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Environment

Offshore Drilling: We Have a Choice of Simple Confusion or Outright Lies

By Adam Siegel, AlterNet. Posted July 29, 2008.


The Democrats are merely a little confused about how to address America's energy crisis. The Republicans simply lie about it.
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Every day it seems gas prices are edging higher. For almost a year, oil prices have increased by 1 percent per week. A year ago, $100 per barrel seemed a nightmare fantasy to many. Today, oil at that price is viewed almost nostalgically -- as the good old days. In the face of growing price pressures during an election year, the Democratic and Republican parties have radically different answers, radically different approaches to the challenge. At the end of the day, neither is dealing with the fundamental challenges facing humanity with full honesty. One party seems caught in confusion and disarray; the other is providing direct answers to the challenge based on fundamental dishonesty -- answers that will aggravate, rather than solve, our problems.

Newt Gingrich has put forward a campaign calling for Drill Here! Drill Now! Pay Less! The campaign aims to gather millions of signatures for a petition to deliver to Congress, amid much press attention, demanding that the Alaska National Wildlife Reserve (ANWR) and all areas of the offshore continental shelf (OCS) be opened to new oil drilling. This is being offered as a response to both our ever-growing dependence on imported oil and the current price crisis.

Seemingly done to test the waters, Gingrich's petition quickly gained attention and conservative support. Leading Republicans and Republican-leaning columnists echoed the narrative that the solution to all of America's problems is to drill, drill, drill. This is now the Republican mantra, as they seem to believe that they have found a winning political issue, no matter what the implications of this "win" might be for America's future. But the effort is reliant on such blatant spin that it is essentially a Big Lie.

While it extends seemingly across the entire right wing noise machine, a few examples provide a window on the disingenuous and deceitful words supporting the call to drill the hole even deeper rather than working to solve America's quite serious energy challenges.

George W. Bush

George W. Bush, in a recent Saturday radio address, provided a clear example of how truthiness, rather than truth, reigns in the efforts to promote oil exploration and drilling in the outer continental shelf.

From that radio chat:

First, we should expand American oil production by increasing access to offshore exploration on the outer continental shelf, or OCS. Experts believe that the OCS that is currently off limits could produce enough oil to match America's current production for almost 10 years.

Wow. The OCS would match today's U.S. oil production for almost 10 years? Want lower oil prices? Want energy independence? The answer is clear: Drill the OCS, now! That is, clear until you examine what the experts actually are saying.

A report last year by the Energy Department's Energy Information Administration said that "access to the Pacific, Atlantic and eastern Gulf regions would not have a significant impact on domestic crude oil and natural gas production or prices before 2030. Leasing would begin no sooner than 2012, and production would not be expected to start before 2017.

Washington Post, July 13, 2008

Bush stated, quite bluntly, that opening up the OCS could match today's total U.S. oil production for a decade. He failed to mention that this would have minimal, if any impact, on America's energy posture for decades to come. The administration's own experts, who are far from enemies of the oil industry and oil production, state that this move would not begin to produce oil until a decade from now and that it would "not have a significant impact on domestic ... production ... before 2030." And, in 2030, that drilling would give us only a 3 percent increase over the 5.1 million or so barrels we currently produce. The EIA estimates that additional offshore drilling would add 200,000 barrels to the 2030 production. To place this into context, U.S. consumption is about 21 million barrels per day. Thus, the entire Republican effort to open up offshore drilling is about providing 1 percent of today's consumption levels, 22 years from now. Or, if you were to go and conceive a child right this second, you'd save a few cents per gallon and realize a minuscule savings at the pump when you drive down to see that child graduate from college.

Mitch McConnell

Senate Minority Leader Mitch McConnell has been similarly disingenuous in his claims -- stated with authority but ungrounded in fact. In mid-July he said, "I think people are reassured that not a drop of oil was spilled during Katrina or Rita. ... Those rigs in the Gulf, there was not a single incident of spillage that anyone reported." But the same articles notes, "the Minerals Management Service of the Interior Department reported that there were five spills, each between 1,000 and 2,000 barrels. Altogether, 125 small spills totaled 16,302 barrels ..."


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See more stories tagged with: energy independence, offshore drilling

Adam Siegel blogs at Energy Smart about energy and its environmental implications.

