From: If We Drill in the US, We Don’t Get the Oil
I had been thinking about this for some time but never posted it. Cenk Uygur beat me to it yesterday and I’m finally getting a chance to re-post it.
One thing has been driving me crazy about this drilling debate — everyone seems to assume that if we drill for oil in the US, that we will get the oil. And hence, we won’t be dependent on foreign oil anymore. But we won’t get anything, Exxon-Mobil will.
Ding Ding Ding! We have a winner!
The oil that comes from that drilling will not be United States property (Republicans aren’t suggesting we nationalize the oil companies, are they?). It will be the property of whichever oil company got the rights to that contract. They can then sell it to whoever they like — and they will. They will sell it on the world market, so the Chinese will have just as much access to the oil that comes out of the coast of Florida as we will.
The Democrats have done a decent job of beating back the argument that this will effect prices in the short run, or even in the long run. But no one has addressed the point above. The Republicans make it seem like we won’t be dependent on foreign oil — and that prices will go down in the US — if we have our own oil. But it won’t be ours. And it will be sold on the world market, so its effect on global oil prices will be even smaller.
When we ask the question of whether there should be drilling off the coast of Florida or in the Arctic National Wildlife Refuge, we should ask the question this way — would you be comfortable with the Chinese or the Germans or Russians or the Saudis drilling on American land? Because for all intents and purposes, they will be.
Large multi-national firms like Exxon-Mobil are not US property. They sell to the world and their allegiance is to corporate profits. So, when they drill, they drill for the whole world, not just us. (my note: Americans lose sight of things like this far too frequently) Some might find that heart-warming, but it certainly has nothing to do with the US having more oil or lower prices.
To bring this home further, take a look at a world map. Look at the distance between Alaska and China. Now look at the distance between the Alaska (site of ANWR) and the Gulf Coast, where most of our refineries are. Remember that many modern oil tankers can’t use the Panama Canal. They will have to go all the way down, around South America and back up, at the shortest trip. Alternatively they could just head west, over Russia and/or China, through the Middle East and eventually wind around to the Gulf Coast.
Now tell me, where are those companies going to sell their oil?
It doesn’t matter where the oil goes, what matters is that OPEC will no longer have the strangle hold on prices they enjoy now. If a good chunk of the demand for foreign oil drops because we are getting it domestically prices will drop to match it.
When a competing business comes to town there’s usually a price war. Drilling would send the message that we don’t need their oil nearly as much as they need us to buy it.
As with anything it’s much more complicated than that but, the positives for drilling outweigh the cons imo.
I don’t think we’re talking about a good enough “chunk” here.
And there is no such thing as “foreign” oil. Aside from the countries that have nationalized their oil, it is all owned by the multinationals. And they are beholden to no flag.
We’re also talking about many years before we’d see the oil.
We’re also talking about an outdated technology that needs to be phased out in favor of renewable resources. It’s sort of like the person that goes back to their credit card every time they can’t afford something…
I think we need to be talking about selling off some of our reserves. That is oil that we actually have, right now. It will drive prices down, and we can use the income from it to fund research and development for renewables.
I do see that there are positives, but for me it is another bandaid and not a very good one. We need to get to the root of the problem and that is dependence on a finite resource. In the 21st century it is damned near criminal that we are still in this situation, but as long as there is profit to be made by someone, it won’t change.
A very good point, and I must say I had simular thoughts in passing.
However until we achieve that independence from a finate resource, I think we have to carry on with what we know.
We have the water car, air car, I’ve even seen a motorcyle glide. People are trying all kinds of things, and given past ingenuity, I can’t help but wonder precisely what is taking it all so long.
Another thought for likely another blog. Does the oil companies have the power to surpress new creations until that last drop of oil is sucked out of the earth? I won’t say I doubt it.
I know that they do; they have the vast amounts of money and profits to buy-up new technologies!!! And that is legal!!!