Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts

Sunday, August 24, 2008

Top ten reasons to support ANWR development

ANWR.org

Top 10 Reasons to support ANWR development

1. Only 8% of ANWR Would Be Considered for Exploration Only the 1.5 million acre or 8% on the northern coast of ANWR is being considered for development. The remaining 17.5 million acres or 92% of ANWR will remain permanently closed to any kind of development. If oil is discovered, less than 2000 acres of the over 1.5 million acres of the Coastal Plain would be affected. That¹s less than half of one percent of ANWR that would be affected by production activity.

2. Revenues to the State and Federal Treasury Federal revenues would be enhanced by billions of dollars from bonus bids, lease rentals, royalties and taxes. Estimates on bonus bids for ANWR by the Office of Management and Budget and the Department of Interior for the first 5 years after Congressional approval are $4.2 billion. Royalty and tax estimates for the life of the 10-02 fields were estimated by the Office of Management and Budget from $152-237 billion.

3. Jobs To Be Created Between 250,000 and 735,000 ANWR jobs are estimated to be created by development of the Coastal Plain.

4. Economic Impact Between 1977 and 2004, North Slope oil field development and production activity contributed over $50 billion to the nations economy, directly impacting each state in the union.

5. America's Best Chance for a Major Discovery The Coastal Plain of ANWR is America's best possibility for the discovery of another giant "Prudhoe Bay-sized" oil and gas discovery in North America. U.S. Department of Interior estimates range from 9 to 16 billion barrels of recoverable oil.

6. North Slope Production in Decline The North Slope oil fields currently provide the U.S. with nearly 16% of it's domestic production and since 1988 this production has been on the decline. Peak production was reached in 1980 of two million barrels a day, but has been declining to a current level of 731,000 barrels a day.

7. Imported Oil Too Costly In 2007, the US imported an average of 60% of its oil and during certain months up to 64%. That equates to over $330 billion in oil imports. That’s $37.75 million per hour gone out of our economy! Factor in the cost to defend our imported oil, and the costs in jobs and industry sent abroad, the total would be nearly a trillion dollars.

8. No Negative Impact on Animals Oil and gas development and wildlife are successfully coexisting in Alaska 's arctic. For example, the Central Arctic Caribou Herd (CACH) which migrates through Prudhoe Bay has grown from 3000 animals to its current level of 32,000 animals. The arctic oil fields have very healthy brown bear, fox and bird populations equal to their surrounding areas.

9. Arctic Technology Advanced technology has greatly reduced the 'footprint" of arctic oil development. If Prudhoe Bay were built today, the footprint would be 1,526 acres, 64% smaller.

10. Alaskans Support More than 75% of Alaskans favor exploration and production in ANWR. The democratically elected Alaska State Legislatures, congressional delegations, and Governors elected over the past 25 years have unanimously supported opening the Coastal Plain of ANWR. The Inupiat Eskimos who live in and near ANWR support onshore oil development on the Coastal Plain.

Tuesday, August 05, 2008

Pelosi Privately Tells At-Risk Dems to Back Drilling

Politico.com

Martin Kady II and Patrick O'Connor

California Democrat Nancy Pelosi may be trying to save the planet — but the rank and file in her party increasingly are just trying to save their political hides when it comes to gas prices as Republicans apply more and more rhetorical muscle.

But what looks like intraparty tension on the surface is part of an intentional strategy in which Pelosi takes the heat on energy policy, while behind the scenes she’s encouraging vulnerable Democrats to express their independence if it helps them politically, according to Democratic aides on and off Capitol Hill.

Pelosi’s gambit rests on one big assumption: that Democrats will own Washington after the election and will be able to craft a sweeping energy policy that is heavy on conservation and fuel alternatives while allowing for some new oil drilling. Democrats see no need to make major concessions on energy policy with a party poised to lose seats in both chambers in just three months — even if recess-averse Republicans continue to pound away on the issue.
"...behind the scenes she’s encouraging vulnerable Democrats to express their independence if it helps them politically..."
“The reality is we will have a new president in three months, and what Bush and the Republicans are trying to do amounts to a land grab for the oil companies,” said one senior House Democratic aide involved with party strategy. “I don’t think we have to give in at all pre-election — we have many more options postelection.”

It’s a reality that Rep. Nick J. Rahall (D-W.Va.) personally delivered to President Bush recently.

Rahall spent more than an hour last week talking to the president about energy. Bush spent the entire flight aboard Air Force One, and much of a subsequent limousine ride, grilling the West Virginia Democrat about legislative solutions to the high price of gasoline, Rahall said last week.

So, does the president think Congress can get anything done this year?

“No,” Rahall replied in a short interview with Politico. “He’s realistic about it.”

Asked if Congress will produce a comprehensive energy bill in September before Congress adjourns again for elections, Rahall replied, “This year? No.”

Instead, the chairman of the House Committee on Natural Resources believes Democrats are all about 2009.

“We’ve laid the groundwork this year,” Rahall said.

Democratic House aides say the energy agenda has been carefully gamed out in strategy sessions, and Pelosi always intended to take heat on gas prices while tacitly encouraging more vulnerable Democrats to publicly disagree with her and show their independence.

Freshman Democrats like Jason Altmire of Pennsylvania and Don Cazayoux of Louisiana have taken her up on the offer.

Altmire has said a drilling vote “will happen,” while Cazayoux, hoping to hang on to his seat in a conservative Baton Rouge-area district, on Friday sent a letter to Majority Leader Steny H. Hoyer (D-Md.) demanding a vote on more domestic oil exploration.

“There will be a vote,” said Altmire, who faces a rematch with former GOP Rep. Melissa Hart this fall in the Pittsburgh suburbs.

Indeed, Congress must vote before Sept. 30 to renew the annual moratorium; otherwise, it will lapse on its own, giving states the right to decide whether private companies can search for potential drilling sites three miles offshore. .

