First, the article points out that the oil industry has 90 million acres of leases in the gulf of Mexico.  Of that some 70 million acres are not producing oil.  The article also points out that the US produces about 8 million barrels of oil per day, and then consumes 21 million.  Now, I was never real good at math in school, but doing some quick calculations, I find that they have some 20 million acres of leases producing something less than 8 million barrels of oil per day.  I am also not in the oil industry, but I’m thinking that isn’t a real good production record.  So, the democrats want the oil companies to be forced to drill the remaining 90 million acres of leases at the same pitiful rate before letting them explore the possibilities more productive sites like ANWAR and the Atlantic coast.  Just to illustrate the socialistic viewpoint of the article, rather than the proper free market attitude, consider this quote:

Oil companies “should finish what’s on their plate before they go back in line,” said Oppenheimer analyst Fadel Gheit.

The same man, later in the article, agreed that oil companies were not just sitting on leases.  So, if they are not just “sitting on leases” and they are wanting more land, there must be a good reason.  The reason is that what they have under lease is not productive enough to drill at the current cost of equipment and laying pipelines.  The equipment itself is in high demand right now because of the high cost of oil–oil is being taken from everywhere it can be found and harvested.  That makes it economically infeasible to try to harvest from the deep water areas of the Gulf, where production has been average at best.  However, if the companies could drill closer to shore, along the Atlantic coast (you know, the same oil that the Chinese are going after!) then they would be able to produce more oil at more reasonable cost.

The same principle holds true in ANWAR.  They can get in and get the oil from a relatively small parcel of land, and produce up to 2 million barrels per day.  So, 8 million (or less) barrels per day from 20 million acres, or 2 million barrels per day from a couple of thousand acres.  Which sounds like the better plan to you?

This article also quotes “one democrat staffer” as a source.  I don’t know about you, but that is who I want to take my information from.  This “staffer” claimed that if the oil companies would drill the remaining 70 million acres that they have in lease, they would produce an additional 5 million barrels per day.  70 million acres, 5 million barrels.  That is even more pitiful production than what they already have.  So, they should spend all the money necessary to drill, and pipe that oil from the gulf of Mexico, and end up with a lower production rate than when they started.  Sounds like a brilliant strategy to me.  Sounds like a democrat strategy to me!  By the way, the oil companies have said that the estimates of this “staffer” are way too high.  So, it would be even worse than the projections above.

I am glad to hear that John McCain has come out in favor of lifting the bans on offshore drilling.  That will help to alleviate some of the problem if companies are actually allowed to go in there and get the oil.  That remains to be seen.  It is time for McCain to wise up and change his stance on ANWAR too.  He keeps claiming he is a rebel…now he has a chance to prove it.  After all, every other candidate continues to cower before the environmental lobbies.  He could buck the system and do the right thing for a change!

Unfortunately, those making these accusations against the Bush administration have completely ignored the exterior conditions that Bush and his “cronies” (as they are often called) have no control over. There are many different elements that enter into play that seemingly are being vastly ignored. Many people are claiming that Bush is encouraging these high gas prices so that he and his buddies can get rich. If they really thought that, they would be buying oil futures and making tons of money for themselves!

Consider just a few of the elements that are often ignored when blaming Bush (and the Republican Party) for high gas prices:

1. It is the Democrats, not the Republicans that have consistently blocked any real effort to move away from foreign fuels, despite the ridiculous claims made by liberals. I’m watching Letterman right now, and Robert Kennedy, Jr. is blasting away at the Bush administration without really offering a viable alternative solution. They have been against anything that would bring energy production home. They have blocked production of nuclear plants, stopped drilling in our own territories, and stopped the building of any new refineries. Kennedy says that we can harness wind power and solar power (which is feasible, and should be pursued), but he and his company (which is making a killing off of Israel and Denmark) are doing nothing to change things here. And wasn’t it the Kennedy’s that stopped the wind farm near their family compound? I guess that fits in with the whole idea of telling me to stop drive my Durango while you jump on your private plane and jet-set around the world. These solutions are good…for everyone else.

