FAQs:
How many gallons of gasoline in a barrel of oil?
Answer: a 42-gallon barrel of oil makes about 19.5 gallons of gasoline(in addition to numerous other products such as heating oil).
How much US demand for oil?
Answer: 20 million barrels/day
ANWR Drilling
(Supported by current adminstration and Sen John McCain)
DEPARTMENT OF ENERGY Estimates:
10 years until domestic production for consumption
In mean oil resource case: ANWR oil production peaks at 876,000 barrels per day in 2024
By 2024: Middle of the road estimates at .75 cents/barrel = Equating to .01 cent less per gallon for consumers.
Lets recap: ANWR drilling will result in a .01 cent decrease for consumers at the pump in 2024 (if drilling were to begin tomorrow).
So who again does this benefit???
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POSSIBLE SOLUTION:Senator Byron Dorgan (D-ND) is pushing for tighter regulation on oil speculators:
Every day, 20 times more oil is traded than delivered. Because of the way energy trades are regulated (or not regulated), speculators control vast amounts of oil by putting down as little as 5% of the purchase cost. (the average commodity trade over ICD from speculators only requires a margin account of 5-7% where the average trade over the NYSE requires a margin account of 50%- this in turn allows speculators (ie. hedge funds) to play more with their speculation which then drives up the cost of oil). In 2003 4% of all comission generated over ICE was from speculators (hedge funds). In 2007 38.8% were from speculators (hedge funds). Need I say more?
In short, speculators use money they don't have to buy oil they'll never get. The market is treated like a 24-hour casino while the regulators are asleep.
Some say oil speculation isn't a problem, that it doesn't affect gas prices. But plenty of experts disagree. An international investment firm recently said, "We are seeing the classic ingredients of an asset bubble." They called it "oil dot-com." I agree.
[...]
Senator Dorgan (D-ND)legislation, called the "End Oil Speculation Act," would shut down casino-like betting. It does not affect legitimate hedging, but it would require energy speculators to put 25% down on their trades, instead of just 5%, and would convene an international group to ensure speculators can't go offshore to hide their trading.
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