Comments on: The solution to the offshore drilling question… http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/ Fri, 10 Feb 2012 02:20:00 +0000 hourly 1 By: Brian Christiansen http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-2374 Brian Christiansen Mon, 28 Jul 2008 21:36:02 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-2374 I respectfully disagree with the idea that more drilling, especially in environmentally sensitive areas, is a good idea. As a country we invest nearly nothing in alternative energy. We give more in tax breaks to petroleum companies than we invest in all other forms of energy research.<br><br>We should cope with the expensive gas in the near term to rid ourselves of it through electricity-producing domestic resources faster than giving ourselves more oil. You don't give a heroin addict more heroin when you're trying to get him to quit. Don't do the same with our addiction to oil.<br><br>It won't be comfortable, but breaking addictions isn't a comfortable thing.<br><br>If we took the money that we could put into oil/gas exploration and put it instead into upping PV cell efficiency, that would be a much better investment. I respectfully disagree with the idea that more drilling, especially in environmentally sensitive areas, is a good idea. As a country we invest nearly nothing in alternative energy. We give more in tax breaks to petroleum companies than we invest in all other forms of energy research.

We should cope with the expensive gas in the near term to rid ourselves of it through electricity-producing domestic resources faster than giving ourselves more oil. You don't give a heroin addict more heroin when you're trying to get him to quit. Don't do the same with our addiction to oil.

It won't be comfortable, but breaking addictions isn't a comfortable thing.

If we took the money that we could put into oil/gas exploration and put it instead into upping PV cell efficiency, that would be a much better investment.

]]> By: Brian Christiansen http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-7317 Brian Christiansen Mon, 28 Jul 2008 21:36:02 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-7317 I respectfully disagree with the idea that more drilling, especially in environmentally sensitive areas, is a good idea. As a country we invest nearly nothing in alternative energy. We give more in tax breaks to petroleum companies than we invest in all other forms of energy research.<br><br>We should cope with the expensive gas in the near term to rid ourselves of it through electricity-producing domestic resources faster than giving ourselves more oil. You don't give a heroin addict more heroin when you're trying to get him to quit. Don't do the same with our addiction to oil.<br><br>It won't be comfortable, but breaking addictions isn't a comfortable thing.<br><br>If we took the money that we could put into oil/gas exploration and put it instead into upping PV cell efficiency, that would be a much better investment. I respectfully disagree with the idea that more drilling, especially in environmentally sensitive areas, is a good idea. As a country we invest nearly nothing in alternative energy. We give more in tax breaks to petroleum companies than we invest in all other forms of energy research.

We should cope with the expensive gas in the near term to rid ourselves of it through electricity-producing domestic resources faster than giving ourselves more oil. You don't give a heroin addict more heroin when you're trying to get him to quit. Don't do the same with our addiction to oil.

It won't be comfortable, but breaking addictions isn't a comfortable thing.

If we took the money that we could put into oil/gas exploration and put it instead into upping PV cell efficiency, that would be a much better investment.

]]> By: Christopher S. Penn http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-2376 Christopher S. Penn Mon, 28 Jul 2008 16:49:29 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-2376 Exactly that model. We do it with student loans - the Department of Education runs 20% of the student lending market. Could it be run better? Sure. But it's a viable alternative, especially when times get tough and the private sector abandons its commitment to the audience it's supposed to serve. Exactly that model. We do it with student loans – the Department of Education runs 20% of the student lending market. Could it be run better? Sure. But it's a viable alternative, especially when times get tough and the private sector abandons its commitment to the audience it's supposed to serve.

]]> By: Christopher S. Penn http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-7319 Christopher S. Penn Mon, 28 Jul 2008 16:49:29 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-7319 Exactly that model. We do it with student loans - the Department of Education runs 20% of the student lending market. Could it be run better? Sure. But it's a viable alternative, especially when times get tough and the private sector abandons its commitment to the audience it's supposed to serve. Exactly that model. We do it with student loans – the Department of Education runs 20% of the student lending market. Could it be run better? Sure. But it's a viable alternative, especially when times get tough and the private sector abandons its commitment to the audience it's supposed to serve.