2. Oil is controlled by the world market, not just by what happens here in the good ol’ USA. The Saudis have said that the price is going up because of the rise in the demand for oil in the Far East. Countries like China and India are increasing their demand for oil at a much faster rate than we could possibly increase it here in the USA. But, since we rely on 3 prominent dictators to provide oil for us, we have to suffer the repercussions of bowing to their demands. I think it is hilarious that liberals claim that Bush only went to fight in Iraq so that he could get cheap oil, and yet they now blame him for the high gas prices. I guess they trust you to forget one or the other when they are arguing… But don’t worry, Barak Obama is going to work it all out for us.

3. Bush has tried to do something significant to reduce the price. While Nancy Pelosi and company want to halt the gas tax for the summer (which will really not do anything for overall prices), Bush is talking with the Saudis, trying to get them to increase production. He has been blasted for this by the left as well. It is interesting that Kerry was applauded for saying (during the 2004 election cycle) that he would meet with the Saudis and try to get them to produce more so that the price would go down. But, when Bush does it, he is blasted by the same group that was applauding Kerry. I guess you can have it both ways…if you are a liberal.

4. Taxation. I guess we all know who is really responsible for that. Amazingly, no one has really complained about the profit that the federal and state governments have made off of the oil industry. We all know the Oil Companies have made billions of dollars, and so they need to have some of their profits taken away. News flash–they already have! They pay more in taxes than they make in profit. That’s right, the government makes more money off of oil than the companies that drill the oil, refine the oil, ship the oil, and put money into research and development.

5. Threat of more government interaction. Hillary Clinton has promised that she will enact “windfall profits” taxes on the oil industry. I believe Obama has done the same. This will eventually (and probably sooner than later) cause the collapse of some of the oil companies, and perhaps most of them. If the government threatens to confiscate profits, investors will avoid the market. Would you invest your money in an industry that is guaranteed to have a significant amount of profits taken away from it? I think not. Especially when that profit is going to be capped off at 3-5%! Without investors, there is no further research and development. Without research and development we are doomed to stay right where we are (no improvement). So the very act of enacting the “windfall profits” taxes will doom us to staying in the same place we currently are.

Don’t get me wrong on this issue. There is plenty of blame to go around. And, no matter who is elected, I don’t think anything is going to get better. Everything points to things actually getting worse, no matter which of the 3 democrats currently in the race wins. It is time to put a stop to the talk, and do something reasonable to alleviate the gas prices in this country! It can be done, but the democrats are going to have to stop hindering our ability to move forward. We are going to have to do several things to stop our reliance on foreign oil, and its going to take some sacrifices on both sides.

1. In the short term, we need to begin the process of drilling in our own territories. Yes, that means moving equipment into ANWAR and getting ready to drill the oil that is there. Just the threat of drilling will cause the Arab nations to produce more oil, and the prices would go down almost immediately. I know many people say that drilling in ANWAR will not lower prices for at least 10 years, but that is not true. If we threaten to start producing more for ourselves, the Arab nations (and maybe even Chavez) would start offering to sell us more oil at a lower price. They don’t want us to be able to cut our reliance on them in 10 years!

2. We need to encourage development of alternative energy sources. Most politicians are looking to the wrong place to develop these alternative sources. They want the oil companies to foot the bill for research and development in this area. That is just stupid. What incentive do they have to try and come up with a better source of energy than oil? None! They should do it through the automakers. I know there are some who have headed in that direction, but they have not gone far enough. The government should offer big tax breaks to the companies that are able to come up with viable alternative energy sources. The incentive should be big enough to actually cause the companies to put significant time and money into the development. Another option is to provide more incentives, grants and scholarships to universities that dedicate a significant amount of time and money to developing these alternative energy sources.

