Has McCain Walked Into An Energy Trap?

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First Posted: 08- 6-08 09:44 AM   |   Updated: 09- 6-08 05:12 AM

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The energy debate took what could be a significant turn this past weekend: a bipartisan effort in Congress has created headaches for both Barack Obama and John McCain. But while the presumptive Democratic nominee has been criticized for acquiescing to the idea of some off-shore drilling, his Republican counterpart finds himself in a more tenuous position: cast as an unwilling-to-compromise defender of big oil, on the wrong side of public opinion.

On Friday, a group of ten Senators, hoping to break a stalemate on the nation's energy debate, unveiled compromise legislation to open new areas in the Gulf of Mexico to drilling (in addition to allowing exploration as close to 50 miles off of Florida's Gulf coast) while also raising taxes on major oil companies.

The five Democrats and five Republicans behind the effort were quickly joined by Obama, who objects to drilling but called the compromise "a good faith effort at a new bipartisan beginning." For this he was labeled a flip-flopper by Republican critics and given a slap on the wrist by some environmental advocates.

The short-term backlash may pale in comparison to the potholes that confront McCain. The Arizona Republican's campaign has been opaque in its response to the Gang of Ten. An anonymous aide to the Senator was quoted in the Wall Street Journal applauding the efforts, but said his boss wouldn't support the proposal because "he cannot and will not support legislation that raises taxes."

The stance has some Democrats chomping at the bits. For starters, adopting the position that Big Oil shouldn't take a hit is risky politics. A CNN/Opinion Research Poll released in mid-June showed that 62 percent of Americans blamed "unethical behavior" by industry players as the culprit for high gas prices, compared to the 32 percent who attributed the cost at the pump to basic economic supply and demand. A Gallup poll released around the same time brought the point home even further: 60 percent of Americans said that it was U.S. oil companies that deserved blame for the high gas prices, compared to 49 percent who blamed the Bush administration.

Moreover, while the American public is generally supportive of drilling, they also don't view it as a harmless enterprise. In a late July Belden Russonello & Stewart poll, 63 percent of respondents said that opening up public lands to oil and gas drilling was "more likely to enrich oil companies than to lower gas prices for American consumers."

McCain is stuck in a conundrum: express support for the Gang of Ten and incur the wrath of anti-tax crusaders or continue rolling the dice against public opinion and risk being painted as a stooge of the oil lobby. His $1.3 million in oil and gas donations in June only furthers the frame.

"I think the problem with McCain's position is that he keeps saying I'm in support for all of the above. But when it comes down to specifics in what he will really support, the only thing that comes through loud and clear is more drilling. And I think that is the big vulnerability on his part," said Bob Sussman, an energy expert for the liberal Center for American Progress. "The 'tax the oil company' issue is really difficult for Republicans, but the polling data indicates that the public thinks the oil companies have big role to play... I don't know what is really going on here or if McCain is thinking this through carefully. But I think this is undermining his credibility and to some degree is his hallmark approach: looking for bipartisan solutions to problems."

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Facing a potential backlash, McCain has focused his attention on blaming congressional inaction and proclaiming Obama more eager to pursue tire inflation than off-shore drilling. The Democratic Party, nevertheless, clearly thinks it has the makings of a winning hand in the Gang of Ten. On Tuesday evening, the DNC put out a press release calling McCain hypocritical for lamenting the lack of "bipartisan compromises," while "currently fighting a bipartisan compromise on [energy]." In private, meanwhile, Democratic officials note the irony that McCain -- whose candidacy has been based in large part on his ability to forge consensus -- has ceded to Obama a constructive role in a bipartisan issue.

"McCain has backed himself into a box on this," said one high-ranking Hill aide. "In the end he might have to do exactly what Obama has done: join the compromise while saying he objects sternly to the taxes. But even then he risks getting killed by his conservative base."

And yet, there is a way to go before McCain truly risks trouble. The Gang of Ten compromise has some tepid but important verbal support within Democratic leadership. Majority Leader Harry Reid said he did "not agree with every part of it," but thought the proposal included "some very good ideas." Speaker Nancy Pelosi, meanwhile, said on Monday that drilling could be part of a "larger energy package," a cover of sorts for Blue Dog Democrats and others who back the measure.

But Democrats are far from coalescing around the compromise proposal. Republicans, meanwhile, are with almost lockstep in opposition. And Congress is on recess for another month. Should McCain be forced to cast a tough vote it will likely come, if at all, when energy is not the front-burner campaign issue it is today.

"It is hard to predict if it will come to the Senate floor," said a Democratic aide. "Leadership will take in everyone's ideas. But right now everybody is in an information-gathering mode. And then, if there are some good ideas in this Gang of Ten proposal it will probably be considered. They are clearly not going to get the shaft, given that our nominee supports it."

