Drill For Oil Now!
Are you believing the Democrats in Congress? Legislation hamstringing access to energy is starting to hurt and they’re blaming the margin of profit by big oil? What’s next? Nationalizing the oil industry? Let’s look at some real numbers. There’s a good piece out there today from Investors Business Daily that does just that. Here’s a brief:
And then, of course, there’s the Arctic National Wildlife Refuge. Since 2000, U.S. oil consumption has increased roughly 750,000 barrels a day. If we had started drilling in ANWR back in 1995 — when President Clinton and congressional Democrats joined to kill it — we’d have an extra 1 million barrels of oil a day now.
The problem is clear: We now pump about 5 million barrels on our own and import 12 million, making us vulnerable to market blackmail by foreign producers. As recently as 1985, we pumped 9 million on our own and imported just 4.3 million.
This is our energy deficit, created by congressional incompetence and inaction. It’s time to stop the blame and start the drilling.
And yesterday we interviewed Congressman Jimmy Duncan on the topic of energy, among other things. What a breath of fresh air to hear a Congressman actually making sense!!
Congressman Duncan has been talking a lot about energy lately. I don’t have all three of his recent speeches on my computer here at work, I’ve got two others at home. But I’ll paste below one that you can access directly at his site. It’s good, good stuff.
Also, today on the radio program we’ll interview—GASP—Ron Planting, a representative from the National Petroleum Institute. OOOOHHHH!!!
We’ll also be interviewing the really fantastic economist Wayne Jett. Wayne says there’s more to the oil price story–namely, a little known law that passed during the Clinton days that allows oil futures to be traded without requirements for reporting.
Here’s the newsletter from Wayne that discusses the Enron Clause.
Here it is:ssg-4-3-08-lewd-crude-fuel-prices-no-more-power-for-the-fed
****Terry Frank Personal Financial Disclosure of Ties to Big Oil: I use oil based products in my business, at home, when delivering my children to and from school, football and basketball practice, when driving to the radio studio, when purchasing goods, when visiting friends and family. I often purchase many petroleum based products to enhance my own personal life, to operate my business and in the process of conducting business, I use petroleum based products to receive, package and deliver goods. The shoes I just received via petroleum operated Federal Express yesterday may also contain petroleum based products.
Now, on to one of Congressman Duncan’s fine speeches.
Here’s Congressman Duncan’s speech from April:
Mr. Speaker, oil prices have reached $112, $113 a barrel, an all-time high. Gas prices have reached an average of $3.50 a gallon and in some places even higher, and the only people who seem to be happy about this are Sierra Club and some of these other environmental groups. I have noticed that almost all of these environmental radicals or environmental extremists seem to come from very wealthy or very upper-income families. They are elitist types, and perhaps they’re not concerned when their policies destroy jobs and drive up prices because who they’re really hurting are the poor and the lower income and the working people in this country.
As the previous speaker, Mr. Poe, pointed out, now some of these environmental groups, their policies are causing food prices to go up worldwide and, in many countries, leading to starvation. But once again, the environmentalists are hurting the poor and the lower-income and the working people. So perhaps they don’t care.
About a year and a half ago in one of my newsletters I wrote this: I said, many experts are still predicting that the price of oil, and thus the price of gas, is going to go way back up. Environmental groups think this is good because it will force people to drive less. However, many people already have difficulty paying their gas bills, especially people from small towns in rural areas where many people have to drive long distances to go to work.
And I might add, Mr. Speaker, that when you drive these gas prices up, as some of these environmental groups want, to $4, or $5, or $6 a gallon so people will drive less, you’ll put the final nails in the coffins of some of the small towns in rural areas. The environmental groups loudly complain about urban sprawl, but yet their policies are leading to more urban sprawl as they continue to drive up these gas prices.
Syndicated columnist Walter Williams wrote recently, “If I were an OPEC big cheese, I would easily conclude I could restrict output and charge higher prices were U.S. oil drilling restricted. I would see environmental groups as allies and make `charitable’ contributions to help them reduce U.S. output,” and that’s something I thought for quite some time that these OPEC and countries and foreign energy producers I’m sure are contributing big money to these environmental groups, and they’re receiving huge multi-million dollar contributions that they were refusing to disclose the source of.
Leonardo Mangeri, of the Italian energy company ENI, said, there are proven oil reserves now, economically and technologically recoverable, of 1.1 trillion barrels, or 38 years of world usage. In addition, he says there are another 2 trillion barrels of recoverable reserves that will be obtainable as technology improves over the next few years.
