Democratic Oil Legislation Denied

As I'm sure many of you are aware, there is a sincere debate going on in Congress about offshore oil drilling. The New York Times reports today that the House republicans have blocked the democratic efforts on oil leases and drilling. Rather than allowing offshore drilling or drilling in domestic areas, democrats attempted to pressure energy companies into drilling for oil on lands they already leased from the federal government. This logical initiative fell short of the margin needed. Opponents argued that the legislation, "which also called on the Interior Department to accelerate leasing in an area of Alaska specifically set aside for drilling, could diminish domestic exploration since it would bar oil companies from obtaining new leases if they were not actively exploring current holdings." I think I missed something here. Isn't it a good thing that companies explore their current holdings before getting new leases? It makes perfect sense to me! In an effort to show that they were not against drilling for oil, the democrats offered this initiative, which republicans are denouncing as a sham. On the other side, democrats are asserting that this legislation will bring immediate relief to Americans and to gas prices, whereas drilling in new areas would take a few years before any effect would happen. "Democrats say oil companies are sitting on 68 million acres they could be exploring. But republicans say many of those sites have proved to be dry holes or are the subject of lawsuits and disputes over federal permits." If it is proven that some of the land is a dry hole, thats one thing. If there are any lawsuits or disputes over permits, then that company probably shouldn't get an additional permit! Sheesh...

Posted by UofM Feminist - July 18, 2008, at 12:22PM | in News
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2 Comments

Jessica,

You are absolutely correct. I believe that the reason for all this is plain political dirty poo whereby the Republicans are trying to make an uninformed American public believe that there is plenty of cheap domestic oil that can be sourced from US offshore waters, and that the Democratic Congress is simply being obstinate in denying that voting public a continuation of business-as-usual based on cheap fossil fuels (Bush and Cheney's "the American way of life is not negotiable"). I should know because I am a Republican turned Democrat. The biggest worry that I have is if the Republicans keep the White House, they will push an oil exploration and development agenda that will be the most expensive government-subsidized program in history, FAR, FAR more expensive than the switch of 100% of US electricity to renewable energy proposed on Thursday by Al Gore, which by the way is completely realistic. The cost of this oil exploration and development program is $5 TRILLION (that is a T), or 5X the combined market capitalization of Exxon Mobil, Royal Dutch Shell, BP, and Chevron. We humans (mainly your Baby Boomer parents) simply have consumed so much "easy oil" out of the earth that the oil companies do not have enough money to explore on their own dime, even with the enormous record profits that they make now! All future oil exploration and development will have to be PRIMARILY (not just heavily, as in today) government subsidized. Note that global oil discovery peaked in the 1960s; people didn't stop drilling for oil fortunes, the geological situation is THAT BAD. (I won't even go into the tragic environmental shortcuts that will take place under the desperate drilling program that the Republicans want; look up Ecuador and Texaco in the 1960s and 70s.) Guess whom the Republicans would want to pay for most of that $5 trillion in oil exploration and development? The American taxpayers (who have already subsidized much of the cheap oil that the developed world has consumed over the last 50 years by having guaranteed its availability through the US military), which under the Republican tax regime are primarily the poor, the middle class, and faceless future generations (by continuing to run huge deficits). But the absolute worst part of all this is that oil exploration by no means will necessarily put any gas in your tank; there is enormous uncertainty in the amount of oil that could be recovered. If the Republicans win in November and the US energy policy remains heavily and artificially biased toward oil and other fossil fuel sources, many experts (and unlike Sean Hannity, I will name one: Matt Simmons, chairman of Simmons & Company, an energy investment bank) fear that there will be an extreme diesel and gasoline shortage that would shut down transportation in the United States. Since food is transported thousands of miles in this country, think not only food shortages but the chaos and disorder that can occur when people who are used to eating a lot and have guns (Americans) are starving.

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All the best,

CNBC Sucks (and it does)

Sorry, ladies, I am an admitted page view whore. When I posted the last comment, your content management system attached the comma to my URL so that you get an error message if you click the link. If you would like to visit my blog, and I hope you do, the URL is:

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