Last Tuesday, President Bush was all set to deliver a speech on the state of the economy. While he did touch on that subject, the topic he really wanted to talk about was drilling for oil in our own country. My question to all of you is this....why doesn't President Bush just stand up and there and say the following:
I would like to make my friends in the oil industry richer. That is why I want to drill.
DOES HE THINK WE ARE ALL FUCKING STUPID?
Apparently, we are. I just got back from my annual digital exam (yipee!) and as I was waiting to give some blood for a PSA screen, a woman and her mother were sitting next to me having a loud conversation about the economy. The woman said, "If Congress would just let us drill offshore, then all of our problems would be solved. But they won't listen to the President. And now, the Chinese are getting all of that oil."
Setting aside the fact that giving more oil to oil companies is like giving more heroin to drug dealers, the Chinese aren't stealing our oil. This woman obviously spends her time listening to right wing talk radio and watching opinion media like Fox News. Recent assertions by both outlets have proved to be false. Their source was Dick Cheney, who was since recanted his statement and said he was mistaken. Do you think this woman knows about this?
Nope. She has made up her mind. It's all the fault of Congress (aka liberals) and the Chinese. I felt like saying something but it was too early to point out the extraordinary depths of American ignorance.
18 comments:
I was going into the office this morning, but my wind powered car wouldn't start. ...guess I'll be working from home for a spell.
Ye of little faith.
Wind power could actually power your car if we decided to pursue it. If you car was electric, that power would come from wind and solar.
One other thing I have never understood...Bush and followers bemoan terrorism and yet continue to finance it by supporting the oil industry. Dare I say it? It sounds....traitorous.
Drilling is not the only solution but it will increase supply. We can responsibly drill. The technology to find, drill and recover oil has evolved tremendously. Claims nowadays that oil companies are sitting on leases and not drilling defies all logic. With oil at $130 a barrel there are no idle rigs anywhere.
All these claims that any oil we drill for now not coming on line for 5 years is incorrect. Unlike past oil crises where the spot price of oil (todays price) rose more than forward prices, the oil price for delivery in 2012 is trading at $138 a barrel right now. The market is sending a clear signal that our problem is in the future because we don't have the will to increase supply. As forward prices decline, watch how quickly the spot price comes down.
How many houses would someone invest in if there were a future guarantee that the price would not decline? It is anticipation of ever increasing prices that helps fuel the mania. 5 Congressional hearings bitching at oil executives (aka the only thing democrats have done) doesn't solve the problem. That isn't leadership.
A more accurate metaphor is the global energy market as a giant bath tub where more withdrawls (Chinese and Indian) are being made every day and the only consistent new supply to the tub is coming from periodically unstable and unfriendly places like Nugeria, Russia, Iran, Venezuela).
I want to see us all more energy, use it more efficiently and diversify its source and type. This will lessen the power of any 1 choke point (geography, nation, source). Batteries, fuel cells, solar, biomass, drilling in ANWR and the OCS...yes, we need to look into all options because there is no 1 silver bullet.
Using market mechanisms and the private sector (admit it, Democrats) along side an engaged, effective and focused government (admit it, Republicans), true leaders can solve this crisis. Yes I've read T Boone Pickens plan. Remember that wind turbines need to be backed up by fossil fuels because the wind is not blowing 24/7.
In 1973, the year of our infamous oil embargo, the US imported 24% of our oil. Today we import 70%.
Here's a review I saw of the latest DRILL bill out of congress...
Section 1: Bill Title
Ø The Act has been dubbed the Drill Responsibly in Leased Lands – or DRILL - Act of 2008. However, nothing in its following sections will increase domestic energy production beyond what is already scheduled.
Section 2. Lease Sales in the National Petroleum Reserve – Alaska
Ø This section requires that lease sales be conducted once a year. This is something that is currently allowed, but not done because NPRA’s Indiana-sized area has no infrastructure. In addition, a history of dilatory lawsuits has made it an area of limited interest to energy producers. This section also seeks to expedite permits in the NPR-A, a positive step. However, it does nothing to tackle the biggest problem with developing new energy: dilatory protests and lawsuits. Any genuine effort must involve putting a stop to the legal blocking and tackling of groups opposed to American energy production. Incidentally, Congress should address this issue nationwide.
Section 3: Pipeline Construction in the National Petroleum Reserve – Alaska
Ø Pipelines in NPRA have been held up by appeals, protests and lawsuits, not energy producers.
Section 4: Alaska Natural Gas Pipeline Project Facilitation
Ø This section authorizes the president to exercise authority he already has to facilitate something he is already facilitating. In short, this section achieves nothing.
