I’m sure most of you who watched the Republican National Convention saw the goobers in hardhats and safety vests which said, “Drill, baby, drill!” Their captain, Rush Limbaugh said June 18,
They’re (Democrats) going to oppose the economic growth of the country. They’re going to oppose your prosperity. They’re going to oppose all of that by standing in the way of this.
They’ve (Democrats) got their talking points and they’re lying through their teeth about it.
Bill Nelson of Florida, one of, ahem, my senators, is out there saying that, (paraphrasing) “Hey, the federal government’s already leased a whole bunch of land to the big oil companies; they’re not even using it.” It’s such a smoke screen, the number of years left on these leases is very few, and the whole thing is a lie anyway. I have the figures to prove it.
Entrepreneurs of all stripes, all sizes, create business of all sizes. They’re a wide range. And who is it that always sets out to punish them and destroy them? Liberals, the American left! Absolutely right, Brian. I could read your lips in there. Good going. What does Obama want? Barack Obama wants you to suffer. Barack Obama wants higher prices on fuel. right now. Barack Obama wants a windfall profits tax. right now. Barack Obama wants to raise your income taxes, by the way, right now. He wants to raise capital gains taxes, right now. He wants to raise Social Security taxes, right now. Obama wants you to suffer. The Democrat Party wants you in pain. They want you angry, and they are willing to block any remedy to this problem in order to keep you suffering and in pain and angry. Obama wants prices up, he wants your income down, and he wants taxes up, ladies and gentlemen.
I know, he’s a crackpot. I recommend reading the whole transcript because it’s incredibly laughable. Let me continue. Here’s Sarah Palin during the VP Debate,
The chant is “drill, baby, drill.” And that’s what we hear all across this country in our rallies because people are so hungry for those domestic sources of energy to be tapped into.
Barack Obama and Senator Biden, you’ve said no to everything in trying to find a domestic solution to the energy crisis that we’re in.
If that’s not enough to make you want to sprinkle cyanide on your cheerios, country singer Aaron Tippin has a new hit, “Drill here, drill now,” you can listen to here. I’m posting the second verse:
Every time a foreign tanker pulls up to our shore
They got us over a barrel while they bleed us a little more
And think how much it costs just to bring it all that way
And how many American jobs that’d make if we were drillin’ in the USA
Oh and God forbid if our oily friends should decide to cut us off
We’d be standin’ around with our britches down now listen to me ya’ll
Perhaps Aaron’s legendary tight pants have seized up blood flow to his brain.
What I’m trying to say is that all these calls for offshore drilling and energy independence have made it clear there’s a drought of information on the Right. I’ve decided to rectify the situation by gathering what we informed people call FACTS to help explain the error in this argument – which many Democrats are perpetuating as well. It’s almost criminal.
So, I beg of you – educate yourself. Even if you don’t want to read my lengthy presentation of reality and possibility, conduct your own research of the effects of increased offshore drilling, the possibility it will lower gas prices, and the addition to jobs and U.S. prominence alternative energy technology will provide.
Here’s my crack at it. It’s long, but it’s worth it. Jesuschrist, it’s worth it.
The clamors for energy independence only surfaced following the rise in gasoline/petrol prices. Because gas prices are largely determined by the decision made by OPEC regarding production levels, Americans are under the incorrect impression that drilling for more hydrocarbon off our shores will provide energy independence and lower gas prices.
OFFSHORE DRILLING ≠ ENERGY INDEPENDENCE ≠ LOW GASOLINE/PETROL PRICES
The American people are uninformed, which is nothing new, and their politicians are doing nothing to correct this problem because they are whores for campaign contributions, which lead them to feed the corporatocracy that is pimping America by trading money for favorable legislation. The oil & gas lobby is one of the biggest john of them all. According to the Federal Election Commission Sept. 2, 2008, and reported by the Center for Responsive Politics, campaign contributions for the 2008 election cycle totalled $22,543,340. Republicans were the most successful streetwalkers, receiving 75 percent of these contributions, while Democrats only garnered 25. Apparently, it’s hard out here for a pimp Democrat.
Because Americans don’t understand the realities of domestic hydrocarbon production, 67 percent answered in the affirmative to the RasmussenReports poll question, “In order to reduce the price of gas, should drilling be allowed in offshore oil wells off the coasts of California, Florida, and other states?” According to the survey, the results of which were released June 17, 64 percent of voters “believe it is at least somewhat likely that gas prices will go down if offshore oil drilling is allowed.” Now, I’m sure you know embittered former pollster for the Clintons, Dick Morris runs RasmussenReports and is now a sweetheart of the Right – which is why they quoted this survey endlessly.
