Continuing with the Energy thought brings me to Oil Exploration.
I am befuddled about Oil Exploration, which I guess goes hand in hand with demand. We seem to have a lot of demand for fuels. So, there’s talk about needing more oil exploration.
An article in Reuters in 2008, said that Alaska produced about 600 million gallons of oil a day. It ships its oil to the west coast for refining. The west coast refineries are running about 90% capacity. There’s a push to get a congressional bill passed for the approval to open up more of the Arctic National Wildlife Refuge to drill more wells and upping the daily production to 1.3 million barrels a day. I’m befuddled, here; if we need more oil, then what are we going to do with the excess drilled over the capacity to refine. Does anybody sense that a foreign sale will develop? …………….so much for helping domestic demand.
Deep water drilling in the Gulf of Mexico befuddles me. Again, the argument is that we need more oil to meet our demands. Ok, I can buy that, and probably do every time I go to the pump. But, because of the disastrous BP spill, we, in this country are frightened to allow additional drilling in the gulf near us. Yet, new drilling is being done in the gulf by Argentina and China. So, I’m befuddled, we will halt the drilling so we can pay more for foreign oil, who could possibly spill and pollute the gulf. Adding to the first thought, if we produce more crude oil, can our existing refineries along the gulf coast handle the volume?
Imports/Exports, I’m befuddled. Indexmundi.com indicates that we import 11.3 million barrels of oil and we export 1.7 million barrels. If our demand requires 11.3 million barrels why do we export anything — I’m befuddled?
I’d like to move on to the pricing topic—I’ve got a lot of thoughts on that….but by now I’m so befuddled on Petroleum–I think I’ll turn back to fishing.