Why Can't We Drill in ANWR?

[eldermike]

No, not period.

It's the spot sales that make the price rise. If OPEC reduces their per day barrel output, or if there is some unrest in a oil production nation like there was in Iraq and now in Libya, it causes folks to scramble on the spot market changing the price that day.

It can still be manipulated quite easily.

wrong, sorry. Spot price is about reaction spikes, the general trend is futures, period.

 

[JoyJuice]

wrong, sorry. Spot price is about reaction spikes, the general trend is futures, period.

--sigh--

"A futures contract is a promise to deliver a given quantity of a standardized commodity at a specified place, price and time in the future. In practice, oil is seldom actually delivered under a futures contract. At futures exchanges such as the New York Mercantile Exchange or International Petroleum Exchange in London, oil is traded literally by open outcry. (emphasis me: they just described spot sales) Offers to buy and sell are given vocally, and by hand signals; in this "recognition trading," the buyer and the seller each acknowledge the completion of the transaction by recognizing the other party across the physical trading area."

DOE.gov

 

[Christos Anesti]

I don't really have anything against drilling if there are strict environmental protection laws and standards in place but I do believe that the people who think it will make some drastic price difference at the pump will be unpleasantly surprised when they find out that it didn't.

 

[DaisyDay]

Yes it's a commodity, but the price is driven by the futures market as is all commodities. If you drill you will drive down the price.

That isn't true because the other players such as OPEC can merely slowly their production down to keep prices up. This is done routinely. What do you think caused the oil "shortage" back in the late 1970s?

 

[salida]

Get the environmental nuts out and we may have a chance to drill.

 

[JoyJuice]

Get the environmental nuts out and we may have a chance to drill.

They are not in the way. Oil may want the permits lease and exploratory drill, but once they get an assessment of how much oil is there, don't expect any reasonable drilling just like they have done in the past.

We get most our oil from Canada and Mexico, we could easily drill here but why in the world would they delete what is here when they can just make PSA agreements and deplete everyone else's first.

 

[eldermike]

That isn't true because the other players such as OPEC can merely slowly their production down to keep prices up. This is done routinely. What do you think caused the oil "shortage" back in the late 1970s?

Futures contracts are not easy to understand but they still drive prices. But they still drive prices.

 

[eldermike]

--sigh--

"A futures contract is a promise to deliver a given quantity of a standardized commodity at a specified place, price and time in the future. In practice, oil is seldom actually delivered under a futures contract. At futures exchanges such as the New York Mercantile Exchange or International Petroleum Exchange in London, oil is traded literally by open outcry. (emphasis me: they just described spot sales) Offers to buy and sell are given vocally, and by hand signals; in this "recognition trading," the buyer and the seller each acknowledge the completion of the transaction by recognizing the other party across the physical trading area."

DOE.gov

All futures are purchased to hold and then zero out before the contract expires....................we call that the futures market.

I have no idea what you are trying to say here

 

[DaisyDay]

Futures contracts are not easy to understand but they still drive prices. But they still drive prices.

Yes, but the investors take announcements from OPEC of intentions of cutting back supply into account.

 

[DaisyDay]

All futures are purchased to hold...

No, they are sometimes traded in the futures market, sometimes redeemed, sometimes used to hedge bets.

and then zero out before the contract expires....................we call that the futures market.

It becomes null upon expiration, but not before.

What do you mean by "zero out"? If you're saying they become worth zero dollars before the contract expires, then you are wrong; it may become worthless to the party with the opportunity or it may become very valuable. There are two sides to a futures contract, depending on what sort, it may be an opportunity to buy at a certain price coupled with the obligation to sell at that price on the other side or it may be the opportunity to sell at the given price coupled with the obligation to buy at that price. The value of the futures contract depends on which way the price of the underlying commodity goes.

 

[Brak]

You know, I kind of like the idea of converting our food supply to fuel. But instead of corn ethanol, I think we should make Fred Flintstone cars where we human-power it. Kill the obesity problem while we're at it. I know I've got a huge oil reserve sitting about two feet below where my fingers are right now.

 

[allhart]

You know, I kind of like the idea of converting our food supply to fuel. But instead of corn ethanol, I think we should make Fred Flintstone cars where we human-power it. Kill the obesity problem while we're at it. I know I've got a huge oil reserve sitting about two feet below where my fingers are right now.

If it wasn't oil it would be something else. If was org. Juice..... You would convert your demonization of it all..... We can't depleet our natural resource like water.... Land.... all to fuel.

 

[Umaro]

You know, I kind of like the idea of converting our food supply to fuel. But instead of corn ethanol, I think we should make Fred Flintstone cars where we human-power it. Kill the obesity problem while we're at it. I know I've got a huge oil reserve sitting about two feet below where my fingers are right now.

We have those, they're called "bicycles."

 

[allhart]

We have those, they're called "bicycles."

And I think I hear some hypocrisy coming on. The kettle calling the pot black. Let's go back to the stone ages..... Go figure. Let's see if I can drive my bike to work in this time is money business.....furthermore there's only 24 hrs in a day people. Just look at Hawaii that small island and the cars on the road. Or japan or new Zealand or Ireland.

Btw America and Canada have the smallest populations per land mass than say china or India.

 

[Umaro]

And I think I hear some hypocrisy coming on. The kettle calling the pot black. Let's go back to the stone ages..... Go figure. Let's see if I can drive my bike to work in this time is money business.....furthermore there's only 24 hrs in a day people. Just look at Hawaii that small island and the cars on the road. Or japan or new Zealand or Ireland.

Btw America and Canada have the smallest populations per land mass than say china or India.

How is riding a bike going back to the stone ages? I ride a bike to work, and I used to walk to school. It's completely doable if you're smart about where you choose to live. Saves me a fortune on gas and maintenance too.

 

[lordbt]

How is riding a bike going back to the stone ages? I ride a bike to work, and I used to walk to school. It's completely doable if you're smart about where you choose to live. Saves me a fortune on gas and maintenance too.

I didnt choose to live in Ohio, I was born here, but I guess i did choose to stay here. Riding ones bike to work is fine in May. Try it in January. Or even March. I got 13" of snow outside.

 

[Supreme]

Digging for oil doesn't just have risks such as spills. It can damage biological habitats, endangering species in a certain area- and is just so unsightly. We have a beautiful planet, without polluting it with oil refineries everywhere.

 

[allhart]

How is riding a bike going back to the stone ages? I ride a bike to work, and I used to walk to school. It's completely doable if you're smart about where you choose to live. Saves me a fortune on gas and maintenance too.

Dude If I could work right around the corner from the house, don't you think I would.....? Those days are gone. Working at one job for 40 yrs as well.... Your inner city mentality is optical or microscopic ....and conditional as lorbt stated..... Not universal.

 

[allhart]

Mostly this is the enviromenlists of the world that want a reduction of extraction and consumption that don't care if it effects our economy. It all means less consumption to them even if the farmer is struggling or the single mother loading her kids up in the van.
Btw they don't have a universal solution, Only a microscopic answer. Which in my opinion their idea and actions are going to have unessarily mega consquences. We will have a measly existence if at all with now alternatives.

 

[TheManeki]

Digging for oil doesn't just have risks such as spills. It can damage biological habitats, endangering species in a certain area- and is just so unsightly. We have a beautiful planet, without polluting it with oil refineries everywhere.

You can still have blowouts and explosions that can injure or kill the drilling rig operators. Offshore drilling is pretty dangerous; inland drilling is only a bit less so.