DEMOCRATS ATTEMPT TO,"SOLVE" ENERGY CRISIS WITH TAXES.....THE ONLY ANSWER IS - DRILL STUPID !!
Getting away from Presidential politics for the moment and stepping into Congressional politics as the Democrats attempted to try and solve the, energy crisis with taxes in a move that was stopped by a successful GOP filibuster. Senate Democrats tried once again to place a ,"windfall profit tax, " on oil companies and remove all tax incentives thus, "punishing, " the companies for the price of oil at the pumps.
This type of tax has been tried before and was a dismal failure as it actually cost the government an exorbitant amount of resources and money based on costs at the time to collect and process the tax. In addition the excessive taxation caused oil companies to cut back in research and development which of course meant cutting back on finding new sources of oil and production went down thus causing gas prices to go up as supply did not meet demand.
When will these idiot liberals and yes even some in the GOP in Washington accept the fact that the ONLY way that this, "energy crisis," is going to ease is by getting off of their environmental duffs and allow the one thing that will stop out of control oil prices....DRILL....DRILL.....DRILL!!! While the idea of bio fuels, hydrogen, electric vehicles and so on sound great they are the answer over a 20 to 30 year period of time.
We are an oil based economy and the only answer to solving the crises in the short term is to allow supply to meet demand and that will happen ONLY if we drill and find domestic oil sources. With the escalation of oil used by countries like China who are not going to curb their oil usage or find alternatives, unless we tap our own abundant oil resources right here at home we will continue to see gas rise at the pumps with no end in sight.
Speculators see no reason to ease the futures market BECAUSE they know that the one country who can help solve the problem is not willing to take the steps necessary in finding domestic oil to ease demand in our own country. We, by our own environmental policy that has been in existence since the early seventies with regulations preventing drilling and new refineries, regulations that only have increased for more than 30 years, have made the American people slaves to the oil producing nations and our economy susceptible to those same controls because of our unwillingness to drill.
We have more oil resources under our own soil that all of the OPEC nations combined and if this had been exploited as it should have been we would be paying 35 cents at the pump now as Venezuela does because we would NOT be dependent upon foreign sources of oil.
Blaming the oil companies is not the answer. Yes they are recording record profits but that is only on paper. For instance when the oil companies purchased a barrel of oil in January the price of that barrel was below $100 dollars. That oil was placed in reserves waiting for refining. It is now being replaced by oil that is priced at over $135 dollars per barrel which is an increase of nearly $40 dollars over the price that oil companies paid six months ago.
Oil companies make a clear profit of about 8 cents per gallon and much of that goes into research and development etc. Yes their CEO's make large salaries but so do CEO's of nearly all major corporations and Congress is not seeking to punish any other companies. It is convenient to lash out at oil companies because Congress especially Democrats want to draw attention away from the real source of the energy problem and that is 30 years of liberal Democrat regulation that has prevented this nation from drilling!
WE have the resources and the capability to solve our own energy crises and as a result because we are taking care of our problem we will reduce the burden of oil supply for the rest of the world if we will DRILL !! Oil effects every aspect of our economy because it is used in one form or another whether transportation of goods , heating and cooling, running equipment for building and/or agricultural reasons. As oil goes up so do consumer goods and products because it is costing more to produce and/or transport. This can all be reversed by DRILLING!
Just a move by Congress allowing drilling showing that we are finally willing to tap our own resources would have an immediate response on the futures market as speculators see additional supply from The United States coming to the market. Then when those wells are started futures will go down once again as a resource to meet demand is tapped. As the oil reaches the market another dramatic decrease in oil will occur.
We have the ability to control our own energy problems now and in the future by research and developing alternatives to oil but in the short term the ONLY answer is to DRILL!!!!
Ken Taylor
This type of tax has been tried before and was a dismal failure as it actually cost the government an exorbitant amount of resources and money based on costs at the time to collect and process the tax. In addition the excessive taxation caused oil companies to cut back in research and development which of course meant cutting back on finding new sources of oil and production went down thus causing gas prices to go up as supply did not meet demand.
