The Not-So-Great Energy Debate

To drill or not to drill -- that is the question. More precisely, that's the question that has set the terms of the debate on whether to lift the ban on oil exploration in the Outer Continental Shelf (OCS) and ANWR. It's also exactly the question the oil companies and their political proxies want us to debate. The fact that those of us who'd like to protect the ban have accommodated them is extremely unfortunate because it's the wrong question.

You see, big oil et al are not really the "drill" team; it's just a land grab, orchestrated while they still have friends in very high places. And it won't do a damn thing to the price of gas at the pump, certainly not in your aged granny's lifetime, and probably not in yours either.

If the oil companies wanted to drill for new oil, they could easily do so right now on the millions of acres of land currently available to them for leasing. As Joseph Romm, editor of the Climate Progress blog pointed out to me, there are thought to be 34 billion barrels of undiscovered oil under lands currently open to drilling, multiple times the amount that might be under the OCS or ANWR.

While big oil demonstrably has no pressing urge to drill, they very much want to lock down access to more leasable lands. What with those crazy leaders running around Russia and South America nationalizing the energy sector, and crazier environmentalists running around this country supporting bans and moratoria, the share of land in which American Big Oil Inc can poke holes is shrinking. And they'd like to close the deal before Bush/Cheney leave the building.

Isn't this just rhetoric? Even if they really plan to take their time about it, if at some point down the road they try to find more oil, what's wrong with the "drill" mantra? And why should those of us on the other side of the debate stress the "lease" point?

Because our only hope of turning this debate around, and it's a thin reed, is to convince the public that lifting the moratorium today would not affect prices at the pump tomorrow (or probably ever, according the EIA--see the blog link above). We can't get them to change their rhetoric from "drill, drill, drill," as Larry Kudlow regales me with regularly, to "lease, lease, lease." But we want to do everything we can to educate the public such that when big oil says "drill," we all hear "lease."

The reason this is so critical is because our only hope of winning this debate may lie in helping people to unconnect the dots between lifting the moratorium and the price of gas. Yes, it's hard to convince folks that drilling today won't lower prices tomorrow. But how about NOT drilling today? Because that's what we're talking about here.

The stakes are very high. Sources on Capitol Hill tell me that the only thing holding the line on the bans right now is Pelosi's ability to block the vote. With the R's pressing this as their sole issue, and the majority of the public solidly in the "lift the ban" camp, she may not be able to control this one, and sources tell me if it comes to a vote, the ban is toast, certainly on the OCS and maybe ANWR too.

If that does occur, our best move may be to go for something like the "gang of 10" compromise. That's a bipartisan group of 10 Senators who propose a limited expansion of OCS leasing with a quid pro quo that both repeals a big tax break from big oil and makes them finally pay royalties they've been avoiding for drilling on public lands.

I'd go further and also hit 'em with a windfall profits tax. ExxonMobil alone cleared almost $12 billion in profits last quarter. Just because they, their lobbyists, and their political puppet troop have bamboozled the public into believing that they'll be spared from $4 a gallon gas, we're supposed to hand them the keys to the OCS and ANWR? If that's where this is headed, then I'd like to see some pretty juicy quids for any quos.

Things could change if the price falls back this month while the Congress is back in their districts, but the more likely scenario is that these pols get an earful about energy prices and come back insisting on a vote.

At that point, the only thing protecting the ban is the spine of the Democrats. Most of them have been holding the line, bless 'em, but the line will break unless public sentiment changes enough to create a lot more support for the keeping the ban intact.

Perhaps there's a rich philanthropist somewhere who cares enough about the planet to sink some serious bucks into a massive information campaign to convince the public that A) these guys don't really want to drill, they just want the leases, and B) even if they did, drilling won't bring down the price today, tomorrow, next week, or next year. Maybe next decade by a few cents...maybe not.

I know. You're thinking: silly man, you still think facts matter. Guilty as charged. I can't help it. And there's got to be a more of us? Right? Hello? Anyone out there...?

