Sunday, May 15, 2011
The President's Weekly Address. Increase oil exploration in America responsibly.
Increasing domestic drilling will NOT make America energy independent, EVER! And the President knows that all too well.
And I am not exactly thrilled that Obama is giving into Republican pressure on this subject.
Besides it can only be a matter of time before "you know who" takes credit for this increase in annual lease sales in Alaska's National Petroleum Reserve.
She would be wrong of course. In fact the New York Times gives much of the credit to Alaska's two Senators, Mark Begich and Lisa Murkowski, NOT the Grizzled Mama!
The move comes after years of demands for the auctions by industry executives and Alaska’s two senators, Lisa Murkowski, a Republican, and Mark Begich, a Democrat.
That ought to burn Palin's ass!
Of course while President Obama gives the oil companies something they have long requested with one hand, he is asking Congress to vote to take away the oil company's tax subsidies on the other hand.
Hmmm.
Okay let me see if I have this straight. President Obama asks Congress to strip away the subsidies from oil companies saving the nation about 4 billion dollars annually. Then he allows those same companies to buy up leases, the money for which would flow into state and federal coffers, not to mention the increased number of local jobs created by these companies to support their exploration and drilling plans which could help to re-energize portions of the job market.
And while all of this is going on we are continuing to invest in clean, renewable energy solutions, that will ultimately break our dependence on fossil fuels.
Okay well I guess I am a little less "not thrilled" then I was when I first listened to this address.
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He is she going to Nash the president on this?
ReplyDeleteI am never happy about opening up our lands to drilling. I grew up in the S&T side of oil (not E&P), but I do support ANY & ALL oil cos. paying taxes, fees, whatever it takes to make folks care about our use of fossil fuel. Everyone likes to complain about oil cos. on the progressive side, but how many of you car pool & ride your bikes to work? How many of you use alternative energy sources at work and/or at home? How many of you call upon your representatives to work on measures promoting clean energy? It can't fall only on Pres. Obama to make these changes in our corporately & culturally-mandated use of oil. Use less fossil fuel & fight for clean energy options & incentives!!!!
ReplyDeleteIt is an interesting approach. Taking away the tax credits will force the companies to take heat for high prices or cut their dividends. Not sure it will work. A MA success story Evergreen solar ilooks to be going out of business, with prices undercut by Chinese competitors. Are people willing to pay extra for a green alternative.
ReplyDeleteReally liked this article Gryphen. You took us through to a really logically statement.
ReplyDeleteAdditionally,I believe President Obama knows that the oil companies will buy up the leases and then sit on them as they have on many they already have. The oil companies do not want the retail price of oil to go down. No need for them to develop more product in difficult places. We will have to watch the oil companies on pollution and safety though on the wells the have AND fight them on these opening wells in pristine place where they already have commitment.
This also knocks the legs out from under the " Drill Now" plank for whoever the GOP Presidential nominee is.This President is about half past smart.
ReplyDeleteOur very own Department of Energy reports their is no shortage of oil. In fact, there is a surplus. If the increasing price of gas is due to a ¨shortage,¨ why are we not waiting in line to pump our fuel?
ReplyDelete- buyers and sellers trade commodities on markets
- speculators help provide liquidity, by buying when sellers wish to sell but no one wishes to buy, and selling when buyers wish to buy but no one wishes to sell
- however, the biggest banks got exemptions from the government to purchase huge positions on commodities
- instead of selling these positions to buyers, these banks hang on to them, because their investors are all "long", meaning they think the price is going to go up; at the end of every month, they just "roll over" their positions, and keep on holding the things they were supposed to have sold
- because none of the banks sell what they hold, the price goes up; because the price goes up, more people make money on their positions; because they make more money on their positions they buy more stuff and don't sell what they hold; and on and on forever
Are we seeing evidence of this today?
Yes.
Remember how Libya is being blamed for diminishing the world's oil supply with its 1.5 million barrels per day of output?
Well, the investment bank JP Morgan owns over 270 million barrels of oil - equivalent to almost a third of the United States National Emergency Reserve - so much so, in fact, that they, and other banks, are now buying supertankers to store their excess reserves offshore because they've simply run out of space on land.
The current spike in gas prices is not primarily a result of anything to do with the freedom fighters in the Arab world. Nor is it a result of OPEC's production levels, which would suggest a far lower $/gallon than can be found on the open market.
Rather, the spikes are primarily a result of the speculative market on oil. This speculative market is driven by the practices of the biggest banks, who have special exemptions to treat commodities like a casino, who have zero incentive to appropriately hedge their bets, who do not provide the liquidity they were designed to provide, and who generally provide nothing of value to society except to push prices of things higher and higher so that very rich people will continue to invest with them.
There is no shortage or need to drill. The price per barrel of oil rose to $149.00 in 2008 before dropping back down to $33.
This market process has started all over again.
You do not wait in line at gas stations because there is no shortage. The profits from the spikes in prices are going to Wall Street.