Also, the International Energy Administration, Mr. Speaker, estimates that at current prices, it will be economic to recover at least another 2 trillion barrels of petroleum from tar sands and oil shale.
Just a couple of months ago, I wrote in another newsletter this: Gas prices are far too high and probably will go even higher. They could be much lower, but very powerful environmental groups want them to go higher so people will drive less. Thus, we have put 85 percent or 611 million acres of the outer continental shelf off limits to oil production. We will not allow drilling in 99.9 percent of Alaska where oil could be found, and have prohibited or restricted production in other parts of the U.S.
We’ve also placed so many rules, regulations and red tape on all types of domestic energy production that small- and medium-sized businesses cannot compete or even enter these industries in the first place. All of these productions can be done in environmentally safe ways. Some of these environmental groups help the big business giants and foreign energy producers tremendously, but they are really hurting lower- and middle-income people.
UPDATE: Sign a petition to drill for oil now at this website. Or contact your representatives.
21 Comments so far
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I’m for drilling in ANWAR but you are nuts if you think it is going to have an effect on prices. Everyone knows that the total supply estimated in all oil reserves in ANWR would be less than the US consumes in oil in 2 yrs.
You might be interested to know gas in Venezuela is 13 cents a gallon.
I hope gas goes up to $12 a gallon. Maybe then, Bushies and McSameites will reevaluate the future of a continued isolationist government policy that alienates major oil producing countries like Venezuela, Russia, Iran, etc.. and creates enemies rather than allies.
By William on 05.22.08 1:15 pm
I guess depending on your resource the amount the U.S. imports varies. I’ve read that the U.S. imports 21 mil. barrels a day and that ANWR would provide 1 mil/day. That’s almost a 5% reduction of imports. Had Billy Clinton not vetoed the bill the U.S. would have been pumping from ANWR for 20 years.
Venezuela is a net exporter of oil thus the cheap price. If you can’t afford to buy a car what use is oil?
Major oil imports:
Canada #1
Mexico #2
Venezuela #3
Saudi Arabia #4
Yet all Congress wants to do is blame Saudi Arabia. If Congress is going to carry on like a bunch of monkeys screaming in the zoo then they should hold hearings against itself. First question, why have the knuckleheads in D.C. been sitting on their hands for the last 40 years? 2nd, who is really benefiting from the energy suicidal policies that they think up while riding around in their chauffeured driven Suburbans?
Oil is probably going to $10 if not $12 as the current gas prices are reflective of $100/bl oil 3 months ago.
All the ne’er-drillers keep chiming the same old song that it would take years to realize any oil from the shelf or ANWR. They said it 10 years ago. Every trip begins with one step but if you never take that step because you believe it’s going to take too long then the rest of the world is going to pass you by.
Threats to sue OPEC are asinine and like flipping off a biker. Oh these geniuses in Congress! Durbin wants to put a 50 cent tax on gas to help cut consumption. If $4/gal gas is not an incentive to cut consumption then nothing will.
This year there needs to be a movement called the Anti-incumbent Party. Vote against all incumbents and flip the Congress. We’ve already seen over the last 15 years that it didn’t matter whether Dem or Repub was majority. The only things constant were more screw-ups and faster spending and debt. Throw all of Congress out so the next one may get the message. You have 2 years to get America back on track or you’re out.
VOTE ANTI-INCUMBANT!
By Rick Forman on 05.22.08 4:25 pm
The US Department of Energy has issued an estimate of the effect on the price of oil if ANWR were open for drilling.
http://www.mcclatchydc.com/251/story/38223.html
By William on 05.23.08 10:58 am
Drilling domestically is not as much about price as it is about having the resource in house. The problem with price right now is the daily demand is about 2 million barrels a day higher than production.
In 15-20 years China will need as much oil as the rest of the world is consuming today. If the U.S. is dependent on that same oil then we lose because China will pay any price with our own cash to acquire it. Opening up U.S. reserves helps reduce that conflict.
It really doesn’t matter about stats or doing what’s best for the long term energy needs of this country. The indignant elitists in Congress have already said there will be no drilling off the west or east coasts and no more drilling in Alaska. No drilling in the Rockies, nor Michigan or the coast of Florida or anywhere else. They have issued a “let them eat cake” policy while they sit in their chaffered suburbans and fly around in private lobbyist jets.
The perfect economic storm is brewing and the Potentates of the Potomac are providing the fuel on all fronts. And like they always do, their “fix” will be to throw more taxpayer money down a black hole like the DOE. Or come up with a hair brained idea like “just turn out the lights”.
