Geologist Say "Use It Or Lose It" Bill Will Increase Prices

After writing my article about how David Obey (D-Wis) was Shielding Democrats From Embarrassment by shutting down the appropriations process so they wouldn't have to vote on provisions to increase drilling here in the U.S. (since most Democrats would vote against more drilling), I was challenged by one of my readers about the facts that the Oil industry already has thousands of leases that they're not using. Other than the obvious, which is, who in their right mind doesn't want to make money, I did a bit of research to find more specifics on this subject.

There's an article written by Nick Snow in the Washington Editor that has an interesting story on this, and on how the American Association of Petroleum Geologist (AAPG) is cautioning congress on the actions they're about to take. Here are some highlights on the letter they wrote:

"As Congress considers measures to deal with high crude oil prices, I urge caution. Policies that increase exploration costs, decrease the available time to properly evaluate leases, and restrict access to federal lands and the Outer Continental Shelf do not provide the American people with short-term relief from high prices and undermine the goal of increasing stable long-term supplies," he said in a June 23 letter to House Speaker Nancy Pelosi (D-Calif.), Majority Leader Steny H. Hoyer (D-Md.), and Minority Leader John Boehner (R-Ohio).

The letter is significant because AAPG and its leaders rarely take public positions on political issues. It is an apparent response to H.R. 6251, which House Natural Resources Committee Chairman Nick J. Rahall (D-W.Va.) introduced on June 12. Formally called the Responsible Federal Oil and Gas Lease Act of 2008, the legislation has become known as the "Use it or lose it" bill because it would require federal oil and gas leaseholders to promptly develop or relinquish their leases. Republicans are concerned that it could reach the House floor this week without hearings or a markup.

H.R. 6251's assumption is flawed, Green suggested in his letter. "The process of leasing, evaluating, drilling and developing an oil or natural gas field typically takes 5-10 years. Some fields come online sooner. Others are delayed by permitting or regulatory delays or constraints in the availability of data acquisition and drilling equipment and crews. Large projects and those in deep water may require a decade or more to ramp up to full production,"

'Intensive assessment'
Geologists begin an intensive assessment once a lease is awarded, he continued. They collect new geological, geophysical, and geochemical data to better understand the lease area's geology. If they see no evidence of a suitable trap, the producer will relinquish the lease. But if they see a trap that looks interesting, the lessee will hire a drilling rig to find out if the geologists are right.

"Drilling is the true test of the geologists' model, and it isn't a decision to be made lightly. Drilling costs for a single well can range from $500,000 for shallow onshore wells to over $25 million for tests in deep water offshore," Green noted.

Access required
"As you can see, oil and natural gas exploration is not simple and it is not easy," Green told the House leaders. "It requires geological ingenuity, advanced technologies, and the time to do the job right. It also requires access to areas where exploration areas can be tested—the greater the number of areas available for exploration, the higher the chance of finding oil and gas traps."

If you want to see the entire article, follow this link. If you really want to learn more about how Oil Drilling works, you should check out Black Gold on TruTV:


You can also help out by signing Newt's Drill Here, Drill Now, Pay Less initiative, and participate in Operation Drill Bit, to Flood Washington with Drill Bits. These initiatives will help remind Congress that they are in Washington to represent "We The People" and should follow our directives.

Obey (D-Wis) Shields Democrats From Embarrassment

On June 26th. 2008, with Oil prices approaching $140.00 a Barrel, the lead Congressional Appropriations Committee Chairman, Congressman David Obey, D-Wis, shut down the Appropriations process in a move designed to shield Democrats from the embarrassment of voting against expanded Oil & Gas Drilling.

Jerry Lewis, the panels ranking Republican tried to add an energy amendment to the Interior-Environment appropriations bill designed to ease prices at the pump. Apparently, the move infuriated Obey, commenting: "We can spend time on real things, or in a playpen with Jerry Lewis. The latter doesn't interest me" Lewis later responded by saying, “I believe that it would be unconscionable for Congress to leave for the Fourth of July recess without doing anything substantive to address the difficulties facing all of our constituents due to the skyrocketing rise in gas prices”.