]]> By: MarkHarrison http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-2375 MarkHarrison Mon, 28 Jul 2008 16:46:34 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-2375 So, effectively you're suggesting that the US Government set up an exploration/drilling company, 100% owned by the Treasury, which would act on a commercial basis, in that it would hire staff, build rigs and pipes, and sell oil.<br><br>That's worth serious consideration - after all, it's effectively the model that pretty much every other government (including mine here in the UK) adopted - start out owning, and look at selling out only later, once the production is established and stocks are running down :-)<br><br><br>Likewise, I'm reasonably in favour of the use of Government income to produce jobs - provided those jobs are in areas that produce ongoing infrastructure (ie - you can use government money to build roads or water treatment plants, but shouldn't use government money to, say build Operating Systems or cars.) So, effectively you're suggesting that the US Government set up an exploration/drilling company, 100% owned by the Treasury, which would act on a commercial basis, in that it would hire staff, build rigs and pipes, and sell oil.

That's worth serious consideration – after all, it's effectively the model that pretty much every other government (including mine here in the UK) adopted – start out owning, and look at selling out only later, once the production is established and stocks are running down :-)

Likewise, I'm reasonably in favour of the use of Government income to produce jobs – provided those jobs are in areas that produce ongoing infrastructure (ie – you can use government money to build roads or water treatment plants, but shouldn't use government money to, say build Operating Systems or cars.)

]]> By: MarkHarrison http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-7318 MarkHarrison Mon, 28 Jul 2008 16:46:34 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-7318 So, effectively you're suggesting that the US Government set up an exploration/drilling company, 100% owned by the Treasury, which would act on a commercial basis, in that it would hire staff, build rigs and pipes, and sell oil.<br><br>That's worth serious consideration - after all, it's effectively the model that pretty much every other government (including mine here in the UK) adopted - start out owning, and look at selling out only later, once the production is established and stocks are running down :-)<br><br><br>Likewise, I'm reasonably in favour of the use of Government income to produce jobs - provided those jobs are in areas that produce ongoing infrastructure (ie - you can use government money to build roads or water treatment plants, but shouldn't use government money to, say build Operating Systems or cars.) So, effectively you're suggesting that the US Government set up an exploration/drilling company, 100% owned by the Treasury, which would act on a commercial basis, in that it would hire staff, build rigs and pipes, and sell oil.

That's worth serious consideration – after all, it's effectively the model that pretty much every other government (including mine here in the UK) adopted – start out owning, and look at selling out only later, once the production is established and stocks are running down :-)

Likewise, I'm reasonably in favour of the use of Government income to produce jobs – provided those jobs are in areas that produce ongoing infrastructure (ie – you can use government money to build roads or water treatment plants, but shouldn't use government money to, say build Operating Systems or cars.)

]]> By: Christopher S. Penn http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-2378 Christopher S. Penn Mon, 28 Jul 2008 16:25:57 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-2378 In this context, I mean nationalize as in making the resource extraction and sale operated by the federal government. Not taking away from operations or buying out existing oil companies or their private investments and owned resources; simply not putting up these resource fields to the private sector is the context of nationalization here. No bidding, no opportunity for private companies to extract resources at a profit, etc. Not detracting from existing business by energy companies - just not giving them a shot at the resources and this particular segment of new business. In this context, I mean nationalize as in making the resource extraction and sale operated by the federal government. Not taking away from operations or buying out existing oil companies or their private investments and owned resources; simply not putting up these resource fields to the private sector is the context of nationalization here. No bidding, no opportunity for private companies to extract resources at a profit, etc. Not detracting from existing business by energy companies – just not giving them a shot at the resources and this particular segment of new business.

