Drill Points

Posted: 25/06/2008 in Uncategorized
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Last time I made a point that we should be drilling for oil and natural gas on our own soil, and I still hold to that notion. With #2 heating oil expected to rise well above $5.00 per gallon, we need to act quickly to alleviate the increasing pressure of supplies and demand. But we also need to react in an intelligent manner, as well. New Mexico’s Governor Bill Richardson(D) blogged that we should indeed be drilling on US territory, but it should be in the continental states, not off shore, and asks, “Why not the Rockies?” He also asks about all of the leases all of these demonic oil companies hold.
In the first place, oil isn’t necessarily everywhere. Just because a lease is held for a particular area, it doesn’t mean that there is any oil to be had. In the second place, the Rockies? Come on now Gov. Didn’t you pay attention in geology class? Thirdly, offshore drilling isn’t nearly as bad for the environment as the Lefties want you to think it is. The claim that oil rigs will damage ecosystems is unfounded. It’s also based on the same errant notion as global warming.
As illustration towards putting an oil rig in the ocean, we can look at all the other junk that’s been placed in aquatic ecosystems and see how much damage they have caused. When somebody owns waterfront property, and puts in a dock, what happens? The fishing gets better, doesn’t it? When they dump old rail cars and busses in the ocean to develop reefs to control wave action and erosion, what happens? A whole new thriving ecosystem is generated. There were several oil rigs in the Gulf of Mexico when Katrina came to town for her little romp. Not one drop of oil went missing from them, in spite of the severity of that hurricane. You figure it out from there.
David Lazarus of the LA Times has a good piece on the price of oil today. Like him, I agree that there isn’t going to be much of a decline anytime soon. The supply and demand factor is the whole key to the equation. As long as the demand is high and the supply is low, the price will be high. Coupled with the fact that our money is declining in value, it makes us have to pay even more. (continued below)

The Associated Press has a further article on the volatility of oil prices, also commenting on how much affect the value of the dollar actually has on that market price. Adding to the mix is the recent strike threat in Nigeria, as well as newly imposed sanctions imposed by the European Union on Iran in response to the nuclear situation surrounding that nation.

In spite of the political desire to frame a scapegoat on the issue, charging the speculators and other big time investors is not the solution. Red Orbit’s article on this issue is pretty explanatory about the reasoning behind the drive. The article quotes U.S. Rep. John Dingell, D-Mich., chairman of the Energy & Commerce Committee, as saying “It is time for the government to intervene,” Dingell said. “There is a cause and it must be ferreted out.” Bingo-rama for the Lefties on that issue. Let’s use higher oil prices as a way to increase government control! Perfect solution, wouldn’t you good comrades say?
Kristen Hays’ article in the Houston Chronicle also investigates the issue, supporting the supply and demand factor. BP America’s Mark Finley was interviewed, and the article says; But Finley, who specializes in statistics, said his team hasn’t found speculation to be responsible.”It’s an ambiguous picture,” he acknowledged, but he believes the spike is explained by supply and demand, and changing perceptions of these economic fundamentals. Speculation is a symptom that adds to the upward pressure, rather than a cause, he said. The same article also quotes a Barclays report on the issue as saying; “We firmly believe that tightness in oil market fundamentals underpin current prices,” the report said. “Gasoline prices have now appreciated close to 34 percent since the start of 2008.”
Supply and demand is the key to lower energy costs. Not more governmental control and regulation. We need to increase our domestic supply before it’s too late. That’s not going to happen as long as the Democrats are busy obfuscating the picture with lame attacks on Bush and the war in Iraq, Speculators and any other fog bank they can hide the truth in. We need to strengthen the value of our currency. We need to start looking like we will continue to be a strong, democratic leader in the world.
There are a lot of conservative leaning politicians leaving office in this round of elections. The few that are remaining, and the candidates who are trying to get elected as replacements need all the support they can muster. If you want to help turn things around on the issue of energy, you can do two things, as a start. For one, you can let your representatives, Susan Collins, Olympia Snowe, Tom Allen, and Mike Michaud that you want to see the Federal bans on offshore drilling lifted, and ANWR as well, and you can contribute to the Republican campaign efforts. Let them know that you insist on their participation in lowering energy costs. And you can also go to the Huck Pac site and contribute, and find out more about how you can help the cause. Click on the banner to the left for direct access, if you’d like.

Everybody is feeling the squeeze…

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