A MINORITY VIEW
BY WALTER E. WILLIAMS
RELEASE: WEDNESDAY, JUNE 4, 2008, AND THEREAFTER
Dumb Or Ill-informed
What assumptions do congressmen make about the American people? Do they assume that we're dumb or ill-informed about the energy problems we are experiencing? Every time there has been a huge spike in gasoline prices, Congress hauls oil company executives before their committees to accuse them of greed, obscene profits and price-fixing. One federal investigation after another of supposed oil company misconduct turns up nothing to substantiate congressional allegations. Unfortunately, the congressional hearings make front page news and lead the evening television news, but the results of federal investigations that follow are only casually mentioned deep in the body of newspapers and get little or no time on the evening television news. If news media people had an ounce of integrity, they would highlight the federal investigation findings that undermine congressional charges of oil company misconduct and they would question the congressmen who made those charges.
Americans might prefer heroes-and-villains explanations to problems to reality-based explanations. A politically satisfying explanation for today's $4 a gallon price, when it was less than $2 a gallon a couple of years ago, is because oil company executives have all of a sudden become greedy in their pursuit of "obscene" profits. As such, congressmen, as our heroes, should call these greedy men on the carpet and take sanctions against them in the forms of windfall profits tax, price controls and other measures to take away their ill-gotten gains -- never mind the effects of the 1980 windfall profits tax. According to the Congressional Research Service, the 1980 windfall profits tax had the effect of decreasing domestic production by 3 percent to 6 percent, thereby increasing American dependence on foreign oil sources by 8 percent to 16 percent.
Controlling the price of anything is very difficult and it can only be accomplished through the force of government, mostly by restricting supply. The U.S. Congress is a major player in oil supply restriction, and OPEC nations must be laughing all the way to the bank. Congress has banned energy exploration in 85 percent of our coastal waters. Ironically, China, in conjunction with Cuba, is drilling for oil nearer to our coastline than U.S. oil companies are permitted.
According to "We don't have to take $4 gas prices -- we can drill," written by Sterling Burnett in the Houston Chronicle (5/21/08), "It is estimated that beneath America's coast lies enough oil to fuel 60 million cars in the United States for 60 years and enough natural gas to heat 60 million homes for 160 years. "¦ If allowed access to American oil reserves in Alaska and off our coastline, American oil companies could increase our country's reserves an estimated fivefold, taking the United States from 11th place to fourth among the countries with proven oil reserves."
You say, "What about the environmental impact?" Contrary to the hysterical claims made by environmental extremists, caribou and other wildlife have expanded and flourished in and around Alaska's Prudhoe Bay, unaffected by the oil and gas development. What's more, Burnett points out that the "two leading environmental groups, the Audubon Society and the Nature Conservancy, have allowed oil and gas production on several of their most important and unique nature preserves."
Environmentalists come to their senses when non-drilling philosophy costs them something. It's two-faced hypocrisy. At times I've suggested that the best way to get oil exploration in the Alaska National Wildlife Reserve is to give the land to environmentalists. You can bet they wouldn't sit on billions of dollars of oil and gas.
The true villain in our having to cough up $60, $70 or $80 to fill our gas tanks is the U.S. Congress caught in the grip of environmental extremists. But if reality is too difficult to swallow, we can continue to blame and support the congressional attack on oil executives, turn food into oil and think of other crackpot "solutions."
Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
COPYRIGHT 2008 CREATORS SYNDICATE, INC.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
To advocate that oil in ANWR should never be used is short-sighted. However, thinking that increased extraction is the simple solution is far from accurate.
At the current rates of use, increased minimum mileage requirements will result in saving the equivalent amount of oil that is supposed to be underground up there. It is also, important to realize that it will take 10-12 years of construction to build & drill & pump before one drop of the oil in ANWR becomes available.
In order toget the most out of the reserves, no matter where they are; ANWR, Gulf of Mex, offshore CA; better and more efficient use of what we have and are using now needs to be part of the answer. It is a cheaper solution to the immediate issue of high prices than building more wells is. Also, reducing the effect of speculation on oil futures willreduce the price we pay at the pump much sooner than any ANWR oil entering the market.
ANWR should be thought of as a "strategic-strategic" oil reserve.
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Days Full Of Clays...
NWTF, DU, SCI
It is also, important to realize that it will take 10-12 years of construction to build & drill & pump before one drop of the oil in ANWR becomes available.
