Posted by
Dan@Minuteman1 on Friday, May 23, 2008 9:51:44 PM
A Minuteman1 commentary: Just my opinion, I could be wrong!
You can call me a conspiracy nut if you choose, but what you should be doing is asking yourself just what exactly are these Democrats up to with all their bellicose chest thumping about high gas prices. Me thinks I smell a rat, a lot of nasty Democrat rats! I just can’t help thinking there has to be more to it than meets the eye, there has to be some reason that they so willfully disregard everyone’s opinion but their own. And why invite company presidents to come before you and do nothing but call them liars? I just don’t get it.
So I started thinking and I think I came up with something. They must be up to something. The only possible reason that the Democrats would behave so strangely must be because they think they have some master plan where they think they can somehow gain control of these companies through some governmental shenanigans. You see, I figure they think if they can get prices to go high enough to where they can get enough people to buy into their oil companies are to blame for high price of gas rhetoric, they can come riding to the rescue claiming only they can solve the problem. They’ll say the only way to bring prices down is for some active government involvement in the oil industry. Can you possibly imagine the consequences if the Democrats were to ever be in the position of being able to get their greedy hands on the production and distribution of energy products in this country? You’d be paying a lot more than four bucks a gallon.
Anyway, here’s what some very smart men had to say:
John Lowe Executive Vice President, Conoco Philips Company pointed out:
I cannot over-emphasize the access issue. Access to resources is severely restricted in the United States and abroad, and the American oil industry must compete with national oil companies who are often much larger and have the support of their governments.
We can only compete directly for 7 percent of the world's available reserves while about 75 percent is completely controlled by national oil companies and is not accessible.
Stephen Simon Senior Vice President, Exxon Mobil Corporation amplified:
Exxon Mobil is the largest U.S. oil and gas company, but we account for only 2 percent of global energy production, only 3 percent of global oil production, only 6 percent of global refining capacity, and only 1 percent of global petroleum reserves. With respect to petroleum reserves, we rank 14th. Government-owned national oil companies dominate the top spots. For an American company to succeed in this competitive landscape and go head to head with huge government-backed national oil companies, it needs financial strength and scale to execute massive complex energy projects requiring enormous long-term investments.
To simply maintain our current operations and make needed capital investments, Exxon Mobil spends nearly $1 billion each day.
Shell's John Hofmeister explained, eloquently:
While all oil-importing nations buy oil at global prices, some, notably India and China, subsidize the cost of oil products to their nation's consumers, feeding the demand for more oil despite record prices. They do this to speed economic growth and to ensure a competitive advantage relative to other nations.
Meanwhile, in the United States, access to our own oil and gas resources has been limited for the last 30 years, prohibiting companies such as Shell from exploring and developing resources for the benefit of the American people.
According to the Department of the Interior, 62 percent of all on-shore federal lands are off limits to oil and gas developments, with restrictions applying to 92 percent of all federal lands. We have an outer continental shelf moratorium on the Atlantic Ocean, an outer continental shelf moratorium on the Pacific Ocean, an outer continental shelf moratorium on the eastern Gulf of Mexico, congressional bans on on-shore oil and gas activities in specific areas of the Rockies and Alaska, and even a congressional ban on doing an analysis of the resource potential for oil and gas in the Atlantic, Pacific and eastern Gulf of Mexico.
The Argonne National Laboratory did a report in 2004 that identified 40 specific federal policy areas that halt, limit, delay or restrict natural gas projects. I urge you to review it. It is a long list. If I may, I offer it today if you would like to include it in the record.
When many of these policies were implemented, oil was selling in the single digits, not the triple digits we see now. The cumulative effect of these policies has been to discourage U.S. investment and send U.S. companies outside the United States to produce new supplies.
As a result, U.S. production has declined so much that nearly 60 percent of daily consumption comes from foreign sources.
The problem of access can be solved in this country by the same government that has prohibited it. Congress could have chosen to lift some or all of the current restrictions on exportation and production of oil and gas. Congress could provide national policy to reverse the persistent decline of domestically secure natural resource development.
Personally, I think what these men said made a lot of sense, while at the same time the Democrats sounded like a bunch of sophomoric imbeciles. They seemed not to hear a word these men said, hence, my conspiracy theory. How else can you explain their totally bizarre behavior? But what’s even scarier is the fact that there seems to be more than a few gullible individuals making up a significant portion of the population, who actually believe all the tripe put out by those big hearted Democrats. They’re also the ones who can be easily manipulated into becoming willing accomplices in whatever crazy scheme it is that's being cooked up by those on the left. We need to be very watchful of these self-professing defenders of the little guy. The only ones they’re really watching out for are themselves.
A few more interesting facts:
New oil discoveries worldwide would provide billions of barrels of oil for years to come. In the U.S. and Canada alone, these discoveries include:
Up to 4.3 billion barrels of oil in oil shale in North Dakota’s Bakken Formation
Up to 19 Billion barrels of oil in oil sands in Utah
More than 30 billion barrels of oil in Alaska's coastal plains and the Chukchi Sea
An estimated 173 billion barrels of oil from oil sands in western Canada
More than 1.2 trillion barrels of oil in oil shale in the Green River Formation in Colorado, Wyoming and Utah.