Queen Nancy: "Let them eat cake."

As "Queen" Nancy Pelosi presides over the 110th session of the "do-nothing" Congress, citizens across America continue to suffer from the high price of gasoline. Last week's average for the country was $4.06/gallon, representing a nearly 75% increase in price since the Democrats took over the House in January 2006.

Message to Congress: "DRILL HERE, DRILL NOW! PAY LESS!"

Answering Leftist Myths on Oil

I'm increasingly frustrated by our Democrat-led, do-nothing Congress. The price of gasoline at retail has doubled in the roughly 18 months that they've controlled both the House and the Senate. And their solution to this problem that is wrecking our economy and devastating working Americans? Do-nothing!

I'm going to take on and destroy the currently popular Democrat talking points (a.k.a. "lies"):

Lie #1: "Big-oil doesn't need to drill on the outer continental shelf, or in the ANWR. They already have leases on 68 million acres of Federal lands, and aren't producing oil there."

This is misleading at best, and outright false at worst. Yes, oil producers do currently have 68 million acres leased that are currently classified as "not producing". That does not mean there isn't exploration and development activity under way. The false premise underlying this cynical talking point is that there is abundant oil everywhere you could erect a derrick, and that all these companies need to do is drill wherever.

The fact is that oil and natural gas is spread around, and different and often difficult to extract depending on location. The factors are many, but include terrain, depth, size of deposit, production-rate potential, etc. The oil companies have every motivation and reason to produce oil, wherever it is profitable. That's how they make their money. They make no money when they sit idle.

But here's the larger point: the Democrats want the oil companies to drill where oil MIGHT be located. The Republicans want oil companies to be able to drill where oil IS KNOWN to be located. We know, from previous exploration activities, that there are PROVEN reserves of oil in both the outer continental shelf AND in the ANWR. The Democrats are blocking development there.

Lie #2: "It will take 10 years for any new oil-drilling to reduce oil and gasoline prices, and then only by pennies."

Again, multiple lies buried in a single sound-bite. Firstly, oil-producing companies have already come out and stated that by additional drilling in areas of proven reserves, AND where these fields are close enough to leverage existing infrastructure and pipelines, new oil could come into our national supply in only 3 to 4 years. Even "virgin" areas could be on-line in 7 years, including the ANWR.

Second, the price of oil in the open market is determined by supply, demand, and the expectations of the market of future supply and demand (see my earlier blog on Speculators). As soon as participants in the futures markets are confident that the U.S. policy is to increase supply to meet our needs, as well as to increase the overall global supply, then oil futures will trade markedly lower. This will result in a near-immediate drop in oil prices, and gasoline in turn.

Third, the same folks that say "no" because of an imaginary 10-year oil production gap, are instead touting alternative energy solutions that WILL take 5-10 years, including wind, fuel-cells, bio-fuels, and nuclear. That is not to say we shouldn't pursue these alternatives - we should, because they are a critical part of a comprehensive plan of independence. But why is one 10-year time-horizon investment bad, while another is good? And don't try the "green" angle on me ... ever hear of U.L.E.V. (Ultra-Low Emissions Vehicle) designations on autos? We have the technology for this today, including expanding the use of hybrid technology.

And a last point ... even if you DO believe this "10-year" nonsense, do you think our situation will become better or worse if we don't act? Only a fool would lock themselves into this no-drill posture.

Lie #3: "If we drill for more oil, the OPEC nations will reduce their production rates to offset our own increases."

First, this assumes that the OPEC nations would act against their own interests. Cutting their own production will lower their own revenues, harming their own countries' economies. There are few examples of OPEC acting in such a manner.

Second, this Democrat sound-bite is as much a lie as it is a description of the actual problem we face. With imported oil now accounting for more than 70% of our consumption, we are beholden to the producers of that oil. Therefore, we have to act and play nice with countries that we'd otherwise not care to. Many of these countries are openly hostile to the U.S.A., yet we're held as economic hostages by their refusal to increase supplies on their own. Only through our own policy change, one dedicated to achieving energy independence, can we break the grip these countries have on us.


In summary, America can literally not afford to continue with the failed policies of the left that have dominated the energy discussion for 30+ years. The impact is felt most directly by America's working families, who will spend an increasingly larger portion of their take-home pay on fuel. Further, as soon as you get out of the liberal-elite havens in the northeast, major cities (LA, SF, Chicago, Detroit), you'll find no mass-transit alternatives, longer average commutes, and a greater propensity to own (less efficient) "family sized" vehicles like SUV's. The greatest harm is coming to those the Democrats purport to defend.

So the Democrats have a choice to make: do what's good for all of America, or kow-tow to their anti-capitalist, environmental-wacko fringe. To-date, they've chosen the latter - and we all pay the price each day.