“My view is that if we have a vote, let’s make it a rational policy,” said Altmire, whose district includes viable coal and nuclear industries. “We can’t let Republicans hold this issue hostage because of one vote.”

Cazayoux, in his letter, says “the current debate seems to be bogged down in partisan one-upmanship.”

To some extent, House Republicans seem to be playing right along with the strategy, taking Pelosi’s name in vain dozens of times during their rebel House sessions over the past few days and making her the villain who won’t allow oil drilling votes.

“It’s grossly unfair to the Democrats who want a vote,” said Rep. Louie Gohmert (R-Texas). “[Pelosi] needs to cut that out.”

The Senate has also gone with a run-out-the-clock strategy, with Majority Leader Harry Reid (D-Nev.) calling for a bipartisan energy summit but promising no major energy votes. Reid embraced the drilling and conservation proposals of the bipartisan Senate “Gang of 10” last week, but he made further commitment on the energy debate.

Reid, like Pelosi, is expecting to have a much stronger governing majority in the Senate next year, so he has little incentive to give in to Republicans on energy policy as long as he thinks it won’t hurt Democrats.

Even as they face heat from constituents during the August break, Democrats say they aren’t going to cave in to popular pressure.

“We feel pretty comfortable with where we are,” said Rep. Michael E. Capuano (D-Mass.), who is close to the Democratic leadership. “This is a not a new issue. This just didn’t happen today. We’ve been working on this for months.”

Democratic insiders said that Pelosi and other party leaders were “not rattled” by the GOP floor rebellion, and at this point, it’s not clear if the Democrats will even pay a price on energy. State-level polling conducted by Democrats suggests that voters still view President Bush and the GOP as the incumbent power in Washington, and Democratic strategists believe any anti-incumbent wave would hurt Republicans more than Democrats.

Rep. Jeb Hensarling of Texas, one of the leaders of the rogue GOP House session, said he realizes that Democrats are “in a four-corners stall right now,” and admits that “it gets more challenging” for Republicans if they lose more seats in Congress.

Democrats are also comforted somewhat by the fact that crude oil prices have gone down more than 10 percent from their summer highs, and if the U.S. economy enters a recession, prices may fall further due to slackening demand.

“There is no crisis on our side of the aisle,” a top House Democratic leadership aide said. “We have a plan, and we will stick to it.”

Drill, Drill, Drill Is Working

RealClearPolitics

Lawrence Kudlow

As Sen. John McCain and the GOP leadership nationalize the drill, drill, drill message, the Republican party might conceivably be riding a summer political rally. The question of offshore drilling, along with expanded domestic energy production, has suddenly become the biggest political and economic wedge issue of this election. Is there a Republican tsunami in the making?

According to the major polls, Sen. McCain has overcome a big deficit to pull even with Obama. Meanwhile, according to a Rasmussen survey, Democratic party identification has slumped.

While Republicans on the House floor shouted "vote, vote, vote" and "lower gas prices," the Democratic majority turned off the lights, cameras, and microphones. Determined Republican Senate leader Mitch McConnell offered unanimous-consent requests to vote on lifting the ban on deep-water exploration, and the Democrats objected. When McConnell asked Democrats if they'd overturn the ban at $4.50 a gallon, they replied "no." When he raised the price to $5, $7, and $10, they cried "no," "no," and "no."

On the Stephanopoulos Sunday news show, House Speaker Nancy Pelosi underscored her refusal to allow a drilling vote. Asked about the Republican rebellion in the House, she said, "What you saw in the Congress this week was the war dance of the handmaidens of the oil companies." She went on to say, "We are spending all of this time on a parliamentary tactic, when nothing less is at stake than the planet, the air we breathe, our children breathe."
Without even realizing it, the GOP drilling offensive has become a new contract with America.
Oh really? Voters have a much different view. Polls suggest that two-thirds to three-quarters of the nation wants to drill. To wit, while a just-released Obama campaign ad attacks McCain as a tool of big oil, McCain has taken his first-ever lead in a Rasmussen tracking poll.

There is a voter revolt going on, and it reminds me of the anti-tax rebellion that lifted Ronald Reagan into office twenty-eight years ago. Is the conventional wisdom about to be swept away? As Republicans press home the drill, drill, drill message, might they pick up seats in Congress this year? And might the national clamor for a more realistic and balanced energy policy -- one that includes more oil, natural gas, clean coal, nuclear, and the alternatives of wind, solar, and cellulosic -- carry John McCain to a convincing victory over Obama?

Without even realizing it, the GOP drilling offensive has become a new contract with America. And it appears to be working. The public is putting aside global warming and choosing instead new-energy production, a stronger economy, and more job creation. Voters want growth, not austerity. They want Ronald Reagan, not Thomas Malthus. And by resisting this grassroots call, the Democratic party is digging itself into one of the biggest political dry holes in history.

New economic statistics highlight the damage done by the unprecedented oil-price shock. Only a year ago real gross domestic product was growing at 4 to 5 percent. Then came the dramatic rise of energy prices and down came the economy.

GDP contracted slightly late last year and rose a miniscule 0.9 percent in this year's first quarter. And although real growth picked up to nearly 2 percent in the second quarter, that number is suspect since the government does not count surging import prices from food and energy.

Wall Street blames everything on the housing slump and the sub-prime credit crisis. Of course, these are significant. But the drop in housing starts, sales, and prices has been going on for nearly two years, without crunching down the economy.

It's the oil shock that has brought us perilously close to recession. In fact, despite a slight rise in GDP, nonfarm corporate payrolls have declined for seven consecutive months while private payrolls have fallen for eight straight months. A year ago the unemployment rate was 4.5 percent. Today it's 5.7 percent. Topping it off, the inflation rate has climbed from 2 to 4 percent over the past year.

Right now the recession call is still an open question. But the economic damage caused by skyrocketing energy prices is a no-brainer.

