See the previous entries (over the past week) as to how both the petroleum industry and some Republicans are making a hash of the issue of gasoline an oil prices, when they SHOULD be making a stirring case for invoking the power of free markets (by adding SUPPLY and using the FEDERAL GOVERNMENT--contrary to the usual practice where the Federal Government never limits itself, while trying to get everyone else to sacrifice--to set an example on limiting DEMAND).
But then there are the leftist Democrats, who have either gone insane with ideaology, or are relying totally on DECEPTION--or, likely, both. Senator Byron Dorgan of North Dakota was the Democratic spokesman on that same Chris Wallace, Fox News program on Sunday. As Kay Bailey Hutchinson pretty much made Dorgan look silly as to the following, absolutely amazing statements Dorgan made (really representing the present Democratic Party line):
1. Congress does not really need to do anything to reduce gasoline prices this summer, especially as Saudi Arabia is going to increase their production 500,000 barrels a day (ruining further the PRISTINE environment of those desert sands). I kid you not. That is essentially what Dorgan said, as Democrats rely on MORE FOREIGN OIL to make up for the actions of Congress in limiting our own production. If Democrats had not blocked Anwar drilling more than 10 years ago, and ever since, we would not be getting ONE MILLION barrels of oil from Anwar (whcih Democrats dismiss as insignificant, even as they push for more oil from the SAUDIS that Anwar could now be producing.
2. ANWAR. As usual, Dorgan just refused to discuss Anwar, except to dismiss it as unimportant (as he, and all leftist Democrats) dismiss puttion MOST of the promising areas for drilling off limits. Dorgan refused to address Hutchinson's unanswerable points on Anwar. The entire, protected wilderness area, of which the proposed drilling area is a small part, is the size of South Carolina. The proposed drilling area is approximatelly the size of Reagan Natioinal Airport in D.C. Plus, as to both Anwar and offshore drilling, drilling techonology has advanced to the point hat we could be drilling in BOLTH Anwar and offshore with almost NO environmental risk. See the later itmem about Democrats NOW starting to focus on speculators as their latest excuse for refusing to DO anythoing to raise our supply of oil. . As Senator Hutchinson said, it totally UNDERMINES any attack on the speculators when Congress, and the U.S. in general, refuse to be serious about INCREASING SUPPLY. As I have stated, and Senator Hutchinson stated, you can't turn around the PSCYHOLOGY of a speculative bubble unless the speculators see a reason to believe that we are serious about supply. It does not matter if there is presently a shortage of oil (as there is not). If the WORLD market (there are virtual riots in Britain, and the problem is clearly NOT just U.S. "speculators"). If the world oil futures market is dominated by FEAR of shortages down the line, the price is not going down.
3. Dorgan trumpeted EXPENSIVE oil reserves in the shallow, Bakken oil formation extending from Soutgh Dakota into other Western states, despite the effect on DESERT evnrionments probably (slightly) more serious thn the effect drilling will have on the ICE wilderness in that very small part of Anwar. As I have said, environmentalists really do not want much drilling ANYWHERE, but are willing to ignore some environments to politically placate environmentalists who want to ruin our industrial civilization.
4. Dorgan mentioned that same "windfall proftis" tax, which--even theoretically--cannot possibly reduce the price of gasoline even ONE THIN DIME. In fact, it will surely RAISE the price of gasoline. That is what happened in the Carter years, with a windfall profits tax. Oil companies simply stopped drilling in a way to produce product whose profits are subject to the tax. It was a disaster. Chris Wallace raised that, and Dorgan responded with a non-sequitur.
5. Dorgan said lthat the Democrat version of the "windfall profits" tax would reduce the tax the more oil companies drilled for oil and invested in "alternative energy". That reminds me of the most DISHONEST thing I heard a leftist say recently. I think it was the head of one of those Obama youth groups. That person suggested tthat the tax code has grown more complex under Republicans, and is now thousands of pages (or something like that). You might want to contemplate what complicated provisions Democrats are proposing to add to the tax code before butying that particular DECEPTION (a deception not so much because it is inaccurate as to Republicans, but because it fails to recognize that Obama andthe Democrats are WORSE). The public really needs to understand this. Instead of rationally allowing drilling in the most promising areas, Democrats want to PLAY GAMES with the tax code to RAISE TAXX MONEY for their CENTRAL PLANNING agenda on energy. This will NOT reduce gasoline prices--certainly not anytime soon. Rather, it will RAISE them, and promote further tax game playing.
6. Dorgan suggested that there are all kinds of areas where oil companies have oil leases, but are not drilling (land that Congress has not YET put off limits). DISHONEST AGAIN (as the American Petroleum Institute spokesman pointed out, in one of his few positive contributions). Oil companies buy oil leases giving them the right to drill oil, and then they EXPLORE the property. That Anwar area has already been pretty much explored, and we pretty much KNOW how much oil is clearly avaiible (although certainty requires development). With modern technology, potential economic oil deposits can be located, with good accuracy, BEFORE drilling. What Dorgan, and Democrats in general, are really saying is that they--as a POLITICAL DECEPTION--are encouraging oil companies to drill in UNPROMISING areas becasue Democrats are preventing them from drilling in MORE PROMISING areas. That is insanity, unless you realize the insanity of what is going on here for political reasons. Democrats are, in fact, doing their best to cause oil companies to WASTE money (including adding compensation for oil company employess and executives), in an attempt to add expenses so that the profits do not look so high. This includes drilling for the sake of drilling, rather than for the sake of producing the most oil.you can (Democrats preventing that by placing the most promising drilling sites off limits). This, of course, does not reduce the price of gasoline, but merely inusres it will NOT be reduced. In a free market, oil companies would drill in the most promising areas in order to MAXIMIZE PROFIT--eventually raising supply. By making "profit" a dirty word, Democrats are ecoouraging oil companies to have NO incentive to take action to raise supply, which would INCREASE their profits (in the short run)..
To be continued in the next entry. Nope, the INSANITY of Senator Dorgan and the Democrats is not NEARLY done.
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