George W. Bush as Marie Antoinette: "Let Them Go Ice Fishing in Maine" (Part Two)

In January of this year, President Bush in his State of the Union Address -- true to his oil industry roots -- stood foursquare against oil prices that were beginning to retreat dramatically. They had already touched $49.90/bbl a few days before. He declared that the Strategic Petroleum Reserve would be doubled from 750 million barrels to 1.5 billion barrels.

What was not fully understood at the time by the public and the press, was that the announced increase, coming only weeks after OPEC's declaring that it would cut supply to world markets, would be interpreted by OPEC and oil interests at large, that for this administration the retreat in oil prices had gone far enough. Practically nothing, especially given its timing, other than war and destruction, could have been more supportive of OPEC's objective to ratchet up the price of crude. In consequence, and in large measure because of the forcefully supportive implications inherent in the doubling of the SPR, the unprecedented and exceptionally steep march reaching $99/bbl in November, was underway. This with all the potentially grave implications for the economy as a whole. But for the oil patch rarely has national policy been fine tuned so stealthily, bringing joy in this instance, to even the most hardened wildcatter's wildest dreams.

Then come November with the price of oil skyrocketing to within spitting distance of $100/bbl, winter ahead, and OPEC heads of state scheduled to meet in Riyadh our Secretary of Energy, Sam Bodman, boldly pronounced on November 8 that no oil would be released from the Strategic Petroleum Reserve to curb prices (now remember that's our oil, not his, not the President's and certainly not the oil companies' nor OPEC's). This bold Prince would go one step further and announce that 12 million barrels of crude oil, which would inevitably include the most desirable grade, light sweet crude, would be added to the Reserve in January! (Well, it is summertime in Argentina after all!).

Then Mr. Bodman, a jobholder in the tradition of the "best and brightest" appointees of the Bush administration ("good job Brownie") made a further declaration. This 12 million barrel addition would not have a "material affect" on oil prices . This from an Energy Secretary who before his anointment as the administrations straw man at the DOE, had virtually no direct energy experience and whose nomination was widely greeted by a befuddled "Sam who?". So much for bringing in experienced and constructive talent to head a $23 billion agency with 100,000 employees and contractors. Once again dashing the nation's hopes of coming to grips with an issue of core importance to its future. The Bush administration appointments to this key agency (not to belittle the personal commitment and competence of a number of DOE technocrats, who worked hard but have little to show for their efforts) will have let altogether another eight years slip by without effective leadership, direction or meaningful programs to deal with energy's looming dangers to our economy, national security and climate change.

What kind of signal did Mr. Bodman's illuminations send to the then gathering OPEC heads of state in Riyadh? Simply, that the American government, the world's largest consumer of oil, is not concerned about the current price of oil then ranging $90/bbl. That by deed and utterance ("we will add 12 million barrels to the SPR in January") the administration is not prepared, even symbolically to contest current oil price levels and possibly higher levels to come. The administration's actions, taken together, could even be construed as being supportive to current prices. Therefore there would be no perceived reason for OPEC or others in the oil industry to change direction in policies, policies that have flooded their coffers to overflowing. And all the while our president remaining stubbornly adherent to his free market fantasy and oil patch roots, while the good people of Maine are maxing out their credit cards on heating oil bills and woolen nighties and sweaters.

That the government would not use the SPR as a symbolic gesture to counter OPEC's and the oil industry's rapaciousness borders on the incredulous or perhaps more accurately the malign. Releasing barrels would at the very least send a signal to OPEC, "Gentlemen, you are overstepping yourselves". Adding to the SPR under current circumstances is close to madness. It gives comfort to OPEC and endangers our ecomomy by validating current oil prices, prices that are risking accelerated inflation and a massive economic slowdown. This far beyond any measure of safety those 12 million additional barrels in January could bring.

While households and truckers in Maine are near freezing or going broke one can presume the issue of turning down the thermostat because of heating oil costs at the Bush Kennebunkport family spread in Maine, is not even an item of discussion. This might well be attributed to the millions having been rained upon Bush pere through his service to investment entities with deep ties to Middle East funding, funds generated in large measure through sky high oil prices. But then again not everyone in Maine has access to such beneficent connections in sunny climes. Ice fishing is more the order of the day.

While millions of American households are turning down their thermostats our Government, Republican and Democrat alike is about to pass, or by this writing have passed, an Energy Bill that will be signed into law with alacrity by the President, extending further billions in tax breaks to the oil industry, today perhaps the most profitable sector of our economy. This under the bizarre argumentation that it, the oil industry, "needs all the resources it has to find and develop new energy sources" ("Industry Flexes Muscle...", NY Times 12.14.07). As though with oil prices in the $90/bbl range further incentive were necessary. And of course no mention of the salaries riding the tidal wave of oil company profits such as Oxy's CEO Ray Irani's $500 million payday nor Exxon Mobil's $400 million plus golden parachute for Lee Raymond, among others.