When President George W. Bush eliminated the executive moratorium on offshore drilling a month ago, effectively launching the drill, drill, drill offensive, oil was close to $150 a barrel. Since then, the barrel price has dropped to nearly $120 as futures-market traders anticipate a major shift in federal drilling policy.

Over at the Intrade pay-to-play prediction market, the probability of an offshore drilling bill passing in 2008 is now handicapped at 50 percent, up from 25 percent only a few days ago. Clearly, investors know market prices will move well before we see actual new energy supplies from offshore drilling. The likelihood of greater energy supply will incentivize those much-vilified traders to slash barrel prices much more, bringing relief at the pump and earning the gratitude of a whole nation.

At the same time, those wrongheaded Democratic leaders, from Obama to Reid to Pelosi, will see their political fortunes plummet deep into bear-market territory.

Friday, August 01, 2008

Pelosi: Save the Planet, Let Someone Else Drill

RealClearPolitics

Charles Krauthammer

WASHINGTON -- House Speaker Nancy Pelosi opposes lifting the moratorium on drilling in the Arctic National Wildlife Refuge and on the Outer Continental Shelf. She won't even allow it to come to a vote. With $4 gas having massively shifted public opinion in favor of domestic production, she wants to protect her Democratic members from having to cast an anti-drilling election-year vote. Moreover, given the public mood, she might even lose. This cannot be permitted. Why? Because as she explained to Politico: "I'm trying to save the planet; I'm trying to save the planet."

A lovely sentiment. But has Pelosi actually thought through the moratorium's actual effects on the planet?

Consider: 25 years ago, nearly 60 percent of U.S. petroleum was produced domestically. Today it's 25 percent. From its peak in 1970, U.S. production has declined a staggering 47 percent. The world consumes 86 million barrels a day; the United States, roughly 20 million. We need the stuff to run our cars and planes and economy. Where does it come from?

Places like Nigeria where chronic corruption, environmental neglect and resulting unrest and instability lead to pipeline explosions, oil spills and illegal siphoning by the poverty-stricken population -- which leads to more spills and explosions. Just this week, two Royal Dutch Shell pipelines had to be shut down because bombings by local militants were causing leaks into the ground.

Compare the Niger Delta to the Gulf of Mexico where deep-sea U.S. oil rigs withstood Hurricanes Katrina and Rita without a single undersea well suffering a significant spill.

The United States has the highest technology to ensure the safest drilling. Today, directional drilling -- essentially drilling down, then sideways -- allows access to oil that in 1970 would have required a surface footprint more than three times as large. Additionally, the U.S. has one of the most extensive and least corrupt regulatory systems on the planet.

Does Pelosi imagine that with so much of America declared off-limits, the planet is less injured as drilling shifts to Kazakhstan and Venezuela and Equatorial Guinea? That Russia will be more environmentally scrupulous than we in drilling in its Arctic?

The net environmental effect of Pelosi's no-drilling willfulness is negative. Outsourcing U.S. oil production does nothing to lessen worldwide environmental despoliation. It simply exports it to more corrupt, less efficient, more unstable parts of the world -- thereby increasing net planetary damage.

Democrats want no oil from the American OCS or ANWR. But of course they do want more oil. From OPEC. From where Americans don't vote. From places Democratic legislators can't see. On May 13, Sen. Chuck Schumer -- deeply committed to saving just those pieces of the planet that might have huge reserves of American oil -- demanded that the Saudis increase production by a million barrels a day. It doesn't occur to him that by eschewing the slightest disturbance of the mating habits of the Arctic caribou, he is calling for the further exploitation of the pristine deserts of Arabia. In the name of the planet, mind you.

The other panacea, yesterday's rage, is biofuels: We can't drill our way out of the crisis, it seems, but we can greenly grow our way out. By now, however, it is blindingly obvious even to Democrats that biofuels are a devastating force for environmental degradation. It has led to the rape of "lungs of the world" rainforests in Indonesia and Brazil as huge tracts have been destroyed to make room for palm oil and sugar plantations.

Here in the U.S., one out of every three ears of corn is stuffed into a gas tank (by way of ethanol), causing not just food shortages abroad and high prices at home, but intensive increases in farming with all of the attendant environmental problems (soil erosion, insecticide pollution, water consumption, etc.).

This to prevent drilling on an area in the Arctic one-sixth the size of Dulles Airport that leaves untouched a refuge one-third the size of Britain.

There are a dizzying number of economic and national security arguments for drilling at home: a $700 billion oil balance-of-payment deficit, a gas tax (equivalent) levied on the paychecks of American workers and poured into the treasuries of enemy and terror-supporting regimes, growing dependence on unstable states of the Persian Gulf and Caspian basin. Pelosi and the Democrats stand athwart shouting: We don't care. We come to save the planet!

They seem blissfully unaware that the argument for their drill-there-not-here policy collapses on its own environmental terms.

Wednesday, July 23, 2008

Shut Up and Produce Some Oil

The American Spectator

Peter Ferrara

Liberals are flailing about looking for some political cover on energy and gas prices. For decades now, they have supported the policies of extremists who have systematically sought to shut down every major energy source for our economy. We can't drill for oil offshore, we can't drill in the frozen tundra of north Alaska, we can't even develop oil shale on the mainland. Liberals are even opposing the development of new oil discoveries in the Plains states. Meanwhile, China is now producing oil from wells in Cuban waters off the coast of Florida, selling and reaping enormous profits from oil that America should be producing.

Nuclear power? Can't have that. Jane Fonda showed us in a movie in the 1970s how dangerous that is. France and Japan have produced most of their electricity for decades through the nuclear power technology that America developed, and they are now competing to sell nuclear plant development to China and India.

One of the last U.S. nuclear projects was the Shoreham plant begun by Long Island Lighting Company in 1973. After years of ridiculous regulatory delays, the plant was shut down in 1989 by protests by liberal flower children, before producing any electricity. Long Island Lighting went bankrupt as a result. New Hampshire's Seabrook plant was held up for 14 years by similar regulatory delays, before finally opening in 1990 (and operating without harm ever since).

