Wednesday, August 13, 2008

Local Energy Guru Speaks Out In Bee

Thankfully, the Bee still gives some space to those not writing in from the fringe of society. Well stated Alan!!

How many times have you heard that drilling for more oil at home will reduce our dependency on foreign oil? Does that mean domestically drilled oil is priced cheaper compared to the price of foreign oil?
America produces about 9 million barrels of oil per day. We import about 12 million barrels per day. Do we pay a different price for domestic oil versus foreign oil? We don't. So how does producing more domestically reduce oil prices? It doesn't.
If you want to argue that drilling in the Arctic National Wildlife Reserve and the outer continental shelf will increase global supply, thereby reducing demand, you have to ask how much global supply increase is required to effect a reduction in oil prices? ANWR and OCS, anywhere from five to 10 years from now, will produce a combined 2 to 2.7 million barrels per day, according to the Department of Energy.
Global consumption today is 89 million barrels per day and will probably be about 140 million barrels per day in five years. How does a 2% increase in oil supply in five years reduce oil and gas prices today? It doesn't. The numbers don't lie, pro-drilling advocates do.

Alan Cheah,


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