Comments

[preemptivelove]

what i'd like to see is a good anti-trust lawyer CONNECT the dots for the conspiracy to keep oil prices so high to get support for OCS and ANWR drilling. they've been trying to do this for years, and this is the reason your gasoline costs so much. it's price fixing of the highest order.

there is no "energy independence" in drilling.

[torrrep]

Wrong. Gas prices are determined by supply and demand and the price of oil. Maybe you need to take a few classes on economics and business 101. If it were price fixing then why aren't they charging what the Europeans are charging?

[Artos]

Yeah, and the doofus lay Conservatives want to get sucked right up by their scheme. They are so addicted to oil that they don't have a clue that they are being manipulated. Some people like being manipulated, either that or they are just plain stupid.

[dshwa]

From the Bush justice department? One of Goodling's hires? Get actual.

[Torus34]

"To drill or not to drill -- that is the question. "

Based on the ratcheting up of the debate, including a threat to shut down portions of the government and, more importantly, the political reasoning behind the sound and fury, I beg to differ and offer, in substitution, the following:

"To drill or not to drill -- that is the diversion.­"

[Lemeritus]

Why are we even discussing a quid pro quo with oil companies? Pull the damn tax breaks! Big Oil spends more money on ad campaigns touting their search for alternative energy than they do on searching for alternative energy -- pull the subsidies! The "compromise" (the absinthe making progressives' hearts grow fonder) should be dropping all discussions of wind fall taxes -- these are international companies who, frankly, no longer need our business as they once did. Wind fall profit taxes are ridiculous and counter-productive. And just a note: didn't Obama call Clinton’s windfall profit tax idea a “gimmick” in MAY?

Pelosi had a piece on HuffPo last week clearly saying “the impact of any new drilling will be insignificant -- promising savings of only pennies per gallon many years down the road”. Of course, that was before Obama (who said in JUNE that McCain's offshore drilling proposal made "absolutely no sense at all") went to Florida -- where they favor offshore drillng and where he is trailing.

The panacea seems to be that there's a "gang of 10" wise and ethical senators who have a bipartisan solution, but I see plenty of carrots and damn few sticks. There are myriad factors affecting the price of oil, but one truth: it is finite. The cost of retrieving it will continue to rise. We can't afford to be distracted by empty promises -- we need to either pressue Big Oil to become Big Energy or subsidize companies who will move us

[Artos]

It would be interesting to find out where that " Gang of Ten" gets their reelection financing support from. Want to bet some comes from Big Oil.

[SteveRuyle]

Let them drill. But because of their prior record of cleaning up their messes, bind all corporate officers finances into a cleanup fund. It will help ensure that the cleanup actually happens.

[newworldman777]

Unfortunately, many spills, leaks and accidents -- by rigs and supply boats -- go unreported in the offshore oil-drilling industry. Official records and statistics don't accurately reflect the reality of the industry. During the years that I worked on supply boats, I cannot tell you how many of our own spills went unreported.

When you couple the problems of spills and accidents along with the accepted practice of supply boats' pumping bilges and sewerage tanks offshore (along with illegal garbage dumping) into the sea, then you are creating an environment ripe for drastically diminishing water quality -- a situation that is especially harmful for Florida and California, and any other state that depends upon pristine beaches for the tourism industry.

Remember this: Once the Pandora's box of allowing offshore drilling off the coast of Florida and California is opened, it will probably never again be closed. We will have essentially diminished one industry (tourism) to fatten the coffers of another (big oil), resulting in little relief for the consumer when all is said and done.

[SteveRuyle]

Also remember that NOT ONE DROP of oil was spilled from oil rigs during Rita or Katrina.

http://skytruth.mediatools.org/node/12842

[JJeff88]

Do battery-run hybrids actually use up more energy than they save? Why aren't the oil companies drilling on already approved land? Does corn-ethanol actually do more damage to the environment than it's supposed to? Despite being 7-times more environmentally efficient than corn-ethanol, is cane-ethanol a viable alternative?

Lots of information, misinformation and disinformation flying around, making it hard for voters to get their arms around the national energy debate.

