our shore" echoed a claim made by Vice President Dick Cheney -- citing nationally syndicated columnist George Will -- in a June 11 speech to the United States Chamber of Commerce that both Cheney and Will have since corrected."<br />
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There is exploration,' said Johanna Mendelson-Forman, a senior fellow on energy and Latin America at the Center for Strategic and International Studies. She said China's oil company, Sinopac, has conducted exploratory drilling on a lease on land in western Cuba, but is not involved in the offshore development."<br />
http//mediamatters.org/items/2008070200<br />
If there is no oil on the land they have leased, they need to give it up so something useful can be done with it, and If there is oil, they need to get started and shut up about leasing more land.<br />
Really, Robert B., CBS, CNN, and the House Speaker are unreliable? That is too silly to answer. I take it you think you are more reliable.<br />
No I would not have us be a third world nation. I would have us be a sensible nation, and not allow oil companies to mindlessly destroy the Earth we live on to make billions more, when it is totally unnecessary. Why do you suppose gas prices didn't go down after Bush attacked Iraq? What would make anyone think the prices would go down if the oil companies get what they want again? Time to wake up and start thinking about what is good for us, not what is good for the rich oil barons. They have driven up the prices of everything, not just oil, while they lined their own pockets. They are already destroying the economy.<br />

 

[quest_for_truth_gal]

Yes they should but Republicans diligently block any "Use It or Lose It" legislation that the Democrats propose.

 

[Chainsaw]

No because this is not the whole story. Just because there is a lease, does not mean there is oil to drill or they are in the process of trying to drill. The leftists sue to block drilling. It is not simply get a lease, set up and drill. It is a lot more time consuming.

You are speculating that it will take years to get the oil out of the ground.

Clearly your whole premise shows you have no idea how free markets work.

 

[thetimbosley]

Just because they have lands already available for their use doesn't mean there is going to be oil on it. If that was the case each one of us would be able to plop a oil rig down in our backyards and start drilling.

 

[RobertB]

Your sources are questionable. CBS, CNN, House Speaker? They all are in the tank for the Environment...not our true energy needs. Drill here, drill now, AND fund all other alternatives asap!.

 

[tp22]

No lets say they have more oil on those lands are you saying they have to wait till it drys up to move on to the next lease if it takes 10 years to retrieve oil they should start on new land now.

 

[vulcan_alex]

No! Of course this type of restriction will only mean that whatever oil is available will take even longer to get. Companies drill where they expect oil or gas to be found. If they have leases that don't appear to have potential why should they waste money and effort to drill them. There are many ways to determine potential and the oil companies know and use them all.

 

[TheScorpion]

Oil companies bid on leases in order to build land inventory for future drilling. It takes a long time to stage a parcel for drilling. Surveys have to be completed, seismic data has to be collected and analyzed, potential drilling sites chosen and then plans made to create roads and infrastructure to support that drilling. Sometimes this can take ten year or more before the first drill bit touches dirt. Many times after the preliminary work is done the lease is abandoned as not worthy of being drilled. Not all oil leases are sitting on top of an oil field. With shortages of crews and equipment to do the preliminary work and a 4-6 year backlog of drilling rigs it is not a case of just bid, pay and drill. Now the government is going to put limits on how long you can own a lease before drilling. That may not be a bad thing but it will lower the value they get for future leases. If oil companies can't plan on drilling within the initial period they probably won't bid or will be a much lower amount knowing they will have to pay years of penalties.

 

[LiberalFemale]

They should combine drilling on lands where they already have the leases as well as investing into alternative energies. The 1970s should have given them the hint that you do not put all your eggs in the oil and gas basket. But I guess they did not learn their lesson back then.

 

[FordPrefect]

I'm certain that the oil companies will push for access to oil that is easier to obtain.....By their actions and political fallout lately, I'm certain that they would make less from leases in Montana or where ever than a rich, virgin deposit off the coast of Florida or in ANWAR....but that is a decision Americans should make and not corporations or even politicians heavily lobbied by the oil corporations

We citizens are not allowed to know how much is in the existing leases or how rich they are...we are only bombarded by those that want to drill in the richer areas...how can any of us really trust a corporation that is global in nature and probably unconcerned about the lives of US citizens in general...it's about maximizing profits and these companies will lie to make more profit

 

[BarryPhillip]

The question should be, why after Bush submitted a bill for offshore drilling (in areas truely believed to contain oil), cause just the fact the government owns land already doesn't mean that there is oil there, did fuel prices start falling. The Dems are now, including Obama, saying that we should be able to allow some drilling. Look we stopped building Nuclear plants because of libs, we stopped drilling cause of libs, will we stop doing everything because libs are affraid of the unprovable, the intangible? Would you have us become a third world nation? Think of all the jobs, all the progress we haven't been able to acheive because of libs. But when we are attacked, since the '70's time and time again across the world, this is not a fight that libs believe that we should be involved in.

 

[7331]

they should be allowed & encouraged to develop the bakaan oil fields in
N. Dakota & Montana first. the largest proven oil reserves ever discovered in the U.S.
they can prospect on the other more problematic leases later.
if you're not aware of the China/India/Cuba deal to drill in the Florida straits as reported in yahoo news,WSJ & numerous other news releases in the past year,you must be pretty clueless.

 

[KayT]

Yes, you said it all. It makes absolutely no sense to allow them to destroy wildlife refuges and aquatic ecosystems instead of drilling on the 68 million acres they already have leased. Bush and Cheney are oil company puppets, and McCain wants to follow in their footsteps.