When will these idiot liberals and yes even some in the GOP in Washington accept the fact that the ONLY way that this, "energy crisis," is going to ease is by getting off of their environmental duffs and allow the one thing that will stop out of control oil prices....DRILL....DRILL.....DRILL!!! While the idea of bio fuels, hydrogen, electric vehicles and so on sound great they are the answer over a 20 to 30 year period of time.
We are an oil based economy and the only answer to solving the crises in the short term is to allow supply to meet demand and that will happen ONLY if we drill and find domestic oil sources. With the escalation of oil used by countries like China who are not going to curb their oil usage or find alternatives, unless we tap our own abundant oil resources right here at home we will continue to see gas rise at the pumps with no end in sight.
Speculators see no reason to ease the futures market BECAUSE they know that the one country who can help solve the problem is not willing to take the steps necessary in finding domestic oil to ease demand in our own country. We, by our own environmental policy that has been in existence since the early seventies with regulations preventing drilling and new refineries, regulations that only have increased for more than 30 years, have made the American people slaves to the oil producing nations and our economy susceptible to those same controls because of our unwillingness to drill.
We have more oil resources under our own soil that all of the OPEC nations combined and if this had been exploited as it should have been we would be paying 35 cents at the pump now as Venezuela does because we would NOT be dependent upon foreign sources of oil.
Blaming the oil companies is not the answer. Yes they are recording record profits but that is only on paper. For instance when the oil companies purchased a barrel of oil in January the price of that barrel was below $100 dollars. That oil was placed in reserves waiting for refining. It is now being replaced by oil that is priced at over $135 dollars per barrel which is an increase of nearly $40 dollars over the price that oil companies paid six months ago.
Oil companies make a clear profit of about 8 cents per gallon and much of that goes into research and development etc. Yes their CEO's make large salaries but so do CEO's of nearly all major corporations and Congress is not seeking to punish any other companies. It is convenient to lash out at oil companies because Congress especially Democrats want to draw attention away from the real source of the energy problem and that is 30 years of liberal Democrat regulation that has prevented this nation from drilling!
WE have the resources and the capability to solve our own energy crises and as a result because we are taking care of our problem we will reduce the burden of oil supply for the rest of the world if we will DRILL !! Oil effects every aspect of our economy because it is used in one form or another whether transportation of goods , heating and cooling, running equipment for building and/or agricultural reasons. As oil goes up so do consumer goods and products because it is costing more to produce and/or transport. This can all be reversed by DRILLING!
Just a move by Congress allowing drilling showing that we are finally willing to tap our own resources would have an immediate response on the futures market as speculators see additional supply from The United States coming to the market. Then when those wells are started futures will go down once again as a resource to meet demand is tapped. As the oil reaches the market another dramatic decrease in oil will occur.
We have the ability to control our own energy problems now and in the future by research and developing alternatives to oil but in the short term the ONLY answer is to DRILL!!!!
Ken Taylor
posted by The Liberal Lie The Conservative Truth | 10:13 AM
7 Comments:
Ken, drilling will take years and the problem would then be that we don't have the refineries to handle increased oil supply.
I have no idea what you mean about oil copanies recording record profits, but that it "is only on paper." You seem to be suggesting that they are really losing money somehow - completely false.
However, more directly to the point of your post, you are fundamentally wrong about what is driving up oil prices. Supply and demand is only a very small part of the problem. Do you really believe that the world somehow increased oil consumption 35 percent over the last 5 months? I hope you don't actually believe that because it is a completely ridiculous notion.
There are two issues that are unrelated to supply and demand. We have unregulated commodity markets that are being manipulated by market makers. They are essentially "betting" on the futures markets that oil will continue to rise. It is a bubble waiting to pop, but unlike publicly traded stocks which are regulated by the SEC, there is no regulation to prevent insider trading and false statements from making their way onto the markets. My guess is that 25-30 percent of the current price in oil is due to this wild betting.