Section 5: Project Labor Agreements
Ø A last minute bonus prize for organized labor, but creates no new energy whatsoever.
Section 6: Ban on Export of Alaskan Oil
Ø A nice talking point, but the United States does not export any Alaskan oil, and has not since 2000. California exports more petroleum products than Alaska.
Section 7: Issuance of New Leases
Ø This section was crafted using synonyms to restate existing laws, including:
· The Mineral Leasing Act (for onshore production), which stipulates that an oil company must have a producing well within 10 years or surrender the leases. Source: 30 U.S.C. 226(e)
· The Outer Continental Shelf Lands Act: (for offshore production), which stipulates that an oil company must produce energy between 5 to 10 years (in the government’s discretion) or surrender the lease. Source: 43 U.S.C. 1337(b)
· Penalties in U.S. Code: The federal government can cancel a lease if a producer fails to live up to the terms of the lease, the law or federal regulations. Source: 30 USC 188(a) and (b) and 43 CFR 3108.3 (a) and (b).
Section 8: Fair Return on Production of Federal Oil and Gas Resources
Ø This section restates current law and practice. In fact, the government increased royalties on outer continental shelf leases by 50% last year, making it more expensive to produce energy in America.
I agree we need to diversify our portfolio of energy consumption.
Note: If we drill off-shore in US that would go to China because we do not have the refining capacity.
The US may have a 10-20 year supply of oil, and that's including everything that might be in ANWR or the continental shelf. The same thing is true of our natural gas supply.
Since we've been using gas and oil for the last 100 years, that means we're almost out. No amount of drilling will solve the problem. It's almost all gone, and there isn't much else left in the rest of the world considering the ever-increasing demands of the developing world.
If we don't recognize this and take serious steps to correct the problem, we are going to see a third world war over oil.
Americans use 25% of the world's oil, yet we're only 4% of the world's population. We are ridiculously inefficient with our energy use. We don't have the luxury of wasting oil anymore. If we don't clean up our act we will be crushed by ever-spiraling oil prices.
Drilling ANWR and the continental shelves is a tremendously stupid idea, because it will be seen as some kind of fix, and it will do nothing but delay our starting real energy programs.
Until the oil runs out we're going to be on a roller coaster of price increases and decreases. When demand decreases due to high prices, the price will decline. Talk of new sources will be forgotten Then when we overconsume again and the price goes up, we will have no alternative but to pay the Iraqis, the Saudis, the Russians, the Venezuelans, or go to war with them. And that's a war that we will ultimately lose, because our military can't run without oil.
That, in a nutshell, is why Japan attacked the US in WWII. We cut off their oil supply.
I don't want America to be the bad guys in the next world war.
There’s a myriad of solutions if one is inclined. Is America inclined? I think not. Drilling, shale, nuclear, wind, solar, water, etc. Which one will the environmentalists allow? Google “energy of your choice” + protests + against”…The only one not yielding a bounty of protests is solar. …it will be a cold & dark future.
BLK: open 'Google' and type in "brazil oil find".
We're almost out? Quit scaring people blk. I've read reports that say theexact opposite but I'm about to leave here and start my kickbutt weekend.
A couple weeks ago I mentioned I was going to make a post about GWB. I already said half of what I wanted to say in my post about him not governing like a conservative, spending money like crazy on all kinds of stupid shit, etc. Here’s my other gripe.
A month or so ago I read about Iran building 7 new refineries in their country. A senior Iranian official said the refineries would increase capacity by more than 1.5 million barrels per day and end gasoline imports to their country. The official said all seven refineries would begin operations by 2012. If they don’t need to import gasoline, then I’m guessing the "we’ll embargo sales of gasoline" plan will be pretty much moot. It might put some near-term pressure on them but unless all these new refineries are sabotaged or destroyed, there won’t be much leverage left there. Don’t say I’ve never said anything nice about the mullahs: Iran recognizes a strategic vulnerability, and they freakin do something about it, unlike our politicians.
Then more recently, while our congress restricts large swaths of offshore areas to drilling, threatens oil companies with windfall profit taxes, and grills oil executives about high gas prices, Russias government has approved a proposal from Putin to reduce its extraction tax on oil by $6 a barrel. This tax reduction is aimed at allowing oil firms in their country to invest additional funds into new projects, thus boosting Russias domestic production.
How fucking sad it is that an ex-KGB communist and the Iranian mullahs understand supply-and-demand better than out illustrious politicians of both parties.
Dave, read up on the oil find in Fort MacMurray in Canada. It’s huge. Pipelines are being build to Chicago and California from it as we speak. I know someone who is working up there on it.