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View:
The most important first step in solving the energy crisis is conservation.
Posted by: HughScott on Jul 29, 2008 4:31 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Sen. John Warner excepted, no leader in Washington, including Barack Obama, has told Americans what they need to hear -- that by observing a lower national speed limit, motorists will conserve fuel.

As reported recently by the McClatchy news service, Sen. Warner hasn't specified what a new limit should be, but he points out that Americans saved 167,000 barrels of petroleum a day when the 55-mph speed limit was in effect back in the 1970s.

Warner told fellow senators this week that he may proceed with legislation after the Energy Department determines the most fuel-efficient speed limit for the nation's highways.

"We have to take the lead in Congress, and hopefully the president will join," Warner said on the Senate floor. "We have that duty."

Among those joining the call for a national speed limit are truckers, who have been hammered by diesel fuel costs that are expected to reach $135 billion in 2008 -- $22 billion more than last year.

Accoring to McClatchy News, the American Trucking Association, which represents 3.5 million truck drivers and 37,000 trucking companies, is asking Washington to set a national limit of 65 mph. A 10-mile reduction from 75 mph, spokesman Clayton Boyce said, would lower fuel consumption by 27 percent.

So why hasn't there been a serious discussion about reducing the national speed limit? Lack of visionary leadership in Washington and that includes Obama -- John Warner excepted.

On a more fundamental level, if Americans are unwilling to slow down to save gas, then they deserve pump prices of $10 a gallon.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

If anyone paid attention to the hearings with oil executives,
Posted by: weslen1 on Jul 29, 2008 4:49 AM   
Current rating: 4    [1 = poor; 5 = excellent]
including the congress members who actually held the hearings, they would KNOW that the supply and demand argument is a total and utter lie!
I don't know the name of the specific congressman who was questioning them at the time, but the CEO was Stephen Simon, Exxon Mobil Director and Senior Vice President. At one point the congressman made comments about demand having gone up. Simon interrupted saying that demand for oil has NOT gone up. He had a look on his face and a tone in his voice that oozed contempt. He then said, also, that the supply of oil has NOT gone down. Now you can't get any plainer than that. The problem IS that these congresspersons have their pre-written questions prepared and only so much time and in the course of trying to get answers for those questions in the allotted time, many statements that are of great significance are unheard, overlooked, or forgotten. No one stops them at that point and says, "Wait a minute! What did you just say? I want an explanation of what you just said and exactly what the truth is."
If someone would have done that when Mukasey was testifying in his confirmation hearing when he said he'd have to consult with Bush before he could decide how to try cases or decide whether he'd even allow cases to be tried because he "Serves at the pleasure of the President" think how much better off we'd be. I wonder if he realized Bush is not a lawyer and not smart enough to be an Attorney Generals adviser.
But back to the oil. If DEMAND has NOT increased and SUPPLY has NOT decreased, then there is another explanation for the oh so rapidly increasing price of gas. I personally think it has been a scam, another in a list of many, of the Bush administration to FORCE congress to allow the new drilling "CONTRACTS" for BIG OIL before Bush leaves office so he and all his oil buddies won't lose a dime. Remember Cheney's net worth has gone up nearly 1000percent since he took office from his ties to Halliburton/KBR.
So my suggestion to congress is THIS. IF there are GOING to be new contracts for drilling, give them to NEW companies with NO ties to the top 5, subsidizing them if necessary and let the Big Oil Execs live off what they've already stolen. I also firmly BELIEVE that all commodities SHOULD be nationalized. A few Millionaires who's only concern is profit for themselves should NOT control oil, water or power to the detriment of the citizens who's very lives depend on those things. We've seen the horrendous consequences of "Privatizing" these things and it's time for it to STOP. Stop allowing big shot CEOs hold us all hostage to their bank accounts benefit.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» I guess $100 oil is also a lie, eh? Posted by: Iconoclast421
» what was so bad that weslen1 got a 1? Posted by: walldodger1969
Raise efficiency Standards, Conserve, Tax Windfall Profits, go GREEN and Repatriate!
Posted by: williameon on Jul 29, 2008 4:58 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Raise efficiency Standards
Build better Cars and Buildings.
Start the Green Revolution
Keep our energy dollars here creating jobs and funding energy independence?
Reign in and tax Exxon’s profits.
Nationalize all energy reserves because of National Security.
Put the money back our own pocket.
Go
GREEN!
We have the best wind resources in the World
Let's use them!
Throw the Oil Pushers out of Washington and
Kick the Oil Habit!
STOP the WAR and
Oil will drop by 50%!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