What I'm not seeing is a comprehensive initiative which publically (a) lays out all the facts about each option - both pro and con - with as much specificity as possible, (b) sets forth all the relevent numbers (historic, current and projected) pertaining to our own consumption needs, global demand, resource availability and costs/prices, (c) achievable goals and (d) an action plan - complete with time line, numbers and steps necessary to achieve these goals.

And while we're at it, the impact any action plan (or the absence of one) will have on the US and global economy.

If it turns out there are competing plans, so be it ; let the various parties duke it out. But based on facts rather than platitudes and brownie points.

Until we do this, all the American people will continue to be overwhelmed by chaotic chatter on energy.

[torrrep]

Here's a clue. Just because they have land doesn't mean there is oil there.

[beihai]

using up more energy is irrelevant depending on where the energy is coming from. I live near a huge wind farm, after the initial construction costs and minor maintenance, it doesn't matter what happens to the electricity what is only necessary is that all the output be consumed. If it powers cars then so be it, it is not likely that wind will stop. You can cry that the unlimited energy could be used more efficiently, but that is not the same as saying the energy is being "wasted." What is wasted is all the wind blowing that is not harnessed.

[thebeerdoctor]

It should be remembered that the higher the price for gasoline, the more money Big Oil makes. This is not true for the independent gas station owner, who now must sell his gas often below actual price, because they do not get the same price for fuel that the company owned stations receive. Yes the higher the price the more the profit. The big oil companies are not altruistic enterprises, their recording breaking profits are a testimony to this fact. There is no desire to lower prices, why should they? The debate over drilling is all smoke and mirrors.

[torrrep]

Seems like you also need a class on economics and business. You can complain all you want to about prices. Companies operate on profit margin goals. This applies to every company and corporation. If your set profit margin is 10% then you goal is to make 10% of your total revenues as profit. That means if my costs increase and I have to raise my prices to maintain that 10% profit margin then that's what I am going to do. The price of oil has gone up. The price of salaries have gone up. The price of health care and other benefits have gone up. What do you think should happen to the price of gasoline? If you say go down or stay the same then you have proved that not only do you have no credibility in this issue, but you also lack the common sense to run a business. And liberals wonder why they get jobs. I'll tell you why. Because you are clueless. Who would hire someone that doesn't understand the very basic principles of business or economics?

[Annette]

But they still get welfare at the big oil companies no matter how much profit they make.

[ceindependence]

I know you guys are just trying to "save the world" but twenty years ago you had reasons not to drill, fifteen years ago you had reasons not to drill, ten years ago you had reasons not to drill. There is nothing this side of a depression and sending our dollars to people who hate the US that would convince you to drill. There is always a reason to rationalize why you do not want to drill.

Why don't you just say what you mean, "I don't care what happens to us, we cannot drill".

[mgloraine]

Why don't you just say what YOU really mean: "I don't care about destroying this planet and every living thing on it, I just want cheap gas today!"

[georgiaR]

The environmentalists are ruining our economy

[gemcando06]

Its me. I am against drilling off-shore. It's because I love our oceans more than cheap oil.

I am not trying to save the world - just the oceans.

[Chubbster]

It's not a matter of cheap oil. It's a matter of ANY oil.

[Lemeritus]

"Its me."

I officially declare you an endangered species, gemcand006. You are perhaps the last remaining person in the world willing to take responsibility.

[Skellen]

Gimme a break. This has nothing to do with saving the world, and everything to do with a smart, efficient, domestic energy policy. Drilling and oil has no medium or longterm place in that.

[stimpy]

I agree. The oil companies need to stop with their excuses and start looking out for America.

It's time to end the paradigm of corporations having the same rights as individuals.

[NicholeWebb]

Unfortunately, the oil companies, as corporations, have a legally binding fiduciary responsibility to INCREASE profits for their share holders. The end.

[texanna]

What is it that you haven't understood about what the ACTUAL impact of giving OCS or ANWR leases to Big Oil? Do you just plug your ears and sing LALALALALA­LA..... everytime the facts are presented to you about what is actually going to happen if Big Oil gets the leases they're trying to lock up with this pressure? WE CANNOT DRILL OUR WAY OUT OF THIS MESS! It's that simple. Furthermore, our coastline cannot stand the environmental impact of the drilling, which is not as safe as McBush would have you believe. Why is that you wouldn't rather invest in renewable energy sources that would actually get us out of the business of raping and pillaging Middle Eastern countries for their resources?

