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Sunday, July 6, 2008

Who Is To Blame For the High Cost of Gas?

Thanks to the enivironmentalist lobby and its influence on Democratic legislators in Congress, the U.S. has, for decades, been prohibited from drilling for oil in places that we know contain billions of barrells of proven reserves.

All of the 'NO' zones are places where the U.S. , thanks to the Democratic Party, is prohibited from drilling for oil.

But wait . it gets better.

China , Cuba , Canada and others continue to drill off our shores where US companies are not allowed to drill because of Democratic policies!

Yes, that's right . China and Cuba are actively exploring oil fields 50 miles from Key West, Florida while U.S. companies are barred from working in this area because of U.S. policy . So, instead of allowing the most environmentally responsible companies to operate there and increase our domestic supply, China , who has a dismal environmental record, is preparing to suck our close, lucrative oil reserves dry. Unbelievable.

Investor's Business Daily recently explained how irresponsible the Democrats have been on the energy crisis. They lay into what they consider to be the worst Congress ever for ...

~ Failing to allow drilling in ANWR. We have, as President Bush noted, estimated capacity of a million barrels of oil a day from this source alone -- enough for 27 million gallons of gas and diesel. But Congress won't touch it, fearful of the clout of the environmental lobby. As a result, you pay through the nose at the pump so your representative can raise campaign cash.

~ Refusing to build new refineries. The U.S. hasn't built one since 1976, yet the EPA requires at least 15 unique 'boutique' fuel blends that can be sold in different areas around the nation. This means that U.S. refinery capacity is stretched so tight that even the slightest problem at a refinery causes enormous supply problems and price spikes. Congress has done nothing about this.

~ Turning its back on nuclear power. It's safe and, with advances in nuclear reprocessing technology, waste problems have been minimized. Still, we have just 104 nuclear plants -- the same as a decade ago -- producing just 19% of our total energy. (Many European nations produce 40% or more of their power with nuclear.) Granted, nuclear power plants are expensive -- about $3 billion each. But they produce energy at $1.72/kilowatt-hour vs. $2.37 for coal and $6.35 for natural gas.

~ Raising taxes on energy producers. This is where a basic understanding of economics would help: Higher taxes and needless regulation lead to less production of a commodity. So by proposing 'windfall' and other taxes on energy companies plus tough new rules, Congress only makes our energy situation worse.

These are just a few of Congress' sins of omission -- all while India , China , Eastern Europe and the Middle East are adding more than a million barrels of new demand each and every year. New Energy Department forecasts see world oil demand growing 40% by 2030, including a 28% increase in the U.S.

Americans who are worried about the direction of their country, including runaway energy and food prices, should keep in mind the upcoming election isn't just about choosing a new president. We'll also pick a new Congress.

If we elect a liberal Democrat as president in the Fall and keep the same Democrat-controlled Congress, nothing will change .. except the high cost of gas, which will keep going up.

What are your thoughts?

1 comment:

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