3. We need to understand that the problems with oil are not going to be solved overnight. Quick fix solutions just aren’t going to work. Refusing to put oil into our national reserves is not a solution, even if 97 senators did vote for it. Cutting off the national tax on gasoline at the pump will not work to lower prices. We are going to have to bite the bullet and be willing to do some things that may not be too savory to us. The democrats aren’t going to like what has to be done for the next 20 years or so to make sure that we have enough oil. Most republicans aren’t going to like the “environmental” emphasis that will be put on the research and development of alternative fuels.

I for one will be happy to let the libs claim an environmental victory if affordable energy is developed. Just don’t be stupid and try and get the cart before the horse. Kind of like listing polar bears on the endangered species list based solely on the unproven (unprovable) theory of global warming…

You see, we have an ally in Columbia, and Hugo Chavez is supporting the rebels who are trying to overthrow the Columbian Government. However, Venezuela also is a member of OPEC, and any attempt to stop the rebellion with military force may restrict the number of barrels of oil that Venezuela can, or will export. Suddenly, we have a restriction in supply of oil, which causes the price to escalate. Notice, the price is going up on the barrel because there is a THREAT of military intervention against Venezuela! There is a greater chance now that the US will impose some kind of sanctions against Chavez and Venezuela because the tie between Chavez and the rebels has been firmly established now. This will affect the price of gas again–raising the price. Here comes the $4 per gallon that we have been promised!

According to an article published on Yahoo, and from the Associated Press, this may cause Chavez to threaten to stop all export of oil to us. Here is a quote from the article:

“If we put on sanctions, I’m sure Chavez would threaten to cut off our oil supply,” said Phil Flynn, an analyst at Alaron Trading Corp. “Obviously that would have a major impact on oil prices.”

Yes, it will have a major impact on oil prices, because we are so reliant on the oil from places like Venezuela. So, we cower to dictators like Chavez, because we have no other options. We have to get our oil from somewhere. So we just have to take it. Thanks again, Bill Clinton!

The truth is, we don’t have to keep taking it. We should be drilling for our own oil, and then we wouldn’t have to be affected by every political situation that arises around the world. We have oil, but we have to be willing to go get it. We have oil in ANWAR. We have oil in the Coast of Florida. But, you know what? We are not willing to go get it! We have not only coward…oops, Freudian slip there…cowered to men like Chavez, but we have cowered to the extremist environmentalists. Do you realize that the environmentalists have kept us from drilling the oil off the coast of Florida, but the Chinese have moved in from the Cuban side and are drilling while we twiddle our thumbs? There are billions of barrels of oil that will now be drilled by the Chinese, rather than by us. Do you think we will get the best price per barrel in that situation? Yeah, me either.

So, the question is, how long are we going to allow this to continue? Are we going to continue to let these extremist dictators control our oil supplies forever? Are we going to allow the environmental extremists in this country to keep us from RESPONSIBLY drilling for oil in places like ANWAR and off the coasts of Florida? Face it, someone is going to get it…it might as well be us! If we had gone off the coast of Florida just 10 years ago, we would have had all that oil, and Communist China would not be securing it all for themselves!

But, you can’t convince those who are opposed to drilling on our own shores. They have been duped into believing that if we drill, we will completely destroy our country, our environment, and our wildlife. It just isn’t going to happen. But, nothing is going to change anytime soon. Even if McCain wins, he has vowed not to drill in ANWAR. So, gas will continue to climb. And we will continue to take it because we cower at the feet of Hugo Chavez, and the environmentalists of this country. Do I hear $5 per gallon?

