The Mixed Blessings of $100 Oil

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Imports just move the hurt to your childern

Leaving shale oil in the ground might make sense. It's hard to get at. Leaving California's offshore oil in place is impossible. It's seeping out naturally. California oil is close to shore not deeply buried (3-5 thousand feet) and in shallow water. In other words, cheap. Deep-water Gulf oil is in like 6000 feet of water, burried 30,000 feet down and hundreds of miles from shore, in other words, very expensive.

Remember with domestic oil, we are 40% partners and it makes lots of jobs. WIth imported oil you get nothing but a greater chance of spills, cause it comes in tankers, not pipelines like the offshore stuff.

Geophys55 of TX @ Sep 08, 2008 17:31:35 PM

saving our oil

A benefit of not allowing drilling offshore or in ANWR is that we still have that oil -- it's like our other strategic petroleum reserve. We will use drill that oil eventually, when we really need to.

If drilling had been allowed to continue off of California's coast 40 years ago, much of that oil would now be gone.

Nevertheless, we should become as energy independent as possible through domestic supplies (including shale), and thorugh conservation. Sending trillions of dollars to Iran, Russia and Venezuela will not be a good thing.

Conrad

Conrad of CA @ Sep 08, 2008 13:37:03 PM

The Mixed Blessings of $100 Oil

I would like to see a poll on energy independence based on the options: Independence with $4.00 a gallon vs non-independence at $3.00 a gallon. At what price of gas are people willing to pay for independence from foreign producers. This would really be an interesting poll

Jack Rader of TX @ Sep 08, 2008 13:36:10 PM

Volatility & Memory

> The market for hybrids will dissipate.

Even as gas prices fade from the all-time highs, I suspect some car buyers will remember the pain and not expect a permanent return to lower prices. The secular long term trend is towards greater global demand for petro with lots of volatility along the way. Who can expect prices not to spike again in the next three to four years?

Ming of DC @ Sep 08, 2008 12:09:31 PM

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Rick Newman

Rick Newman

The global economy is mysterious, even scary. Chief Business Correspondent Rick Newman connects the dots. In addition to his writing for U.S. News, Rick is the co-author of two books: Firefight: Inside the Battle to Save the Pentagon on 9/11, and Bury Us Upside Down: The Misty Pilots and the Secret Battle for the Ho Chi Minh Trail.

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