Congress Archives - Page 230 of 231 - Common Sense Evaluation

I think the explanation for why the Democrats are always on the wrong side, choosing to keep oil in the ground and punish us with higher gas prices is finally coming to light.

The Truth about Oil in America is that we have over a trillion barrels. Why then would Democrats constantly be opposed to us using any of our own fossil fuel to lower prices here? There can only be one logical answer for this. The Democrats are being paid by OPEC leaders to stop development.

Let’s look at the facts. OPEC has money, a lot of money. OPEC and the Islamic Middle East really have only one thing the world wants and that’s oil. If we take away that oil revenue and allow the USA to become “energy independent”, or even not as needful or dependent on OPEC , then OPEC and the entire Islamic Middle East are in deep do-do.

So, the logical thing for OPEC to do is spread some of that oil-money around. Just buying them a little insurance, you know?

OPEC shrugs its shoulder at the fact that Americans pay $4 a gallon for gas. Why would they care? After all, it’s not like any one’s forcing American politicians to take this money.

Crude Mistake

Energy: With the price of oil spiking above $127 a barrel, the search for scapegoats has begun. Some point to the Saudis, OPEC’s No. 1 producer. Others blame the oil companies. We have a better candidate: Congress.

As President Bush traveled to Saudi Arabia to ask the House of Saud to open the oil spigots a bit wider, Congress showed once again how clueless it is when it comes to energy policy.

Underscoring its failure to grasp the nature of our current problems, the Senate Appropriations Committee on Friday refused to end its moratorium on oil shale development in Colorado.

“If we are really serious about reducing pain at the pump,” Colorado’s senior senator, Republican Wayne Allard, said, “this is a vote that would make a difference in people’s lives.” He’s right.

But the shale proposal went down to defeat with Allard and 13 other Republican members in favor and 15 Democrats opposed. Once again, Democrats were on the wrong side, opting to keep oil in the ground and punish you with higher prices as a result.

This was no minor thing. Estimates put the amount of oil locked in shale in both Canada and the U.S. at more than 1 trillion barrels. Pulling out even a tenth of that would quadruple our current reserves.

This is the same Congress that refuses to allow drilling in Alaska’s Arctic National Wildlife Refuge, which holds up to 20 billion barrels of crude, or offshore, where another 30 billion await.

Meanwhile, Brazil — which recently made a major oil discovery almost in sight of Rio’s beaches — announced that it has leased 80% of the world’s deep-sea offshore oil rigs. In other words, Brazil unlike the U.S., isn’t dithering as prices soar. It’s drilling.

If you think Congress’ decision-making on energy couldn’t get any worse, think again. While Bush was in Riyadh urging the Saudis to pump more oil, congressional Democrats were busy undercutting him, threatening to halt arms sales to our Mideast ally.

It was a politically peevish move with consequences both for U.S. energy security and the balance of power. If we don’t sell arms to Saudi Arabia, Russia will. The result would be a loss of American leverage with the Saudis, who, like many, feel threatened by a nuclear Iran and the menace of al-Qaida.

At least Bush convinced the Saudis to boost output 300,000 barrels a day. That helps. But we still have to do more ourselves.

The U.S. uses about 21 million barrels of oil a day. But only 8 million come from our own sources. That leaves a 13-million-barrel-a-day deficit that, at $126 a barrel, will cost us $600 billion to plug this year. That’s more than two-thirds of our total trade deficit.

Congress could reduce much of our oil shortfall by drilling for more on our own territory. This would lower prices and increase security. Yet, Congress seems dead set on doing the opposite.

With its failure to tap the vast supplies in ANWR and offshore, its passage of costly global-warming legislation and now its refusal to exploit our massive resources of oil shale, Congress has set us on a path to less energy, higher prices and weakened national security.

Energy Pandering: Congress Divided On Energy Plan

Amusing Comments Off

May 122008

This is the way I see it; oil is both our nation’s primary strategic vulnerability and our nation’s primary corrupting influence. Congress is not a solution, it is a problem.

Here’s how I would force OPEC’s hand on both increasing their supply and limiting the price spikes. It is sort of a Mafia – Godfather solution.

1) Tap a few hundred new wells in ANWAR, The Gulf of Mexico, The Atlantic and Pacific shelf. Expand refinery capacity to handle the new influx of supply.

2) Stop all international charity to any OPEC nation, any organization who gives money to any OPEC nation or anyone allied with an OPEC nation. Yes, that means no more money to the IMF or UN. Use the savings to build a refinery.

3) Grain (corn, wheat) embargo under conditions in #2. You see, OPEC countries are loaded with oil, but most cannot grow their own food, and only two countries have the agriculture capacity to help supplement them. Guess who number one is?

Let everyone start feeling pain while we start tapping our own spigots. When a few million people start starving and rioting, then maybe things will settle down and everyone will get back onboard with who the Big Dog is.

Congress divided on energy plan

As millions of people approach the summer vacation season under the threat of $4-per-gallon gasoline, Congress is scrambling to respond. But don’t wait for anything that will drive down prices at the pump.