Funny thing the Bozos of Bureaucracy call a hearing to portray concern in trying to find out if speculators are manipulating the commodities market when these very clowns passed legislation that prohibited the CFTC from disclosing the sources. We have no idea if OPEC nation sovereign funds are driving up the price on commodities futures.
By Rick Forman on 05.23.08 12:16 pm
[...] Drill For Oil Now! – Terry Frank [...]
By Saturday Afternoon Laundry - Reproducing Like Rabbits - Time , An Ol’ Broad’s Ramblings on 05.24.08 6:08 pm
[...] whiz, I just asked a couple of days ago if the Democrats would move towards nationalizing the oil industry. Some of you may have thought [...]
By terryfrank.net » Market Manipulation of Oil and Food Prices on 05.25.08 5:36 am
Conspiracy time now: big time liberal financiers could also help manipulate the market, attempt to force the nationalization of the oil companies, give their puppets a reason to open their cake holes, try to affect the outcome of a presidential election AND stand to make a profit while wrecking our economy and eroding our freedoms.
To me it fits. They get to make money that us regular folks can’t and they get to take the little man’s freedoms while expanding their power. It’s a George Soros pseudo-sexual dream.
By BCB on 05.25.08 11:19 am
William: the problem is very clear. We import 12 million barrels and pump only 5 of our own.
Opening up ANWR and other sources for domestic drilling would be a major step towards solving the problem. And as far as DOE’s projection of 75 cents, I think they aren’t taking into account the signal it would send.
In addition to increased international demand, prices right now are being pushed up by a weak dollar and by speculators. Open up drilling and the bubble might just burst. Prices would fall far more than 75 cents a gallon.
But I’m curious, William. I take it you are content to continue to import from Canada, Mexicio, the Saudis, in the name of environmentalism, correct?
By Terry on 05.26.08 5:59 am
BCB: It would be interesting to know if some of the Soros gang is involved in the oil future game, but alas, we don’t know who is doing it because there is currently no disclosure.
By Terry on 05.26.08 6:02 am
Rick: Good info.
And here’s something for you, Rick:
http://www.youtube.com/watch?v=DjfssrKGsBU
By Terry on 05.26.08 6:04 am
That is exactly what would make it so dang attractive to them. They already have the cash and can do business in plain sight, make a few bucks to help destroy our nation and impose their political will on us poor schmoes. To them it’s a win-win-win situation.
By BCB on 05.26.08 12:49 pm
New drilling would mean investment of capital and expansion of the infrastructure to do the drilling (plant and equipment costs, labor costs, etc.). Why do that when the oil companies can simply buy it from the international market and resell it for a big profit?
By SemiPundit on 05.26.08 4:13 pm
BCB and Terry, You guys don’t think that Exxon and the other energy corps manipulate the price of oil? Why aren’t you just as angry with them as you are with a plot you can’t prove by the Soros folks? Moreover, many of the investors who would profit from more domestic drilling, such as Charles Koch, are oil industry insiders. Much of the domestic oil in places such as Montana is in difficult to mine places and is only profitable when prices are high. Hmmm…considering that Koch plays the sam role for conservatives that Soros does for liberals then he might be involved. Then look at how many “private” lobbying groups he funds that protect the interests of big energy.
That ain’t liberal lunacy, it is reality. Both conservative and liberal elites have contributed to this mess.
The frightening thing is that keeping the Iraqi oil is becoming a national defense issue. We may have no choice considering dwindling global production than to redirect delivery of Iraqi oil to North America and defend the decision with military force if need’s be.
We are in a very tight spot with decreasing options. I think that it is time to abandon partisan politics on this issue and insist on solutions from our politicians.
By Casey on 05.27.08 5:09 am
“I think that it is time to abandon partisan politics on this issue and insist on solutions from our politicians.”
Why count on the politicians for the solutions? The solutions are more likely to come from private enterprise – be it a different power source or a better way to utilize oil. I have more faith in the private citizen that is looking to capitalize on our energy needs to come up with something creative than the politicians in DC that only want to keep their pockets lined and their seat at the table secure.
By Jim on 05.27.08 4:20 pm
Basically what we have here is an attack on capitalism. Why does anyone start or run a business? Why do most of us go to work everyday? Why do anyone of us invest any of our hard earned cash? Why do we want to attack them? What has the government involvement in oil done for us so far? Those lines that I remembered in high school were not due to your standard “supply and demand.” Who did what with the oil companies then? Oh yeah, a Windfall Tax came about. How did that help us? The oil companies STILL made their profit but we still had problems. There were people screaming how oil would rise to $600 a barrel with deregulation. Did that happen? I think we can all be glad that Ted Kennedy did not get his way. He wanted to nationalize the oil companies back then. I guess the more things change, the more they stay the same don’t they? Dems in charge again aren’t they?
