Democrat Energy Policy

[jgaffney]

See my recent posts in Nation & World under the "Message from OPEC." The thread has gotten off base (guilty as charged), but the message is that the Democrats in Congress, led by Speaker Pelosi and Majority Leader Reid, are blocking any consideration of amendments to rescind the ban on offshore drilling. Both leaders do not want to face the embarassing possibility that members of the Democrat Party will respond to the deluge of contacts from the "Drill Here. Drill Now" crowd and vote to lift the ban. The politics here are plain: if you aren't sure of the outcome, don't allow the vote.

Why does offshore drilling have to be a national issue? What interest does Iowa have in whether we drill off California? The outcome of the vote would not be a stampede by the oil companies to build offshore platforms. It would be that the issue is devolved to the coastal states. Why is that a bad thing?

[jgaffney]

BTW, Saunterelle, how's that CNG Honda coming?

[jgaffney]

Over at the HuffPo, Tom Matzzie has this:

Now, polling is beginning to show that a rising share of the public is ready to drill, drill, drill -- threatening to destroy precious and unique wildlife areas like the Arctic refuge and create more oil spills along the Gulf coasts. Worse, drilling is a distraction from real changes like massive investments in wind and solar power.

When was the last time we had an oil spill from an offshore platform? Even in the wake of Katrina,the largest hurricane in modern history, the platforms were damaged, but there were no oil leaks. Who's out of touch here?

In February, Pew asked the public in a poll whether they favor drilling in the Arctic refuge. At that time 42 percent favored and 50 percent opposed. Now, in July, 50 percent favor drilling and only 43 percent oppose. That's a 12-point change since the February survey and a 28-point swing since a March 2002 Gallup poll (where 35 percent favored and 56 percent opposed).

The shift is something to be concerned about -- progressives are losing ground with the public on drilling. These are alarming gains in sympathy for the plans of Big Oil.

Could it be that a majority of the population realize that the economy of the entire western world relies on a steady stream of reasonably-priced petroleum? Could it be that people are noticing that the cost of oil is not just showing up at the gas pump, but also at the grocery store? Could it be that people are tired of talking about solutions that might be 20 to 30 years off, and want to concentrate on solutions that are 1 to 2 years off?

It seems to me that the progressives are on the wrong side of this issue, and it will be reflected in the polls in November.

[The New Guy]

drill here. drill now. pay less.

an argument from the democrats is that even if we drilled here and now it would take a minimum of 7 years to produce oil. even if that were true it would be because of all the friggin' red tape the dems have emplaced. the bigger question would be what do we do in the interim 7 years? will the dems be able to spur on some real "change" in 7 years? unlikely. if you think we can have a brand new source of energy online in 7 years including the infrastructure to deliver that new energy to consumers in less than 7 years you are either stupid or a democrat or both.

the democratic plan to help americans with rising fuel costs: they don't have a plan. they are just fine with watching you suffer in the next 7 years, the next 10 years, the next 30 years or however long it takes to create and distribute some wonderful new miracle energy. little do they understand that nearly EVERYTHING you use, buy, do, and eat is related to oil. oil prices are up so therefore food prices are up (it costs farmers more to work their fields and deliver their harvests to the market), the cost of transportaion (airlines, cabs, limos, buses, etc.) are up, the cost of services are up (plumbers, roofers, shippers, etc. charge extra because of rising fuel costs).

the dems don't have a plan.

youtube.com/watch?v=nvhmWj23sTQ

[jgaffney]

A paper from The Institute for Energy Research debunks the idea that it's the evil speculators that are driving this market, and warns of increased regulations by the government:

• Record-high oil prices demand a target, and some politicians are increasingly pointing the finger at speculators in the commodities futures markets. But high oil prices are due to restricted supply, booming demand, and a weakening dollar.
  
  
• There is no hard evidence that speculators are responsible for high oil prices. If the price of oil truly were above the level that the fundamentals could support, we would see growing inventories of crude. But inventory levels show no such pattern.
  
  
• Speculators provide a vital function. By buying when prices are low and selling when prices are high, they actually make oil prices less volatile. Large investment funds provide liquidity to the commodities futures markets, and allow producers and consumers
  to concentrate on their core businesses.
  