This is why there has been no new nuclear plant construction in the U.S. since then. Those regulatory delays are due to laws and policies adopted by liberals, who are willing to let extremists use them to shut down any such construction.


LIBERALS ARE NOW even opposing the development and even the maintenance of coal fired electric plants. The energy policy statement on Barack Obama's website says, "Obama believes that the imperative to confront climate change requires that we prevent a new wave of traditional coal facilities in the U.S." In Georgia, a state judge denied a permit for a new coal electricity plant on the grounds of global warming (which is a figment of the liberal imagination to justify a big government power grab). Meanwhile, China opens a new coal plant every week on its way to eventually pass the U.S. as the number one economy in the world.

The last new oil and gas refinery was built in the U.S. in 1976. A good example of the reason why is going on right now in Indiana. BP is constructing a $3.8 billion expansion of its already existing Whiting refinery in that state. But the National Resources Defense Council (NRDC) has now brought suit against BP seeking an injunction against the expansion, and fines of $32,500 for each day construction has been under way. The NRDC is urging the court to adopt a new interpretation of state law that would require BP to get a new state permit first because with the expansion the refinery would supposedly discharge more "pollution" than the current state permit allows. If the NRDC has found a liberal enough judge, it may get its way, to the great detriment of the rest of us.

Some liberals are even now calling for the elimination of already built and operating hydroelectric power plants, on the grounds that the dams in such projects distort the environment too much. This would require dams to be destroyed and occupied valleys to be flooded.

The problem for liberals is that we are now running into the iron logic of the law of supply and demand, which, unfortunately for them, most voters can understand. Shut down the supply of oil and you get gas prices starting to run towards $5 a gallon. This winter, the price of home heating oil will brutalize the budgets of many families. We are getting to the point where an effective bumper sticker will be, "Keep the Lights On, Vote Republican."


THAT IS WHY the bold Republican initiative to expand oil production and other energy supplies, originally developed by Newt Gingrich, is so effective, and so threatening to liberals. Polls show increasingly overwhelming public support.

As a result, liberals are flailing about offering increasingly absurd distractions. One argument is that even if we started drilling for oil now, we wouldn't get any increased supply, and any reduction in gas prices, for 10 years or more. One popinjay from the misnamed Center for American Progress was recently spouting on TV that there would be no effect until 2030.

Well, let's see. On Friday, July 14, the price of a barrel of oil hit $147. On Monday, July 17, President Bush withdrew the Executive Order banning offshore drilling. That doesn't even start any new drilling because there is still a Congressional ban in place. Nevertheless, by Friday, July 21, after 4 straight days of decline, the price of oil had plummeted to $128, a decline of 13% on a symbolic action alone. The Center for American "Progress" was only off by 21 years, 51 weeks.

There are oil wells off the Pacific coast that were capped years ago when the offshore drilling ban was first adopted. They could be brought back into production in less than a year. Expert oil engineers recently interviewed have said other sites could be producing in 18 months. The standard estimate for production from new drilling in Alaska is 10 years. But if the government gets the lawsuits and regulatory delays out of the way, here's betting the new wells would be producing in less than 5 years.

More importantly, if Congress adopted a comprehensive plan to open up domestic oil production in the U.S., everyone would know that in the long run the price of oil would be heading down. That would break the back of the oil panic today that has driven the price up to ridiculous levels. If the Fed reversed its weak dollar policy at the same time, within a year the price of oil would drop by 50% or more, dropping the price of gas down close to $2 a gallon, which is where it should be. In a competitive market, price is supposed to equal the marginal cost of production. For a barrel of oil, that would be $25 to $40 at most, which is where the long term price of oil would be if the U.S. removed production restrictions.


ANOTHER DISTRACTION is the argument that even if new oil production is allowed, there is no guarantee the oil companies won't sell the oil to Japan or China rather than to American consumers. This argument is 100% bad economics. The truth is, it doesn't matter where the oil is sold. All the new production would increase the world supply of oil regardless of where it is sold. With world supply up, the world price would decline. If new production from Alaska is sold to Japan, the oil that would have otherwise been sold to Japan could then be sold to the U.S.

In fact, if you look at a globe, you would see that Alaska is close to Japan. It would be most efficient, meaning reduced costs and prices, for the production there to be sold to Japan, and for production from South America that would otherwise go to Japan to go to the U.S. instead. That would be the natural result of an efficient market. But to counter the distracting nonsense of desperate liberals grasping for power at all costs, the new production can always be required to be sold in the U.S.

Still another distracting argument is that the oil companies already have millions of acres in oil leases, so why don't they just produce more oil from those areas? The oil companies pay for those leases for exploration. There is no guarantee that any leased areas will actually hold producible oil. Given that the oil companies must pay rent for the term of those leases regardless of whether any oil is produced, and that the price of oil is at record, unprecedented, historic levels, any oil company that was not producing all it could from any of its leases would be subject to shareholder lawsuits for waste of corporate assets. It is just like liberals to demand that oil companies produce more from areas that do not hold any more oil while denying access to areas with massive proven reserves.

Liberals argue that if we would just sell a small portion of the oil from the Strategic Petroleum Reserve that the U.S. government holds in case of emergency, oil and gas prices would fall. So now all of a sudden liberals recognize that increased supply on the market would reduce prices. But any such sales would be a drop in the bucket, and only temporary, likely, indeed, to be reversed later to restore the reserve. So this would have no significant, lasting effect.

Yet another distraction is that we should just increase the required miles per gallon under the CAFÉ standards for the production of new vehicles. This is no answer to the oil and gas price problem because it involves only restricting consumer freedom of choice, and ultimately reducing the American standard of living. It means that consumers should be prohibited from buying the vehicles they want, and instead should be allowed to buy only the vehicles the government wants them to have. The SUV explosion was all about the American consumer wanting bigger, more powerful vehicles rather than vehicles with better fuel economy. There have long been low cost vehicles available for sale in the U.S. operating with close to 50 miles per gallon in fuel efficiency. But consumers have failed to choose those cars, while close to half of sales of new vehicles have been SUVs with low fuel efficiency exempt from the CAFE standards.


