Its the Oil Stupid

[bigeasy]

Posted on Townhall.com by Hugh Hewitt


The economic mess the country confronts can be laid at the feet of Barack Obama, Nancy Pelosi and Harry Reid. The Don’t Drill Democrats are forcing deindustrialization through depression brought about by soaring energy costs. This is a man-made meltdown, and make no mistake: The Democrats could halt and reverse the skyrocketing cost of oil, but they are choosing not to.

The impact of the massive oil shock brought about by the rise of oil to more than $140 a barrel has just begun to be felt. The airline industry has gotten organized to alert everyone it can that it cannot continue to stagger along at this price. Eight airlines are completely gone that flew a year ago, and many others are on the brink. Layoffs and new charges to battle soaring costs are hardly worth noting they arrive so frequently.

Tremors continue to course through Wall Street as investors shunned mortgage giants Freddie Mac and Fannie Mae and yesterday worried Congressmen throw questions at the Fed Chairman and the secretary of the Treasury: How bad can it get?

The answer is very bad indeed. We may be headed for another big bailout of a financial institution, a crisis that could have been avoided had the Congress acted first on energy. The hit on every individual and business at the pump has squeezed the liquidity out of the market, and scared the consumer into a caution not seen in decades. Barack Obama is standing off stage way-left with a plan to tax everything that moves and spend it on transfer payments, and the markets know that means postponing growth until the kids have had their shot at reenacting Jimmy Carter’s triple play of sky high interest rates, double digit inflation and unemployment above 7%.

This is not necessary and could yet be avoided. If the Congress embraces production –sends a strong signal that we are opening the outer continental shelf and incentivizes rapid production by tying the term of the lease to the shortness of time necessary to get the new oil flowing from the gulf and far off the west and east coasts. If an oil company gets an extra lease or term of years for every year under five it takes them to get a new platform up and working in the U.S. waters, watch the companies scramble to increase supply.

We also need to supercharge the construction of the infrastructure for the alternatives as well as refinery construction for old fashioned crude. Note that Congress passed a law that waived environmental laws to get the border fence under way. The same authity exists for any other undertaking that brings energy relief. “Notwithstanding any other law” is a powerful bit of law, but the Don’t Drill Democrats won’t use it.

The environmental lobby owns Nancy Pelosi and Harry Reid, and Barack Obama –the brave new leader—doesn’t dare take it or them on. That lobby is applauding the deindustrialization underway, and their attitude is that a depression wouldn’t be such a bad thing as a lesson in learning how to live within our environmental means. Their jobs aren’t on the line, after all, and their disdain for the impacted industries is complete.

What they and the Triple D Democrats hasn’t counted on, though, was America making the connection between the deteriorating economy and their anti-energy agenda.

Energy is freedom. Energy is prosperity. Every Democrat on the fall ballot is part of the anti-energy party which is wrecking havoc on the economy and every family’s budget. A vote for any Democrat is a vote for shortages, rising gas prices, rising unemployment, and falling production. A vote for any democrat is a vote for failing airlines and collapsing financial institutions and for the shuttering of car plants and large manufacturing.

A growing, vibrant economy needs energy. The Democrats are anti-energy.

It is that simple

[Phat Mann]

Very well said Capt Cliff.

What seems so obvious to most Americans, R or D, we need to drill our own damn oil and make an absolute committment to do so as well as refine it. And do it NOW!

Let's drill anwar, the carribou will be fine.

Polls show Americans now favor drilling our own oil- yet the scary part is many Americans seem willing to follow the silver tounged promise for "change" while listening to this man promise to tax your
a$$ off and make you pay $4 a gal or more because the pain will cause us to find other ways to solve our energy problems.

Are we really going down this Blind path of belief?

Oh yea, I bet Plovers make a great source for ethanol!

[Phat Mann]

Very well said Capt Cliff.

What seems so obvious to most Americans, R or D, we need to drill our own damn oil and make an absolute committment to do so as well as refine it. And do it NOW!

Let's drill anwar, the carribou will be fine.

Polls show Americans now favor drilling our own oil- yet the scary part is many Americans seem willing to follow the silver tounged promise for "change" while listening to this man promise to tax your
a$$ off and make you pay $4 a gal or more because the pain will cause us to find other ways to solve our energy problems.

Are we really going down this Blind path of belief?

