Oil: the market triumphs 2

Despite all President Obama’s efforts to prevent it, the US is winning the oil game. Because no human force is stronger than the market.

The knuckleheads of the Left love to hurl the accusation in the faces of conservatives that the presidents Bush “only went to war against Iraq because of oil”. (As if they themselves would never think of driving a gas-fueled car – or would be perfectly content not to.)

The accusation is not true. But perhaps the US should have gone to war against one or more Middle Eastern powers “because of oil”.

Oil is a very good reason to go to war. Would have been, when the Saudis had OPEC hyping the oil price in 1973. The results for the US and Western Europe were dire.

This is from Wikipedia:

In October 1973, OPEC declared an oil embargo in response to the United States’ and Western Europe’s support of Israel in the Yom Kippur War of 1973. The result was a rise in oil prices from $3 per barrel to $12 and the commencement of gas rationing. Other factors in the rise in gasoline prices included a market and consumer panic reaction, the peak of oil production in the United States around 1970 and the devaluation of the U.S. dollar. U.S. gas stations put a limit on the amount of gasoline that could be dispensed, closed on Sundays, and limited the days gasoline could be purchased based on license plates.

Even after the embargo concluded, prices continued to rise. The Oil Embargo of 1973 had a lasting effect on the United States. The Federal government got involved first with President Richard Nixon recommending citizens reduce their speed for the sake of conservation, and later Congress issuing a 55 mph limit at the end of 1973. Daylight savings time was extended year round to reduce electrical use in the American home. Smaller, more fuel efficient cars were manufactured. Nixon also formed the Energy Department as a cabinet office. People were asked to decrease their thermostats to 65 degrees and factories changed their main energy supply to coal.

One of the most lasting effects of the 1973 oil embargo was a global economic recession. Unemployment rose to the highest percentage on record while inflation also spiked. Consumer interest in large gas guzzling vehicles fell and production dropped. Although the embargo only lasted a year, during that time oil prices had quadrupled and OPEC nations discovered that their oil could be used as both a political and economic weapon against other nations.

War then would have been a far better answer to the Saudis than meek acceptance buttered with sycophancy.

War and drilling. Drilling wherever there was oil in America and off-shore. Including Alaska. Ignoring the Environmentalists with their philosophy of impoverishment.

Now all is changing. The US is becoming the biggest oil producer in the world. The Saudis and the other Middle Eastern tyrannies have no resource other than the oil discovered under their ground and developed into riches for them, by the infidel. And now they are losing it.

They, and all the evil powers that have wielded oil as a weapon, are taking desperate measures. Which will fail.

This is from Investor’s Business Daily:

With Saudi Arabia ramping up oil production, prices are tumbling, and the world’s petrotyrants — Iran, Russia and Venezuela — are taking a hit. Seems the old high-price, low-production tactic isn’t foolproof.

The Saudis don’t seem to be interested in budging. As prices fell to $83 a barrel for November-delivery crude, they’ve ramped up production even as others call on them to stop.

The first call came from fiscal shambles Venezuela, for an emergency meeting of the Organization of Petroleum Exporting Countries [OPEC] for a production hike. They were coldly rebuffed.

And on Tuesday, Prince Al-Waleed Bin Talal — a Saudi entrepreneur with a lot of non-oil money who sometimes plays gadfly to the regime — warned that the kingdom would fail to balance its own budget if oil prices went below $80. But he, too, was rebuffed.

It all may be because Saudi Arabia has a strategic need to check Iran over its nuclear program and financing of Islamic State terror and to discipline Russia for its support for the Assad regime in Syria.

It’s also almost certainly a response to the great shale revolution in the U.S., which has slashed U.S. dependency on oil exports to 20% from 60% a decade ago.

A Chilean-based entrepreneur told IBD last year that the greatest fear of Saudi Arabia’s king was America’s shale revolution, which was cutting into Saudi’s role as the world’s swing producer of oil.

However it spills out, the Saudi move to raise production may be the most dramatic move to shake events since President Reagan forced the bankruptcy of the Soviet empire by … asking the Saudis to raise production, which they did.

With this most recent move, the petrotyranny model of using oil as a weapon against smaller neighbors and the U.S. is effectively dead. Over the past decade, all of the states that have staked their futures on the power of oil have effectively burned their bridges to other models for building their economies.

When Venezuela’s Hugo Chavez took over in 1998, he scrapped that nation’s high-production, low-price, high-market-share strategy. In its place came a “model” based on high prices for consumers, low output and the expropriation of state oil company profits to pay for bigger government and an expansive welfare state, leaving the company without investment.