The false assumption is that offshore drilling will lead to energy independence which will lead to lower gasoline prices.
U.S. WOULDN’T OWN OFFSHORE OIL AND GAS ONCE IT IS DRILLED
As Cenk Uygur correctly pointed out of the Huffpo, the United States government does not own all the hydrocarbon that is produced within its borders. The company that is awarded the contract to drill owns the oil or gas and may decide to sell their unrefined product to whomever they like and will likely do so to whoever is the highest bidder, be they India, China, etc. Simply because the U.S. government decides to open leases off Florida, California and ANWR does not automatically assume the U.S. markets will be the recipient of those energy resources.
Secondly, the U.S. refineries are operating near capacity. According to the latest numbers provided by U.S. Department of Energy for July 2008, U.S. refining operable capacity was 17,610,000 barrels per day. Of that capacity, U.S. refineries produced 17,464,000 barrels per day. The last major refinery built in the U.S. began operations in 1976. This is partially due to strict standards set by the EPA and the high cost of such an endeavor, but also NIMBY (Not in My Back Yard), an acronym describing a residential opposition to nearby industrial building. People want to use the oil and gas, they just don’t want to be near the production of their precious energy. With my family from in and around Lake Charles, I can see why.
The point is that politicians – Dems and Repubs alike – encourage the drill, baby, drillers; they just forget to mention that even if we increase offshore drilling, we do not have the refining capacity to ensure those energy reserves serve the American market. Sure, we can loosen environmental standards and attempt to rush the establishment of some refining infrastructure before oil companies bring that offshore hydrocarbon online. But visit Lake Charles for a weekend and decide if you want those big daddies in your backyard or if you would rather just drive less, switch to fluorescent light bulbs and inflate your tires.
U.S. ENERGY COMPANIES WILL CONTINUE TO KEEP PRICES AS HIGH AS THEY CAN
Americans are also assuming that oil and gas companies, in all their benevolence, would flood the American market with hydrocarbon to allow gasoline prices to decrease. Not gonna happen. FOR EXAMPLE, PLS’ ProspectCentre reported Oct. 1, 2008 that Chesapeake Energy, the largest producer of natural gas in the U.S., will “reduce it drilling capex (17%) through year-end 2010 by ~$3.2 billion in response to recent price collapse that has driven gas prices down (~50% since July 1)…Of the capex reduction through 2010, $1.9 billion is associated with reduced drilling activity.” WHAT??? you ask. Gas prices are over $1 more than when Hurricane Katrina hit. My car cost $12.50 to fill up eight years ago and now requires $40. And Chesapeake Energy is reducing drilling because energy prices are falling. Yes, Chesapeake produces natural gas, which is different than gasoline – but prices of energy originating from hydrocarbon sources are closely related.
Translation: Chesapeake Energy is decreasing their drilling of natural gas in order to reduce supply, despite typical ravenous demand of Americans for energy, which will help keep prices high. Politicians have given Americans the idea that American oil and gas (natural gas) companies are operating at capacity and we need to open more leases to bring more energy online in American markets. False. Major companies in the United States are right now decreasing domestic energy production because prices have fallen, causing these companies what they see as budgetary constraints.
The interesting tidbit about Chesapeake’s maneuver is that they’ve done it before. BNET Sept. 27, 2006: “Effective October 1, 2006, the company plans to temporarily shut-in approximately 100 million cubic feet (mmcf) per day of net natural gas production (approximately 125-150 mmcf per day gross) in various areas of operations in the southwestern U.S. until natural gas prices recover from recently depressed levels.” What has happened since the end of 2006? Prices have risen! How surprising! Of course, I’m not suggesting Chesapeake’s activities alone have caused gasoline prices to increase, but I’m giving you an idea of how the oil and gas industry responds to any decrease in gasoline prices.
You see – and this is very important – even if oil and gas were produced as much as possible within American borders and even if refineries were built to handle the capacity of oil and gas sucked out of the ground, oil companies would keep production low. Why? Why? you ask. I will tell you.
The oil companies have discovered that Americans have a high pain tolerance when it comes to energy prices. Americans will let gasoline reach $4.00 a gallon before really pulling back. They will never allow gasoline prices – profits – to fall back to the yesteryear of cheap gas and easy energy. No matter how available or plentiful that energy is domestically, the companies will manipulate the market to keep prices high. Oh, they’ll give us a load of “reduced supply” mishegoss, but make no mistake – they only have eyes for profits. Right now, according to PLS, XTO, EOG and Petrohawk “may watch Chesapeake’s stock to determine if they should follow the same plan.”