IF NOW WITH HIGHER gas prices American consumers want to abandon SUVs and buy more fuel efficient cars, that should be their choice. But the government should not be imposing that choice on them. Yet Barack Obama says on his website that he wants "to double fuel economy standards within 18 years." That involves an assault on the standard of living of the middle class, which would be forced to give up the big, powerful vehicles they now enjoy for the tiny, little sardine cans that most Europeans drive. In fact, there has been talk precisely of allowing car manufacturers to import into the U.S. the little fuel efficient vehicles that they now make for Europe.

Assaulting the standard of living of the middle class is what Barack Obama is all about. For you can search through all of his position papers, speeches and talking points and not find a word about reducing the price of gas or oil. He clearly has no intention of trying to reduce the price of gas at all. He has said, in fact, that the high price of gas and oil is good for the environment, and the only problem is that the prices increased too suddenly. This is the Marie Antoinette school of energy policy.

Remember Obama's famous quote:

"We can't just keep driving our SUVs, eating whatever we want, keeping our homes at 72 degrees at all times regardless of whether we live in the tundra or the desert, and keep consuming 25 percent of the world's resources with just 4 percent of the world's population, and expect the rest of the world to say you just go ahead. We'll be fine. That's not leadership. That's not going to happen."

What he means by this is that the current standard of living of the American people is unfair. It represents massive inequality in comparison to the rest of the world. So here we have a leading Presidential candidate who thinks truth and justice requires a reduction in our opulent middle class living standards. Good luck, and good night.

Peter Ferrara is Director of Entitlement and Budget Policy for the Institute for Policy Innovation. He served in the Reagan White House Office of Policy Development, after graduating from Harvard Law School and Harvard College.

Friday, July 18, 2008

What Dems Can't Say About Drilling

RealClearPolitics

David Harsanyi

One day Americans are moaning about the harmful impact of cheap oil and the next they're grousing about the harmful impact of expensive oil.

Which one is it?

As a disreputable sort, I freely confess to having a fondness for oil. Actually, I have a mild crush on all carbon-emitting fuels that feed our prosperity. But I'm especially fond of cheap oil. For many years, those who spread apocalyptic global-warming scenarios have warned me that a collective national sacrifice was needed to save the world.

One option, we were told, was to make gas artificially expensive, forcing our ignorant, energy-gobbling neighbors to alter their destructive habits.

Well, here we are. At $4 a gallon for gas, we already have a flailing economy. Isn't it glorious? And isn't it exactly what many environmentalists desired?

The problem is that there is no feasible "alternative" fuel that can haul food from farms to cities, produce affordable electricity for your plasma TV and drive your kids to school. Not yet. It can happen, of course, but only (to pinch a word from enlightened grocery shoppers) organically.

The problem is that when "green" fantasies crash onto the shores of economic reality (as they did with corn-based ethanol), we all suffer.

Don't worry, though, congressional Democrats have a bold plan. Hold on for 10 or 15 years and they'll have a bounty of energy options. They promise. But no oil shale. No clean coal. No nuclear power. And definitely no more oil.

They will not enable your revolting, inefficient lifestyle. In the short-term, offshore drilling, especially, is a pie-in-the-sky fairy tale. Unlike, say, pond scum and hydrogen fuel packs.

On the bright side, it seems that reality is beginning to overtake fantasy. This week, Newt Gingrich's American Solutions for Winning the Future group delivered 1.3 million signatures to Congress, demanding that Washington allow more drilling. A recent Zogby International polls shows 74 percent of likely voters support offshore drilling in U.S. coastal waters, and 59 percent favor drilling for oil in the tundra of the Arctic National Wildlife Refuge.

There are few issues in America that offer this kind of impressive "unity." But apparently when unity doesn't align with left-wing orthodoxy, we need more "leadership" to explain why we're wrong.

Presumptive presidential nominee Barack Obama called offshore drilling a "gimmick." According to other Democrats, prices would not be affected for five years and oil companies probably would not use the leases anyway.

If oil giants won't dig, it surely can't hurt to allow leasing. Who knows? They may.

As for waiting? Well, rest assured an increase in domestic oil supply will involve a lot less waiting than the emergence of switchgrass as a viable alternative.

More importantly, oil is a traded commodity and, as everyone knows, the price can fluctuate for a number of reasons beyond supply.

Take President Bush's ceremonial lifting of the moratorium on offshore drilling this week. By happenstance, I guess, within the next three days the price of oil per barrel had fallen more than $15 — the largest such drop in five years.

So why can't Americans look forward to more domestic oil? Well, because carbon is bad for you. Because countless Democrats believe that high prices will help wean us off this terrible addiction.

For many, environmental concerns outweigh the economic well-being of citizens. For some, the migratory paths of caribou trump your selfish habit of heating and cooling your home.

No, drilling isn't "the answer." Yet, the potential positives from increasing domestic supply outweigh any concerns of the opposition. Certainly any they can talk about in public.

Monday, July 14, 2008

Drill, baby, drill

"Congressional attacks on speculation do not alter the oil market’s fundamental demand and supply conditions. What would lower the long-term price of oil is for Congress to permit exploration for the estimated billions upon billions of barrels of oil domestically available, not to mention the estimated trillion-plus barrels of shale oil in Wyoming, Colorado and Utah. Some politicians pooh-pooh calls for drilling, saying it would take five or 10 years to recover the oil. I guarantee you we would begin to see a reduction in today’s prices even if it took five to 10 years for us to get the first barrel. Put yourself in the place of an OPEC member knowing there would be a greater supply of U.S. oil five or 10 years, hence maybe driving oil prices lower to say $40 a barrel. What will you want to do now while oil is $130 a barrel? You would want to sell as much oil now and OPEC’s collective efforts to do so would put downward pressures on current oil prices. Right now the U.S. Congress is OPEC’s staunchest ally."