We Should Have Moved In This Direction Decades Ago...
Posted by: Carol Burns on Jul 29, 2008 5:32 AM   
Current rating: 4    [1 = poor; 5 = excellent]
...not just in oil but in electric power generation, but the lobbyists had too much clout with the (mainly Republican) Congress. And why is no one talking about the apparently huge oil deposits in North Dakota? We need renewable energy, such as wind and solar. We need to wean ourselves from fossis fuels. With the right technology, we could be making fuel from garbage! What happened to methane as a fuel source? And we need to stop using coal to power electric plants--it's killing the ozone layer. The Republicans are lying; John McCain is lying. All they want is to win the election so they can continue to rape and pillage our country. ENOUGH!

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» You must live no were near Coal Country! Posted by: theVRWCwhodatesLiberals
Like the illusionary "surplus" misused for promoting tax cuts for the wealthy, false illusion about
Posted by: maxpayne on Jul 29, 2008 6:35 AM   
Current rating: 3    [1 = poor; 5 = excellent]
an "oil glut". How much really and how long will that oil last and is the light sweet or heavy sour? The numbers are just POLITICAL "estimates". Yes, that's right. POLITICAL "estimates". Anyone can come up with a pie-in-the-sky number and lie their asses off but let's be honest. There is a huge difference between crude oil that is light sweet and that which is heavy sour. My guess is that it's more of the latter. What that means is that it will take longer to extract, be more expensive in the process, and there'll be nothing but POOR QUALITY oil. Instead of going desperate, why can't we learn from Europe and Asia to stop procrastinating and face the fact that improving public transportation, rewarding conservation and fuel efficiency instead of giving gas guzzlers more tax breaks, ending the phoney "war on drugs" and allowing hemp to compete with petroleum in the so-called "free" market, reforming the zoning laws big time to allow more people the freedom to generate their own electricity from solar panels and wind turbines as well as allowing people the freedom to use clothes line as a better means of conserving water and energy and getting a natural scent instead of a chlorinated one, etc ... ? As long as America stays the gas/energy guzzling and "free" trade lazy ass import from slave labor course,

GOD WILL CONTINUE TO SEVERELY PUNISH AMERICA TO ETERNAL DAMNATION AS AMERICA CONTINUES TO GO DOWN IN FLAMES BIG TIME !!!!!

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Heads Up! We're Being Sold Out Again!
Posted by: mgloraine on Jul 29, 2008 8:17 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Democrats to the rescue once again with a "compromise" which isn't needed, wanted, or welcome, this time from Sen. Harry Reid:

Reid

What explanation can there be for people in Congress hammering out "compromises" which are actually capitulations to corporate interests, as with Steny Hoyer and FISA, Feinstein/Schumer on Kyl/Lieberman and Mukasey, and now Reid with offshore drilling? What could motivate Congressional "leaders" to give Cheney-Bush and their corporate sponsors EVERYTHING they ever wanted and then some?

Money is my guess. Corporate lobbyists offer large "campaign contributions" in exchange for favorable votes. Can anyone explain how this is different from a bribe??

All of Congress is selling its votes to corporations. The voices of the taxpayers are no longer being heard or represented. There will be offshore drilling because Big Oil wants it and is willing to buy the Senators it takes to make it happen.

Don't bother complaining to the Department of Justice, or even the Supreme Court, because they, too, are owned by the same corporations. America loses, as usual, while corporatists and Congress-people loot the nation and impoverish the citizens to finance their gluttonous lifestyles.

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Here's a story you won't read anywhere
Posted by: ReallyBearish on Jul 29, 2008 10:08 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
You want to know why the price of oil spiked up a few months ago? It had nothing to do with drilling off the coast of Florida.

Ted Butler, a silver analyst, came up with the following:

"Big news recently is the world record loss in crude oil trading, taken by SemGroup, of Tulsa, Oklahoma, a large but mostly unknown oil pipeline, storage and trading company founded in 2000. To my knowledge, the reported $3.2 billion loss is the second largest commodity debacle ever, only behind the $6 billion loss recorded by Amaranth Advisers two years ago in natural gas."

SemGroup was massively short in the futures market. When they were forced to cover, the price of oil shot up (and they went bankrupt.)

Did the brain dead press report this? Not a chance!

