Shell Oil Story Speaks Volumes
In a recent foxnews.com story reporter Dan Springer wrote that Shell Oil Company is ending its effort to drill this summer in the ocean off the northern coast of Alaska.
The reason? The Environmental Protection Agency’s appeals board is withholding crucial air pollution permits. This is leading some Republicans in Congress to seek legislation to strip EPA of its drilling oversight.
‘Shell has spent five years and nearly $4 billion dollars on plans to explore for oil in the Beaufort and Chukchi Seas. The leases alone cost $2.2 billion. Shell Vice President Pete Slaiby says obtaining similar air permits for a drilling operation in the Gulf of Mexico would take about 45 days. He’s especially frustrated over the appeal board’s suggestion that the Arctic drill would somehow be hazardous for the people who live in the area. “We think the issues were really not major,” Slaiby said, “and clearly not impactful for the communities we work in.” (end of excerpt)
So first the Media Left historically loves to paint oil company profits as evil. And then when environmentalists cause oil companies to waste billions – and rest assured that they want to bleed the companies dry one dollar at a time – that is seen as a good thing.
And if you wonder why gasoline prices and heating oil prices are high in the first place, the crucial issue is the world petroleum supply as it is being restricted by rabid enviro laws, the vice-like grip of the OPEC oil cartel and other man-made forces. In other words, the world has plenty of oil. It is man who is restricting our supply.
The United States alone is estimated to have 2+ TRILLION barrels of oil in oil-shale formations (waxlike oil in rock formations) in just one spot in Utah, Colorado and Wyoming. To compare, the US currently uses 20 million barrels of oil per day. The oil shale therefore is a 100,000-day supply, or 273 years’ worth of oil just in one small spot in the American West.
There is plenty of oil. Don’t believe the lies of the enviro movement. And most of the world remains unexplored or underexplored.
When oil prices spiked in July 2008 to $147 a barrel, leftists and environmentalists blamed everyone except the guilty parties. They fingered primarily oil company profiteering and speculators. They demanded investigations.
But here is an excerpt from rff.org (Resources for the Future) about why the 2008 oil price spike really happened. And notice that it was because of man-made interruptions in supply that came from either Obama’s radical global union friends or from anti-American terrorist forces:
‘Even seemingly small shocks may have large effects. Can they help explain the spike in oil prices in the first half of 2008? It was definitely a time of significant upheavals, some with the potential for sustained disruption of supplies. In February 2008 Venezuela cut off oil sales to ExxonMobil during a legal battle over nationalization of the company’s properties there. … in late March (in Iraq) saboteurs blew up the two main oil export pipelines in the south—cutting about 300,000 barrels per day from Iraqi exports. On April 25, Nigerian union workers went out on strike, causing ExxonMobil to shut in production of 780,000 barrels per day from three fields. Two days later, on April 27, Scottish oil workers walked off the job, leading to closure of the North Forties pipeline that carries about half of the United Kingdom’s North Sea oil production. As of May 1, about 1.36 million barrels per day of Nigerian production was shut in due to a combination of militant attacks on oil facilities, sabotage, and labor strife…. On June 19, militant attacks in Nigeria caused Shell to shut in an additional 225,000 barrels per day. On June 20, just days before the price of oil reached its historic peak, Nigerian protesters blew up a pipeline that forced Chevron to shut in 125,000 barrels per day. Each of these events clearly registered in the spot market. It is not implausible to believe that, arriving in quick succession, they contributed heavily to the rapid acceleration in the spot price of oil.’ (end of excerpt)
Thus the overall problem worldwide is not oil availability, oil company profits or market speculation, but loss of supply either at the hands of terrorists, environmentalists, the oil cartel or labor unions. Period. End of story.
Now to give the lie to the story that the air pollution from the Shell drilling would be hazardous for the people who live near the drill site, foxnews.com reported that:
‘The closest village to where Shell proposed to drill is Kaktovik, Alaska. It is one of the most remote places in the US. According to the latest census, the population is 245 and nearly all of the residents are Alaska natives. The village, which is 1 square mile, sits right along the shores of the Beaufort Sea, 70 miles away from the proposed off-shore drill site.’ (end of excerpt)
Yes, 70 miles away, and the Fox story continues that the EPA appeals board ‘ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project.’
So again we have the left-wing anti-capitalist enviro movement seeking to undermine supplies by micro-managing every aspect of oil production from drilling rigs to ice breakers. Surely rig workers’ pickup trucks are next. In other words, they are using any excuse possible to tie up the oil companies and shut down production.
Thus environmentalists supported by ultra-wealthy Americans like George Soros, John Kerry and hundreds of other billionaires and millionaires on the left, are using a little air pollution thousands of miles away in Alaska as a tool against the oil companies. Of course those billionaires are not impacted by high oil prices that result from their policies. The rest of us are.
The Alaska oil underneath the Beaufort Sea is estimated at 27 billion barrels. If extracted that oil would have to be pumped through the existing Alaska pipeline which has carried oil since 1977 from the Prudhoe Bay field (on the edge of Beaufort) 800 miles south to the port at Valdez, Alaska where it is transloaded onto ships for transport to its destinations.
Environmentalists are trying to stall any new oil development in northern Alaska, including Beaufort and the nearby ANWR reserve (10 billion to 20 billion barrels) because the original pipeline legislation has a clause to tear down the pipeline when Prudhoe Bay is drained, which is expected in 2015. Then there will be no way to get this northern Alaska oil to market and there will be no more drilling in this oil-rich area. Their intention is to deprive us and push up prices.
Please visit my website at www.nikitas3.com for more. You can read excerpts from my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.