I will believe the Saudis don't see any upcoming problems with Ghawar when they cancel one of their projects due to low oil prices. If they continue to be full steam ahead with increasing their capacity then I think they are aware that Ghawar may not be as robust in 5 years time as they would like us to believe.
CONTACT: Union of Concerned Scientists
Lisa Nurnberger, 202-331-6959
and Aaron Huertas, 202-331-5458
More Drilling Extends National Addiction to Oil; Will Not Save Americans Money at the Pump
Statement by Brendan Bell, UCS Washington Representative
WASHINGTON - June 26 - Senate Republican leadership today introduced a bill that would expand off-shore oil drilling and open areas that are now off-limits in Colorado, Utah and Wyoming to oil development. The bill, the Gas Price Reduction Act of 2008, stands in stark contrast with forward-looking legislation the House is considering, which would protect consumers from rising gas prices and expand transportation choices. Opening up America's coastlines and special places to oil and gas drilling is a shortsighted response that would not reduce prices at the pump and take the country in the wrong direction, according to the Union of Concerned Scientists (UCS).
Below is a statement by Brendan Bell, UCS Washington representative:
"Americans deserve real solutions that will save them money at the pump, not more political posturing from the oil industry and its allies in Congress. The 'Gas Price Reduction Act' sounds like something out of a George Orwell novel. Despite the name, it will have no effect on today's gas prices and will have virtually no effect on future markets. Making our cars, light trucks and SUVs go farther on a gallon of gas would deliver real savings, not false promises.
"Unfortunately, high gas prices are here to stay. The price of oil is set by the world market and is being driven, in large part, by growing world demand. The United States cannot drill its way out of its oil addiction. We consume 25 percent of the world's oil, but we have only 3 percent of the world's proven reserves.
"We can't lower oil prices, but we can save consumers money by cutting back how often they have to fill up. Better fuel economy means real savings right now and into the future. Consumers can save money today by sticking to the speed limit, avoiding stop-and-go traffic, and taking public transit when it is available. Congress can start now by requiring oil companies to provide free air at all gas stations and encouraging Americans to tune-up their cars and trucks. These two steps could cut gas consumption by 5 to 10 percent depending on how well the vehicle is maintained. That would be the equivalent of a 20 to 40 cent per gallon discount.
"It is also time to extend tax credits that help Americans purchase new fuel-efficient vehicles, such as hybrid cars and SUVs, and eliminate the caps on those tax credits. In addition, Congress should pass legislation that provides Americans with expanded transportation choices, so we don't have to drive as often. Finally, we can put existing technology to work by ensuring strong implementation of the recently passed fuel economy standards.
"Ask any American if they want to save a dollar per gallon of gas and they will say, 'Yes.' That is precisely what the fuel economy standards passed by Congress last year will do. UCS analysis shows that just by reaching the minimum standard of 35 miles per gallon fleetwide by 2020, Americans will save $45 billion a year (at $4 per gallon of gas) and cut oil consumption by 1.1 million barrels per day. That is the equivalent of cutting today's gas prices by more than one dollar per gallon.
"The good news is that we have the fuel-saving technology to do even more. Regardless, the White House is blocking an EPA report that concluded the auto industry can go beyond 35 miles per gallon and the Transportation Department is setting standards assuming gas will cost just $2.42 in 2016. The administration cannot claim to care about Americans paying high gas prices on the one hand and then block federal agencies from taking action with the other.
"We need to break our addition to oil -- an addiction that only benefits the pusher -- the oil companies. This latest move by some in Congress is just another sign of the overwhelming greed of the oil companies. Not only are they making record profits, they are getting more than $30 billion in tax breaks. Now they want the federal government to give them our treasured public lands and beaches, even though they aren't drilling on all the leases they currently own. How much more do the oil companies expect American taxpayers to bankroll their profits?
"Our oil addiction hurts our economy, our environment, and our national security. Instead of focusing on the backward policies featured in today's Senate bill, it is time to move forward with American ingenuity and technology to cut our dependence on oil, save money at the gas pump, and curb global warming."
The Union of Concerned Scientists is the leading science-based nonprofit organization working for a healthy environment and a safer world. Founded in 1969, UCS is headquartered in Cambridge, Massachusetts, and has offices in Berkeley, California, and Washington, D.C. For more information, go to www.ucsusa.org.
Posted: Fri Jun 27, 2008 7:44 am Post subject: Re: Scientists: drilling only extends our oil addiction
Exactly.
More consumption will just make prices go up again(if there is any affect at all by drilling here.) and we would be stuck in the same problem.
Americans are starting to realize the flaws of auto culture.
Many people here cram onto public transportation that was declining only a year ago.
If America could be like Europe in density of it's cities and it's public transportation then our issues with the gas prices would not go away but would be less severe.
Posted: Fri Jun 27, 2008 9:03 am Post subject: Re: Scientists: drilling only extends our oil addiction
Lots of talking points and sound bites but a few things to consider... The authors state the U.S. has 3% of world oil reserves but this number is much larger when factoring in unconventional sources, most notably oils shale. Next, the authors suggest keeping tires inflated along with additional vehicle maintenance will magically lower prices. This will without a doubt reduce consumption/waste but if this reduced demand in the U.S. is picked up elsewhere then the price point is moot. The authors further suggest increasing government subsidy for hybrid cars. These subsidies really only help higher wage earners purchase a more expensive automobile. I can afford payments on a $10k car but cannot afford payments on a Prius. I drive little so even if gas hit $10 it would still be cheaper for me to buy the $10k car. Further, some of these subsidies go to hybrid vehicles that get less mpg than a standard Toyota Corolla. The vehicle subsidy money would be better spent funding light rail transit. Less cars on the road will also mean less roads needed to be built in the future. The value of oil in ANWR alone is worth some $1.4 Trillion at today's $140 barrel price based on the widely circulated 10 Bbl supply. One would think the lease and royalty payments from this could be earmarked toward mass transit options and electric grid upgrades which will need a massive amount of funding over the next few decades.
I propose the U.S. is not addicted to oil. If not a fan of the term addiction in this case but if we maintain the theme then the phrase may be more properly stated, "the U.S. is addicted to cheap oil".
Joined: Feb 20, 2005 Posts: 2877 Location: Uppsala, Sweden
Posted: Sat Jun 28, 2008 10:46 am Post subject: Re: Scientists: drilling only extends our oil addiction
Keeping breathing will just extend our addiction to oxygen. So let's stop breathing. After you... _________________ Peak oil is not an energy crisis. It is a liquid fuel crisis.
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