Didn't listen to the address, but the Wall Street Journal had an article this week about the effects of the decrease in crude oil production on the Trans Alaska pipeline. The lower through-puts of crude result in colder crude, slower pipeline transit time and more problems with the integrity of the pipeline structure. I think you would find the article to be of interest.
ReplyDeleteThanks for confirming my own thoughts. And as much as I worked to protect ANWR over the past 12 years, I would rather have them open ANWR than drill off shore.
ReplyDeleteAnd yes, after a political move like that, the Repugs will have no legs at all to stand on if they open their mouths again about keeping the subsidies for them.
People, keep in mind the price of a gallon of gas has actually very little to do with how much oil is being pumped out of the fields. Oil prices are mainly set by how the refinary's are producing and speculation on the oil market.
ReplyDeleteLots of hypocrisy on the energy issue among Americans. We complain about the president giving in to the Republicans on energy, but we all drive cars, trucks, and SUVs. I drive a 12-year-old station wagon because I can't afford a new, energy-efficient car. I'd take a train to work if I lived in an area that had a train. I drive on poorly maintained roads, and I see more Hummers, Mercedes, and other high-end cars now than ever before. We could have had electric cars 35 year ago. I didn't see Americans clamoring and fighting for them back then. Why all the whining now about drilling now? Oil companies have been getting subsidies forever. But Americans are more likely to despise folks receiving unemployment insurance or food stamps than billion-dollar corporations receiving federal subsidies. This is one schizophrenic nation.
ReplyDeleteThe President's Weekly
ReplyDeleteGRYPHEN YOU SAID; "And I am not exactly thrilled that Obama is giving into Republican pressure on this subject."
Why should you care, you were not upset when he "caved in" without a fight on refusing the elderly a cost of living increase for the last two years after giving billions in tax breaks, bail-outs and bonuses to the elite wealthy. No one even gave a whimper of protest when he didn't even give lip service to the $250.00 package for the low income elderly that was ever so quietly swept by the wayside. No one seemed to care that our medical coverage is covering less and less while our meager income is constantly being hacked away as prices on basic necessities continue to soar. There is not enough money for the things we need, much less for repairing or replacing anything that wear out or paying anyone to do any yard work or haul off trash or any of the other chores we are no longer physically able to do. We who are elderly and no longer able to work are not even allowed to be on a street corner with a sign asking for help since a law was passed against it and no one seems to care. Think about this, if you live long enough you too will become elderly and infirm and at the rate things are going, no matter what your income may be now, you could be in the same circumstances.
WHO WILL BE THERE FOR YOU WHEN THE BIBLE THUMPING, TEABAGGER CHRISTIANIST FUNDIE REPUBLICAN HYPOCRITES COME AFTER YOU?
WHO WILL BE LEFT TO STAND UP FOR YOU?
YOU WANT A LOOK AT WHAT THE FUTURE HOLDS FOR YOU IF THE RABID XTIANS ARE ALLOWED TO COMPLETE THEIR AGENDA JUST GET THE MOVIE "AGORA" AND WATCH WHAT HAS HAPPENED IN THE PAST!
KARMA IS A BITCH!
+++++++++++++++++++++++++++
Problem is, not one Republican in the majority House is going to cooperate, nor are any of the Republican Senators in President Obama's desire, for them to "vote to take away the oil company's tax subsidies" and "to invest in clean, renewable energy solutions, that will ultimately break our dependence on fossil fuels."
ReplyDeleteSame for a significant number of Dem Reps and Senators (Begich, Landrieu, et al).
We're kidding ourselves if we think Big Oil and Big Corporations aren't going to hold the Reps and Senators to being bought and paid for.
Did anyone watch any of the big oil welfare recipients at the meeting in Washington?
ReplyDeleteDid you see the pathetic "IMA VICTIM" look on the face of one of the oil execs as he whined that if their "WEALTHY WELFARE BENEFITS" were cut they would have to pass the $$$ on to the gas customers by raising the prices at the stations.
How do you fee about being BLACKMAILED BY THE ELETE RICH?
well I have to admit that allowing new drilling is a disappointment but it's not a surprise. the fossil fuel industry has this country by the balls and has for a long time. obama doesn't have much of a choice. really, what does anyone think would happen to him if he stood up and said "fuck you?" a reasonable president has to give something to all sides. I don't agree with it, but that's where we are right now.
ReplyDeleteI was disappointed in March 2010 when Pres. Obama called for increased offshore drilling and then that little kerfuffle in the Gulf put things on hold.
ReplyDeletehttp://www.nytimes.com/gwire/2010/03/31/31greenwire-obama-proposes-opening-vast-offshore-areas-to-74696.html
I love you Mr. Gryphen!
ReplyDeletePresident Obama has always operated off a long-term vision and strategic plan. You could not have illustrated his logic model more perfectly. I just wish the White House and the Democratic Party were much better in delivering short, simple analysis to counter Republican efforts to reframe his rationale as you just did.
Well done.