The energy debate took what could be a significant turn this past weekend: a bipartisan effort in Congress has created headaches for both Barack Obama and John McCain. But while the presumptive Democr...
The energy debate took what could be a significant turn this past weekend: a bipartisan effort in Congress has created headaches for both Barack Obama and John McCain. But while the presumptive Democr...
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- research I'm a Fan of research 251 fans permalink

Oil prices are dropping because Obama is talking about releasing the strategic oil reserves Bush has been hording.

    Favorite    Flag as abusive Posted 03:39 PM on 08/07/2008

Has anybody noticed that come election time again the oil companies are lowering prices again; its seeming an awful lot like any time that there may be a chance that the people in control may change, oil prices drop so that people do not feel as threatened by oil costs.

    Favorite    Flag as abusive Posted 11:30 AM on 08/07/2008

The only thing on John McCain's mind is WAR WAR WAR.
He dosen't give a crap about anything other than the "surge" - and the US staying in Iraq forever.
Well people, this man has lived a very rich life off his second wife Cindy the heiress - he left his crippled wife and his children to chase after young beautiful rich Cindy. He's lived off her wealth since.
He is not an honorable man, and his campaign shows it.
He should rename his campaigh THE BULL CHIP EXPRESS!

    Favorite    Flag as abusive Posted 10:44 AM on 08/07/2008
- DIdaho I'm a Fan of DIdaho 25 fans permalink

Heard McDodder on the tube this morning saying that it's time for an "economic surge" since the "military surge" in Iraq has been so successful. I have absolutely no idea what this means. Maybe he's going to commit five brigades to the midwest and arm the Sunnis.

    Favorite    Flag as abusive Posted 11:42 AM on 08/07/2008
- Kache I'm a Fan of Kache 29 fans permalink
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Todays gas price is twice what it was two years ago. Did I miss something. Is there only half as much oil available as there was two years ago? Is the world's poulation using twice as much oil? Obviously - supply & demand are not the force behind the current price of oil.

    Favorite    Flag as abusive Posted 08:15 AM on 08/07/2008

It's not only current supply and demand that determine oil prices, but predicted future price. If you think that the price of oil will for example double in the next year, then you will be willing to pay more for it now because you can still sell it for a profit after the price rises. So just the possibility of future events can affect current prices. For example, an American or Israeli attack on Iran might cause Iran to close the Strait of Hormuz, leading to a massive (e.g. more than 10-fold) increase in oil prices. As the probability of this scenario increases, current prices also increase.

    Favorite    Flag as abusive Posted 09:23 AM on 08/07/2008
- DuganS1 I'm a Fan of DuganS1 18 fans permalink

SUV sales in China have been up 40% year over year (as for June). Worldwide oil capacity is shrinking relative to worldwide demand and the tightest it's been in decades. Current supplies of oil are in unstable regions and threatened (i.e. Nigeria, Iran, Venezuela). Plus, the Federal Reserve and our government has been inflating the economy (and thus reducing the value of the dollar) with lower interest rates and fiscal stimulus. So should gasoline have gone up to double what it was two years ago? Yes. And gas BTW was only that low for a month in early 2007 after one of the warmest winters on record, which resulted in very low heating oil demand. Otherwise gas reached $3 a gallon in the summer of 2006 and the fall of 2005 after Katrina/Rita hit.

    Favorite    Flag as abusive Posted 09:32 AM on 08/07/2008

Democrats took control of the congress two years ago and gas prices have doubled, and troops are still in Iraq. Is this the change people voted for?

    Favorite    Flag as abusive Posted 10:18 AM on 08/07/2008
- vippy I'm a Fan of vippy 65 fans permalink

No, you did not miss anything. We are currently swimming in oil. We have 3 times the oil in our
reserves than what we did before GWB. Iran and Saudi are storing their excess oil in tankers in the oceans. Oil from West Texas is being sent to Tulsa. Speculators caused the high prices
and congress knew about it but did nothing. In the meantime, after someone exposed the Enron Loophole created by Richard Lugar, Tom Delay and Phil Gramm, they finally put constraints on it
but not quite all of it. That is suspect that they are making money and don't want to turn off their
income. Fox News showed how much richer those politicians became since they took office.

    Favorite    Flag as abusive Posted 11:54 AM on 08/07/2008
- hmmmmm I'm a Fan of hmmmmm 4 fans permalink

McCain-Exxon '08

    Favorite    Flag as abusive Posted 01:41 AM on 08/07/2008
- mlaiuppa I'm a Fan of mlaiuppa 37 fans permalink
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Business as usual.

The Democrats are willing to compromise.