Did those geniuses at the CFTC report this? No they went after some trivial violations of future trading rules. Did they do anything about having a speculator with such a massive concentration of futures contracts that they couldn't cover-- a speculator improperly listed as a "commercial" (a company that supplies or uses oil rather than one that bets on price changes)?

You can see the rest of the report at investmentrarities.com.

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Let's be serious
Posted by: owlsliveintrees on Jul 29, 2008 10:26 AM   
Current rating: 1    [1 = poor; 5 = excellent]
Everyone wants to use less energy. Lower the speed limit sounds good, movement towards greener buildings, sounds great, all great ideas...

BUT!

Until liberals admit that expanded oil drilling has a place in our future energy policy, nobody is going to take them seriously. Stop trying to tell everyone that sucking billions of gallons of oil out of the ground isn't going to reduce the price of gasoline. we're not that stupid. Conservation and green energy are important parts of our future, but so is maximizing the reserves we already have. Stop trying to justify policies that worked at 2/gallon when it's 4/gallon. We're not that stupid.

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» Actually, you are that stupid Posted by: ReallyBearish
» RE: Actually, you are that stupid Posted by: LeaveMeAlone
» Not that many jobs. Posted by: ReallyBearish
» RE: Not that many jobs. Posted by: LeaveMeAlone
» RE: Let's be serious Posted by: Lauren
Republicans are Treasonous Swine..!
Posted by: TJColatrella on Jul 29, 2008 12:24 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The swine Republicans created this crisis with their sick obsession to deregulate everything and allowing criminal scum like Enron to wrote the Bills they presented in the United States Senate..IE that swindler rat traitor Phil Gramm..

Now they are holding a gun to the babies head saying we have to pass off shore drilling and drilling in ANWAR before we can pass legislation to get some regulations back on the Futures market which is out of control and destroying America's economy..

The Oil Market manipulation is one of the biggest swindles in world history and the Republican swine scum are using it to their advantage and engaged in economic warfare against the United States..using pieces of living excrement, like Goldman Sachs and Morgan Stanley and the Hedge funds as their surrogates..

We must close the Enron, London and Goldman Sachs Loopholes this crisis is not about supply ad demand it's about criminal market manipulation and trading in dark markets and the Republicans are liars and we see now true enemies of the American people and their best interests and our economy..

bin-Laden tried to destroy our economy on 9/11 but Phil Gramm and John McCain and these Republican traitors are finishing his job off for him...stinking traitors..

If we end these criminal market manipulations in the Futures market the price of Oil will come down from 30-50%...that's a fact...

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Confusion? What confusion?
Posted by: willymack on Jul 29, 2008 12:59 PM   
Current rating: 4    [1 = poor; 5 = excellent]
The oil and coal companies are greedy, criminal LIARS. As far as I know, nobody's confused about that. As to alternatives to carbon based fuels, Al Gore, the Democrats and the Greens have been talking about these for years, but, of course, that doesn't mean everybody's been listening. Now, who's confused about the fact that we're polluting and poisoning our entire Earth to death? Only the brain-dead and aforementioned "energy" company cretins would deny this irrefutable fact.

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An Easier Solution
Posted by: vivachavez on Jul 29, 2008 1:03 PM   
Current rating: 5    [1 = poor; 5 = excellent]
How about mass transit? Not only does it significantly REDUCE oil consumption, it reduces congestion on roads, lowers air pollution, drives up property values, and promotes sustainable development.

THe solution is to USE LESS OIL, not produce more.

THe oil companies have no motive to drill more, they love high gas prices. Most of their profits are going into share repurchases and dividends. Even if they were granted coastal drilling concessions, they wouldn't use them.

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» AMEN Bro ! Posted by: jwverez
» Amen again! Posted by: JakobFabian01
Is the writer missing the most important reason for high gas prices?
Posted by: paperboy on Jul 29, 2008 3:12 PM   
Current rating: 4    [1 = poor; 5 = excellent]
The weak dollar?

Since oil worldwide is priced in US dollars and the dollar is weaker than it has been in decades, it simply takes more dollars to buy a barrel of oil.

Shouldn't the Federal Reserve be held accountable on some level for devaluing our currency?

Shouldn't the banks that went along with the Fed's plan bear any responsibility?

No one, not republicans or democrats, seem to want to address this reality. Why is that? Does the Fed hold too much power? Would addressing this cause a run on the banks even more than what is already happening?

Does either party understand economics at all?

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