— Walter Williams

Monday, June 30, 2008

"In response to skyrocketing gas prices, liberals say, practically in unison, ‘We can’t drill our way out of this crisis.’

What does that mean?... Finding more oil isn’t going to increase the supply of oil? It is the typical Democratic strategy to babble meaningless slogans, as if they have a plan... Liberals complain that—as B. Hussein Obama put it—there’s ‘no way that allowing offshore drilling would lower gas prices right now. At best you are looking at five years or more down the road.’...

What was going on five years ago? Why didn’t anyone propose drilling back then? Say, you know what we need? We need a class of people paid to anticipate national crises and plan solutions in advance. It would be such an important job, the taxpayers would pay them salaries so they wouldn’t have to worry about making a living and could just sit around anticipating crises. If only we had had such a group—let’s call them ‘elected representatives’ —they could have proposed drilling five years ago!

But of course we do pay people to anticipate national problems and propose solutions. Some of them—we’ll call them Republicans—did anticipate high gas prices and propose solutions. Six long years ago President Bush had the foresight to demand that Congress allow drilling in a minuscule portion of the Alaska’s barren, uninhabitable Arctic National Wildlife Refuge (ANWR). In 2002, Bush, Tom DeLay and the entire Republican Party were screaming from the rooftops: Drill! Drill! Drill! We’d be gushing oil now—except the Democrats stopped us from drilling. Drilling on only 0.01 percent of ANWR’s 19 million acres was projected to produce about 10 billion barrels of oil. From all domestic sources combined, we currently produce about 1.8 billion barrels of oil per year. To a layperson like myself, 10 billion barrels seems like a lot of oil."

— Ann Coulter

Friday, June 13, 2008

Global Warming and the Price of a Gallon of Gas

KUSI

John Coleman

You may want to give credit where credit is due to Al Gore and his global warming campaign the next time you fill your car with gasoline, because there is a direct connection between Global Warming and four dollar a gallon gas. It is shocking, but true, to learn that the entire Global Warming frenzy is based on the environmentalist’s attack on fossil fuels, particularly gasoline. All this big time science, international meetings, thick research papers, dire threats for the future; all of it, comes down to their claim that the carbon dioxide in the exhaust from your car and in the smoke stacks from our power plants is destroying the climate of planet Earth. What an amazing fraud; what a scam.

The future of our civilization lies in the balance.

That’s the battle cry of the High Priest of Global Warming Al Gore and his fellow, agenda driven disciples as they predict a calamitous outcome from anthropogenic global warming. According to Mr. Gore the polar ice caps will collapse and melt and sea levels will rise 20 feet inundating the coastal cities making 100 million of us refugees. Vice President Gore tells us numerous Pacific islands will be totally submerged and uninhabitable. He tells us global warming will disrupt the circulation of the ocean waters, dramatically changing climates, throwing the world food supply into chaos. He tells us global warming will turn hurricanes into super storms, produce droughts, wipe out the polar bears and result in bleaching of coral reefs. He tells us tropical diseases will spread to mid latitudes and heat waves will kill tens of thousands. He preaches to us that we must change our lives and eliminate fossil fuels or face the dire consequences. The future of our civilization is in the balance.

With a preacher’s zeal, Mr. Gore sets out to strike terror into us and our children and make us feel we are all complicit in the potential demise of the planet.

Here is my rebuttal.

There is no significant man made global warming. There has not been any in the past, there is none now and there is no reason to fear any in the future. The climate of Earth is changing. It has always changed. But mankind’s activities have not overwhelmed or significantly modified the natural forces.

Through all history, Earth has shifted between two basic climate regimes: ice ages and what paleoclimatologists call “Interglacial periods”. For the past 10 thousand years the Earth has been in an interglacial period. That might well be called nature’s global warming because what happens during an interglacial period is the Earth warms up, the glaciers melt and life flourishes. Clearly from our point of view, an interglacial period is greatly preferred to the deadly rigors of an ice age. Mr. Gore and his crowd would have us believe that the activities of man have overwhelmed nature during this interglacial period and are producing an unprecedented, out of control warming.

Well, it is simply not happening. Worldwide there was a significant natural warming trend in the 1980’s and 1990’s as a Solar cycle peaked with lots of sunspots and solar flares. That ended in 1998 and now the Sun has gone quiet with fewer and fewer Sun spots, and the global temperatures have gone into decline. Earth has cooled for almost ten straight years. So, I ask Al Gore, where’s the global warming?

The cooling trend is so strong that recently the head of the United Nation’s Intergovernmental Panel on Climate Change had to acknowledge it. He speculated that nature has temporarily overwhelmed mankind’s warming and it may be ten years or so before the warming returns. Oh, really. We are supposed to be in a panic about man-made global warming and the whole thing takes a ten year break because of the lack of Sun spots. If this weren’t so serious, it would be laughable.

Now allow me to talk a little about the science behind the global warming frenzy. I have dug through thousands of pages of research papers, including the voluminous documents published by the United Nations Intergovernmental Panel on Climate Change. I have worked my way through complicated math and complex theories. Here’s the bottom line: the entire global warming scientific case is based on the increase in carbon dioxide in the atmosphere from the use of fossil fuels. They don’t have any other issue. Carbon Dioxide, that’s it.

Hello Al Gore; Hello UN Intergovernmental Panel on Climate Change. Your science is flawed; your hypothesis is wrong; your data is manipulated. And, may I add, your scare tactics are deplorable. The Earth does not have a fever. Carbon dioxide does not cause significant global warming.

The focus on atmospheric carbon dioxide grew out a study by Roger Revelle who was an esteemed scientist at the Scripps Oceanographic Institute. He took his research with him when he moved to Harvard and allowed his students to help him process the data for his paper. One of those students was Al Gore. That is where Gore got caught up in this global warming frenzy. Revelle’s paper linked the increases in carbon dioxide, CO2, in the atmosphere with warming. It labeled CO2 as a greenhouse gas.

