Is offshore drilling gonna have a big impact on crude oil prices?

Question

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Answer 1

NO, it takes too long to develop a new oil field, especially one in the ocean.  Something like 10 to 12 years for production.  And while there is oil there, it's not huge fields that will actually make a difference when they do start producing.  Opening the off shore drilling is just a political tactic so the politicians can say they've done something.  It's kind of like planting a tree to help with wood prices.  It's 40 years before the tree is big enough to harvest.

Answer 2

There isn't going to be any just because the stupid congress has a stop on it. If they do not get together and lift the ban on drilling there will never be any. Just because the president lifted th executive ban --Congress must do so also

Answer 3

Not any time soon. It'll take 5-10 years before we see an impact. Some analysts are estimating we won't see a change until 2030.

The reason why it will take so long is because  they still need to find the oil and build the rig. In order to compensate for the cost of searching, building and employment they will raise the price of gas.

We won't see a change any time soon. This is just a solution that is being passed to make the public happy. In my opinion, they should take the millions of dollars they are going to spend on offshore drilling and invest it in studies for alternative fuel. Even if we pursue offshore drilling, how long until we run out of that and are in the same situation?

Answer 4

It will have some effect, but the reality is it will neither be large or immediate.  However, there are many more important reasons to support offshore drilling:

-- It keeps the money at home and supports the US economy and the dollar

-- It provides jobs for Americans and reduces the unemployment and welfare rolls

-- It provides a source of energy that helps to ensure the security of this nation for the next 20-30 years...the time it will take to wean our country off of fossil fuels

-- It potentially keeps us out of foreign wars related to our thirst for oil

-- It provides many billions of tax dollars to the US government.  The lease auctions alone put several billion dollars a year in revenue to government coffers -- that is an immediate benefit.  The royalty fees and taxes on the successful oil companies will provide many billions more.  People dont know it, but the US government (in the form of gasoline taxes, O&G royalties, lease auctions, corporate income taxes, and personal income taxes of oil company employees) makes many times more money on high oil prices than do the ExxonMobil's of the world.

Reducing the price of gasoline is one reason to support offshore drilling.  However, ensuring the economic and military security of this nation is far more important.

Answer 5

I believe offshore drilling won't make a difference. It's already estimated that by 2010 a gallon of gas will be around $7.