[TxAggie]

Texanna- there's no GIVE to it. It's all competitively bid and by the way did you know that revenues from oil & gas production are the #2 source of revenue to the US gov't behind the IRS? "We cannot drill our way out of this mess" is true in and of itself but in conjunction with the oither things we need to do, drilling is a major part of the solution. What exactly will happen if "Big OIl gets the leases"? Geez, perhaps some wells will get drilled and new discoveries might be made, that WOULD BE HORRIBLE wouldn't it? By the way, what about the independents and Little Oil that actually make the majority of the domestic discoveries, how do they fit in the picture?

[Okieborn]

The American citizenry are being dooped again by Bush and his Oil Barron buddies, "INCLUDING JOHN MCCAIN" !!
Don't let George Bush , John Mccain and the Republican Party win another non essential battle with the congress and senate and most of all we the American population !!!!

[DRaymond]

You nailed it. This is all about locking down the resources while two old oilmen are still in the White House.

And think of how much of this jump in the price of oil is the result of deliberate decisions by those oilmen: a weak dollar and saber-rattling toward Iran.

[Annette]

True, we spent 4 months in the UK starting in Feb. When we left SW washington gas prices were $3.11 per gallon We arrived in the UK and prices were 1.17 pounds per litre When we left at the end of June prices were 1.17 pounds a litre at our local gas station. When we got home prices were $4.29 per gallon. Diesel has gone up in the UK but not gasoline. In fact today gas is 1.13 per litre. If it was supply and demand it would have gone up everywhere. Nope,, it is the oil companies putting pressure on the US to force more leases for them. They have acred of proven oil they are not drilling on.

[solarfared]

Democrats have ZERO credibility on this issue. The Obama Messiah is already flip-flopping on offshore and ANWR because it is clear this is the single most important issue to the american voter and rather than pay attention to what the people want. Democrats left town and gave us all the bird. You know nothing of responsibility and duty.

Offshore drilling is a must. ANWR not so much. What happened to all the big promises in 2006? You people cannot be trusted.

McCain 2008

[MiddleRoadLiberal]

This must be that whole facts-not-­mattering-­to-people-­anymore thing Jared talked about at the end.

[newworldman777]

Where are you going to get the extra deep-water rigs? Where are you going to get the extra deep-water drilling ships? Where are you going to get the extra supply boats and crews to service the rigs? Where are you going to get the refining facilities to process any extra oil? Even if we invest the hundreds of billions of dollars necessary to increase domestic oil production, many years will pass before we will see any relief at all regarding the prices at the gas pump (and that relief will be negligable). On the other hand, we could do the smart thing by investing that same money into alternative energy research and production, thereby reducing our dependence upon oil and ensuring that your grandchildren can enjoy a world that is as inhabitable as the one that you currently enjoy (or don't you care about the quality of life of your posterity?).

solarfared, your ignorance is shining through like a beacon in the dark of a Republican night. Your comment has shown us that the Republican ploy of distraction has indeed worked among the ignorant and uneducated electorate -- the same electorate that gave us 8 tortorous years of George Bush 43.

[long333]

newworldman777: Even if we invest the hundreds of billions of dollars necessary to increase domestic oil production, many years will pass before we will see any relief at all regarding the prices at the gas pump (and that relief will be negligable). On the other hand, we could do the smart thing by investing that same money into alternative energy research and production

I didn’t know that taxpayers have diverted funds into oil production. You would think they could pay for it with all that money they charge for the oil.

[torrrep]

No one is stopping you from investing in research for alternative energy. Feel free.But research does not solve the problem. It only gives you ideas to solve the problem. And that research could take years. However, investing in energy that is already proven is a more common sense way to invest your money. To take resources you already know you have and place them on the back burner for something that has not been discovered or proven is absurd. If you're convinced that you have the right answer then be my guest and invest your money. As for me I'll be investing in the tried and true resource of oil.