The Republicans are my way or the highway.

McCain. You're going to lose. Because Big Oil can't buy you enough votes to win.

    Favorite    Flag as abusive Posted 01:27 AM on 08/07/2008
- rosal I'm a Fan of rosal 305 fans permalink
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I am betting whatever he does, he will never offend his base: Big Oil. O. has to drill this (pun intended) to the American people. Being a tool for Big Oil, I can only imagine what a McExxon presidency would look like. Can anybody say $10 a gallon?

    Favorite    Flag as abusive Posted 11:19 PM on 08/06/2008
- dizmo4 I'm a Fan of dizmo4 43 fans permalink

I would find it hilarious the number of Obama positions that McCain has had to adopt during the course of this campaign, if any of this flopping around stuck to McCain.

McCain's now talking about 2010 being a time when we can withdraw troops from Iraq.

He mentioned today that NASCAR adn AAA said that properly inflated tires do indeed help increase gas milage.

Now he's backed himself into a corner but he'll get out by adopting a "compromise" position that is pretty much exactly the same as Obama's. Yet no one in teh MSM will call him on it, and he'll be able to escape yet another flip flop. Some of this flailing around needs to stick to mcCain...

    Favorite    Flag as abusive Posted 07:38 PM on 08/06/2008

Well said.

    Favorite    Flag as abusive Posted 10:58 AM on 08/07/2008
- Viper I'm a Fan of Viper 236 fans permalink

Well spring the trap soon, because McCain has gone from the low 30s to a close tie on this issue.

And the trap sounds a lot like what he was demanding, drilling and other alternatives... Weeks ago I said this would hurt our man Obama and I was right. It may have cost him the election.

Now that we are past more drilling, Obama will have to become more freindly to NUke Energy also.

Independents decide the election and they are pro NUKE and Pro Drilling. People dont like to cold or walking to a factory .. thats closed down and moved elsewhere for cheap energy.


Regards

    Favorite    Flag as abusive Posted 07:32 PM on 08/06/2008
- Actionmac I'm a Fan of Actionmac 10 fans permalink
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and when the question is asked where do we put the waste product of nuclear power plants, what is the answer?

Remember how unhappy they are in Nevada about burying the waste in that state. This stuff renders the area unlivable for hundreds of years.

    Favorite    Flag as abusive Posted 09:43 PM on 08/06/2008
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Voice crying in the dark: Bury it where you make it! If it's safe to bury in Nevada, it's safe to bury where ever. The people who benefit should be the ones who get to keep it. It's moving it around the country that makes me unable to sleep at night. Accidents do happen.

    Favorite    Flag as abusive Posted 08:17 PM on 08/10/2008
- saltysea I'm a Fan of saltysea 4 fans permalink

Nah, we don't have to go for nukes. Just ask everyone who's for nukes to sign their neighborhood up for one, and don't forget they have to bury the waste somewhere, too! With the climate getting more and more violent (earthquake, anyone?) and t'rists supposedly around every corner, and nukes not being economically feasible without huge subsidies, and with the out and out Dangerous to Your Children's Health sign, i don't think it's a key issue.

Retooling auto plants. Winner!

Investing in solar, wind, geothermal, hydrogen. Winner!

Careful drilling to get the rest. OK.

Experiment with injecting coal stuff back into the ground. OK.

    Favorite    Flag as abusive Posted 03:22 AM on 08/07/2008

Hitler's VW got 37 mpg with 1940s technology. Ford wanted the Model T to run on many different fuels back in the 1920s. Do you suppose in 2008 Detroit could make an effort to catch up?

    Favorite    Flag as abusive Posted 05:12 AM on 08/07/2008
- ffny I'm a Fan of ffny 2 fans permalink

If foot in mouth is a trap John Mc Cain walked in!!!!

    Favorite    Flag as abusive Posted 06:19 PM on 08/06/2008
- OldKnute I'm a Fan of OldKnute 101 fans permalink

Oh here we go!

Mr. BIG OIL,,, now wants to talk Comprehensive Energy Package?

Please remember that McCain won his massive infusions of cash only after the Drill,,,, Drill,,, Drill,,,,chanting. Now McCain is going GREEN?

My ARSE!

Wind and Solar? Distributed Grid? Energy made where you USE IT,, in the Burbs and surrounding the Cities or IN the Cities?

Watch,,, He will be talking Wind and Solar,, but ONLY for the BIG BOYS,,, Not dispersed Energy sourcing from homes, farms, barns and shed roofs.

BIG HUGE Wind Farms and Miles of Solar array fields. The BIG investment types, now the PEOPLE! Not a home based Smart metered, feedback into the Grid,, system.

