Merry Christmas to OPEC

Dec 25, 2008 by

From a Fox News article.

NEW YORK — Crude-oil futures fell for a third session Wednesday, tumbling 9.3% to close at their lowest level since April 2004, as government data showed inventories at a key delivery point hit a record. Crude for February delivery dropped $3.63 to end at $35.35 a barrel on the New York Mercantile Exchange. Crude inventories at Cushing, Okla., the delivery point for Nymex crude futures contracts, reached 28.7 million barrels in the week ended Dec. 19, the Energy Information Administration reported. It was the highest since at least April 2004, when the government started collecting Cushing data.

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Environmental impact of offshore oil drilling overstated.

Jul 24, 2008 by

President Bush recently promised to lift the executive ban on offshore oil drilling that has been in place since his father was President. With the recent dramatic increase in the price of a barrel of oil and the subsequent spike in the cost of gasoline to the US consumer President Bush hopes to increase domestic production of oil and reduce market tensions and our dependence on foreign oil. But Congress must also lift the legislative ban on offshore oil drilling that has been in place for over 27 years.

Congressional Democrats, joined by some GOP lawmakers from coastal states, have opposed lifting the prohibition that has barred energy companies from waters along both the East and West coasts and in the eastern Gulf of Mexico. A succession of presidents, from Bush’s father — George H.W. Bush — to Bill Clinton, have sided against drilling in these waters, as has Congress. Their goal has to been to protect beaches and coastal states’ tourism economies.

Recent statistics by the National Academy of Science show that this fear of oil spills due to offshore drilling is no longer a valid reason for a continued prohibition against offshore drilling. According to the Academy, oil spills from offshore drilling account for only one percent of the total oil that is dumped into the oceans annually. Sixty three percent of oil that enters the oceans comes from natural seepage from cracks in the earth itself. Thirty two percent comes from consumers, primarily from recreational water craft. A further four percent is due to transportation of oil by ship. During the period from 2000 – 2004 only 1,000 barrels of oil entered the oceans as a result of spills from offshore drilling platforms. As you can readily see from these statistics the risk of spills from transportation and recreational boats greatly exceeds the risk from offshore drilling. Yet there is no ban on the use of recreational water craft or transportation by ship of oil from around the world.

Click to continue reading “Environmental impact of offshore oil drilling overstated.”

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