[gemcando06]

Did you ever see a documentary on drilling in the Gulf of Mexico?

Hundreds of capped-off wells under the water - for miles. Who is responsible for seeing to the upkeep of the wells?

[Artos]

Solarfared,

Buddy, when it comes to trust " You Guys" haven't got a leg to stand on. When I think of the word Liar I can associate it with at least one thing first and foremost Republican. As for the Messiah crap, why don't you grow up and get out of grade school. Inventing a "nasty name" is the type of mentality you expect from a 7 or 8 year old. On the other hand why do you feel Messiah is now a dirty word, aren't you a right wing Christian who believes in a Messiah? So now it's a dirty word huh. You guys can't make up your minds can you. Lets take a hypothetical moment and suppose that Obama actually was the "Messiah" Or Jesus returned to straighten out this mess you guys have made. Lets supposed you "Crucify " him because, let's face it you hate Liberals, Democrats and Black people just about equally. How do you think God would feel if you "Crucified" him this time. Think about it and while you do have a glass of petroleum on me. I mean really drink it down.

[Oldbuck]

Why are we so gullible we believed that there was WMD in Iraq. Now they are trying to connect the price of oil to off shore drilling this is the biggest joke. Even T. Boone Pickens says we can't drill our way out of this mess. The media is in the pocket of Big Oil guess who they are going to support. It's time to WAKE UP!!!!!

[Organic-Guy]

John MacCain and the Republicans have no energy policy. Just gimicks and false hope programs.

Beyond this false debate on drilling is the fact that we can't enter into a debate or discussion about energy with simultaneously talking about global climate change.
Drilling, mining, delivery and burning fossil fuels is dangerous and even deadly. We're killing ourselves for this primitive idea of burning something to extract the energy.

Another thing to mention is the lack of refining capacity. We haven't built a new refinery in the US in 35 years or more and no new ones are on line. Even if some new magical supply of crude were to show up we could refine it.

Oil leases as are logging leases are just another form of corporate welfare. Our guttless wonder politicians in Washington need to show a little back bone and intelligence and explain this complex debate every single day until the election and show John McCain and the Republicans for the pandering, lying greedy corporate tools they are.

[bdaved]

To say that ""We haven't built a new refinery in the US in 35 years" would seem to imply there has been no refinery construction. That is not so. Refineries have been expanded and renovated. While I agree there may be a shortage of refinery capacity with respect to demand, you could double existing refinery capacity through facility upgrades and expansions and still be able to say no new refineries were built.

[NicholeWebb]

They have a plan... lock up the entire world's oil supply for big business. Iran's next.

[Ron333wood]

I may be beating a "dead horse" here, but one of the elements that needs elaboration is the fact that the price of oil WILL NEVER EVER NEVER fall below $3/gallon. The oil companies have incentives to keep the price of gas as high as possible. We have been "pavlov'ed" by $4/gallon and now we think that $3 is great. Because I have grandkids, I'm as concerned about the environment and that non-existant "global warming" thingee that has wreaked such havoc with the weather all over the U.S. Why isn't there a provision like "use it or lose it" attached to ANY bill that allows companies access to lands in the public domain?

[oldwiseone]

If it is going to take ten years

We might as well scrap the plans

because announced just yesterday

is this from MIT

http://web.mit.edu/newsoffice/2008/oxygen-0731.html

[Clark]

I don't see what's world-changing about this news from MIT. It's hydrolysis using solar generated electricity. It's been going on for a long time. The only thing they say is new about it is that it uses cheaper electrodes - Platinum is cheaper? Than what??

[FrictionSoul]

Facts please, that this is in fact hydrolysis, which according to the definition deals with just hydrogen, but doesn't deal with the oxygen. The process reported is unprecedented, whereas hydrolysis has been around for a long time.

[long333]

Clark: I posted something similiar to this but it got censored that I did hydrolysis at a 9th grade science fair. I added a slippery liquid to the water I believe ethylene glycol to improve the effiency and they appear to be using a type of metal cathode that improves efficiency. I couldn't get where the solar source comes in though. Could hook this up to a windmill and do the same thing as far as I can tell.