I don’t care if it IS,, Wind and Solar,, Better,, YES,, BUT if the BIG GUYS control it,, we are still dependent.

Now McCain is going to bite the hand that feeds him??????

RIGHT!!!

More platitudes, if you ask me. Just like George Bush telling us we are addicted to OIL.

NO DUH!!!!

No real solutions, no real change, no real answers,, JUST More of the Same McCain. Lip service,,,,, to a starving nation mired in dependencies. McCain knows less about Energy than he does economics.

All the best

Knute Neo-LIB

    Favorite    Flag as abusive Posted 06:08 PM on 08/06/2008
- saltysea I'm a Fan of saltysea 4 fans permalink

Good point. Hope you have written to the Obama campaign, because keeping it close to home is important, along with some big farms, though, so the polar bears don't all die.

i can't stand how the msm keeps saying McCain is for all this stuff. HIs carbon caps are not mandatory, and like you say, his support for other stuff is very secondary.

    Favorite    Flag as abusive Posted 03:25 AM on 08/07/2008

Point of Operation Power, or POOP, is the answer. I wish this acronym would get some traction, even though it sounds derisive at first, because it would draw ordinary people's attention to the concept.

    Favorite    Flag as abusive Posted 11:03 AM on 08/07/2008
- bogues I'm a Fan of bogues 40 fans permalink

John McCain really couldn't care less whether they drill off-shore or not, but he does care that he can use the topic to score political points, just like he uses the war and our greatest treasure, our brave men and women in uniform. The fact is George Bush has been in office for almost 8 years and for most of those years the Republican Party had the upper hand on the government. Now that it all went so badly, they simply blame it all on the Democrats. How convenient for The McCain's, Bushes and Cheney's of the world, that they can create such devastation and then just say "SOoooooo! Why any one in their right mind would be considering voting for a Republican is beyond me.

    Favorite    Flag as abusive Posted 05:39 PM on 08/06/2008
- condew I'm a Fan of condew 9 fans permalink

We must drive home the fact that the oil companies already have leases that they are not using, which together hold a potential far greater than all the proposed ANWAR and additinal off-shore drilling.

All the talk about new leases is just greed, just trying to grab everything they can get before Bush gets booted out. The proof of this is that when McCain changed his mind and supported off-shore drilling, huge amounts of money went to him and the RNC. That these amounts came from the resources of the people who claim to have given them is unbelievable. eople who make less than $100K don't give political contributions on the order of $28K.

    Favorite    Flag as abusive Posted 08:42 PM on 08/06/2008
- jupitor I'm a Fan of jupitor 2 fans permalink

Mccain will drill right there were he stand to thank the oil comp's for the 1.3 millions donations!

    Favorite    Flag as abusive Posted 05:29 PM on 08/06/2008
- Mitchell4A I'm a Fan of Mitchell4A 8 fans permalink

Trap, Trap, John McCain is so near-sighted he will be walking into them from yesterday to the election.

Here's a game readers my enjoy regarding McCain:

"Who Does McCain Remind you of? A New Game for Hard Times"
http://msa4.wordpress.com/

    Favorite    Flag as abusive Posted 04:56 PM on 08/06/2008

Where is McCain going to put 45 nuclear facilities? Where will the spent fuel from these nuclear facilities be stored? What states will want it and what areas of a state?

    Favorite    Flag as abusive Posted 04:53 PM on 08/06/2008
- bogues I'm a Fan of bogues 40 fans permalink

You can be fairly sure it won't be Arizona, he is against nuclear waste being trucked through his state.

    Favorite    Flag as abusive Posted 05:28 PM on 08/06/2008
- saltysea I'm a Fan of saltysea 4 fans permalink

thought so.

    Favorite    Flag as abusive Posted 03:27 AM on 08/07/2008
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We should ALL be afraid of nuclear waste being trucked through our states!

    Favorite    Flag as abusive Posted 08:17 PM on 08/10/2008
- indypete I'm a Fan of indypete 148 fans permalink
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And how will they be paid for? Where will the fuel come from? (We think oil is running low? U238 is in the rocking-horse poop category.) What about the 10-15 years build time? Who will regulate something with so much potential for big trouble? (That's a good one... although nukes have been the safest scource of power so far, the current trend of removing regulations can put the nightmare right into the equasion.)

    Favorite    Flag as abusive Posted 06:05 PM on 08/06/2008
- DuganS1 I'm a Fan of DuganS1 18 fans permalink

Investors will pay for the new nuclear facilities. Just look at the profitability of Exelon, for example. The facilities will be built wherever investors wish to build them and the red tape isn't too thick - which is the biggest problem.

    Favorite    Flag as abusive Posted 06:54 PM on 08/06/2008
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