With priorities such as these one begins to wonder whether we have a government and governance that is completely broken, where only moneyed access through well connected lobbyists prevails, and that the workings of what our government was meant to be has been dismantled by special interests.

Raymond J. Learsy is the author of the updated version "Over a Barrel: Breaking Oil's Grip On Our Future"

Comments

[mamacat]

There are so many anecdotes detailing Bush's absurd behavior that it is difficult to choose just one as my favorite. Is it the one about reading the Little Goat book while New York was under attack? That one is unforgetable. I especially enjoyed his "they don't have to vote for me if they don't want to" answers to questions about his decades of cocaine and alcohol abuse.
My favorite anecdote about Lil Bushie in the last few months was his scoffing at Pres. Clinton's behaviour. Our current Prez thought it was hilarious that Clinton was wasting his time at the United Nations, trying to make the world a better place. "You won't catch me wandering the halls of the U.N. when I'm out of office! No sirree! I'm going to be out making speeches, getting big fat speaking fees. That's how I'm going to spend my time when I get out of office." (slightly loosely translated.) Of course, there's his vetoing of the children's health care bill because it might interfere with capitalism and profits for insurance companies. Actually, that time, he sort of understood what was going on!
Yessirree! That good ol' boy Bush! He's good for constant entertainment. He is personally responsible for the whole phenomena of comedians reporting the news. As they say, you couldn't make this stuff up.

[insanityfollows]

George Bush really is like Marie Antoinette-so far detached from reality with no regards to cost for his fellow citizens. Good comparison. He just doesn't give a damn. He is always right, and anytime he is questioned on faulty judgement, he just blows it off, sure that he is right, and adopts a "whatever" attitude. Say what you want about Clinton-I truly believe he had the best interest of this country at heart. Sure, he made mistakes, but his motives were pure. Bush is his polar opposite. I feel like I've been living in the twilight zone since '00 election. I'm not sure what the answer is to this problem with our oil supply, but I do know that if it continues to go up, our economy is really going to be in trouble. We can only conserve so much-the freight still needs to move and we still need to get to work. Conservation is fine and good, but we have no alternatives to using oil-ethanol be damned. Maybe I'll get a horse and buggy.

[mamacat]

Say what you will about President Clinton, at least he used the national oil reserve to try to stabilise prices at the lowest possible level.
And how does that compare to what Pres. Doofus has been doing? Well, quite simply, he has been trying to use the oil reserve to jack up prices for his buddies at Exxon. Its so obvious, even a Faux News Broadcaster can see it.
And what has lil Bushie been doing with the national debt? Has he been using it like FDR did, to try and get us out of the worst economic depression of all time, or perhaps to fight the real Axis of evil? No, not our little boy. He's been using it to finance the largest tax breaks for the uber-rich in the history of our nation, and to try to spread "nation building" to countries that didn't ask for it, didn't want it, and still don't want it.
Yessirree, that good ol' boy Bush, he sure knows how to screw the pooch. And he's gonna keep screwing the pooch until the roosters crow, until the cows come home, until every last drop of decency is squeezed right out of the Republican party.
Good ol' Bushie boy, what's gonna happen to our country when you're not around to tear it down anymore?

[outnow]

The Great Games goes on with the "see no evil" sign blinking. The Saudi oil spigot is providing oil and terrorism depending on which direction it is turned at the moment.

By off-shoring the OPEC monopoly, the local oil producers and distributors can connive to their heart's content to manipulate the prices.

It is worth noting that when an oilman became director of the CIA, head of the Republican party, Vice President, and then President, that his son was able to seize so much power as president. Indeed, BushCo and the Carlyle Group and a cabal of bankers and defense contractors are running the planet. This is the New World Order.

The benevolent hand of the free market has no application in this environment since the supply is artificially manipulated by the actions of OPEC in concert, it would seem, with the producers and distributors as well as with the actions of our own government.

Meanwhile, the war in Iraq has restricted supply, at least officially. The prices have gone up but the oil reserves are protected in Iraq only to be tapped at a later time.

The shadowy international cabal is BushCo, and they have seized control of the world's market and the price of oil. The fear premium for oil cannot be discounted. Money without oil is worthless.

[avergejoe]

"completely broken, where only moneyed access through well connected lobbyists prevails, and that the workings of what our government was meant to be has been dismantled by special interests."

http://www.guardian.co.uk/Iraq/Story/0,2763,940250,00.html

Israel seeks pipeline for Iraqi oil

Plans to build a pipeline to siphon oil from newly conquered Iraq to Israel are being discussed between Washington, Tel Aviv and potential future government figures in Baghdad.