Oh yea, I bet Plovers make a great source for ethanol!

[Cardinal Joe]

I'm Not going to state my feeling on this issue ! But we all know how I F----ing feel about sweet little innocent Nancy P !!!!!!!!!!!!!!!! Cardinal Joe

[bigeasy]

not many of our members take the time to read articles such as this. I know this forum is devoted to fishing but without fuel there won't be much fishing.

[Barefootin]

As much as I would tend to beleive this, it is an over simplification. The Bush admin. has been in charge for almost eight years and has controlled the legislature for the majority of the time. This admin. has pushed it's agenda on everything it deemed neccasary and has always held the interests of big business as it's paramount focus.
The oil companies are not focused on expenses such as expansion, drilling or R & D; they are focused on profits only; and doing quite well of recent.
This admin. has dropped it pants, bent over and inserted 3 fingers on this issue and will continue to do so for the next 5 months.
Politics is politics whether crats or pubs. It is all about $$$$$$$ and corporate self interest.
My point is an over simplificatiion as well.

[JOE_DIRT]

I'm all for energy independence, but take a look at this article from Yahoo news this evening.

http://news.yahoo.com/s/ap/20080713/ap_on_go_pr_wh/bush

Now, I know we can't believe everything we read on the net, but if what is said in here is true, there are some questions that are in serious need of addressing.

What about this 68 million acres of federal land that the government holds the lease for? Why can't we start producing oil from there? This article states that it could almost double our oil output. That would be a good start. Could it be that someone who stands to profit only cares about opening up as much as possible right now without using what we already have?

I am a republican like most on this board, and I have supported Bush and his administration for 7 1/2 years even though I didn't necessarily agree with everything that has been done. After reading this article, I am concerned. It would be silly for the Dems to talk of this leased land if it were not true, considering how easy it would be to check up on it.

How long have we had acess to these areas? Why hasn't production started on them yet? These are all questions I am concerned about. Instead of opening up the closed areas, let's first focus on what we already have available right now.

[Barefootin]

Let us say that exploration, increased production and refining really benefit corporate oil companies. Than of course they would spend the cash to do it and quickly. The fact is, these expenses do not secure more profits for big oil. Instead, increased productiion would lower prices and involve huge outlays of cash that would further decrease profits and stock price. As big oil managers; why would they want to decrease the amount of cash going to their pockets.
People say "why don't we increase domestic oil production?" The bottom line is the "we" is not you and me or the government; it is corporations who are financed by stock owners who in turn expect maximum returns on their investment.
Think of the free trade acts that outsoursed our jobs to India, China, Pakistan etc. Were politicians really trying to make life better for Americans? No, they were bowing to corporate pressure, because they were paid to do so. The corporations wanted to maximize profits, and if that meant assembling autos in Mexico, or setting up clothing sweat shops in Vietnam, or maybe open call centers in Bangladesh, than so be it. Making America great is the rhetoric of politicians not the duty of corporations.
We are a democracy. People have the "vote" but all of our politicians ( Republicans, Democrats and independents) are paid to due the bidding of corporations and special interests who finance their positions. It makes no differance if McCain or Obama wins; they are both financed by the same companies. These companies expect a return on their investment and our politicians need to keep the corporate money coming in to keep their positions.
American citizens are not in the loop.
GM, Ford, Haliburton, Exxon, Worldcom, Enron et al are not republican or democratic companies.
The system needs for citizens to point fingers in the wrong direction.
Blame oil prices on Democrats, Republicans, Jesse Jackson, the internet or the Chinese if you must; but it is not the problem.
Getting rid of the PACs and special interest groups would be a great start in the right direction.

[bigeasy]

is difficult. Where is the 68 million acres already leased? What is the seismic data? How much would it cost to bring to market? How long would it take?

The oil companies don't want to waste their resources on low yield projects. I would like to hear from the oil companies. I would expect they would want to explore whatever fields that are most likely to produce.

There are 4 or 5 oil companies in the USA. Are they competing? Are they really joined at the hip and are effectively another cartel? Are they really an illegal monopoly?

I don't know all the facts and I don't think congress does either. I believe we fishermen are doomed.

[Southwind]

It all makes sense now. Obama, Pelosi and Reid were the people on Cheney's energy policy committee that the courts would not force him to disclose!!!!!