This from the candidate that wants the oil companies to get more land leases they won't use.
Did anyone catch MTP this past weekend? Brian Williams hosted, and Joe Biden OWNED Lindsey Graham. Evidently Graham just a few years ago said more offshore drilled was a terrible idea, and used $4 gas as an excuse to reverse his position. Biden countered with the fact that of the close to 50 million acres that are currently leased to oil companies for offshore drilling, only 20 million is actually being explored or is currently producing.
$4/gallon is a good reason to want offshore drilling. Yep, and they're NEVER going to drill on land that is not economical to drill and produce. Biden is playing games.
Why do oil companies need more territory opened up if they're not drilling or pumping in space they've already leased?
Because much of the space they have leased either isn't economical to produce or doesn't have oil and gas. Oil and gas is a speculator's game... before leasing oil companies have ZERO right to perform geological studies to see if oil and/or gas is actually under the surface. Such geological surveys are valuable and NOT free. Furthermore, why would a landowner EVER allow such geological surveying PRIOR to leasing??? Think about it, if the geological study shows NOTHING under the land then the landowner will get NOTHING but the fee to allow the geological survey. This is why landowners typically lease the land NOT knowing if there is oil and gas under the ground. Oil and gas companies speculate that oil and gas MAY be there and sign a lease. If they're wrong, they lose the initial payment they made for the lease and the lease after so many years.
Joe hit it right on the head. Because they want to squeeze in more leases before Bush's term ends, because they know the next president (Obama) won't give them any more leases.
So Biden is saying Obama won't lease unused government lands to oil and gas companies??? That's an odd position and I bet Obama would disagree with that -- but heck, it makes a great sound bite because not many know how the oil and gas leases work.
On another note, it infuriates me to no end when oil companies put a commercial on TV touting themselves as "energy companies" that are researching (and producing, yuk yuk...) alternative energy sources such as get this. COAL AND NATURAL GAS!!!
Name me ONE Big Oil company that does NOT invest in alternative energy sources. And by alternative energy, I do mean other than fossil fuels.
Last time I checked, the term "alternative energy source" implied something other then fossil fuels. Forget oil rigs off our shores, start putting windmill rigs offshore...
Windmills are a good option, but they won't solve the problem. I think the best approach is a piecemeal approach of bundling multiple technologies and, of course, including existing technology such as fossil fuels and coal.
Posted by ddenton