Comments about ‘In our opinion: The U.S. energy boom growing despite high gas prices’

It is great that the DN finally published this. I do work as a analyst for the Oil and Gas industries, and was very aware of the growing US production - and made a comment to that fact here in the DN. A few of the regular posters actually called me a liar that US production was way up.

I am not sure why more people don't understand the changes that started in the last year or two of Bush and have accelerated over the last 3 years. Yes, a pipeline was not approved because it was unapprovable. The rout had not been finalized by the states and federal approval could not be made until that happened. But that aside, there is so much going on right now. Energy production of all flavors is up.

The problem with prices is we live in a global economy, and prices are set globally. As the rest of the world grows, our ability to impact pricing will decrease. It is just a fact, and there is not much neither Romney nor Obama can do about it.

This article can't be serious!

United States oil production peaked in 1970 at around 10 million barrels per day. Even with oil prices of $100.00 per barrel, the current "boom" in oil production has only increased oil production from a low of 5 million barrels a day, to a little over 6 million barrels per day. The International Energy Agency predicts we will max out at about 6.7 million barrels a day!

Where on earth is the DNews editorial board getting these fanciful projections?

So apparently "drill baby drill" is not the solution to higher gas prices.

Who would have thought Sarah Palin could be so wrong?

Whoever wrote the headline has zero knowledge of economics. Oil production is booming because prices are high, not in spite of high prices. If prices were dramatically lower it would no longer be economically feasible to extract oil in hard to reach areas.

That's why I always have to laugh when people tell me that construction of the Canadian pipeline will bring about a huge decline in gasoline prices. Canadian shale oil is one of the most expensive sources of oil to develop. If gas prices dropped significantly, shale oil would no longer be competitive.

The demand for oil is up! Why is it suprise that the price is up too? If you think it is high now, imagine what it would be if production was down as well!

I suspect it is true that high prices encourage oil production, though I hope that still higher production will lower prices. Why should global consumption set prices? The USA can amend that by tariffs on foreign oil, and export duties on domestic oil - both absolutely constitutional. I'm all for Romney's stated plan to be 100 percent energy independent in the USA. I have long been of his opinion in that respect.

To Gildas: So you prefer government control over free markets?

Gildas,

I am surprised. Most of your posts seem more free market oriented. How can you square this? Also, wouldn't tariffs on foreign oil drive our costs up?

There is a boom in energy production in the US BECAUSE of high prices. The stuff that came out of the ground profitable at twenty bucks a barrel is gone. The good old days, as Tom Petty says, will not return. Still, this is important news to reference every time someone says the President has stymied domestic production. And the underlying message is, when it comes to oil production, no matter how much we produce our reserves to try to modiffy world price we're the tail. Not the dog. Only one wags the other.

So the U.S. is now second only to Saudi Arabia in oil EXPORTS. Yet we still continue to IMPORT?

Does that have anything to do with oil speculators becoming rich by plucking dollars from the 47%?

Calls from people like Gildas are nonsensical. Tariffs would raise prices even further and would be opposed to the conservative ideal of free markets.

It would be fun watching them twist themselves into pretzels if it didn't cost us ordinary Americans so much money to keep their wealth flowing to them.

Everyone knows our exports are up, and even our production. Big deal, they should be! That doesn't mean that production expansion has reached it's "natural" limit, that would indicate a truly fee market. Just because it's up, doesn't mean it should be "unnaturally prohibited from going up more! Did we run out of labor to do the work? Did we run out of viable places to drill or extract oil and gas? Did the price fall to a level which made it prohibitive to make a profit in the production of more oil and gas? Did we run out of materials and supplies that are needed to undertake more production of oil and gas? The answer is no to all of these questions. The only think standing in the way is government restrictions. That is the plan of BHO and all leftists.

Tariffs would raise prices even further and would be opposed to the conservative ideal of free markets.
QUOTE

I never took you for a conservative, old boy ( I don't like calling people "old man").

I think Free Trade is more of a liberal idea anyway; at least it used to be.

Thanks for the input anyway. Respectfully disagree.

So you prefer government control over free markets?

QUOTE

Yes, when it comes to American prosperity, jobs, and energy independence.
I prefer self reliance, self sufficiency, and making the US "most favored nation" in our economy.

Anyway "Free Trade" is also imposed by government.

I am surprised. Most of your posts seem more free market oriented. How can you square this?
11:53 a.m. Oct. 24, 2012

QUOTE

Give me specifics: when did I type in favor of Free Trade?

Tariffs are constututional; often they make a great deal of sense.

We used them originally in our Republic for most of our revenue;
far more often than the income tax, and
heavy Corporate Taxes by which the government shackles our own economy,
that gives us less to spend, or save up as capital.

Why do we love to tax our own people?

and favor China?
Beats me; I agree with Romney that China cheats to gain economic advantage.

By tariffs we were able to survive against British economic industrial supremacy.
I don't think that the founding fathers were free traders.

No, I don't think tariffs would raise our gas prices; how would they, unless we wanted them too?
Free Trade in the American Constitution is for interstate commerce only.

I don't think that OPEC likes free trade, do you?

Who made Free Trade an Article of Faith?

"There is a boom in energy production in the US BECAUSE of high prices."

Ummmm - no. Prices have been high enough for a while.

There has been a boom because technology has enabled going after reserves that were not economical and technologically viable to go after. Technology has had a huge impact on what oil companies go after. Heat injection enabling going after heavy crude, side drilling going around geologic formations, robotic deep sea welding enabling going after deep sea sites.... lots of innovations have made going after discovered but untapped reserves.

Lets not over simplify this. Shell is going after reserves in Alaska on top of permafrost areas they could not safely exploit because the technology wasn't there.

Also, the price thing is totally bogus. When I began driving in '77 - gas prices in California were about 89 cents a gallon. If you inflation adjust that price for 2012.... that is the same as paying $3.40 a gallon today. So please, let compare apples to apples.... as percentage of household income, it is nearly the same as it historically has been. Not what people want to hear, but what it is.

Gildas,

I went back and checked just to be sure I did not “misremember” you. In a quick search, I found two comments where you stated that government interference with the economy was bad. Tariffs (like taxes generally) influence our economic actions and “interfere” with and influence our economic choices.

Of course tariffs are constitutional. But they are a tax on imports so they raise the price of the imported good. How could they not? What we want has little to do with anything.

I think OPEC loves free trade. It has made their member countries wealthy.

Who made Free Trade an Article of Faith? No one. But we have to understand and be willing to accept the consequences of our actions.

"...has moved the U.S. into second place in the world, and it is on pace to surpass Saudi Arabia in a few years to become the world's leader in oil exports."

The above is from the article.

Oil production and oil exports are not the same. We will become number 1 in production, but will still be importing oil.

DN mixed up production and exports.

re: Gildas

"Why do we love to tax our own people? and favor China? Beats me; I agree with Romney that China cheats to gain economic advantage."

What about Romney, his hedge fund buddies, the bailout of Detroit, & in essence handing Delphi to China?

Don't believe me? Look at the 11/5/12 version of the Nation.