Earlier in the week, Obey ridiculed the idea that holding a markup of the Interior bill before recess would lead to lower prices at the pump, but regardless of when it's done, the Democrats seem to have an obsession with saying things like, "Well that's not going to help prices right now" While true that prices won't go down immediately, many of these provisions will help to lower prices in the future, and since most commodities are traded on "Futures Contracts", even things that will help in a year, would have shorter term benefits. The point is, the faster we get these provisions passed, the faster we will start to see some relief.

I've written previously on how Republicans face an uphill battle when it comes to trying to get congress to vote on expanded Oil drilling, Coal Gasification and Shale to Oil development, which most Democrats have been opposed to. You would think with new polls out, showing many more Americans are giving higher priority to more energy exploration, rather than more conservation, this would have changed the Democrats minds, but no they are still blocking all efforts to expand our nations energy supply.

Democrats insist that Oil companies already have leases on Millions of Acres, that they're not currently exploiting, but that doesn't really make any sense. Exxon, the largest energy company in the U.S. for example only pumps 2.5 Million of the 5.6 Million a day (as of 2007) that it refines. That means that Exxon must pay full market price for the 3.1 Million Barrels a day that it refines, but doesn't pump itself, or $434,000,000.00 a day. The most expensive oil out there, on Federal Public Lands, would only cost Mobile a third of that or less, so I seriously doubt that Exxon would be willing to leave over $100 Billion a year on the table. If they could drill it themselves, a 100 Billion Dollar a year incentive is all that they would need. My suspicion is that the Oil that Congress is talking about either doesn't exist, or is not economically recoverable, since these guys usually obtain the leases first, then drill to see if there's anything there afterwards.

The truth is that despite the Publics outrage over Gas prices, Democrats feel that the high prices at the pump will be good for them in November, because they feel that the public will blame this on the Administration, and by proxy on John McCain. They're counting on the fact that most Americans are informed via the Liberal Media, that doesn't report things like why there have been 31 Republican introduces bills from Jan, 2005 through then end of 2007 that have been killed by the Democrats, each one seeking to expand energy development. They also don't report things like how during that same time period, Democrats have introduces 18 pieces of legislation, with most passing that have effectively increased the regulations on the Oil and Gas industry, along with Moratoriums on Shale and Coal Gasification.

Another problem is that many Democrats read Articles like Time's "10 Things You Can Like About $4 Gas" and think that most Americans agree with them on keeping fossil fuel prices high. So they're thinking we actually like high gas prices! We want Starbucks closing 600 stores, we want the Airlines eliminating flights, we want truckers losing their jobs. Is it just me, or are the Democrats sorely out of touch?

2008 has been no different with the Democrats in congress blocking all attempts at expanding production, Shale to Oil has been stopped, and so has Coal Gasification, all while Americans are suffering more than ever.

Some of my readers have accused me of writing "Partisan Tripe", giving preference to Republicans over Democrats, but the truth is, that Democrats are Opposed to drilling, they are opposed to Shale to Oil, they are opposed to Coal Gasification. They instead want us to rely on some future, yet undiscovered energy source that we can't yet afford to power our future, and I'm afraid that we're going to end up like California did a few years ago with Rolling Blackouts, and like the 70's with long lines at the gas stations.

I, like most Americans just don't have the $50,000.00 that it would take to convert HALF my home to Solar, I just don't have the $60,000.00 that it would take to get an all electric Sedan to replace my VW W8, or hell, even just the $25,000.00 it would take to trade it in for a Hybrid Camry. I also don't have the $50,000.00 that it would take to replace my Sequoia with a Hybrid Tahoe. So I, like most Americans have to reduce what I'm spending on everything else, costing jobs all across the economy.

If you want lower gas prices and plenty of energy available for you and your children, then I encourage you to contact Congressman David Obey and ask him why is he blocking votes on lifting moratoriums on Oil and Gas explorations, and why he's opposed to Coal to Oil Gasification, and why he's opposed to Shale to Oil development. You can also call him at (715) 842-5606, or send him a nice little fax at (715) 842-4488. If you want to write him a letter, you can contact him at:
Congressman Dave Obey
First Star Plaza
401 5th Street,
Suite 406A
Wausau, Wisconsin 54403-5468

You can also help out by signing Newt's Drill Here, Drill Now, Pay Less initiative, and participate in Operation Drill Bit, to Flood Washington with Drill Bits. These initiatives will help remind Congress that they are in Washington to represent "We The People" and should follow our directives.