Charles Keeling, another researcher at the Scripps Oceanographic Institute, set up a system to make continuous CO2 measurements. His graph of these increases has now become known as the Keeling Curve. When Charles Keeling died in 2005, his son David, also at Scripps, took over the measurements. Here is what the Keeling curve shows: an increase in CO2 from 315 parts per million in 1958 to 385 parts per million today, an increase of 70 parts per million or about 20 percent.

All the computer models, all of the other findings, all of the other angles of study, all come back to and are based on CO2 as a significant greenhouse gas. It is not.

Here is the deal about CO2, carbon dioxide. It is a natural component of our atmosphere. It has been there since time began. It is absorbed and emitted by the oceans. It is used by every living plant to trigger photosynthesis. Nothing would be green without it. And we humans; we create it. Every time we breathe out, we emit carbon dioxide into the atmosphere. It is not a pollutant. It is not smog. It is a naturally occurring invisible gas.

Let me illustrate. I estimate that this square in front of my face contains 100,000 molecules of atmosphere. Of those 100,000 only 38 are CO2; 38 out of a hundred thousand. That makes it a trace component. Let me ask a key question: how can this tiny trace upset the entire balance of the climate of Earth? It can’t. That’s all there is to it; it can’t.

The UN IPCC has attracted billions of dollars for the research to try to make the case that CO2 is the culprit of run-away, man-made global warming. The scientists have come up with very complex creative theories and done elaborate calculations and run computer models they say prove those theories. They present us with a concept they call radiative forcing. The research organizations and scientists who are making a career out of this theory, keep cranking out the research papers. Then the IPCC puts on big conferences at exotic places, such as the recent conference in Bali. The scientists endorse each other’s papers, they are summarized and voted on, and viola, we are told global warming is going to kill us all unless we stop burning fossil fuels.

May I stop here for a few historical notes? First, the internal combustion engine and gasoline were awful polluters when they were first invented. And, both gasoline and automobile engines continued to leave a layer of smog behind right up through the 1960’s. Then science and engineering came to the environmental rescue. Better exhaust and ignition systems, catalytic converters, fuel injectors, better engineering throughout the engine and reformulated gasoline have all contributed to a huge reduction in the exhaust emissions from today’s cars. Their goal then was to only exhaust carbon dioxide and water vapor, two gases widely accepted as natural and totally harmless. Anyone old enough to remember the pall of smog that used to hang over all our cities knows how much improvement there has been. So the environmentalists, in their battle against fossil fuels and automobiles had a very good point forty years ago, but now they have to focus almost entirely on the once harmless carbon dioxide. And, that is the rub. Carbon dioxide is not an environmental problem; they just want you now to think it is.

Numerous independent research projects have been done about the greenhouse impact from increases in atmospheric carbon dioxide. These studies have proven to my total satisfaction that CO2 is not creating a major greenhouse effect and is not causing an increase in temperatures. By the way, before his death, Roger Revelle coauthored a paper cautioning that CO2 and its greenhouse effect did not warrant extreme countermeasures.

So now it has come down to an intense campaign, orchestrated by environmentalists claiming that the burning of fossil fuels dooms the planet to run-away global warming. Ladies and Gentlemen, that is a myth.

So how has the entire global warming frenzy with all its predictions of dire consequences, become so widely believed, accepted and regarded as a real threat to planet Earth? That is the most amazing part of the story.

To start with global warming has the backing of the United Nations, a major world force. Second, it has the backing of a former Vice President and very popular political figure. Third it has the endorsement of Hollywood, and that’s enough for millions. And, fourth, the environmentalists love global warming. It is their tool to combat fossil fuels. So with the environmentalists, the UN, Gore and Hollywood touting Global Warming and predictions of doom and gloom, the media has scrambled with excitement to climb aboard. After all the media loves a crisis. From YK2 to killer bees the media just loves to tell us our lives are threatened. And the media is biased toward liberal, so it’s pre-programmed to support Al Gore and UN. CBS, NBC, ABC, CNN, MSNBC, The New York Times, The LA Times, The Washington Post, the Associated Press and here in San Diego The Union Tribune are all constantly promoting the global warming crisis.

So who is going to go against all of that power? Not the politicians. So now the President of the United States, just about every Governor, most Senators and most Congress people, both of the major current candidates for President, most other elected officials on all levels of government are all riding the Al Gore Global Warming express. That is one crowded bus.

I suspect you haven’t heard it because the mass media did not report it, but I am not alone on the no man-made warming side of this issue. On May 20th, a list of the names of over thirty-one thousand scientists who refute global warming was released. Thirty-one thousand of which 9,000 are Ph.ds. Think about that. Thirty-one thousand. That dwarfs the supposed 2,500 scientists on the UN panel. In the past year, five hundred of scientists have issued public statements challenging global warming. A few more join the chorus every week. There are about 100 defectors from the UN IPCC. There was an International Conference of Climate Change Skeptics in New York in March of this year. One hundred of us gave presentations. Attendance was limited to six hundred people. Every seat was taken. There are a half dozen excellent internet sites that debunk global warming. And, thank goodness for KUSI and Michael McKinnon, its owner. He allows me to post my comments on global warming on the website KUSI.com. Following the publicity of my position form Fox News, Glen Beck on CNN, Rush Limbaugh and a host of other interviews, thousands of people come to the website and read my comments. I get hundreds of supportive emails from them. No I am not alone and the debate is not over.

In my remarks in New York I speculated that perhaps we should sue Al Gore for fraud because of his carbon credits trading scheme. That remark has caused a stir in the fringe media and on the internet. The concept is that if the media won’t give us a hearing and the other side will not debate us, perhaps we could use a Court of law to present our papers and our research and if the Judge is unbiased and understands science, we win. The media couldn’t ignore that. That idea has become the basis for legal research by notable attorneys and discussion among global warming debunkers, but it’s a long way from the Court room.