A Senate vote on a GOP plan is scheduled for Tuesday, and Senate Majority Leader Harry Reid has promised to bring up a Democratic package before the Memorial Day congressional recess. Except for halting the flow of oil into the government’s Strategic Petroleum Reserve, neither plan is likely to go very far. Both will be challenged by filibusters by opponents, meaning they would require 60 votes to advance.

Here is a rundown:

THE DEMOCRATIC PROPOSALS.

_Enact a windfall profits tax on oil companies.

SPIN: Oil companies are making too much money, earning $123 billion last year while motorists faced soaring gasoline costs. Imposing a 25 percent windfall profits tax on the five largest oil companies and repealing $17 billion in tax breaks could help the shift away from fossil fuels toward alternatives. Taxes could be avoided if profits are used for refinery expansion or development of wind, solar or biomass projects.

FACT: Profits are large because the companies are huge, and oil now sells for well over $120 a barrel. The taxes could spur some new alternative energy projects, but economists say they also could reduce investments in oil and gas exploration, and are unlikely to affect prices. They could do more harm than good, says Robert Hansen, senior associate dean at Dartmouth’s Tuck School of Business. “Anytime you put in a tax you create an incentive to avoid it,” says Hansen.

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_Create a law against energy price gouging and new rules to stem energy market speculation.

SPIN: The government must police the energy markets with a federal law against price gouging and new rules against market speculation. The proposal creates a federal price gouging law with civil penalties of up to $5 million during a presidentially declared energy emergency. The law would prohibit refiners, wholesalers and retailers from charging an “unconscionably excessive price.” Traders would be required to put up more cash collateral in the energy futures markets to curb speculation.

FACT: Energy price gouging laws now in 28 states are uneven and inadequate to deal with energy market abuses. Congress has considered a gouging law since 2005. Separate versions have passed both the House and Senate, but never gained final approval. Critics say gouging is ill defined and the law amounts to price controls. Bush has threatened a veto.

A former Federal Trade Commission chairman argued such a law could do consumers more harm than good and may result in higher prices if providers, fearing stiff penalties, avoid selling fuel when prices soar.

Increasing cash collateral, or margins, in energy futures trading could curb speculation, but there might be unintended consequences. Such new requirements, said a spokesman for the Commodities Futures Trading Commission, which would enforce the new rules, “may drive traders to unregulated trading or overseas” without reducing market abuses.

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_Take on the OPEC oil cartel.

SPIN: We need to stand up to the OPEC oil cartel. The Justice Department would be given authority to bring antitrust cases against countries that collude to fix prices as part of OPEC.

FACT: While politically popular, such a measure would probably not change OPEC production decisions and could provoke retaliation. Similar proposals have been debated in Congress since 2005. “It’s a catchy phrase, but it doesn’t have any substance,” says energy consultant Robert Ebel of the Center for Strategic and International Studies.

THE REPUBLICAN PROPOSALS.

_Pump oil from Alaska’s Arctic National Wildlife Refuge, now off limits.

SPIN: The coastal strip of ANWR, as the refuge is called, probably has 11 billion barrels of oil. At the rate of 1 million barrels a day, it would add to domestic production, reduce U.S. reliance on imports, lower prices and produce jobs. With modern technology wildlife and the environment can be protected.

FACT: Drilling in ANWR has been debated for 28 years and remains one of the most contentious environmental issues. Several times the House, under GOP control, has approved development; it passed Congress in 1995 only to be vetoed by President Clinton. Drilling supporters repeatedly have been unable to get the 60 votes needed to overcome filibusters and are unlikely to do so this time.

While ANWR has substantial oil, none would flow for 10 years. Even then, its impact on global production of 87 billion barrels a day will be minimal, energy experts say, as OPEC could adjust to compensate.

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_Develop vast amounts of oil and natural gas in offshore waters now off limits.

SPIN: For a quarter century, energy development has been blocked in more than 80 percent of U.S. coastal waters, depriving the country of vast oil and gas resources. States should be allowed waivers to the moratoria and get some of the revenues from development.

FACT: Most areas of federal offshore waters outside the western Gulf of Mexico and off much of Alaska have been placed off limits to drilling by a succession of presidential orders and congressional action to protect tourist industries and avoid the risk of spills and environmental damage. The House has twice approved giving states the right to opt out of the federal ban.

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_Ease permitting for new refineries.

SPIN: A shortage of refineries is fueling high gasoline and diesel prices. There has not been a new one built in 30 years, with environmental and other permitting problems contributing to the reluctance of oil companies to build new refineries.

FACT: The lack of new refinery construction has been more an issue of economics, not government regulations. While the oil industry has complained about permitting and environmental regulations, oil company executives also have said the permitting issue has not been a deciding factor over refinery expansion or construction. Refinery investments are based in expectations of increased demand.

Oil company executives, asked recently if they wanted to build new refineries, said no. In part, this is because of the growth of ethanol as a substitute for gasoline. The industry prefers to expand existing refineries.

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_Allow coal-based diesel be used as motor fuel.

SPIN: Coal is the country’s most abundant energy resource, and technology exists to produce diesel fuel from coal. A mandate to produce 6 billion gallons a year of coal-derived motor fuel by 2022 would contribute to greater energy independence and spur the industry’s development.

FACT: The process requires large amounts of energy and results in greenhouse gas emissions, running counter to efforts to combat global warming.

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