September 5, 2006
WHICH IS WHY YOU HAVE TO HIKE TAXES--WE'LL NEVER RUN OUT:
Oil companies say drilling suggests 'significant discovery' (Associated Press, 9/05/06)
Tests of a deep and challenging offshore well in the Gulf of Mexico indicate a significant oil discovery, the partners in the field announced Tuesday.The Jack 2 well was drilled by U.S. oil company Chevron Corp., with partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma.
“Test results are very encouraging and may indicate a significant discovery. The full magnitude of the field's potential is still being defined,†Statoil said in a statement.
MORE:
Oil and Gasoline Futures Fall as the Summer Season Ends (Bloomberg News, 9/05/06)
Tom Hammervold, an oil trader at Norsk Hydro in Oslo, was among the optimists, saying: “A lot of risk premiums haven’t materialized. There are no issues at the moment to support the price.â€On the New York Mercantile Exchange, crude oil for October delivery fell $1.17 yesterday, or 1.7 percent, to $68.02 a barrel in electronic trading, the lowest in several weeks for a contract closest to expiration.
Gasoline futures prices were also lower, with the October contract dropping 3.44 cents to $1.70 a gallon. The average retail price for gasoline in the United States declined to $2.740 a gallon on Sept. 3, from $3.023 the month before, according to AAA, the big drivers’ association.
Oil has fallen more than 11 percent since reaching a record high of $77.03 a barrel at the end of the session on July 14. It spiked then on concern that fighting between Israel and Hezbollah in Lebanon would spread and disrupt supplies from the Middle East.
If prices come back in line with reality it will drive a barrel back under $40. Posted by Orrin Judd at September 5, 2006 8:57 AM
Congress is again going to try to lift the ban on offshole drilling, which has been banned since the 70s (except off Texas and parts of LA).
Given opposition from Democrats and FL RINOs it is doubtful.
Posted by: Gideon at September 5, 2006 9:37 AMGideon - and don't forget opposition to ANWR.
The time to get this done is fading as oil and gas prices drop back down.
Posted by: AWW at September 5, 2006 10:16 AMThe Floridian RINO's of my acquaintance are sounding more and more like Gore. Luckily we don't cross paths much.
Posted by: erp at September 5, 2006 11:56 AM"significant oil discovery" is an understatement. From Forbes, "...could be the biggest since the Alaskan North Slope--as much as 15 billion barrels, raising total U.S. crude reserves by 50%." What's more, it represents a technological advance in deep water drilling that will give the US the upper hand in the gulf, as well as other offshore areas. With the stakes so high, and the reserves so vast, we need to get serious about offshore drilling. This is especially true in recovering oil from the Florida Straights, oil that the Cubans (with backing from China, Canada, Spain and presumably Venezuala) hope to exploit.