Sep
23
Reality Check – Congress’ No Drill Bill
September 23, 2008 | 1 Comment
The House of Representatives has their “Comprehensive American Energy Security and Consumer Protection Act” out to the Senate and it can’t be more inaccurately named. I suppose when you make law running a fraud isn’t possible. But the press and media have dutifully followed along as if the bill will be good for people. It’s another misdirection with the media and press doing the advertising and nothing of value, very little that expresses the wishes of the public is on board. But, who is surprised by the reality? What the biggest disappointment is that people buy the advertised contents without holding the press, media and politicians accountable.
When one looks over the real expertise that consider what the bill will bring to the business of producing oil, the idea exists – there will probably be even less drilling and production. When one looks over the opponents to energy production, their sensibilities are tweaked whenever anyone uses energy of any form for modern life, and they aren’t happy unless the reduction in production is real, concrete and substantial. As these two groups lobby intensely, throw out large amounts of campaign money – just before an election – I guess we shouldn’t expect anything else. I suspect we should expect $6 or higher gasoline the next go around. That will be fun, and more financial grief to follow – just like this time.
We use energy, but get it in fuels and from electrical sockets. While some of us have the science or engineering base to work through to a sense of what each form is relative to another, it looks like a certainty that the media, press and politicians don’t. Barrels of oil products, cubic feet of gas, megawatts, kilowatt-hours and the joules or BTUs should have been explored and brought to every mind in the U.S. by age 15. Better still would be a unit of energy relative to the work received at the end. Fully recognized we would change very fast indeed. Anyway, before I go scientific and lose my opinion momentum:
So, who is carrying the water for you, consumer stressed by the rapid rise of oil prices? These numbers illustrate what is actually happening. The U.S. consumes 25% of world oil production. The Big Oil and a slew of little oil companies produced 10% of the world’s oil production, from 3% of world reserves here in the U.S. Consumers get 3.3 times the fuels from U.S. reserves than accomplished outside the U.S. American farmers and the ethanol industry kick in another 2% of U.S. production. The U.S. is still the third largest oil producer on earth. Imagine what the price of oil would be if 64% of barrels per day of U.S. production went away taking 6 and a half million barrels off the market. Or the American Big Oil work ethic, scientific skills, financial acumen, management, labor and technology applications were applied worldwide tripling the amount for sale?
The problem is you and I don’t realize our friend in this is the U.S. oil and gas industry. But we tolerate the demeaning and insulting attacks on them, adopt some of the worst attitudes possible towards them and suffer the consequences. Who raised a cry when Russia and Venezuela swiped our companies’ work, investments and proceeds? There was a time American’s would threaten and go to war when others stole our stuff. So, who will remember the bill in the House today when oil comes up short next time and gas prices zoom higher? Where is the William Randolph Hearst of our day?
The bill in Congress at this writing will ensure that drilling can’t be done within 50 miles of the coast except for where its already being done, a tiny fraction of the possible sites are made available and those are highly challenging and expensive, so making certain that the U.S. will not be participating in driving oil prices lower. It’s enough to make one reel in amazement when the facts are seen out in the light. It’s a No Drill Bill.
The list of blackmailers is OPEC, the Axis of Oil, and the Congress. It’s about market power, the ability to put product on the market and take it off. So Congress has to be on the list. Sorry, its reality, and this is a reality check. Congress is just as manipulative as OPEC, just slower. Objectively they are all -governments.
Even worse is the money. For every barrel not produced another even more expensive barrel will have to be purchased offshore. No royalties, fees, taxes or jobs and profits stick in the U.S. economy. It’s enough to make an American cringe in financial pain.
Realistically, the growth in world oil demand will need be met by state owned and controlled “oil companies.” Not likely to be much improvement there. So, American consumers need to get on with more reduction in oil use. The issue up close and personal will be how to get one’s own oil use minimized.
Where ever your fuel comes from, U.S. production, imports, biomass, and other new technologies, the primary answer for a family is cutting use. But as you recall from the beginning its really about the amount of energy used to do work. We all have a mileage that we need to cover each year (the work needing done), so what vehicle can we get to use the minimum amount of fuel (energy needed)? The farther that fuel/energy number can be driven down, the higher the cash available for other parts of a higher standard of living. Moreover, the risk in fuel – oil – energy prices becomes a smaller share of life’s concerns.
That’s the reality. So call, write or email that Congressman and Senator before its too late. We still have the lobbyists outnumbered, at least for now. Standing up to a backstabber before the knife goes in is good for one’s dignity, and serves as a warning that you see it coming.
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