Congressman Delahunt Wants Addington Killed!!

I was reading RedState.com when I came across this Article about Congressman Delahunt, and I have to tell you I was ABSOLUTELY Floored!

It's one thing to have a civil discourse where you feel that your way to fix the countries problems are better than my way of fixing the countries problems, but can we at the very least, have a common understanding that Al Quada launched these attacks on us, during first when Clinton was President and later while Bush was president, they want us ALL dead, they don't care if we're Right or Left or whatever, they just want us dead! Even if you don't believe that, we can at least agree that they are a common enemy.

For a Congressman, and Super Delegate to Barrack Obama, to encourage our enemies to kill one of our citizens is about the most deplorable thing they can do, this goes beyond anything that the Democrats have done in the past and if this is not punished then I don't know if we have a Republican Party worth saving.

Here's the text of the Article.

It is no secret that public discourse in this country has become very shrill. Blogs on the left regularly feature vulgar diatribes against the right. Some on the right do the same. Keith Olbermann tells the President to "shut the hell up" on his television program. The New York Times publicly reveals the name of a CIA agent who did the dirty work of interrogating captured Al Qaeda operatives. The left says, "So, the right did it to Valerie Plame," treating as morally equivalent the disclosure of the spy no longer spying and the disclosure of one of the men Al Qaeda would love to behead.

While Congress has also descended into a more shrill style, until yesterday it had not crossed one line of civility that never should be crossed on either side.

David Addington is the Vice President's Chief of Staff. Yesterday, he testified before Congress.

During the course of the hearing, Congressman and Obama Superdelegate William Delahunt (MA-10) asked Mr. Addington about water boarding. Mr. Addington responded that he would not go into details because Al Qaeda is probably watching.

Congressman Delahunt's response was, "I'm glad they finally have a chance to see you."

Mr. Delahunt now denies he meant what he said. But what he clearly said was "I'm glad they finally have a chance to see you." Al Qaeda now knows the face of one of the men who relentlessly pursues its henchmen and deals with their interrogations. Mr. Addington volunteered for public service, not a death sentence with Congressional encouragement. Mr. Delahunt is both a vile liar and a cowardly lion willing to roar down at Mr. Addington while encouraging terrorists to do his dirty work in a war he has been ineffective at stopping.

The left, while attacking Charlie Black for stating the obvious -- that a terrorist incident helps the GOP politically because they are seen as more competent in the national security arena -- is defending this degradation of congressional discourse and vile swipe at Mr. Addington.

This discourse — a member of Congress glad Al Qaeda has a face it can pursue — is beneath the dignity of the Congress and beneath the dignity of civil discourse in this country.

If you do not call your Congressman today and demand the House of Representatives, at the very *least*, censure Congressman Delahunt, well damn us all. We have no right to carry on our fight.

The number is 202-224-3121 and Congressman Delahunt's email address is william.delahunt@mail.house.gov.

And some intrepid reporter should ask Mr. Obama what he thinks of this. After all, Mr. Delahunt was one of Mr. Obama's early supporters and is now an Obama superdelegate. Of course, you can ask Barack Obama yourself at (866) 675-2008.

When you call your Congressman, you should make sure he knows an apology from Mr. Delahunt will not suffice. Delahunt clearly is lying about and denying his statement. "I'm sorry" would just be more of the same.

Edit: Friday, June 27th, 2008 11:55AM, EST. By Juan Fermin
Some people are pointing out that I'm a "Right Wing Blogger Quoting another Right Quoting another Right Wing Blogger"
So Here's an additional Link to a Fox News Video that I found.
Also, here's a story by CBS News. Everything we report on our site is always backed up by facts.

