HomePage Link
Bumper Sticker Image
Order your 'Vote Out Incumbents' window - bumper sticker.

Just $3 each. Each order helps VOID raise funds to spread the Vote Out Incumbents message around the country.
Or, Postal Mail to:

VOID
PO Box 1271
Spring Branch, Tx.
78070-4902

Federal ID #


83-0445374
I Support VOID logo

Click on logo to get one for your web site.

Oil & Gasoline: The Politics

| | Comments (1) | TrackBacks (0)

oil rig photo - courtesy National GeographicThere is a factual story to be told about the multi-million dollar war being waged between the Oil and Gas and Republican team on the one side, and the Democrats, consumer and environmental groups on the other. The factual story however, leaves much room for guesswork as to why the facts are as they are. Let's examine this story as logically as possible.

Folks don't want oil derricks in on their front lawns, town squares, or Central Park. Hence, laws were passed ages ago regulating where mining and drilling operations may take place, to protect towns, farmlands, waterways, and public lands for designated purposes like ANWR, all necessary to American quality of life.

The cost to the oil industry to buy up private properties where oil might sit, is a very expensive proposition. Oil companies seek oil deposits in the least expensive places possible to drill. Those places happen to be on Federal lands, bought and paid for by taxpayers, otherwise called the Public, and offshore.

Therefore, the Oil based corporations seek control of the reins of government power to avail themselves and shareholders of the least cost and maximum profit potential as possible, both now and into the distant future. These oil corporations are spending millions on TV advertising promoting an image of responsible management of America's energy needs, as environmentally friendly investors in the future, and in lobbying efforts seeking the authority to drill wherever and whenever it will be most profitable.

The Republicans are tied to these oil corporation efforts by campaign contributions, and more importantly, by their supporter's major investments in oil stocks and corporations. Democrats are being lobbied by the oil corporations as well, but view themselves as the champions of the environment and alternative non-polluting energy sources, which a majority of Americans also sanction. And here lies the field of battle between the Democrats, Environmentalists, and Coastal local governments on the one side, and Republicans, oil corporations and their shareholders on the other.

10's of billions of dollars in tax payer dollars are the prize being fought for on the U.S. Congress floor. Democrats want to subsidize alternative energy source innovation and production and foster independence from foreign oil which will require a long term commitment to that goal. Republicans want the oil companies to have nearly unrestricted access to oil deposits anywhere and anytime they discover them even though, this would not ultimately reduce much dependence upon imported oil as our domestic demand will increase as domestic supplies are increased. However, more native oil supplies would mean more profits for American oil corporations into the future.

It is a fact that the U.S. government has issued vast leases for oil drilling on land and offshore which the oil corporations have sat on without drilling them. There are 1 million square acres of Gulf Of Mexico oil leases purchased by oil corporations which remain untapped. Which begs the question, why are oil corporations fighting for oil rights on the East and West Coast continental shelves and the Alaskan Wildlife Refuge when they have leases for vast areas of federal lands and offshore sites which they have not begun to drill?

It is a question no one in government or the media seems to want to ask, nor are capable of answering with certainty and evidence. Which leaves the answer open to speculation. But, there is an obvious answer. This little know fact of sitting on and not drilling available oil field leases has the effect of lowering oil supply of domestic oil. Which in turn creates both higher profits on current oil tapped as well as, and this is important, the illusion that there is an emergency situation regarding shortage of oil the Republicans and oil corporations can use to argue their need to get leases for areas previously denied them.

They want it all. The very heart and soul of the oil industry is an unfettered and unlimited access to all suspected deposits of oil reserves. If alternative sources of energy are found to replace oil, the oil corporations are out of the oil business, which has been an extremely profitable business to be in. It is therefore, crucial to the oil corporations to secure leases on all potential oil reserves BEFORE such alternative energy sources are developed. Once alternative energy sources and technologies are developed and marketed to the point of being cost competitive with oil based energy, the oil industry will immediately become less profitable as it competes with alternatives for a lower price.

The oil industry with record profits today, can afford to fight this battle on the airwaves and in the Congress to secure access to all of America's oil reserves. Once alternatives to oil energy are marketable, their profits will reduce, and the costs of fighting these battles with environmentalists and Democrats will become less affordable. Therefore, it is in their interest to promote the false image of oil shortages and emergency need to secure access to all oil reserves everywhere, despite the fact that millions of acres untapped leases to drill are already available to the oil corporations.

