Al Franken, Another DFLer For High Gas Prices
August 2nd, 2008 | by Sqotty |We’ve been having some service issues with our ISP, making it a little tough to keep up with what is going on in the world.
This week, Al Franken-furter announced his big visionary plan for reducing the price of gas at the pump. Nope, it isn’t opening up ANWR and the gulf coast to new drilling, which would reduce the price of oil. It’s (drum roll, please) releasing 50 million barrels from the strategic reserve. That’s right, a whopping 2.5 days supply of oil for the U.S., and less than what Nancy Pelosi and the House Democrats have proposed (which is 70 million barrels, or a 3.5 day supply for the U.S.). Franekn-furter, Like San Fran Nan, completely ignores the following facts: this oil would be released to the global market, so the net effect would be a small, short-term spike in supply; it is such a small amount that it would relieve pressure on oil prices, and the resulting price at the pump, for a few days.
On the flip side, opening up ANWR, the continental shelf, and other areas that have not been tapped known to have significant oil supplies, and would significantly push oil prices down, is verboten. What do Franken-furter and Pelosi say? When oil companies drill in all the currently available leases, then they might consider opening up new sites. The problem with the currently available contracts is that there isn’t oil there; or, if there is, it is in such small quantities as to not be economical. What they are saying is: the oil companies must waste, time, money and energy drilling in places that are unprofitable before they (Congress) will allow drilling in places that would be profitable.
Obama is on record as having said he is only surprised about the rapid increase in oil, not that he was against it. For years now, many liberals have expressed a desire for gas prices to be on a par with those of Europe. Of course they fail to note that the reason gas prices are so high throughout Europe is because 80% of that price is due to taxation, not the price of oil or cost of refinement.
Refinery capacity is another reason fuel prices are so high. Refinery capacity in the U.S. has not been changed in over 20 years. This is why when one of the refineries goes off-line (due to fire, or other disaster), we see a spike in regional prices. Lack of capacity is also why we are importing gas from Venezuela.
Another issue with the refining process is that there are so many different formulations being mandated by State government. California has at least two different formulas in use, depending on where you live. How’s that for idiotic? These different fuel formulations also contribute to spikes in prices due to the lack of refinery capacity.
What is really disturbing is when Harry Reid, with complete indignation, blames Republicans for the high price of fuel when it is the Democrats are preventing new supplies being brought on-line.
But there’s no need to fear; Barack Obama is here. and he has a plan. That plan is to tax oil companies into oblivion, which will send gas prices even higher as those taxes are passed on to consumers in the form of higher prices at the pump. Obama has no plan for drilling, so as China, India and other developing countries continue to increase their demands for oil, up over 400% over the last 25 years, even as the U.S. reduces demands, prices will continue to increase. Hugo Chavez may well get his wish for oil to be $200/barrel. Maybe that is why Chavez, Castro, and Ahmadinejad all want Obama to be the next President of the United States.
Right now, and for the foreseeable future, we have an oil-based economy. Oil supplies the fuel needed to transport goods around the world, whether by ship, by plane, or by truck, it is oil that drives the economy. Ethanol doesn’t cut the mustard. It doesn’t produce as much energy as gasoline; it actually takes more energy to produce the same amount ethanol-based energy as it does to produce an equivalent amount of oil-based energy.
One thing is a certainty: We will never see gas prices at a buck a gallon again. Those days are gone. But if we begin the process of drilling for new supplies, and increasing refinery capacity, as well as standardizing the fuel formulas (which is to say, get government out of the way), we will see prices stabilize for the long haul. Otherwise, be prepared to pay $10 (or more) for a gallon of gas by the time Obama leaves office 2013.
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Al Franken DFL Pelosi Gas Oil Obama
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2 Responses to “Al Franken, Another DFLer For High Gas Prices”
By wk on Aug 3, 2008 | Reply
You need to check your facts.
According to the Energy Information Administration, the government agency that studies energy… Opening those areas for drilling would have no effect on short term gas prices (short term being anything in the next 20 years) and almost no effect on long term gas prices.
http://www.eia.doe.gov/oiaf/aeo/otheranalysis/ongr.html
Also, refinery capacity in this country has increased a significant amount in the last twenty years. It’s true that no new refineries have been built but our existing refineries have expanded and will continue to expand, which will continue to increase domestic capacity.
By Sqotty on Aug 3, 2008 | Reply
Interesting to note that ion the website you reference, those areas are still under a drilling moratorium enforced by Congress, and the lifting of said moratorium is being blocked by Democrats.
Be sure that you have all of your ducks in a row before telling me I don’t have my facts straight.