What is the problem with the Gas Holiday proposal? There are several that come to mind:

It is merely a temporary fix. This is like putting a band-aid on a severed limb. It isn’t going to do anything really to help in the short term, and will kill us in the long term. The Federal Government collects 18.4 cents per gallon. That saves me approximately $3.68 on a fill up, of which I get about 6-8 per month. That saves me about $30 per month. Now, don’t get me wrong, I am for getting anything I can back from the government. I am for cutting taxes anytime I can get it. But, this isn’t going to stimulate the economy in any way. It isn’t going to help get things moving in the right direction. I drive quite a bit, and I would only benefit, at most, $30 for the month. That is a whole $120 for the summer. McCain did say he thought this could make it so folks could buy more school supplies for their kids. I guess that is about all it would do.

We won’t get ALL of the benefits. Face it, all of that 18.4 cents will never find its way into our pockets. You know that if the tax was taken away today, the oil companies would find a way to raise prices tomorrow. They have already predicted that prices will shoot up over $4 per gallon. That is just the way to soften us up, and get us to pay it. This move by the government would just give them a reason to do it sooner than later. Lest you misunderstand me here, I am not against big corporations, or even big oil. However, I don’t think that the oil market (at least in this country) is being controlled by the free market. Because we cannot really function without gasoline, we are forced to pay whatever is being charged. Any other element of society would have been restricted by the markets long ago. Anyway, back to the point: if the government reduces taxes, we still will not really save any money because the oil companies will raise the price to the same levels, or higher.

This does nothing to develop something for the future. How does this help us when the 3 month holiday is over? There still is no plan in place to cause the price of oil to come down, or to provide some alternative for the oil. None of the current candidates have a plan for this! All 3 refuse to do anything to allow domestic oil production to increase. Unless we get someone in the presidency who is willing to do something different than what we have always done, we will continue down the same path, and dig ourselves into deeper holes. I guess we will have to wait till at least 2012…

One thing that John McCain said on Glen Beck’s show that really aggravated me was that he would never drill in ANWAR. In fact, he said something to the effect, “I would no sooner drill in ANWAR than I would the Grand Canyon.” To this, Beck responded, “Is there oil in the Grand Canyon?” This exchange showed that McCain, while claiming to be “his own man” and “not beholding to anyone”, “a maverick”, is really just like most of the democrats. He is in the pocket of the environmental lobbyists. If he would look at the science, and the reports on drilling in ANWAR, he would see that this is the thing to do! Think about it:

• ANWAR has at least the 2nd largest oil pocket in the US
• The drilling site will be quite small compared to the whole Reserve area
• There is no hard evidence that shows that the environment would be hurt by drilling
• There is no hard evidence that shows that the wildlife of the region would be hurt by drilling

Now, I have heard the plethora of nonsensical arguments made by those on the left concerning drilling in ANWAR. They claim there isn’t much oil there. They claim that drilling there will destroy the whole Wildlife Reserve. They claim that the caribou are going to go extinct. The list goes on and on. But, these are nothing but liberal talking points. They are unprovable, but play on the fears of the people who “really care”. I care about our environment, and I care about our wildlife. But, the environment has withstood far more than this, and the wildlife have adapted to far greater challenges. It is time to make a move to do something that will truly impact the supply of oil in this country: drill for more domestic oil!

There has been a lot of talk over the last few weeks trying to depicts McCain as a conservative. There has to be a lot of talk, because it just is not true! He is no more conservative than Barak Obama. After this election, we can all give up on the hope that we will have reasonable energy costs any time soon. We are destined to have $4+ gas forever. That is not pessimism, it is realism.

Here is a cartoon I got from over at Vulcan’s Hammer, which really sums up where we are with energy in this country:

It will continue to be more of the same if McCain, Clinton or Obama are elected. They will pander to the environmentalists who will keep any kind of progress from being accomplished toward energy independence. Just consider the “Kennedy Clan”, who claim they are all for alternative energy sources, as long as it isn’t in their backyard. We want cheaper domestic energy, without having the energy produced here…hmmm…how’s that working out?

