Friday, August 8, 2008

Another Blast to Oil-Drilling Myth: Taxpayer-subsidized Big Oil's Gulf Oil Won't Go to US

Meanwhile, back at the oil-drilling issue, did anybody realize this?

The oil that comes from offshore drilling will belong to the multinational firm, like Exxon-Mobil and will go to world markets, not us.

One thing has been driving me crazy about this drilling debate -- everyone seems to assume that if we drill for oil in the US, that we will get the oil. And hence, we won't be dependent on foreign oil anymore. But we won't get anything, Exxon-Mobil will.

The oil that comes from that drilling will not be United States property (Republicans aren't suggesting we nationalize the oil companies, are they?). It will be the property of whichever oil company got the rights to that contract. They can then sell it to whoever they like -- and they will. They will sell it on the world market, so the Chinese will have just as much access to the oil that comes out of the coast of Florida as we will.

The Democrats have done a decent job of beating back the argument that this will effect prices in the short run, or even in the long run. But no one has addressed the point above. The Republicans make it seem like we won't be dependent on foreign oil -- and that prices will go down in the US -- if we have our own oil. But it won't be ours. And it will be sold on the world market, so its effect on global oil prices will be even smaller.



Anonymous said...

first off you need to stop repeating yourself over and over. second exxon-mobil would only get that oil if the united states permitted it. also the united states has its own oil companies ,that im pretty sure we would let drill first before any other company. and the prices would drop world wide which in return would drop the united states prices as well.

Anonymous said...

oh, and another thing would you much rather have the chinese drilling right off our coast or us?? think about what your saying and take it from both sides not just one..