August 6th, 2008


off shore drilling...

So, it seems that the general thought is that allowing more off-shore drilling will make our gas cheaper today. This is a total fallacy. For one, stop and think a moment -- allowing off-shore drilling doesn't mean drill stations spring up magically on the coasts instantly giving us more oil. First, the companies have to apply for the licenses to get there, then they have to do environmental surveys of the areas. Granted, these first two items are probably pre-done now just as a "just in case, wanna jump in" measure, but still, there then remains...


Seriously, folks, did you stop to think about this? They're pretty major pieces of equipment on tumultuous waters, they take a while to build!

So, this is major flaw #1 in the thinking that offshore drilling will help your pump price.

The other major flaws are probably covered elsewhere, the big one being that the price of gas has very little to do with supply at this point, it's all about demand. Given that the demand is sharply increasing elsewhere (China and India) and they are willing to pay for it, our sweet deal of getting gas for cheaper because we're the biggest bulk is being undercut.

The price of gas is going to go up more, and stay up, folks. It's time to start planning for this appropriately and not look for magic cures that aren't actually going to help us in the immediate future, if ever.
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