Foreign oil properties were also expropriated, including Exxon Mobil’s in 2007. It provided a short-term boost but left the country one of the most unattractive in the world for foreign investment and capital.

Russia, meanwhile, adopted a somewhat similar strategy after its 1998 crash. It focused on becoming a petropower, much to the detriment of the rest of the economy.

Today, more than three-quarters of Russia’s economy is oil-based, leaving it dependent on high oil prices with no balance from other sectors and wasting its most valuable asset: a well-educated workforce.

Instead of diversifying, Russia used energy as a weapon, repeatedly cutting off Ukraine’s natural gas supplies since 2009 in a bid to force its neighbor to toe the Moscow line, as well as to “Finlandize” its eastern and central European neighbors into fearing more energy cutoffs.

Then there’s Iran, whose illegal nuclear program has enjoyed soggy indifference in Europe based on the region’s dependence on Iranian oil.

These three troublemakers share one thing in common: a strategy of high oil prices and low production, plus a willingness to interfere with markets to make them into power games.

But as it turns out, that strategy was another kind of dependency. And the Saudis, egged on by the shale revolution, have just ended it.

Market manipulation is peculiar. In 1998, the Saudis tried to cut output to keep crude prices from falling further. It didn’t work. From that, they learned a valuable right lesson: Nothing is bigger than market forces.

Now, the world’s remaining petrotyrants are about to be schooled as well.

Time for a little quiet celebration. And it doesn’t have to be only a little or very quiet.

Let us crow.

To drill and not to drill 0

It looks like good news. At last offshore drilling is to be permitted. America is to be allowed access to its own oil and natural gas.

But there’s a catch, as Michelle Malkin says. She reveals the whole story:

The Obama administration is proposing to open vast expanses of water along the Atlantic coastline, the eastern Gulf of Mexico and the north coast of Alaska to oil and natural gas drilling, much of it for the first time, officials said Tuesday.

The proposal — a compromise that will please oil companies and domestic drilling advocates but anger some residents of affected states and many environmental organizations — would end a longstanding moratorium on oil exploration along the East Coast from the northern tip of Delaware to the central coast of Florida, covering 167 million acres of ocean.

If this were a sincere change of heart and an honest, stand-alone effort to wean America off foreign oil, it would be worth heralding.

But as always with this administration, there’s a catch, via the American Energy Alliance:

“One major flashpoint in the negotiations has been whether to share drilling revenue with states and to allow states to opt in or out of drilling along their coastlines. It was unclear late Tuesday whether Obama endorses revenue-sharing for states. ‘It appears the Northern Atlantic and entire Pacific Coast will now be under a de facto ban for drilling,’ said Patrick Creighton, a spokesman for the Institute for Energy Research. ‘Even if drilling is ultimately allowed in part of the Atlantic,’ Creighton said, ‘revenue sharing is an essential incentive for states.’ The administration’s plans could meet resistance from at least 10 Senate Democrats representing coastal and Great Lakes states who last week raised concerns about ‘unfettered access to oil and gas drilling’ that could jeopardize fishing, tourism and military exercises…”

GOP Rep. Mike Pence adds:

“As usual the devil is in the details. Only in Washington, D.C., can you ban more areas to oil and gas exploration than you open up, delay the date of your new leases and claim you’re going to increase production.

“The President’s announcement today is a smokescreen. It will almost certainly delay any new offshore exploration until at least 2012 and include only a fraction of the offshore resources that the previous Administration included in its plan.

“Unfortunately, this is yet another feeble attempt to gain votes for the President’s national energy tax bill that is languishing in the Senate. At the end of the day this Administration’s energy plan is simple: increase the cost of energy on every family in America and trade American jobs oversees at a time when millions of Americans are looking for work.

A powerful lunch 0

Here’s Hillary Clinton’s cunning plan for saving the world from a nuclear-armed Iran:

First, convince the Saudis that the Revolutionary Guards are effectively taking over the government of Iran and so turning the country into a military dictatorship.

Next, persuade the duly frightened Saudis, who’ll want urgently to stop this development, to threaten China over oil supplies.

Then, a thoroughly cowed China will agree to support sanctions against Iran.

Finally, sanctions supported by China will stop Iran becoming a nuclear-armed power.

Yeah, sure, that will do it. No ordinary diplomacy this; this is smart power.

Yet the Saudis, it seems, are not keen to play their part in the brilliant scheme.