I am very serious about this issue. I think stamping out the global warming scam is vital to saving our wonderful way of life.

The battle against fossil fuels has controlled policy in this country for decades. It was the environmentalist’s prime force in blocking any drilling for oil in this country and the blocking the building of any new refineries, as well. So now the shortage they created has sent gasoline prices soaring. And, it has lead to the folly of ethanol, which is also partly behind the fuel price increases; that and our restricted oil policy. The ethanol folly is also creating a food crisis throughput the world – it is behind the food price rises for all the grains, for cereals, bread, everything that relies on corn or soy or wheat, including animals that are fed corn, most processed foods that use corn oil or soybean oil or corn syrup. Food shortages or high costs have led to food riots in some third world countries and made the cost of eating out or at home budget busting for many.

So now the global warming myth actually has lead to the chaos we are now enduring with energy and food prices. We pay for it every time we fill our gas tanks. Not only is it running up gasoline prices, it has changed government policy impacting our taxes, our utility bills and the entire focus of government funding. And, now the Congress is considering a cap and trade carbon credits policy. We the citizens will pay for that, too. It all ends up in our taxes and the price of goods and services.

So the Global warming frenzy is, indeed, threatening our civilization. Not because global warming is real; it is not. But because of the all the horrible side effects of the global warming scam.

I love this civilization. I want to do my part to protect it.

If Al Gore and his global warming scare dictates the future policy of our governments, the current economic downturn could indeed become a recession, drift into a depression and our modern civilization could fall into an abyss. And it would largely be a direct result of the global warming frenzy.

My mission, in what is left of a long and exciting lifetime, is to stamp out this Global Warming silliness and let all of us get on with enjoying our lives and loving our planet, Earth.

Tuesday, June 10, 2008

Voters Say 'Drill'

RealClearPolitics

Lawrence Kudlow

The recent spike in oil prices and unemployment is dramatically changing this presidential campaign -- virtually overnight. The near $20 jump in oil to $140 a barrel, the unexpected half-point increase in the jobless rate to 5.5 percent (the biggest monthly increase in twenty years), and the resulting 400-point plunge in stocks has created a new campaign issue right before our eyes.

Public worry number one is now oil, jobs, and the economy, with the inflationary woes of the U.S. dollar right underneath. The candidate who can connect with these issues will win in November. But so far neither Obama nor McCain are dealing with the new political reality.

In fact, it's all about oil right now. The price has doubled over the past year while the economy has slumped.

But here's an eye opener. Recent polling data from Gallup show the percentage of voters blaming oil companies for skyrocketing gasoline prices has dropped from 34 percent to 20 percent over the past year. At the same time, support for more drilling in U.S. coastal and wilderness areas has increased to 57 percent from 41 percent.

And the candidates remain blind to these shifts.

Obama continues to lambaste oil companies while congressional Democrats push for cap-and-trade. They're missing the point, big time. The public wants more energy and more fuel to cut high prices and spur economic growth. But the costly cap-and-trade plan would produce less fuel and less growth. It would only raise gas pump prices while mounting a Gosplan-type taxing, spending, and regulating program that would be the moral equivalent of Hillarycare on nationalized medicine.

Sen. McCain has an opening here. Yet he, like Obama, would have voted for cap-and-trade, which went down to defeat in last week's Senate vote. And while Mr. McCain favors some off-shore production and has been strong on nuclear development, he is against drilling in ANWR Alaska.

Then there's the oil nobody is talking about. The Bakken fields beneath North Dakota, Montana, and Canada hold an estimated 400 billion barrels of oil. In comparison, Saudi Arabia's biggest field, Gahawar, has an estimated 55 billion barrels, while ANWR has an estimated 10.4 billion barrels.

Hat tip to Mark Perry at the Carpe Diem blog site for these figures. Perry also is reporting a Bureau of Land Management study showing 279 million acres under federal management where oil and gas could potentially be extracted. But more than half of this is totally off limits. Off-shore, where another 86 billion barrels lie in wait, is also restricted. Then there's liquefied natural gas, oil shale, and the various coal-to-liquid carbon-capture and sequestration technologies that would be priced out of the market by cap-and-trade.

The U.S. is the Saudi Arabia of coal, but we can't produce. We're still the world's third-largest oil producer, but we could be the Saudi Arabia of oil if our companies were free to drill. Oil CEOs like Rex Tillerson of ExxonMobil and David O'Reilly of Chevron keep saying this. But politicians aren't heeding their message.

Israeli saber-rattling against Iran could have accounted for some of last week's huge oil spike. And the unemployment story may not be as bad as the May jobs report suggests. An unexpected inflow of teenagers probably bloated the jobless figure by a couple tenths of 1 percent. And economist Jerry Bowyer points out that an unprecedented hike in the minimum wage may be derailing students looking for summer work. However, in a sign of future job improvement, the civilian labor force grew by nearly 600,000, meaning that more people looking for work could signal recovery. Weekly jobless claims are near 350,000, not the 500,000 of past recessions. Overall, at 5.5 percent, unemployment continues to be historically low.

But the economy is still in a slump, not a boom. And the fact remains that Americans are very worried about the economic outlook. This could be a recession election. And right now voter economic anxieties are all about oil, even more than the sub-prime housing credit problem.

Sen. McCain has a great pro-growth plan to slash corporate tax rates, a move that would be a strong tonic for jobs and wages. But he must bolster that plan with a new emphasis on deregulated energy markets that can produce a total portfolio of conventional and non-conventional energy, including major new drilling. He should couple that with a strong-dollar message to curb both energy and non-energy inflation, which is shrinking consumer paychecks and damaging corporate profits.

More oil, more jobs, better wages, and low inflation. That's a winning GOP message this fall. But what if Sen. Obama gets there first? It's unlikely, but not out of the question. Either way, voters will move to the candidate who connects with their worries. Right now those worries are up for grabs.