What do other industries earn in profits? According to Investors Business Daily: “Truth is, oil industry profits are in line with the rest of American industry. In 2007, a record year, they earned 8.3 cents per dollar of sales. Beverage companies and cigarette makers, by contrast, earned 19.1 cents. Drug makers, 18.4 cents. Indeed, all manufacturers, 8.9 cents on average, made more than “Big Oil.”
So why do we want to punish them? Because they make big money? Why don’t we bring professional sports in front of some silly group of politicians? The NFL and MLB will pay $9,108,194,916 in salaries for players, not even support and coaching staff! How much of THAT money is profit? Did they do a lot of financial risk taking? How much in exploration and refinement is included in those salaries? Oh, I bet none. It’s all profit for them and they only play a stinking game!! Are you going to attempt to destroy them? Oil companies have stockholders that earn money for various uses. THAT’S CAPITALISM!!!!!! Do ball players have stockholders that invest in them that they owe? Nope. Pure profit.
Get off the oil companies. Get government out of my life and less of my money will disappear. Today it’s Big Oil, tomorrow it’s any college degrees above a BS or a car that someone thinks is too big or anything else that enough people think is “bad” or excessive.
By BCB on 05.27.08 6:22 pm
Funny how Congress and everyone jumps on the big U.S. oil companies for making an average profit. Congress dreams up a “profit commission”? You have to be freakin kidding me! The brainstorming nut who came up with that idea should be impeached from Congress.
Over 60% of the world’s oil supplies are state owned. So how are these clowns going to regulate their profits? Where will it end? Will they try to regulate Lebron James or Tiger Woods? How much is too much profit?
One thing our benevolent Potentates of the Potomac could do (if they weren’t spending like drunken politicians) would be to auction off oil leases to the oil companies for $1 provided the companies used all the oil domestically and passed the savings on to the American consumer. The oil leases are bringing in hundreds of billions of $$$ to the U.S. Treasury.
But just like Tennessee, the political monkeys in D.C. can’t manage a checkbook let alone trillions of $$$.
Repeatedly Florida has refused to vote for drilling of the coast because they claim their beautiful beaches may be harmed and it will kill tourism. If fuel prices continue to rise then tourists aren’t going to travel to the Sunshine State so they can have all those empty beaches to themselves with the empty hotel rooms.
We are in it up to our necks now with no way out and a hand full of powerful lunatics are going to rearrange the deck chairs while the USS America sinks.
By Rick Form on 05.27.08 9:23 pm
Florida coastline should already worry about oil spills since they are already drilling there, but not from the US! I believe that Cuba is assisting with that and we all know how sensitive they are about maintaining Florida’s coastline. These eco’s are working very hard to make sure that China, India and other “more deserving” countries ascend to lead us where we don’t want to go.
Let our economy go and quit trying to fix things by regulating the daylights out of it!!!!
By BCB on 05.28.08 1:10 pm
Or we can look at how well our government works with our farm subsidy plan? Energy subsidy plan? Why are we PAYING a company, Archer Daniels Midland Co., subsidies so that they can go and grow products in Mexico? So because of GOVERNMENT (you know, that Uber-smart group of elitists we have in Washington), we are spending TAXPAYER money (That’s you and I by the way) to help this company make a profit in one arena, WHILE they take jobs away from Americans in this country. WOW! You’re right, I can’t wait until that same government fixes the oil problem! Now where did I put my bike pump……?
By BCB on 05.31.08 11:01 am
Why did all, the oil rigs in Louisians and texas shut down and we are talking way back in the early 90’s, also there is oil stored in salt domes in Louisiana, we lived there for 18 yrars before movinmg here to Springfield Mo
By Helen M Dean on 06.06.08 10:01 am
[...] the hand that feeds Terry Frank has a lengthy post on the Democrats, who are the source of our high oil prices, yet are blaming oil companies and [...]
By May, 2008 Archive « Right Minded Online on 08.08.08 5:16 pm
We don’t know how much oil is available. It seem everytime “experts” say we are about to run out of oil we can recover, more large deposits are discovered and new technology is developed to help us recover much more oil. Congress stands in the way of energy independence. It’s as if someone says people are hungry and need to be fed where there is little food, yet they prevent the hungry people from entering a restaurant full of food.
By Rick Badman on 09.25.09 12:11 pm
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