The Washington Post reports:

Iran is increasingly acquiring the attributes of a “military dictatorship,” Secretary of State Hillary Rodham Clinton asserted repeatedly Monday, pointing to how the Islamic Revolutionary Guard Corps has grabbed ever-larger chunks of the country’s economic, military and political life.

Clinton’s statements … were clearly a calculated effort to stir the waters in the administration’s stalled effort to win support for new sanctions on Iran over its nuclear ambitions.

Clinton appeared to be trying both to sound the alarm within Iran about the Guard’s increased influence — perhaps hoping to drive a wedge between the Guard and the rest of the political elite — and to sow doubts about the nature of Iran in nations that are wary of additional sanctions, such as China and Brazil. …

U.S. officials have said they plan to target the sanctions at the Guard, which is heavily involved in Tehran’s nuclear and missile programs, because such tactics would damage the nation’s power structure while in theory not affecting many ordinary Iranians. Clinton suggested that the sanctions being contemplated are also designed to thwart the growth of the Guard’s role in Iran’s internal political dynamics.

“That is how we see it,” Clinton [said]. “We see that the government of Iran, the Supreme leader, the president, the parliament is being supplanted and that Iran is moving toward a military dictatorship.” …

Although the Obama administration has repeatedly said it does not seek to meddle in Iranian politics, Clinton suggested that Iran’s elected leaders — long at odds with the United States — needed to take action. She said the current political climate is “a far cry from the Islamic republic that had elections and different points of view within the leadership circle.”

At a news conference with Saudi Foreign Minister Saud al-Faisal, she said she hoped “that this is not a permanent change but that the religious and political leaders of Iran act to take back the authority which they should be exercising on behalf of the people.”

Similarly, she told reporters that “the civilian leadership is either preoccupied with its internal political situation or is ceding ground to the Revolutionary Guard” as it tries to contend with opposition protests. She said that whether the country changes course “depends on whether the clerical and political leadership begin to reassert themselves.”

And if they did, everything would be different? They’d give up the nuclear program? Stop threatening the destruction of Israel? Become firm allies of the United States? They’ve given clear evidence, have they, that this is how they’re thinking, these clerical and political leaders, the mullahs and Ahmadinejad? They’ve shown themselves to be trustworthy authorities exercising power ‘on behalf of the people’?

Anyway, King Abdullah gave Hillary a jolly good lunch.

Clinton spent 5 1/2 hours at Abdullah’s desert compound, about 60 miles northeast of the capital, Riyadh. After an opulent lunch, they spoke for nearly four hours on a range of issues, including Afghanistan, Yemen and the Israeli-Palestinian conflict. But Iran dominated the discussion.

A key roadblock to robust sanctions is China, which has deep economic and energy ties to Iran. The Obama administration has pressed Saudi Arabia, China’s top oil supplier, to put pressure on Beijing. Iran is China’s No. 3 supplier of oil.

After the talks, Saud [al-Faisal] appeared lukewarm about the effectiveness of sanctions. “They may work” in the long term, but the Saudis are anxious in the short term because they “are closer to threat,” he said…. [H]e was sure that China took its role as a permanent member of the U.N. Security Council “very seriously” and that “they need no suggestion from Saudi Arabia to do what they ought to do.”

So perhaps the plan won’t work after all.

To sum up, Hillary Clinton and the Obama administration are achieving nothing, getting nowhere with Iran.

In fact, so feeble are the efforts they’re making, observers might wonder if Obama really wants to stop Iran becoming a nuclear power.

What lies beneath the Chukchi Sea 1

That ex-governor Sarah Palin is a lot smarter and better informed than vice-president Joe Biden is proved yet again by a new report on energy, commented on by Investor’s Business Daily (at their Investors.com website):

As Palin jousts with Biden on energy independence, the government reports that we lead the world in energy reserves. From oil to gas to coal, we are sitting on prosperity. So why are we importing anything?

One of the interesting sidelights of the NY-23 race was an exchange on energy independence between Vice President Joe Biden and the former governor of energy-rich Alaska, Sarah Palin. Biden, who came in to campaign for Democrat Bill Owens, was reminded of the issue of energy.

“The fact of the matter is that Sarah Palin thinks the answer to energy was ‘Drill, baby, drill,'” Biden said at an Owens fundraiser, referring to Palin’s own campaign slogan last year. “No, it’s a lot more complicated, Sarah, than ‘Drill, baby, drill.'”