The main point is that even if all our hydrocarbon energy supply originates within U.S. borders, prices will remain in the nose-bleeds. Them’s the brakes. Yes, we are currently experiencing a reduction in prices, but it won’t last.
DON’T FORGET ABOUT REFINING
Now let’s assume that we do open all our oil and natural gas reserves to quell demands for more resources. We throw open every lease available off various coasts and in protected wildlife preserves and give them to the exploration and production companies like letting a fat kid loose in a candy store. We would have to assume that demand would remain the same or decrease in order to bring gasoline prices down.
Just one thing. Remember that last refinery that was built in 1976? Yeah, American consumption of energy has increased 25 percent since it was built. If prices are cheap, our consumption will not decrease unless there is a national mandate Americans understand is necessary to preserve our environment and the health of our children. With demand high, prices will remain so as well.
Because American oil and gas demand will always rise above domestic supply – especially with cheap prices – we will never be energy independent as long as our main source of energy is hydrocarbon. Our demand will always outpace domestic supply. Can’t say it enough.
If we do throw open all the leases possible and build refineries to service the American market as much as possible, we will end up polluting the shit out this country. Perhaps this wouldn’t be such a big deal if the only pollution we had to deal with was only that which we create ourselves. It’s not. Pollution from China has already started having worldwide effects – especially in California, where emissions regulations for local industries will have to be sharply curbed to deal with the fallout from China’s production boom.
“GREEN REFINERIES”? SURELY, YOU JEST.
No, I don’t, Willis. There have been recent movements toward establishing “green refineries” – if there is such a thing. Arizona Clean Fuels Yuma fought for seven years and finally received a permit to build a 150,000 barrels-per-day refinery that it says will operate within strict environmental regulations. Hyperion Resources, based in Dallas, is planning an environmentally sound refinery that will turn Canadian crude into low-sulfur gasoline and diesel at a rate of 400,000 barrels per day. According to a Reuters article describing the project, it often takes five years before companies receive the required permits for construction, which can often lead to investors jumping ship.
And if that wasn’t enough to whet your appetite for green gas, Hunton Energy of Houston has proposed the first green refinery on the Texas coast, shooting for a 340,000 barrels-per-day facility to convert Canadian bitumen crude into clean-burning jet fuel and diesel. According to the Houston Chronicle, “Its defining feature is the integration of a gasification facility, which would capture most of the plant’s carbon emissions before they reach the atmosphere.” It will be interesting to see whether this refinery – in ten years, if the project succeeds – will live up to its “green” claims.
There is, however, no definition for “green” and its subjectiveness has allowed it to be used as a major selling tool by energy companies who tend to be colorblind when it comes to the environment. In this case, “green” refers to reduced emissions by the refineries. It does not mean “zero emissions” as such as thing is currently impossible.
Obviously, the greenest refinery will likely do more detriment than wind and solar combined. Although one has to take into account the energy needed to produce a wind turbine, transport it and set up the massive thing (I see them in parts on 18-wheelers all over the highways here in north Texas). How long would a windmill have to generate energy before justifying its very existence? Just a question.
CLEAN COAL, JUMBO SHRIMP, PRETTY UGLY
Still, the term “green refinery” calls to mind another potential oxymoron: “clean coal.” Politicians say it all the time and the term even enjoyed a bit of attention during the recent Vice Presidential Debates. Jeff Biggers of The Washington Post has taken notice as well. He writes in a scathing opinion piece of the coal industry and its treatment by the Bush administration, “Clean coal: Never was there an oxymoron more insidious, or more dangerous to our public health. Invoked as often by the Democratic presidential candidates as by the Republicans and by liberals and conservatives alike, this slogan has blindsided any meaningful progress toward a sustainable energy policy.”
“Clean coal” is referring to reduced emissions from coal-firing plants and efforts are underway around the world to find the means to reduce the environmentally detrimental affects of this energy source. The release of carbon dioxide into the air is one of the biggest offenses of coal use and scientists are trying to discover new means to deal with this greenhouse gas, included rerouting it under ground. Capturing the CO2 is a top priority in “clean coal” technology. According to National Geographic News, however, technologist Gordon Couch, with the International Energy Agency’s Clean Coal Centre in London, says zero-emissions coal power is a realistic goal – though years away.
John McCain likes to repeat that nuclear energy is just fine because he served on a Navy ship powered by nuclear energy and all Senator Obama needs to do is talk to one of our sailors serving a nuclear-powered vessel (yeah, because they’re experts) to learn the benefits of this energy. But nuclear plants are some of the most dangerous sources of energy – the fact that Chernobyl and Three Mile Island are household terms is a large indicator of public concern regarding this energy option.