That is what the nay sayers predict. I also remember after Sadam lit all the oil wells on fire it was going to take years to put them out. I belive it was six months. Funny how fast industry works when profit is involved. Fact is, had Clinton not vetoed the bill back in 95, the oil would be here today.
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more efficient use of what we have and are using now needs to be part of the answer. It is a cheaper solution to the immediate issue of high prices than building more wells is.
Cheaper to whom? People who keep their cars until they drop are years away from replacing them.
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Also, reducing the effect of speculation on oil futures willreduce the price we pay at the pump much sooner than any ANWR oil entering the market.
Only by hurting us in the long run. The speculators play a very important role by smoothing out the market. If I believe the oil will rise in the future, sure I should by barrels now to sell at a profit later. However, I'm taking the gamble that oil will rise and I will make a profit. As we now see, oil has peaked (perhaps temporary or perhaps not) at 133+/- a barrel and gas at $4.00/gallon. This has now had an effect on the public and they have reduced their driving and use of oil just like you want above. This has driven down demand and therefore the cost is now dropping. Furthermore, you state that drilling in ANWR wouldn't produce a drop of oil for 12 years. Ok let's say it's true. What also goes along with opening up our areas for exploration will be the signals to the speculators that we are serious about controling our supplies and more oil with be coming to the market. As it stands right now as long as we off shore something like 60%+ of our oil, the speculators have every reason to believe they can make a profit in a growing market without growing supplies.
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
A MINORITY VIEW
BY WALTER E. WILLIAMS
RELEASE: WEDNESDAY, JUNE 4, 2008, AND THEREAFTER
Dumb Or Ill-informed
What assumptions do congressmen make about the American people? Do they assume that we're dumb or ill-informed about
Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
COPYRIGHT 2008 CREATORS SYNDICATE, INC.
Most law makers are historians. Man has and will continue to do the same things. They know what man will do when pressure is applied. Being seen as the "good guy" is an important factor in achieving their ends which is total domination, the ultimate spoiled child.
Big oil has allowed it self because of it's lack of a soul, to be used as the "pressure". The people will cry out to the "good guy" and they will in turn claim they need more authority "loss of freedom" to set things right. The oil companies will loose what they've gained, the people will be more oppressed, and those who knew how to play the people like a harp will begin removing anything in their way with the full authority of the law.
Capitalism, free market is a tool and not a rite. If capitalist abuse the tool they are causing their own death. Big oils blatant abuse and that's putting it mildly, is a threat to us all. Unfortunetly most of us are soulless as well and don't see anything wrong with stabbing our neighbor in the back under the guise of, "who are you to decide how much someone else makes?" or "Your anti capitalist". Everyone else knows they'd better police themselves, capitalist better wake up and stop supporting the corupt in their ranks.
To answer the question, yes the do think were stupid, why shouldn't they! As historians they know that controlling education guaranties it.
I think you also need to consider the exchange rate. A strong dollar buys a lot more of everything, including oil. It takes more weak dollars to buy stuff, including oil.
Oil supply and increased demand in India, China, etc., can't account for the recent runup in price. But as long as we are so dependent on foreign sources we are going to be subject to fluctuations in the exchange rate. Our government needs to start taking steps to strengthen the dollar.
Big oil has allowed it self because of it's lack of a soul, to be used as the "pressure". The people will cry out to the "good guy" and they will in turn claim they need more authority "loss of freedom" to set things right. The oil companies will loose what they've gained, the people will be more oppressed, and those who knew how to play the people like a harp will begin removing anything in their way with the full authority of the law.
Big oil is the problem for the run up in price? Some how the #10 largest oil company in the world controls the market? I guess Exxon does set the price.
Exxon, Shell and BP don't owe you cheap gas. They owe us the share holders the maximum ROI and that is the way it should be. With 40% of Americans owning oil stocks, no fuel shortagesI think that shows you they are doing a good job.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
God Bless you Limbaugh Lunatics sing the same song over and over and over!
High Oil is a combination of LOTS of things, and the environemtal movement is just ONE PART of a huge causal miasma. One thing that hurts in particular is our current President's policy of a WEAK DOLLAR! Bush likes a weak dollar because it helps our exports. We probably need a weak dollar because NAFTA screwed us hard thanks to Bill Clinton. We also have a weak dollar because our current economic policies demand interest rates that are historically low. Thank Allen Greenspan in part for that. Also thank the former Republican Congress for allowing unscrupulous lending practices that blasted the mortgage market. Along those same lines, thank a host of greedy real estate agents, appraisers, and home "flippers" for inflating houseing costs to levels nothing could sustain.