Actually, it’s not, according to a new report produced by the Congressional Research Service, hardly an outpost of the vast right-wing conspiracy or on the payroll of Big Oil. The report says that if all our energy resources are added up and converted to a barrels of oil equivalent (BOE), the U.S. has the largest reserves in the world.

According to the CRS, the U.S. has 1,321 billion barrels of oil (or barrels of oil equivalent for other sources of energy) if you combine its recoverable natural gas, oil and coal reserves. Russia is close behind with 1,248 billion barrels BOE. Other energy-producing nations, including many that export oil to the U.S., lag behind.

Of course, much of our world-leading reserves are off-limits by government edict. We recently commented on the federal government designation of 200,541 squares miles off the coast of Alaska as critical habitat for the abundant polar bear, effectively killing hopes to exploit the vast energy riches of the American Arctic.

Alaska’s Chukchi Sea, part of the designated habitat, holds more oil and gas than anyone thought — 1,600 trillion cubic feet of undiscovered gas, or 30% of the world’s supply and 83 billion barrels of undiscovered oil, 4% of the estimated global resources.

The CRS report also notes the U.S. has 28% of the world’s coal reserves, with Russia again coming in second with 19%. …

Freedom requires energy independence 0

This is from an article by Sarah Palin in the National Review (read it all here):

In addition to drilling, we need to build new refineries. America currently has roughly 150 refineries, down from over 300 in the 1970s. Due mainly to environmental regulations, we haven’t built a major new refinery since 1976, though our oil consumption has increased significantly since then. That’s no way to secure our energy supply. The post-Katrina jump in gas prices proved that we can’t leave ourselves at the mercy of a hurricane that knocks a few refineries out of commission.

Building an energy-independent Amer ica will mean a real economic stimulus. It will mean American jobs that can never be shipped overseas. Think about how much of our trade deficit is fueled by the oil we import — sometimes as much as half of the total. Through this massive transfer of wealth, we lose hundreds of billions of dollars a year that could be invested in our economy. Instead it goes to foreign countries, including some repressive regimes that use it to fund activities that threaten our security.

Reliance on foreign sources of energy weakens America. When a riot breaks out in an OPEC nation, or a developing country talks about nationalizing its oil industry, or a petro-dictator threatens to cut off exports, the probability is great that the price of oil will shoot up. Even in friendly nations, business and financial decisions made for local reasons can de stabilize Amer i­ca’s energy market, since the price we pay for foreign oil is subject to rising and falling exchange rates. Decreasing our dependence on foreign sources of energy will reduce the impact of world events on our economy.

In the end, energy independence is not just about the environment or the economy. It’s about freedom and confidence. It’s about building a more secure and peaceful America, an America in which our energy needs will not be subject to the whims of nature, currency speculators, or madmen in possession of vast oil reserves. …

To Sarah Palin freedom is a high ideal, perhaps the highest. To Obama it is not. On the contrary, he is a collectivist. No argument for freedom will move him.

Posted under Commentary, Economics, Energy, Environmentalism, Socialism, United States by Jillian Becker on Saturday, October 17, 2009

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The bear’s paws on the golden tap 3

Ralph Peters writes in the New York Post on the confrontation with Iran:

For Moscow, this crisis isn’t about Tehran’s acquisition of nukes. It’s about Russia’s acquisition of a stranglehold on global energy markets. Putin’s playing with fire — but he’s sure we’ll be the ones burned. As for the Obama administration’s desperate (and stunningly naive) hope that economic sanctions can deter President Mahmoud Ahmedinejad and his fellow thugs-for-Allah from pursuing nuclear weapons, forget it….

The current crisis is a win-win-win for Putin. But before laying out his plan, let’s run the numbers:

The Persian Gulf’s littoral states hold over 60 percent of the world’s proven oil reserves and 40 percent of the natural gas. Russia has “just” 10 percent of the oil reserves and 35 percent of the world’s natural gas.

Do the math: Iran and its neighbors, along with Russia, own two-thirds of the world’s oil reserves and 70 percent of the natural gas. …

This is one macro-region for energy, the zone of ultimate control. Putin gets it, even if we don’t. Here’s Czar Vladimir’s strategic trifecta:

For now, Russia profits wonderfully from its trade, both legal and illicit, with Iran, while the West talks itself to death. Life is good.

But life could get even better: If Iran’s nuclear quest isn’t blocked, a nuclear arsenal will give Iran de facto control of all Persian Gulf oil. Putin envisions a Moscow-Tehran axis, an energy cartel that dramatically increases the value of his oil and gas — the only economic props keeping the corpse of Russia upright.