The Half Trillion Dollar Giveaway

The United States of America is on a course for self destruction on an unprecedented scale. At today's prices we are poised to transfer a Half Trillion Dollars of our wealth over to the Canadians, Mexico, Saudi Arabia, Nigeria, Venezuela, Dubai and the other countries that we import Oil from.
While Europe, you know those guys who scold us for not signing the Kyoto Protocol, is preparing to build dozens and dozens of Coal Fired Electrical plants, we haven't built a single one in 30 years. We've heard of ecological disasters if we do so, and yet, China has built over 1000 of them over the past decade. Where's the Global Warming? Instead the past 2 years have seen some of the coldest winters on record, with record snowfall in North America, some of which contributed towards the flooding in Colorado.
The U.S. has an estimated 800 Billion Barrels of oil, yet we're keeping most of it locked away for what? To help our Arab Friends?
In our rush to 'fix' something that we don't understand, we said we were doing it to help those least fortunate. The world's poor, and yet the poorest around the world are paying for our policies in the form of higher than ever food prices, and literally starving because of this. How many people will have to die before we do something?
We read story after story of Truckers leaving the Hauling business, Airlines dumping planes, and firing pilots, in February alone the U.S. lost 63,000 jobs, and yet what's being done?
In 2005, the U.S. Trade deficit was running at 60.9 Billion per month, of that almost half was Oil, and that was when Oil was 1/3rd of the price it is today! Yet as far back as 2005, Democrats in Congress were doing everything they could to either stop domestic drilling, or keep our country from expanding any kind of Fossil Fuels, and the picture hasn't changed at all today.
We see stories on the Discovery Channel on how Dubai and others are building Massive Gleaming Towers, even entire cities off the oil money that we are providing, while we lose thousands of jobs. Jobs that could be provided by a renewed Oil industry here in the U.S. and jobs that would be created by consumers actually having cash in their hands to spend. The average suburban household is now spending almost $300.00 a month more for gas than they did just 3 years ago, how many coffee shops will have to close, how many bakeries, how many electronics stores, hair salons, cell phone shops, how many stores in the Malls will have to close, because the American family must divert cash they once spent in their local neighborhoods and are now giving it to Venezuelan and Middle Eastern Thugs.
While demand for Gas is down, which in theory should lower prices, that hasn't happened because the speculators see the Democrats stopping any and every proposal to build Nuclear, Coal or any power plant for that matter. Even Solar powered plants are being hampered by excessive regulations. The speculators assume, rightly so, that the U.S. Economy needs more investments in energy, but this is not happening, so the claims of Barrack Obama and other Democrats that "drilling won't help for 10 years", is just foolishness. If the speculators see that we're doing something about the situation, they will start reducing or even liquidating their positions in Oil, and that will help reduce prices now.
I was at the supermarket yesterday talking to a woman in line about this, her response was that we shouldn't drill because she was sure they'd do something like come up with a Paint that generates Solar Power. When I said to her, but lady my $35,000.00 Sedan and my $45,000.00 SUV runs on Gas, am I just supposed to throw those away? Her response was that I should have thought about that when I bought those cars. I said, You've got to be kidding me? Gas was a 1/3rd the price it is today when I bought those cars. Besides that, even if they DID invent that magic Solar Spray paint. When will it go into production? We don't yet have the technology to replace fossil fuels, so do we just do without? And up north, next winter, do the people simply freeze to death because they don't have their Solar Powered heaters?
You see, that's the Democrats response. "Oh well, too bad you suburbanites, you should move to downtown and use public transportation". When you really think about it, this is an assault on the "Red State". The States where most of the population lives outside of town. Where most of the population has to drive long distances and where they have no public transportation. It's the Democrats way of pushing these people who are unaware of the games being played to vote Democrat next time. They're banking on the fact that most Americans will blame their woes on the President and by proxy his party. This is their strategy to win in November.

What can you do? Sign the Drill Here, Drill Now, Pay Less Petition. Also, participate in Operation Drill Bit, let's flood Washington with Drill bits along with a letter letting them know that we're on to them.

We all know that the future belongs to Solar, the question is will we get there in prosperity and in style, or will we get there, beaten broken and in misery.