Nuclear waste is an even larger concern. And since no real long-term solution has been found regarding the storage of nuclear waste, it is irresponsible for politicians to tout this as an option for energy independence. Nuclear waste is also tremendously costly to store – the Department of Energy has said the controversial proposed storage facility at Nevada’s Yucca Mountain would cost $96.2 billion to build and operate. France is repeatedly used as a positive example of the use of nuclear energy. However, France reprocesses its nuclear waste – which is banned in the United States due to proliferation risks – and still has leftovers, which it stocks in hopes that, perhaps in 100 years scientists will have found away to eliminate the toxicity of the waste. Bonne chance.
SUSTAINABLE ENERGY…HEAD OUT OF THE ASS
Even with the environmental benefits of nuclear energy, the question still looming is the cost-benefit ratio of investing such an enormous amount of funds into a technology that is detrimental in the long-term, rather than positive alternatives: biomass, geothermal, wind, solar, tidal, hydrogen.
Powerful lobbyists, greedy politicians and corporate executives have convinced the more uninformed Americans, including Palin – who chanted, “Drill, baby drill. Mine, baby, mine,” on the stump – that we must turn to domestic oil, gas and coal to increase energy independence, which will bring down gas prices.
I don’t just disagree with them, I have shown that they are wrong. They are incorrect. And almost every source I have provided in this blog is available on the internet.
So, why does the truth not out? Why do Democrats participate in this charade as well? Bucks, dollars, contributions. The building of the United Corporatocracy of America. The oil and gas industry has been the 12th largest campaign contributor to John McCain’s quest for the presidency, according to the Center for Responsive Politics.
Had we focused our surplus budget and American acumen for technological development on alternative energy sources back in the 1990’s instead of cheap housing developments, we might already be energy independent. Perhaps Detroit wouldn’t be in the economic doldrums. Perhaps we might not be transferring all of our wealth to “countries who do not have our best interests at heart.” But, then ExxonMobil and ConocoPhilips and many other oil & gas companies wouldn’t be receiving record profits this year. Without their political involvement, Halliburton probably wouldn’t have received a number of sweet, no-bid contracts in Iraq from the Bush administration.
To make matters almost unpalatable, the Right continues to dupe many of its followers – legendary anti-intellectuals, consistent swallowers of Fox News Propaganda who disdain facts, truth, research, reality and education – into believing offshore drilling will produce energy independence and lower gas prices. It won’t. It will only make the same white men richer year after year and worsen our environmental contributions.
Renewable alternative energy is our chance to regain and retain our primary position on the world stage. Global citizens are hungry and demanding alternative power and the U.S. has every opportunity to develop it, deliver it, and benefit from it. Like Obama said, renewable resources can give the U.S. the same economic positioning as the computer. Renewable energy technologies could be a major cultivator of domestic jobs and prop the U.S. up again as a major supplier to global market demands.
U.S. domination is subsiding, our economy is not growing as fast as other countries and we are losing our hegemonic status. Instead of tackling this development head on through education and technology, the idiotic dipshits of the Right are attacking our science classes, trying to shrink budgets for math education and calling for the same failed energy policies that will cripple our best chance to retain American greatness.
Republicans are selling our future to win elections now and their mindless followers are not only heading toward that cliff, they want to drag us over the edge with them. It is shameful and embarrassing and hopefully only a footnote in our country’s history. “Drill, baby, drill” is not the answer. It is “Dead Man Walking” for the U.S. economy and perhaps if these people knew exactly what they were proposing, they wouldn’t be trying to doom our country’s attempts to lead the world into the next technological era.
Let me be clear. I am not opposed to increased offshore drilling or increasing refining capacity. I am opposed to presenting it as a method for attaining energy independence and lowering gasoline prices. Such an assertion is untrue and only increase the falsehoods with which many voters make their decisions at the polls. It is harmful to democracy and it is harmful to the economic future and sustainability of this country. We must refocus our priorities to renewable and sustainable energy sources.
UPDATE 10.15.08. FYI, beeyotches, Time (as I spotted on Think Progress) is reporting that despite Sarah Palin’s calls for energy independence, she herself has supported efforts to send domestic hydrocarbon to more-profitable foreign markets.
According to Time, “Palin personally intervened in April, 2007, but her concerns were strictly local. She asked DOE to condition its approval on guarantees that gas needed in Alaska not be diverted to the better-paying foreign venues — a position she held until this past January, when the producers reached separate agreement with the state to meet its needs.
At no time did Palin or her government cite the desire to preserve Alaskan gas for the lower 48 states. The Sempra terminal began operations just four months after Palin announced unconditional support for the Marathon and ConocoPhillips request and a month before DOE approved their plans to export gas to Asia.”
Will the hypocrisy never end???