If Israel’s driven to a forlorn-hope attack on Iran’s nuke program, Iran will respond by striking Gulf Arab oil fields and facilities, while closing the Strait of Hormuz. The US military will be in it, like it or not. Oil and gas prices will soar unimaginably — and the bear will have its paws on the golden tap.

So the worst outcome for Putin — more of the same — is still good. A bad outcome for everybody else is even better in Putin’s strategy to renew Russia’s superpower status.

Why on earth would this guy help us stop Iran? When he hates us, anyway? (It isn’t you, Barack. It’s just business.)

For all his viciousness, Putin’s a serious strategist. We don’t have any high-level strategists. Not one. On either side of the Potomac.

In his first decade on the throne, Czar Vladimir focused on addicting Europe to Russian gas, while moving successfully to exert control over as many pipelines as possible. That was the constructive decade.

The second decade in the reign of Vladimir I is the energy-cartel-building phase. This will be the confrontational phase. Energy’s the only real power Putin has, so he’s maximizing it.

It’s no accident that a strategic triangle has emerged between Moscow, Tehran and Caracas — home of the great Latin mischief-lover, Hugo Chavez, who thrives on his own nation’s petro-wealth.

For us, the Iran crisis is about peace. For Putin, it’s about power. Yet the self-deluding Obama administration really believes that Moscow’s going to support us. After our president gave away our only serious bargaining chip, the missile-defense system promised to our European allies.

Putin thinks in 10-year-plans. We can’t think past the next congressional roll-call vote.

The Obama administration’s primary legacy to the world is going to be a nuclear-armed Iran.

The Palin solution 1

The excellent governor of Alaska has it right again. 

From Investor’s Business Daily:

Back in July, when IBD first interviewed the then-little-known governor, Palin emphasized developing Alaska’s Chukchi Sea resources. Under those icy waters, it was then believed, was enough oil and gas to supply America for a decade.

“It’s a very nonsensical position we’re in right now,” Palin told us. “(We) ask the Saudis to ramp up production of crude oil so that hungry markets in America can be fed, (and) your sister state in Alaska has those resources.”

At the time, it was thought that Chukchi’s waters northwest of Alaska’s landmass held 30 billion cubic feet of natural gas.

Today, Science magazine reports that the U.S. Geological Survey now finds it holds more than anyone thought — 1.6 trillion cubic feet of undiscovered gas, or 30% of the world’s supply and 83 billion barrels of undiscovered oil, 4% of the global conventional resources.

That’s enough U.S. energy to achieve self-sufficiency and never worry about it as a national security question again.

The only thing left to do is drill. “Congress can do that for us right now,” Palin told IBD, urging Washington to open the territory.

That Congress hasn’t is the biggest part of the problem.

“Alaska should be the head, not the tail, to the energy solution,” Palin said.

It ought to be reassuring to Americans that energy can be developed here. Americans are environmentally conscious, and Palin herself has a good record on balancing development with ecology.

The alternative isn’t reassuring: If we don’t drill, the Russians will. Situated over on the eastern end of the Chukchi Sea, they have global ambitions of dominating the energy trade and no qualms about muscling in on the U.S.

Already, undersea volcanic activity has melted much of the Arctic ice cap and enabled more exploration than in the past. The U.S. has as much claim to the region as the Russians, but only the Russians seem to be taking advantage of the geological bounty.

It’s pure energy, not theoretics. That’s significant because Steven Chu’s Energy Department is spending too many resources trying to figure out how to turn all the weird wind power and switchgrass schemes into viable energy resources.

His latest idea is to paint roofs white. None of this puts significant energy out to consumers. Nor does it come close to matching oil in energy value…

Posted under Commentary, News, United States by Jillian Becker on Saturday, May 30, 2009

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Governor Palin’s brilliant success in Alaska 0

 The Wall Street Journal tells how Governor Sarah Palin beat  the establishment. 

And so it came as no surprise in 2004 when former Republican Gov. Frank Murkowski made clear he’d be working exclusively with three North Slope producers—ExxonMobil, ConocoPhillips and BP—to build a $25 billion pipeline to move natural gas to the lower 48. The trio had informed their political vassals that they alone would build this project (they weren’t selling their gas to outsiders) and that they expected the state to reward them. Mr. Murkowski disappeared into smoky backrooms to work out the details. He refused to release information on the negotiations. When Natural Resources Commissioner Tom Irwin suggested terms of the contract were illegal, he was fired.