This "crisis" is their means of swaying both the public and the Congress to grant rights to drill on the East and West Coasts and ANWR, while they can afford to wage that public perception war. There are many issues being fought over, federalism and state's rights to preserve the aesthetics and tourism industries for their coast lines, for example, and taxation of oil corporations while they are reaping historical records in profits. But, the core and central issue is whether oil will remain the mainstay of energy and product development for the rest of this century, or not.

In other words, this is a battle between the oil industry of the 20th century, and alternative energy industries present and future of the 21st century. This is a transition point in history. There is every indication that if sufficient investments are made today in alternative energies and non-oil based technologies, that America could become extremely oil independent, not just independent of foreign oil imports, over the next 25 years. That would spell an unprecedented decline in the oil industry and severe contraction in their profitability margins throughout the rest of this century and beyond.

The oil industry and Republicans view the Democrat's proposal to increase taxes on oil corporations and invest those revenues in the demise of the oil industry by fostering research and development of alternative energies and technologies as unconscionable. The Democrats and Environmentalist view the Oil industry's sitting on vast untapped oil reserve leases while crying oil shortage and crisis in supply, as unconscionable.

You will hear Republicans saying drilling ANWR will reduce our oil dependence. Yes, in 10 years, for about 5 years. You will hear Democrats saying taxing oil corporations and funding alternatives with those taxes will reduce our dependence on foreign oil. Yes, in from 5 to 20 years depending on how quickly alternative innovations can be perfected and marketed. The bottom line is, higher oil prices are hear to stay until alternatives are put in place. Oil may drop as low as $60 to $80 per barrel in the future for a period, but, that drop will only be part of a 2 steps higher one step lower trend, until there is a viable competitively priced alternative energy source for Oil.

In the long run, the Democrats objectively have the better plan. But, Democratic politicians in Congress are just as prone to deceptive rhetoric on the issue and just as defensive about oil industry campaign contributions as the Republicans.

Gasoline is a matter of refinery capacity. There is no oil shortage in the world. We know this because not a single oil tanker anywhere in the world has pulled up to a port to fill up and been turned away empty. In America, there is an oil refinery capacity problem which creates seasonal and regional gasoline shortages. As these shortages occur more frequently, the price of gasoline spikes higher. And because they are occurring more frequently, the price dips don't dip as far as the previous one, thereby creating a trend of ever higher gasoline prices overall.

There is also the speculative pressure on gasoline prices. If the Democrats and environmentalists and alternative energy technology start-ups win their battle against the oil industry and Republicans, there will be no need for newer oil refineries. This makes the investment in new oil refineries a very risky one, until the outcome of the war over oil is determined.

It is crucial for the future of America that voters and the public bear this discussion in mind going forward, for it is their, and our children's, future and pocketbooks which are hanging in the balance. It is the environmental quality of our nation and earth also hanging in the balance.

Some excellent article sources for the political battles being waged over this issue are:

Billions could be lost in Gulf oil leases.

Happy Earth Day, How About An Oil Lease?

Democrats take jab at holders of unused oil leases.

0 TrackBacks

Listed below are links to blogs that reference this entry: Oil & Gasoline: The Politics.

TrackBack URL for this entry: http://voidnow.org/cgi-bin/mt-tb.cgi/388

Enter Comments Below

You Need to Sign in to Comment. Choices: Sign in will give you a menu for verifying your identity via MT, Vox, Typekey, etc. Stay signed in, and this system will remember you. Anonymously no other sign in than filling in the boxes below with name, email, and typing in the letters in of a graphic image.
(HTML tags permitted)



1 Comments

Lots of information but I did not see any credits where any info came from. It seems to me you make one heck of a lot of assumptions. The gov. has made it economically usless for big oil to open some old wells in the gulf due to legislation past in congress. You did sound pretty good there with the democrat talking points of 10 years for this and 20 years for that and another 5years for this. And you say the democrats "objectivley have the better plan" you need better facts. Why didn't congress ask the oil co's. about the unused leases when they had them sitting right their in the house, 2 months ago. Gee, I bet they (congress) already knows that no oil exists on those tracts. How about this, lets tell the oil co's drill wherever they want and make them pay but they must agree to bring the price of gasoline down to $1.75 a gallon. That what Americans want. I look forward to hydrogen cars and think alternative energy is fine, when it can be done without being subsidized. Mr. Remer please feel free to visit my site at http://fed-upboomer.blogspot.com and you can return the favor.