]]> By: Christopher S. Penn http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-7321 Christopher S. Penn Mon, 28 Jul 2008 16:25:57 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-7321 In this context, I mean nationalize as in making the resource extraction and sale operated by the federal government. Not taking away from operations or buying out existing oil companies or their private investments and owned resources; simply not putting up these resource fields to the private sector is the context of nationalization here. No bidding, no opportunity for private companies to extract resources at a profit, etc. Not detracting from existing business by energy companies - just not giving them a shot at the resources and this particular segment of new business. In this context, I mean nationalize as in making the resource extraction and sale operated by the federal government. Not taking away from operations or buying out existing oil companies or their private investments and owned resources; simply not putting up these resource fields to the private sector is the context of nationalization here. No bidding, no opportunity for private companies to extract resources at a profit, etc. Not detracting from existing business by energy companies – just not giving them a shot at the resources and this particular segment of new business.

]]> By: MarkHarrison http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-2377 MarkHarrison Mon, 28 Jul 2008 16:14:57 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-2377 Opening protected reserves - yes, I still don't understand why that hasn't been done.<br><br>Nationalise - erm... no. The reason is simple - you either nationalise by buying shares from shareholders at their current value... in which case you have to take on a HUGE extra debt... or you nationalise by taking the shares away at less than they are currently worth (maybe, but not necessarily down to zero). If you do THAT, then you get EXXON Mobil, but in round terms lose the ability to persuade anyone else to set up a company, well, ever. Why would YOU risk your money in something that the government could just take away from you because they thought they could run it better?<br><br>Now, I have to confess here that, as someone who was a senior manager at BP from 1997-2000, I share your views about whether EXXON/Mobil has done the job it could, but nationalisation would be completely the wrong answer. Opening protected reserves – yes, I still don't understand why that hasn't been done.

Nationalise – erm… no. The reason is simple – you either nationalise by buying shares from shareholders at their current value… in which case you have to take on a HUGE extra debt… or you nationalise by taking the shares away at less than they are currently worth (maybe, but not necessarily down to zero). If you do THAT, then you get EXXON Mobil, but in round terms lose the ability to persuade anyone else to set up a company, well, ever. Why would YOU risk your money in something that the government could just take away from you because they thought they could run it better?

Now, I have to confess here that, as someone who was a senior manager at BP from 1997-2000, I share your views about whether EXXON/Mobil has done the job it could, but nationalisation would be completely the wrong answer.

]]> By: MarkHarrison http://www.christopherspenn.com/2008/07/the-solution-to-the-offshore-drilling-question/#comment-7320 MarkHarrison Mon, 28 Jul 2008 16:14:57 +0000 http://www.christopherspenn.com/2008/07/28/the-solution-to-the-offshore-drilling-question/#comment-7320 Opening protected reserves - yes, I still don't understand why that hasn't been done.<br><br>Nationalise - erm... no. The reason is simple - you either nationalise by buying shares from shareholders at their current value... in which case you have to take on a HUGE extra debt... or you nationalise by taking the shares away at less than they are currently worth (maybe, but not necessarily down to zero). If you do THAT, then you get EXXON Mobil, but in round terms lose the ability to persuade anyone else to set up a company, well, ever. Why would YOU risk your money in something that the government could just take away from you because they thought they could run it better?<br><br>Now, I have to confess here that, as someone who was a senior manager at BP from 1997-2000, I share your views about whether EXXON/Mobil has done the job it could, but nationalisation would be completely the wrong answer. Opening protected reserves – yes, I still don't understand why that hasn't been done.

Nationalise – erm… no. The reason is simple – you either nationalise by buying shares from shareholders at their current value… in which case you have to take on a HUGE extra debt… or you nationalise by taking the shares away at less than they are currently worth (maybe, but not necessarily down to zero). If you do THAT, then you get EXXON Mobil, but in round terms lose the ability to persuade anyone else to set up a company, well, ever. Why would YOU risk your money in something that the government could just take away from you because they thought they could run it better?

Now, I have to confess here that, as someone who was a senior manager at BP from 1997-2000, I share your views about whether EXXON/Mobil has done the job it could, but nationalisation would be completely the wrong answer.

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