What Mr. Murkowski did do publicly was instruct his statehouse to change the oil and gas tax structure (taxes being a primary way Alaskans realize their oil revenue). Later, citizens would discover this was groundwork for Mr. Murkowski’s pipeline contract—which would lock in that oil-requested tax package for up to 40 years, provide a $4 billion state investment, and relinquish most oversight.

Enter Mrs. Palin. The former mayor of Wasilla had been appointed by Mr. Murkowski in 2003 to the state oil and gas regulatory agency. She’d had the temerity to blow the whistle on fellow GOP Commissioner Randy Ruedrich for refusing to disclose energy dealings. Mr. Murkowski and GOP Attorney General Gregg Renkes closed ranks around Mr. Ruedrich—who also chaired the state GOP. Mrs. Palin resigned. Having thus offended the entire old boy network, she challenged the governor for his seat.

Mrs. Palin ran against the secret deal, and vowed to put the pipeline back out for competitive, transparent, bidding. She railed against cozy politics. Mr. Murkowski ran on his unpopular pipeline deal. The oil industry warned the state would never get its project without his leadership. Mrs. Palin walloped him in the primary and won office in late 2006. Around this time, news broke of a federal probe that would show oil executives had bribed lawmakers to support the Murkowski tax changes.

Among Mrs. Palin’s first acts was to reinstate Mr. Irwin. By February 2007 she’d released her requirements for pipeline bidding. They were stricter, and included only a $500 million state incentive. By May a cowed state house—reeling from scandal—passed her legislation.

Read the whole impressive story here

 

Posted under Commentary by Jillian Becker on Friday, September 5, 2008

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The importance of Alaska 1

 In relation to the issues of energy and national security, Alaska is right now the most important state in the US, not only for America but also for its allies in Europe and the Far East. In this consideration alone, Palin is an excellent choice of McCain’s to be his running-mate. 

 Investor’s Business Daily explains:  

Palin knows energy. She’s already figured out how to deliver energy to the U.S. without Congress — by championing state legislation to create a 1,712-mile natural gas pipeline across Canada to the U.S.

It was a major feat, negotiating with the Canadian government, educating lawmakers and getting the public behind her. In a decade, the $30 billion project will ship 4.5 million cubic feet of gas a day from the North Slope to Houston’s air conditioners, Iowa’s farm machines and Boston’s winter furnaces.

There’s little doubt this is the kind of leadership the U.S. needs. Not only will getting serious about Alaska help the economy, it will also help our allies in Europe and the Far East whose economies are severely battered by high energy prices and who are seeing some of the most direct threats from the petrotyrants.

John McCain’s pick of Palin shows he’s serious about energy — and about securing America’s future. Congress mustn’t ignore Alaska any longer. Petrotyranny is moving beyond economics and becoming a national security issue. Alaska is a big part of the answer.

 

Posted under Commentary by Jillian Becker on Wednesday, September 3, 2008

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Pelosi’s ignorance doing untold harm 0

 Nancy Pelosi does not know that natural gas has to be drilled for. 

Power Line reports and comments:

So it’s beyond dispute: Nancy Pelosi really does not understand that natural gas is a fossil fuel. This is truly shocking. Pelosi is one of the principal people responsible for setting the nation’s energy policy. In the House of Representatives, she has blocked exploration and development of natural gas resources as well as other fossil fuels, thereby raising the price of gasoline at the pump and energy costs across the board. And she has wielded this immense power while being ignorant of the most basic facts about energy. She is not qualified to carry on an intelligent conversation about energy, let alone set the nation’s energy policy.

The folks at the Institute for Energy Research have prepared a primer on energy for Mrs. Pelosi’s benefit:

Natural gas is colorless, odorless fossil fuel that is prized for its cleanliness and its many uses – including energy. It is produced in much the same way as oil – by drilling for it – and is often produced in conjunction with oil.

Pelosi’s ignorance is deadly; she says she is a big booster of natural gas, but she literally fails to understand that to get natural gas we have to drill for it, onshore and off. Hence this exchange yesterday:

BROKAW: Sounds like we’re going to have offshore drilling.

PELOSI: No, no, no.

 

Nancy Pelosi’s ignorance is costing every American money, impairing our economy, depriving us of untold hundreds of thousands of high-paying jobs, and endangering our national security. One wonders how long voters will be willing to put up with Democratic control of Congress.

Posted under Commentary by Jillian Becker on Tuesday, August 26, 2008

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