Platforms for Refinement

“Getting more of something in short supply won’t alleviate pressure!” That has been the Democrats’ new cliché in the current energy squeeze. I would not call this crisis yet, though. There are no lines—yet . At any rate, it’s a good thing Pharaoh had Joseph to tap the grain reserves and not House Speaker Pelosi!

But this is no new phenomena, because it was back in 1973 that we had a sharp wakeup call on what OPEC could actually do. For those of you sci-fi buffs out there, take a look at the movie “Dune” and the lurid axiom “the spice must flow.” And there is no doubt that this “crisis” was, and still is, avoidable. So it strikes me as odd that so many DC ambulance chasers seem to know more about petroleum location than actual professional oil explorers. Here is what they say:

Claim # 1: “America only has 3% of the oil reserves, all the while consuming 25% of the world’s oil.”

That statement is based on older estimates before the current seismic technology, about in the late 80s. Conservatives have proposed using clean coal technology combined in conjunction with drilling, and have done so for a decade. In fact, America is one of the richest nations in coal in the world. Not only that, but as Newt Gingrich was astute enough to point out in a speech for American Solutions, we have three times the reserves of Saudi Arabia in oil shale, conveniently tucked under the Rockies.

“We’ve got to use what we have. The Middle East has only five percent of the world’s energy, but the United States has 24 percent.” – Jimmy Carter, The “Crisis of Confidence” Speech delivered in 1979.

Gee, now they say the exact opposite… I am frightened of a Congress where Carter stands to the right of the House Speaker.

Claim #2: “Oil companies gouge consumers. They need more regulation and taxes.”

I challenge you to go to Google Finance and look at the balance sheet and income statement for Exxon’s corporate earnings, taxes, and liabilities; they make those infamous 40 billion bucks seem a little trivial! Ships, surveillance, armies of workers, oil derricks, pipelines, trains…those things aren’t free (I dunno, 350 billion+). All things considered, the real price gouger is Congress; after all that tax revenue, they have no operating expenses from oil sales, just the benefits. Record profits are not surprise! America, one of the few developed countries with positive population growth, has more drivers each and every year! There are record profits in the oil industry decade after decade. What’s new?

Claim #3: “Drilling now would not alleviate prices for five or ten years.”

President Clinton, in the mid-90’s, turned down a suggestion by Republicans to open up ANWR, stating as his case for refusal was that we would not see the oil until 2005! So much for Democrats claiming long-term vision, all the while wrenching the American economy to appease the greenies. For the past several decades, this has been the position of the Democrats! What is ironic in all of this is that the DNC never questions the ETA on ethanol and wind as a price-impacting solution. “Oh no! Don’t drill! That’s five years away before we see the benefits…let’s go to something few people use! That will arrive faster! And assuming it doesn’t, Congress can vacation until then!”

Anyone with a brain realizes that market pricing is set based upon what is anticipated. It is any coincidence that speculators were threatened when Bush lifted the executive ban on offshore drilling and there was a $30 drop per barrel? Now, imagine if Congress would follow suit…

Claim #4: “ANWR is a pristine wilderness.”

Thanks for highlighting your ignorance of geography, softhead! Sen. Alan Simpson put it best when saying the following on Real Time with Bill Maher:

“We passed the Alaska Wilderness Bill in ’80, and we set aside 20,000 acres in an area which is — and it said right in the bill that in the event of Congress wishing to drill this area — it would be drilled. And that passed by a huge bipartisan vote. That’s in the bill. And that’s the only part they’re going into. It’s about the size of a sparrow fart in the midst of a typhoon.” – Sen. Alan Simpson, on Real Time with Bill Maher.

Claim #5: “Oil companies should drill where Congress allows them first.

Gee whizz, donkey brain! You should have left your mental yoke back on your communal farm with the real one you use to plow your hemp! I am sure that the US Congress employs – on staff – more petroleum geologists than oil companies employ. That’s right! You guys know better about oil!

People must realize that the installation of oil platforms is time-consuming, and not all of them produce. Furthermore, oil platforms must produce a certain amount before becoming active, while many turn out to be a sunk cost with no oil. According to the Minerals Management Service, there are currently over 7,000 + active leases, debunking the myth that oil companies are simply choosing to not drill.

In the end, I am resigned to say: “so long, Nancy Pelosi, and thanks for the wonderful book that preaches responsibility and factuality. Enjoy your recess! And while you cavort around the nation in your stultifying ignorance of economics, thousands of truckers delivering your books will be paying the ‘Pelosi premium.’ And for your reckless endangerment of our nation’s economic staples coupled with your brazen stifling of debate in Congress (going against your 2006 reconciliation pledge), I call you an American Fascist.”

I guess that this is what the Global Warming cultists mean when they say, “the debate is over.” >>