[buckeye487]

Look, we should scrap this solar plan... I mean, if we won't see a payoff for 10 years then we shouldn't do it, should we? Isn't that the anti-drilling argument? It won't have an effect for 10 years or more, so why do it?

Here's the thing...we need the energy. So, why not use our resources? Now, I am interested in the already leased lands that are not being drilled. Why not? Also, what about the tax breaks? I do not believe in windfall taxes... you can't overtax a person/company just because they've done well. That's just silly. BUT... don't the oil companies get some sort of tax credit to 'encourage development, especially refineries'? When was the last new refinery? I say end those credits. I also agree that if you get a lease on a land for its resources, use it or lose it.

[Rick33]

Thats like comparing a fast food diet to a healthy diet. They both give you energy and one might be a little cheaper. There's not much of a day to day difference between the two. However, ten years from now, there will be a huge difference between the two. And if you skimp on costs now, its going to hit you much much harder in the end.

[tyrodin]

The only reason this is even an issue is because the Republicans need a political non-issue to further divide the American people. Bush and McCain have both said the offshore leases won't lower the price of oil, but we should pretend it will. Now FOX, CBS, and every right wing nut job are out there screaming the high price of gas is the Democrats fault because we won't pretend it will help. It brings an image to mind of a populace going home in the evening, turning on FOX/CBS, and self flagellating by whacking themselves over their heads with a board. If we don't start educating our people to value honesty and to think independently, things will NEVER change.

[Bozwellian]

NAILED it as to why this OFF SHORE/DRILL ANYWHERE/etc is now THE focus...an­d presently, to sooth the savaged (by the cost of just about everything due to outrageous cost of fuel) to sooth the minds and pander, is an EASY SELL and the GOPs are most willing to exploit it and the public even thou KNOW it will NOT do much of anything to alleviate the present fuel cost crisis that IS effecting/affecting us all daily and severely !! BUT, BUT, BUT...WHY are the DEMS SO UNABLE TO ARTICULATE CLEARLY AND CONSISELY AND FORTHRIGHTLY the REASONS WHY IS A SCAM/SHAM ? They , the Dems are FAILING MISERABLY once again (note too, when CONGRESS gets listed with low approval numbers it is "pronounced: as due ONLY due to Dems being "majority" when if delved into, OBSTRUCTIONIST GOPS are to blame for much of the stalematings !! Again , rarely "explained, and just let to ride as if beneath need for "explainat­ionings..t­he Dems are about to lose once again , and their high road approach is going downhill and OUR better intests and greater common good taking another hit in the chops as well !!)

[tyrodin]

I agree with you fully. We sat back and let the neo-cons walk all over us in 200/2004. Now is the time to stand up and say no to these childish little cowards. Pelosi has had the support of the majority of the American people to stop this nonsense since 2006. Perhaps the major corps have taken over and it's truly too late for a peaceful resolution.

[peppermint]

You people are clueless ---- don't you know you can inflate your tires, get a tune-up and gas prices will be lower again? Obama said it so it must be true.

BTW why are Venezuela and Russia drilling right off our Gulf Coast? Because they know that's where the oil is. The oil companies already know those leased acres they have were tested and there is no oil there. We do know ANWR and off-shore is loaded with oil so for some reason the dems say "No we can't".

[Annette]

Actually if you had paid attention, you would know that what he said was that proper tire pressure, and a properly maintained care gets better milage

If it is your contention that there is no oil where the oil companies refuse to drill they should release those leases. Perhaps trade them acre for acre for new ones.

We should cut off oil's welfare check. The get billions from us, the taxpayers. They are sucessful, so why do they get welfare?

[preemptivelove]

what's happening in our country is precisely WHY we don't educate people to think independently or critically. a well informed and educated population won't put up with the lies and manipulation. but a society of standardized test takers who know how to fill in little multiple choice ovals but who cannot think critically for themselves will be fooled by just about anything.

things are not going to change. get used to it.