A real plan for the “energy crisis”. President Bush pushed for drilling for oil in Anwar. That is the most logical plan for success when it comes to our energy problems. We can provide enough oil for our nation for a long time (how long is still under debate, but most acknowledge there is a lot of oil there). One reporter said that this would be a “long term” solution, but she was dead wrong about this. If we announced today that we were moving equipment into Anwar, the price of gas would start coming down almost immediately. Even if the Arab nations thought we were bluffing, when we started moving equipment into Anwar, they would fall all over themselves to lower the price of oil. Unfortunately, the democrats are going to continue to fight tooth and nail over this solution. Nancy Pelosi wants to open up our reserves…like that will really work. The best outcome that I have read lowers the price at the pump somewhere between $.05 and $.20 per gallon, and that only in the short term until our reserves begin to deplete!

Make the tax cuts permanent. We all know that President Bush has been pushing for this since he got the tax cuts through in the first place. But, he really emphasized in this press conference the connection between the threat of increased taxes and the current economic “slow down”. Anyone who can’t put two and two together and understand that the threat of increased taxes causes people to stop spending their money is an idiot! If you think that a bill is going to come due next week, and the only way you can pay it is to save the money you have today, what will you do? Those that are truly conscious of their obligations will do what they have to do to pay their bills. The democrats are telling us that they are going to raise taxes! They are going to get rid of the Bush tax cuts, which means that middle class Americans (not just the wealthy, as they try to make us believe) are going to owe more money. I read a few days ago that anyone making over $50,000 will suddenly owe $4000 to $5000 more per year in taxes. That is significant! We need the confidence that we aren’t going to have a new tax load before we will be willing to spend our money.

Put the economic blame where it belongs. Now, I have not agreed with a lot that President Bush has done fiscally, but to try and pin the economic “slow down” on him and his administration is ludicrous! He spoke this morning about how the democrats in congress have intentionally stalled legislation dealing with our trade with Columbia. We have an unfair setup with Columbia right now. They send their exports to us duty free, and our exports to them are taxed. If small businesses could send their products out tax free, they could make more money, and thus may just save their own businesses. I’m not an economist, and I don’t even play one on TV, but it makes sense to me that if we can export more products, it would be good for our economy. After all, the more I may sell as a business man, the more money I can make. It seems that principle would spread out over the whole economy. Furthermore, it is the democrats who continue to call for more and more spending. I found it ironic that the same democrats who try to make it sound like the Bush administration is spending too much on the Iraq war are the same democrats calling for the War Spending Bill to be increased with their pet projects! As I surf the web and read the liberal blogs, I keep seeing these annoying little widgets that tell us how much is being spent on the Iraq War. However, what is not told is how much of that number is the pork put in by the democrats! The president has set a cap on the spending bill, and it is the democrat led congress who are trying to add to it, and expand the spending. Please don’t act high and mighty about wanting to stop the spending if you are going to keep adding to the bill.

Nicely call Jimmy Carter an idiot. When asked if Jimmy Carter’s nice little visit with Hamas was beneficial, or whether it could cause problems, President Bush responded very diplomatically. He explained why he could not, and would not meet with the terrorist group. They are the group responsible for much of the unrest in the Middle East. They are a group that is against peace, and will continue to be so. Jimmy Carter’s visit to the region completely undermined the work that every president has done in the region since his time. The truth of the matter is, Jimmy Carter was an extreme failure in foreign policy when he was in the White House, and he continues to show his inadequacies in that department now. He didn’t have enough sense to listen to those who are far wiser than he in such matters. Don’t get me wrong, I think Jimmy Carter is probably a good guy, with good intentions. He has done some good work in this country, especially with Habitat for Humanity. But, he really needs to stay here, and work on those projects, instead of trying to deal with things he obviously knows nothing about. He has become an embarrassment to even the democratic party, and that is saying something!

I am sure there were a lot of other things that were worth discussing in the press conference this morning, but these stood out in my mind as I watched. If you saw it (or heard it) and want to add to my list, feel free to do so in the comments below!