Jul 15 2008
Will the Democrat-Controlled Congress Help America with Oil?
President Bush has lifted the executive ban on drilling for oil in America. Last month he said he would lift the Presidential ban when the democrat-controlled congress lifted the ban. However the democrat-controlled congress took no action whatsoever by Independence day. They did not even schedule hearings they are treating it as a joke.
Will the congress ever vote for drilling, to help the American people have relief immediately? That is the question and it seems unlikely, too many environmentalists are with them.
First let me make clear, I am all for finding alternative fuels to oil. Everybody is. Bush and McCain would love to find a way to completely decrease oil. McCain has plans to search for alternative fuels, such as the 300 million dollar incentive to any American to build a better car battery, that I mentioned in a past post . Finding alternative years could take 30 years and I do not want to pay $30 a gallon waiting for the alternative fuel.
If the environmentalists really cared about the environment they would want America to drill in America. America’s drilling technology has greatly improved over the last 30 years. Our drilling technology is very environmentally friendly and we have the strictest rules, stricter than many other countries. If we drill in America we will do so in a way that is better for the environment than other countries are doing right now.
Nature itself actually seeps oil into the ocean and onto land. Taking some oil out of the ocean would actually help nature from seeping more oil into the ocean. Researchers stated in article that, “…if the 50 percent reduction in natural seepage rate that occurred around Platform Holly also occurred due to future oil production from the oil field beneath the La Goleta seep, this would result in a reduction in nonmethane hydrocarbon emission rates equivalent to removing half of the on-road vehicle traffic from Santa Barbara County. In addition, a 50 percent reduction in seepage from the La Goleta seep would remove about 25 barrels of oil per day from the sea surface, which in turn would result in a 15 percent reduction in the amount of tar found on Santa Barbara beaches”(source: ucsb.edu ).
Also oil companies are not drilling on the leases of land that they have now, because there is not enough oil to warrant spending the millions of dollars it costs to drill. As a business it is not a good investment to drill when there is not enough supply, especially when they know there is about 17.8 billion of barrels off limits right now.
source: Washingtonpost.com
There is no need to expand drilling offshore. The oil companies have tens of thousands of acres available to them not even in use. Our Government believes all Americans are naive and unintelligent. They will believe what ever they are told, or see on TV. Expanded drilling is not the answer. Supply is not the problem.
There is more oil than we need right now. Take Russia for instance, they have not begun to tap their reserves. Like the Saudis, realize supply is not the problem. Go to Baltimore, look at the oil tankers sitting in the bay, unable to unload due to over supply.
The first thing that needs to be done is for the treasury, Department or the FBI, quietly go into EXXON, MOBILE, SHELL, and TEXACO, pull their hard drives and find out the truth. I think most Americans will be appalled when they find out Katrina and other natural disasters, had very little adverse affect on the oil companies.
In fact, they used Katrina as a means to an end. The end is where we are now, $5.00 per gallon fuel that should be no more than $1.50 per gallon. The oil companies did what they said they would do, raise the price in the U.S. to match what Europeans have paid for years.
However, Europeans have not subsidized the oil companies like we have in the US. The fact the oil companies operate practically tax free, is unheard of an where else in the world.
The main reason fuel prices are high in Europe, is because the demand is low. Europe has a state of the art Mass Transportation system.
They do not need cars. Cars are truly a luxury in Europe. You can get on the tube - subway, and be anywhere in a 30 mile radius in five minutes for pennies. You can get on a train that does 350 MPH. Why do you think it is so expensive to fly in Europe. Flying it is a luxury, due to an excellent mass transportation system.?
If 100 million gallons a day of additional crude oil hit the market today, do you think gas would go down to $1.50 per gallon. No, oil dropped $10.00 per barrel yesterday and fuel prices do not reflect it. Yet, let any little hitch in production or supply and gas prices reflect it instantaneously.
Even though, it will be several months before the oil affected by those problems and the increased cost associated with it, will be available for sale. Yet, the cost will increase here instantaneously, on oil or gas, purchased at a considerably lower price.
The oil companies have tested the waters under President Bush and a Congress controlled by Democrats, realizing no one is going to make them accountable for their actions. Why do you think food prices have skyrocketed. When the cats away, the mice shall play. If they are allowed to get away with it, they will continue to do so.
Problems with production in Nigeria caused an immediate increase in fuel prices here. What they did not tell us, EXXON and SHELL, are paying the Nigerians sub standard wages. Consequently, and they went on strike disrupting the flow. Yet EXXON and SHELL are rewarded for their actions.
Supply was disrupted from the North Sea fields, resulting in higher gas prices here. Why, thousands of Oil workers in Wales went on strike due to sub standard pay. Once again oil companies are rewarded with higher prices for less than ethical behavior. The oil industry is vertically integrating and outsourcing, as so many Big Businesses have done, like the auto industry.
They have not built new refineries in years, as a matter of fact, they utilize every excuse to shut them down, resulting in higher fuel prices. Billions of dollars for research and development taken from the government and nothing being done. You know why, because they have used a portion of those funds received to outsource the refining process to third, fourth, and fifth world countries, where people are willing to work for $25.00 per week or less, for 72 hours of work, resulting in refined oil for less.
It is simple they are buying it cheaper already refined, than they can produce it for because they are using substandard slave labor. Very few Americans are unaware a lot of gas comes into this country from developing countries. I could go on and on but I think you get the point.
The first step to solving this problem is to remove oil from the Commodity and Futures market. Oil is not a commodity it is a necessity. Second, thoroughly investigate, do not just go through the motions and find out who these speculators are and prosecute them when you find that they have deliberately and artificially inflated and manipulated the market. You will probably find after a long paper trail, they are part of the Oil company network.
Next, pull the hard drives of the major oil companies in order to find out the truth. They will discover this has all been a joint effort of collusion and anti trust by the Oil Companies. Lock up the CEO’S and everyone related to these actions. Once we know the truth, break them up and sell them off like they did with AT&T. Similar to what Mr. Forbes advocated this morning with Fanny Mae. The Sherman Anti Trust act evolved as a result of criminal behavior in the Oil Industry.
If that does not work, Nationalize them. Next, mandate the auto industry to produce cars that get 150 MPG, not 30. There were experimental carbueraters in the sixties, proven to get in excess of 120MPG on much larger cars. However, those patents were bought up by th oil companies and they never hit the market.
The patents and technology is out there, get it. Nancy Pellosi stood up in front of the Democrats, thumped her chest and said we are all part of history today, we have mandated by 2020 SUV and cars must all get 30 MPG. Big accomplishment, the model A ford in1898 got 28 MPG. Boy Congress really made a difference.
I believe we need to revamp, or reinvent our mass transportation system to state of the art. We must do it and use all US made materials. It will create thousands of jobs, putting Americans back to work, boost the economy and invest in America.
Last but not least institute a price reduction and than a price freeze like Nixon instituted during his Administration.
It is time we start looking out for Americans, not big business. Remember, 96% of US workers are employed by small business, not big business. The richer are getting richer, the poor are getting poorer, the middle class is being eliminated.
It took a hundred years of hard work, blood sweat and tears to establish a decent standard of living in this country. It has taken less than 10 years for big business and our corrupt congress bought and paid for big business to destroy it and sell out us to third, fourth and fifth world labor costs.
Tim King