Americans get interested in
energy when either gasoline or heating prices rise. The rest of
the time, we assume that, either there are sufficient energy
resources, i.e., coal, natural gas, and oil, or if we buy into the
doom and gloom “experts”, that we are running out of everything.
Accustomed to affordable energy, Americans, when they do pay
any attention to energy issues, look for someone to blame when
prices spike. They rarely look at Congress, assuming it is in the
pocket of Big Oil. There’s something to be said for this, given
the fact that the oil industry pumped $25.5 million into the
campaigns of federal candidates during the last election cycle;
80% of which went to Republicans.
Surely, then, Congress is catering to Big Oil and doing what it
can to insure ample energy for the nation. No. In fact, according
to Ed Feulner, the president of The Heritage Foundation, “before
the House of Representatives passed the federal budget, lawmakers
stripped out a provision that would have allowed companies to
drill for oil in the Arctic National Wildlife Refuge.” The oil
from a tiny portion of ANWR “could generate as many as 16 billion
barrels of oil, enough to replace about 30 years worth of oil
imports from Saudi Arabia.”
Feulner also noted that, “partly because of opposition by
lawmakers from Florida and California, Congress bans oil and
natural gas exploration in the eastern Gulf of Mexico and the
outer continental shelf.” These days, too, “federal law restricts
access to resources in the Rocky Mountains and elsewhere.” Does
any of this make any sense to you? If Congress is in the grip of
the giant energy companies, why has it consistently created
obstacles to the extraction of our own resources of energy?
Representative Richard Pombo, chairman of the House Committee
on Resources, will tell anyone who will listen that “for the
foreseeable future, America has no shortage of oil or other
traditional energy resources. Washington, D.C., has a shortage of
the political will required to let American workers go get it.”
For example, “The United States has enough non-park federal
resources to supply natural gas to 100 million homes for 157
years. But, despite that massive supply, we cannot deliver even
one year of affordable natural gas to Americans right now.” The
result is that the wholesale price of natural gas is twenty-four
percent higher than it was last April, as most non-park resources
are off-limits, and locked up with more than thirty regulations.”
Rep. Pombo notes that ANWR contains “a mean estimate of 10.4
billion barrels of oil, according to the most recent United States
Geographical Survey report. This represents a forty-five percent
increase in total U.S. proven reserves, and could create more than
735,000 U.S. jobs.” The oil trapped in shale rock in the U.S.
could produce two trillion barrels of oil; four times Saudi
Arabia’s resources. For various reasons, while it is far from
providing oil independence, America’s energy security would surely
benefit from developing this source.
The United States of America is literally funding both sides of
the war against the Islamofascists, buying oil from the Middle
Eastern nations that support them and funding our military to
destroy them.
At this point I will be told that I am very naïve about our
current energy problems. After all, the President comes from an
“oil family.” True. And equally true is the fact that he has been
trying to free up the ANWR oil reserves without any success to
date. It would appear that the energy executives who got together
with Vice President Cheney to advise on national policy haven’t
had much luck either except for some tax breaks.
Granted Big Oil took in some significant profits recently, but
without them they cannot invest the billions it costs to search
for and develop new reserves worldwide, nor can they expand their
refinery capacity without profits. Exxon Mobil, however, has spent
$3.3 billion in the past five years expanding and improving its
existing US refineries, adding the equivalent capacity of three
new facilities. To suggest oil companies are not looking for new
sources is nonsense, though industry insiders debate issues about
where they’re looking.
Daniel Yergin, chairman of Cambridge Energy Research
Associates, went on record earlier this year in the Washington
Post to report that his company’s field-by-field analysis of
worldwide oil production capacity suggests that “From 2004 to
2010, capacity to produce oil (not actual production) could grow
by 16 million barrels a day—from 85 million barrels a day to 101
million barrels—a twenty percent increase. Such growth over the
next few years would relieve the pressure on supply and demand.”
As Yergin noted, “This is not the first time that the world has
‘run out of oil.’ It’s more like the fifth. Cycles of shortage and
surplus characterize the history of the oil industry.”
The World Energy Outlook 2005, published by the International
Energy Agency “expects global energy markets to remain robust
through 2030. If policies remain unchanged, world energy demand is
projected to increase by over 50% between now and 2030. World
energy resources are adequate to meet this demand, but investment
of $17 trillion will be needed to bring these resources to
consumers.”
One of the main drags on the search for, extraction, and
transportation of energy resources has been the worldwide
environmental movement. In the U.S. the restrictions imposed on
energy companies are largely the work of legislators in league
with various Green organizations opposed to any use of “fossil
fuel” energy on the grounds that it produces “greenhouse gases”
and thus will lead to a massive, highly theoretical “global
warming.” Since there is very little, if any, proof that
anthropological (human) induced warming exists, it would be a good
idea if we could get on with the business of producing the energy
supplies the U.S. and the world needs.
The world is not running out of oil, natural gas, or coal. The
U.S. has so much coal we export it. If the environmentalists would
just get out of the way, there would be no energy problem at all.
Ironically, nuclear energy, the least polluting of all, has long
been opposed by the Greens. At a recent UN Kyoto Protocol
conference, Patrick Moore, the former founding member of
Greenpeace, long since a critic, said, “It is the environmental
movement itself that is the primary impediment to the reduction of
CO2 emission and fossil fuel consumption because they refuse to
support the obvious alternatives” of nuclear power and hydro
power.
Energy costs are affected, of course, by unpredictable factors
such as Hurricane Katrina that briefly disrupted oil extraction
and refining in the Gulf States area. While gasoline prices did
rise after the hurricane, they fell just as rapidly within weeks.
Other factors involve the political and other objectives of Middle
Eastern and other oil-producing nations such as Venezuela.
That’s why Saddam Hussein had to be removed. He was a major
threat to the nations of the Middle East. Responsible for an
eight-year war with Iran and an invasion of Kuwait; he also posed
a threat to Saudi Arabia. A stable and a democratic Iraq with a
reliable justice system would prove to be a glaring example of
what every other Middle Eastern nation, with the exception of
Israel, lacks. It also insures that Iraq’s huge oil reserves will
flow again minus the obscenities of Hussein’s vile regime. Iraq’s
oil facilities and pipelines are under constant attack for this
reason.
Meanwhile, in Iran, the extremist Shiite Islamic Revolution is
discovering that foreign direct investment has zeroed-out thanks
to its highly dubious pursuit of a nuclear weapons capacity and
its open threat to destroy Israel. China and India’s growing need
for oil, however, has gained Iran some powerful new friends.
According to futurist, Thomas P.M. Barnett, Dubai has been a major
beneficiary of extremist rhetoric as investment moved there. Iran
sits atop the third largest oil reserves. The more belligerent its
leadership is, the more likely it invites a “solution” comparable
to Iraq’s.
Finally, back home in America, the federal government is
spending billions to research the possibility of hydrogen as a new
“alternative” energy source. At some point, the government will
have to tell the public that it is impractical, inefficient, and,
regrettably, it has wasted a huge amount of money. This is called
a learning curve and, until the money is down the old research
chute, various environmental organizations and university research
centers will continue to insist hydrogen is the wave of the
future; along with solar energy and wind power.
You want low prices at the gas pump? You want to heat your home
without having to give up one meal a day? You want electricity?
Learn to love Big Oil, Big Gas, and Big Coal.
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