Another aspect, thank the Commies we do business with. Demand is up, mostly because countries like China and Malaysia SUBSIDIZE THEIR PEOPLE'S OIL! Notice prices slid a tad yesterday? Our politicians are putting pressure on some of these countries to stop SUBSIDIZING their oil.
Thank Ford, GM, and Chrysler for producing crappy cars that could not complete with the Toyotas, HOndas, and Nissans for most of the nineties. As such, Dodge finally came out with the new Ram and starting selling a ton of them, not because they were a better product (they weren't), but because they LOOKED COOL! Instead of spending their time on engineering the engines for improved performance, they spent their time making their trucks and SUVs bigger and more luxerious, and in my opinion, it is their failture to be able to compete for fifteen years, and their crappy sales records during that time, NOT pensions to retired employees that kills them.
Finally, thank Reagan, Bush I, Clinton, and Bush II, for NOT aggressively pushing legistlation to fund, and encourage alterative energy, improved gas mileage, etc. Jimmy Carter, a poor misguided soul he is, but stupid...he is NOT. He saw the writing on the wall, but everyone ignored him.
We are NOT going to drill our way out of this, its Peak Oil, boys and girls, and all of the EASY OIL is already drilled. Buy a hybrid or a biodiesel rig and adapt, because expensive oil is FORVER.
Exxon, Shell and BP don't owe you cheap gas. They owe us the share holders the maximum ROI and that is the way it should be. With 40% of Americans owning oil stocks, no fuel shortagesI think that shows you they are doing a good job.
Bull! Considering 95% of domestic drilling is one on federal lands (almost 100% of natural gas is on Federal lands), they owe us, the LAND OWNERS, a fair price and they need to drill in a way that keeps the air, water, and soil clean.
If 40% of the U.S. ownes energy stock ,that means 60% do not. Majority rules in a Democracy (or even a Democratic Republic if you want to parse words) last time I checked. Your statement about being only acocuntable to the stockholders is exactly what is wrong with America today.
We are NOT going to drill our way out of this, its Peak Oil, boys and girls, and all of the EASY OIL is already drilled. Buy a hybrid or a biodiesel rig and adapt, because expensive oil is FORVER.
LMAO. We are at peak oil because YOU know there isn't any oil in the 40% of our public land that's off limits of the 85% or off shore area that is off limits.
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
That is what the nay sayers predict. I also remember after Sad[d]am lit all the oil wells on fire it was going to take years to put them out. I belive it was six months....
Sure profit is a tremendous driving force. I'm not sure your example of putting out the oil fires is the best one to make your point. It takes longer to build a house than for a fire dept. to put out the fire when it's burning. The point isthat it will take a longer time thanmanypeople expect. There's a term used in military procudment circlescalled "cost plus".Quicker equals more expensive, look it up.
Cheaper to whom? People who keep their cars until they drop are years away from replacing them.
The increased mileage would only have to be implemented in new cars sold, and it only needs to be an improvement in the area 1 to 1.5 mpg. Cheaper to all of us in the end. Because it would translate to less expenses that would have to be recovered "at the pump."
Only by hurting us in the long run. The speculators play a very important role by smoothing out the market. If I believe the oil will rise in the future, sure I should by barrels now to sell at a profit later. However, I'm taking the gamble that oil will rise and I will make a profit. As we now see, oil has peaked (perhaps temporary or perhaps not) at 133+/- a barrel and gas at $4.00/gallon. This has now had an effect on the public and they have reduced their driving and use of oil just like you want above. This has driven down demand and therefore the cost is now dropping. Furthermore, you state that drilling in ANWR wouldn't produce a drop of oil for 12 years. Ok let's say it's true. What also goes along with opening up our areas for exploration will be the signals to the speculators that we are serious about controling our supplies and more oil with be coming to the market. As it stands right now as long as we off shore something like 60%+ of our oil, the speculators have every reason to believe they can make a profit in a growing market without growing supplies.
The speculationreferred towas rampant speculation, and the point was that it has a greater effect than many realize. Certain commodities like some foodstuffs are protected from "irrational exhuberance" (to borrow a term from Greenspan) in the speculation part of the markets, and have been for a long time to prevent the situation we're seeing with price of gas.
Look up "Enron Loophole" for an explanation.
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Days Full Of Clays...
NWTF, DU, SCI
Dumb or Ill-informed?