The other major factor is the collapse of the dollar. Bush's weak-dollar strategy to try to boost exports has been a dismal failure (as have virtually all of his economic policies). When combined with the explosion in debt and foreign owned debt, the dollar's collapse has led to a huge increase in oil prices. Oil is a commodity that is traded on world markets, but pricing is done in the common currency of the dollar. As the dollar has collapsed, oil producing countries expect more dollars to cover the falling value and to price in future erosion in the value of the dollar. This is responsible for another 25-30 percent of the increase in oil prices.
Oil should be around $60/barrel if it were tied only to supply and demand. Drilling more oil will do very, very little to reduce the price of oil. When the commodity trading bubble pops and the dollar's value increases, we will see a sharp decline in oil prices. One cannot time the market, so the pop may be next week, next month, next year, or two years from now, but it won't be much longer than that.
As for the dollar, it has taken 7 years for Bush to drive the dollar to its historic lows, it will take at least 5 years to get it back on track.
OMG!!! WE CANT DRILL IN ANWR!!
We HAVE to know the mating habit's of the Porcupine Caribou first!
OMG!! We have to divert water away from from the LA Basin because a "Smelt" got caught in the Water Filtration System!!
Etc..Etc..Etc..
We could have all our own oil HERE! Dammit right HERE! IN AMERICA!! If the Democrats would shut the f*** up about the Friggen Porcupine Caribou, we could have water in LA if the Democrats would shut the F*** up about a friggen Smelt.
But they wont shut the F*** up so here we are. Stuck, dependent on Foreign everything.
Just keep electing these dipshit's to office so we can just go under already.
Marie - anger doesn't change the fact that the rise in oil prices is due to unregulated speculation in the commodity markets and the falling dollar (see my post above). I guarantee you that more than half of the increase in the price of oil is related to these two factors - NOT supply and demand.
We cannot have our own oil here. That is a ridiculous comment and it illustrates a level of ignorance that many people have about the current rise in oil prices. Unless you are proposing that the U.S. government go into the oil drilling and refining business, the multinational oil companies will drill wherever they want and will sell on the world markets. Prices are set in the commodity futures market - WHICH EVERYONE USES TO SET PRICES.
The U.S. exports over 1.8 million barrels of oil per day. We operate in a global economy and if we open up drilling to the oil companies, all that will happen is they will send more oil overseas and earn bigger profits. We don't have any problem getting enough oil through our refineries to keep our gas stations flush full of gas.
Fix the speculation problem AFTER we start drilling in ANWR.
Rob won't solve the problem. He'll only introduce new and more increasingly burdensom regulations and taxes on the American economy.
And that's a sure loser for American consumers.
Speculators wouldn't drive the price up so high if they didn't feel the supply was lacking.
Simple economics Rob. Think about it.
I won't solve the problem because I am not in a position to do so. What an idiotic comment.
I stand by my comments. It is not supply and demand. Demand has not increased 35 percent in the last 5 months.
Obviously speculators wouldn't drive the price up so high if they didn't feel that supply was lacking, but we don't have a supply problem. Rampant speculation will result in a pop in the futures market for oil. When it happens, you'll recognize that I was right and oil prices will fall rapidly.
You are right - it is simple economics. I have thought about it.
Mike, I'm just curious, are you for stopping the export of 1.8 million barrels of oil per day?
Hello. I blog rolled you. I hope you're not like the AP in that you'll sue or charge me for using your words. I just needed an article stating how stupid it is to think you can repeal the law of supply and demand. Here's my toon blog if you want to see.
http://www.rightnation.us/forums/index.php?automodule=blog&blogid=44&cmd=showentry&eid=2759
And thank you. I really enjoyed your blogging intelligence.
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