Now, its resurrection would transform economic power in the region, bringing revenue to the new US-dominated Iraq, cutting out Syria and solving Israel's energy crisis at a stroke.

The paper quotes Paritzky as saying that the pipeline would cut Israel's energy bill drastically - probably by more than 25 per cent - since the country is currently largely dependent on expensive imports from Russia.

US intelligence sources confirmed to The Observer that the project has been discussed. One former senior CIA official said: 'It has long been a dream of a powerful section of the people now driving this administration [of President George W. Bush] and the war in Iraq to safeguard Israel's energy supply

Akins was ambassador to Saudi Arabia before he was fired after a series of conflicts with then Secretary of State Henry Kissinger, father of the vision to pipe oil west from Iraq. In 1975, Kissinger signed what forms the basis for the Haifa project: a Memorandum of Understanding whereby the US would guarantee Israel's oil reserves and energy supply in times of crisis.

The memorandum has been quietly renewed every five years, with special legislation attached whereby the US stocks a strategic oil reserve for Israel even if it entailed domestic shortages - at a cost of $3 billion (£1.9bn) in 2002 to US taxpayers.

[JulieSA]

Did you know that US carbon emissions from fossil fuels in 2006 were LOWER than our emissions in 2005? Higher fuel prices are finally kicking in enough to make people cut back on their use. Mild weather also helped.

[stevezim]

What we really need is a committee of university tenured, non-political petroleum economists to set & periodically review three price levels of oil per barrel relative to the SPR:
1. The price at which purchases into the SPR will be made.
2. A higher price at which purchases into the SPR will cease.
3. And a yet higher price at which oil will be sold from the SPR.

This idea that we buy no matter the price is really stupid.

[realitybase]

Why didn't people understand this before they installed an oil cabal in the white house?

[Dunnage]

Where is the oil shortage? Anybody you know having trouble getting gas for their car, propane for their grill?

[JulieSA]

High oil prices are good for the environment, in the long run.

[Kungfublood]

Remember the cheney/bush mob is involved in stealing billions (trillions?) of barrels of oil in Iraq *-After all the lies "it's the reason for the season!" So when the price stays high the stolen oil brings home more money to the thieves and if America and American's suffer and die well thats just the price of the WAR ON TERROR!
The rich don't fill up there own gas tanks and traitors and mobsters enjoy destroying nations as well as people's lives.

* As found when the U.N. belatedly investigated the pipes were flowing fast and free into guess who's pockets?

[Kungfublood]

Remember the cheney/bush mob is involved in stealing billions (trillions?) of barrels of oil in Iraq *-After all the lies "it's the reason for the season!" So when the price stays high the stolen oil brings home more money to the thieves and if America and American's suffer and die well thats just the price of the WAR ON TERROR!
The rich don't fill up there own gas tanks and traitors and mobsters enjoy destroying nations as well as people's lives.

* As found when the U.N. belatedly investigated the pipes were flowing fast and free into guess who's pockets?

[hopeless277]

Damn, Raymond, it's not broken, it's criminal. Follow the money. That's what Bush's reign is all about. Money. MONEY. BIIIIIIIIG MONEY. While we are trusting our government to what is best for our country, they are stealing us blind and having a good laugh about it. Especially the Democrats. I can hear them now, 'They elected us to do WHAT???' and then a round of shots and guffaws all around. We are the suckers in this con job. And with the DOJ to back him up, Bush will keep picking our pockets until the day he dies. Then it will be up to Jenna and Not-Jenna to pick up the baton. Oh, and don't expect anything to change in '09, remember, the Dems are IN ON IT.

[oldpotsmuggler]

"The Administrations actions, taken together, could even be construced as being supportive to current prices." Let's see, the invasion of Iraq having been completely discretionary, and having had the effect of being the single biggest stimulator of high oil prices on the planet, yeah I guess you could say that there was a plan to get us to where we are at now.

BUSHCO is a complete adjunct to OPEC, and OPEC is, and was designed to be "a combination in restraint of trade". There are those of us who saw this day coming clear back in 1980 when the oil industry banded together with Daddy Bush to work on getting him into the Whitehouse.

Remember this history as well. Howard Hughes inherited the company that made all of the drill bits used by the entire oil industry world wide. He was also recruited by the CIA because he was a one stop source for information on all oil development across the planet. Further, Daddy Bush once headed the CIA and brought about the final marriage of American spooks and producers. This entire amalgam is what has come to be known as BUSHCO.