Don’t forget...for every dollar of revenue generated from these off-shore wells, the Federal Government will collect 16.67% in Royalties...a fact that seems to get lost in the discussion. This is in addition to any tax they may levy on the end products. So, if a field is projected to be worth $1 Billion, the Federal Government stands to receive $167 Million (for doing nothing except leasing out the property). And let’s also not forget that they will have received a bonus for leasing the property and possibly Rent on top of that. Maybe we can get a tax cut due to all the revenue being generated? (not holding my breath). The entire government (BOTH parties) have stood in the way of new forms of energy. Remember – oil companies make a profit of around 9 cents per gallon. The federal government tacks on 16 cents of taxes onto every gallon of gas sold. Who is gouging who again?
I don’t think the oil companies are going to suffer if a new type of energy is discovered to run vehicles. They will still have plenty of customers to sell the crude to, like maybe the plastics manufacturers...look around you now...how many plastic or other synthetic products are in your immediate view? Odds are you computer components, carpeting, water bottle, just about the majority of things we take for granted comes from oil. Not to mention, by my understanding of things, solar and wind power is never going to be sufficient enough to power airplanes, heavy equipment, or other critical components of our world.
Lots of talk about the GOP all the time on this issue. So when democrats consistently block energy production, even though they know that the effects on our economy will be disastrous, do they do so out of the goodness of their hearts or because they are owned by the Sierra Club and other environmentalist groups?
Well M, sounds to me like you met a kindred spirit - her understanding of the situation was just as sound and nuanced as your own.
Just Dave, why do you think it would be a cold dark future? My in-laws have run 3000sq ft on solar located in Northwest Massachusetts (similar sunlight as Minnesota). It works. The solar industry just needs better lobbyists in Washington and a few more media friends.
Of coarse there is no one silver bullet, but lets pull out all the stops! Don’t forget building to high-energy efficiency standards. While the average American burns 12,000 kilowatt-hours a year of electricity, the average Californian burns less than 7,000 -- and that's counting renewable energy sources. This was done by using ultra high efficiency building methods and high efficiency appliances.
Ever since 9/11 I cringe when I see 50,000 sq ft warehouse go up with no solar panels on their roof. Just wasted space getting a lot of heat.
Latest solar technology works and is ready.
Dave brought up nuclear and this would be an area where I think the left is fucking stupid. We have to get back into this, especially if we plan on exploring space. The only way we are going to survive, real long term, as a species is to go to the stars.
Talk to your average liberal about nuclear power and you might as well put a firecracker in their pants. Of course, they offer no sound reason why they don't like nuclear energy other than "it's dangerous." This would be an example of what Arianna Huffington talks about all the time...sometimes one side is just wrong on an issue and the media shouldn't try to "on one hand but on the other hand" it.
@blk
The US may have a 10-20 year supply of oil, and that's including everything that might be in ANWR or the continental shelf.
Wrong. Google "Bakken" and/or "Green River Basin". The oil there hasn't been considered "viable" because the market price wasn't high enough - that isn't an issue now.
That, in a nutshell, is why Japan attacked the US in WWII.
Yeah, it had nothing to do with their "Economic Co-prosperity Sphere", or that they had already invaded China and planned to invade SE Asia (Indonesia) where there was a lot of oil. Sheesh.
Talk to your average liberal about nuclear power and you might as well put a firecracker in their pants.
M, you ever stop to think about what that says about such a person? Are they really using reason and facts in making that decision?
...other than "it's dangerous."
Sounds like their reaction to guns.
I would agree. They do have that reaction to guns. My reaction to things, as if you couldn't tell, are more personal. I have a friend who lives in DC and has been mugged 4 times. The fact that she couldn't carry a hand gun was preposterous. Now she owns one. She told me that she is going to shoot the next person that tries to mug her.
That's not to say that I think that people should be allowed to have uzis but I do believe in the right to protect yourself and most of my liberal friends own guns. Of course, I live in Minnesota and politics don't really enter into gun owning. Pretty much everyone has one. It's the North Woods after all.
I think the anti gun crowd on the left is just about done. They don't have a leg to stand on anymore and are fighting a losing battle.
T Boone Pickens says that we should drill in ANWR and the continental shelves. An "all of the above" approach. He said so on CNN yesterday.
He also has said that we have to break our dependence on oil in general and develop alternative energy sources.
Well that won't be able to be accomplished for another 10 years so, according to you democrats, we shouldn't do it.
Right?
Steve
SW you are using a non-sequitur when you say "according to the democarats". We wont fall for it.
Rush Limbaugh uses non-sequiturs all the time (you have to listen carefully to find them). He uses a slight falacy to make what he says seem logical.
Post a Comment