  
• Government restrictions on investment in the oil futures market will only hurt consumers by making the oil market less efficient. New regulations will do nothing to ease oil prices
  in the long term.

[/size]
The rest of the paper is equally interesting. It's amazing how many electeds are ready to push economic theory aside when it comes to doing something that they have been avoiding for years.

Reminds me of the old saying:

If you want it bad, you get it bad.

The worse you want it, the worse you get it.

[/b][/size][/quote]

[jgaffney]

Just to show that the increases in oil costs affect more than just your next tank of gas, this is from The American Water Works Association:

It doesn’t look like plant operators smarting from rising chemical prices over the last year will be getting any quick relief.

Prices of chemicals such as chlorine, fluoride, and lime were already on the rise last fall—like seemingly everything else, driven up by massive demand in other parts of the world—before the cost of oil and natural disasters began taking their toll on manufacturing and distribution channels.

The lack of a comprehensive energy policy by the Democrat Congress is continuing to have impacts that are far wider than the price of gasoline.

Drill here. Drill Now.

[subdjoe]

Gaff, it is lack of energy policy period, much less a comprehensive one. Windfall profits tax isn't an energy policy.

[jgaffney]

Jul 14, 2008 18:00:18 GMT -5 The New Guy said:

an argument from the democrats is that even if we drilled here and now it would take a minimum of 7 years to produce oil.

It seems to me that the Democrats have been making that argument for more than 7 years now.

See this.

[saunterelle]

I still haven't found an answer to how many dollars or cents per gallon more domestic drilling will drive down gas prices. Bush says it's psychologically good for our country (whatever that means) but I want to know how good it will be for my pocketbook.

[The Big Dog]

Jul 16, 2008 11:52:07 GMT -5 saunterelle said:

I still haven't found an answer to how many dollars or cents per gallon more domestic drilling will drive down gas prices.

Perhaps because it is really an unknown, and not quantifiable value until we actually start.

The bottom line is that well researched estimates are that the US controls as much as a trillion barrels of oil within our borders and off our shores. And trillions of cubic feet of natural gas. Those reserves dwarf what the Saudies are still sitting on.

Bush says it's psychologically good for our country (whatever that means) but I want to know how good it will be for my pocketbook.

Let's see... how about the tens of thousands of typically highly paid new jobs in the exploration and production industries that would be created? The thousands of construction jobs. The new jobs that would be created in the service industries supporting new exploration and production? Think of all those payroll and sales taxes going into government coffers. Our nation has been at what is statistically regarded as "full employment" for several years now, and this would be a way to further that.

In so far as the price of oil and gas goes, the markets move based on future expectations, not past results. The spectre of a large influx of domestic production ten years, or less, away, will help drive down prices now. The OPECers can always try to control the spigot at their end to keep prices propped up, but ultimately that is a fool's errand for them.

We need to continue to explore alternative fuels and sources of energy but we've already clearly seen that the rush to ethanol has been a disaster. Our food prices have skyrocketed as anything related to corn has caused producer prices to explode and people in foreign lands are starving because there is less corn and corn byproduct in the food supply. Hydrogen fuel cells, wind, water and yes << shudder >> nuclear energy ALL need to be on the table.

In the meantime, while technologies continue to develop, we still need oil to keep our economy alive and moving. The sooner we accept the reality and do something about it domestically the better off we will be.

And thats just plain old fashioned common sense.

[bolverk]

Jul 16, 2008 11:39:13 GMT -5 jgaffney said:

Jul 14, 2008 18:00:18 GMT -5 The New Guy said:

an argument from the democrats is that even if we drilled here and now it would take a minimum of 7 years to produce oil.

It seems to me that the Democrats have been making that argument for more than 7 years now.

See this.

That was great. It is an exact depiction of what has occurred in this nation that has brought us to this artificial energy shortage. What we really have is a shortage of intelligence in our government.

[bolverk]

Jul 16, 2008 11:52:07 GMT -5 saunterelle said:

I still haven't found an answer to how many dollars or cents per gallon more domestic drilling will drive down gas prices. Bush says it's psychologically good for our country (whatever that means) but I want to know how good it will be for my pocketbook.

Economics, though a science, is not an exact science. The only way to find out is to drill, not talk about it.