Our Forlorn Energy Secretary Sam Bodman Takes On Tom Friedman

"We must pursue real solutions, not demagoguery or clever rhetoric."

There, take that Tom Friedman!

Thus hath spoken our forlorn Secretary of Energy Sam Bodman in riposte (letter to editor NY Times 07.27.08) to Tom Friedman's pungently critical treatise (NY Times Op-ed "9/11 and 4/11" 07.20.08) on this administrations gross mishandling of the nations energy crisis. To quote Friedman

"...we have a president and vice president who deny that climate change is hurting our environmental body, who refuse to see the connection between the dollars we are sending abroad and the rise of petro-dictators...who are apparently untroubled by the sharp decline in the dollar , partly because all the money we are paying for oil imports". Friedman goes on to cite Al Gore's proposal for "dramatically improving our national electricity grid and energy efficiency while investing massively in clean solar, wind, geothermal and carbon sequestered technologies."

Bodman, perhaps waking from his slumber, was clearly taken aback. Why, he intoned we've spent $12 billion "to advance alternative energy sources including solar, wind, biofuels and nuclear power" not to speak of fuel efficiency standards and on. Now this coming from the head of our Department of Energy, an agency that has overseen and stood steadfastly idle as the price of oil escalated during this administration's time at the helm from $22 a barrel in 2001 to $145 some two weeks ago. Using the difference between then and now, and using the price as of this writing of $122 per barrel leaving a difference between now and then of $100 per each barrel of oil. With US consumption of 21 million barrels of oil a day that is a difference of $2.1 billion per day or $63 billion per month or some $750 billion/year more, I repeat the word 'more,' flowing to oil interests both here and abroad at today's price levels when compared to the sums that were being transferred eight years ago.

All the while Mr. Bodman and his Energy Department are clucking away at the nations beleaguered consumers, intoning the mantra that is becoming recognized as defining the way to address someone when you want them to know you think they are an idiot, namely "its all about market forces of supply and demand." As though OPEC, willfully limiting and manipulating the supply of oil had nothing to do with its price. And that there is no evidence of manipulation nor undue speculation in the trading of oil contracts on the commodity exchanges, citing the findings of the that toothless "see ,hear, and speak no evil" watchdog the Commodities Futures Trading Commission (CFTC) thereby selling the beleaguered American consumer a phony bill of goods.

Mr. Friedman's protagonist came to his post at the Department of Energy with the following send off from President Bush "Sam Bodman has shown himself to be a problem solver who knows how to set goals and he knows how to reach them." Bodman, in the ineffable style of the Bush administration appointments, had virtually no direct energy experience and whose nomination was widely greeted by a befuddled "Sam who?" Shortly thereafter Mr. Bodman now head of the Energy Department of the world's major oil consumer would venture to instruct a Senate Committee "that the capability of any member of this government to influence members of OPEC is limited" and went on to suggest he had more important things to worry about, "I have a lot on my plate" he told the panel in a particularly brilliant display of coming to grips with the essence of the oil markets' dynamic.

And then there is the Strategic Oil Reserve which his Department of Energy has continued to fill willy nilly totally oblivious to what their purchases are doing to market prices, the economy and OPEC's perception of our seriousness in holding the line on oil prices. It literally took an act of Congress to get him and his department to desist from continuing one of the great oil patch boondoggles. To quote Senator Dorgan, "Not only are taxpayers being fleeced by paying that much for oil, but the effect of taking valuable oil like sweet crude oil off the market has a disproportionate effect on crude prices." Far be it for Secretary Bodman to understand the madcap signal being sent to the marketplace by the ongoing purchases of oil at escalating prices. Not to speak of his department's input toward one of the most disastrous policy turns of this administration, the doubling of the Strategic Petroleum Reserve announced during the President's State of the Union Address in January 2007 just as oil prices were dramatically receding, touching $49.90 a barrel.

Especially discomforting is the Department's obsequiousness to their OPEC drillmasters. This was exemplified on May 2, 2006 at a gathering of the Center for Strategic and International Studies, the Washington research group. There, Saudi Arabia's oil minister and putative leader of OPEC, Ali al-Naimi was received in a manner worthy of a Wehrmacht general in occupied Paris. Signaling his submission, Mr. Bodman seated next to Al-Naimi assured him that the administration was opposed to the bill (the NOPEC bill) in Congress that would have opened the door to anti-trust suits against OPEC by removing the sovereign immunity exemption. He thereby extended carte blanche to OPEC's machinations, chalking up another one for OPEC's cheerleaders in the US oil industry, while the American consumer was left to express his outrage at the local gas pump.

But the most damning incidence is in Bodman's letter itself because it gives a frightening picture of this administration and its Department of Energy's priorities. Since the start of this administration in 2001 the federal government through its oil industry embassy, the US Department of Energy has spent $12 billion to research develop and promote alternative energy sources. This while literally hundreds of billions, no sorry, not billions but rather trillions over that period have been drained away from American industry and consumers by an acquiescent administration and somnolent Department of Energy in the grotesque super profits and benefits being transfered to oil interests worldwide.

Yes that $12 billion expended over eight years referred to in Secretary Bodman's letter is a lot of money indeed. Why it is even slightly more than one third of the $30 billion mustered over one weekend and set aside for the Bear Stearns bailout, not to speak of the additional billions to bail the share holders of Fannie Mae or Freddie Mac among other Wall Street sinkholes, monies expended to prop up institutions and organizations where this administration has real money and its real supporters on the line.

Mr. Bodman goes on in his admonition of Mr. Friedman citing the fuel efficiency standards put in place by the administration. Perhaps as a courtesy to Mr. Bodman it would be best not to go into too much detail here, given the lame and late dimensions of that initiative. As to the "real solutions" that Mr. Bodman espouses, it would have been best to lead by meaningful example which to date are sorely lacking. As to his chastisement of Mr. Friedman's "clever rhetoric," better that, than rhetoric that takes us all for fools.

Comments

[Zenobius]

Given Friedman's track record, his declaring our energy policy a disaster area is the only hopeful sigh I have heard this year.

[sheila]

Ok, so now that for the 500th time, Big Energy has proven it will use our tax dollars, our federal land and our government to manipulate supply and pricing, WHY ON EARTH ARE SOME OF YOU STILL CHEERING FOR A MASSIVE CENTRALIZED RENEWABLE ENERGY FUTURE INSTEAD OF PERSONAL ENERGY INDEPENDENCE?

I've used the "Stockholm Syndrome" analogy here, before. Renewables can and should be built on every structure in the US (and owned by US, not Big Energy), and massive investments into smart grids, storage and conservation tech should be made with our tax dollars, not giveaways to Big Energy (whether it's oil, wind, solar, coal, gas, nuclear, ethanol or otherwise).

We are at the biggest crossroads of our lifetimes, here. We can get 75% of the way to total energy independence (not hating on utilities and existing grid, btw, want them to play a role, just not the role of supply monopolist) if WE DEMAND POLICIES LIKE FEED IN TARIFFS for power we produce. 40 nations, notably Germany, Spain and Japan are having incredible success.

Stop the Big Energy Monopolists, enabled by Big Government!

[Shortyfuse]

Today may be the last day of congress before recess. EVERY TIME A REPUBLICAN STANDS UP AND CALL FOR DRILLING, CALL THEIR OFFICE AND LET THEM KNOW THAT IT IS GOOD TO BE ABLE TO PUT A FACE ON THE CONGRESSMEN IN THE OIL COMPANIES POCKETS.
CALL, CALL TODAY . I KNOW YOU ARE MAD AS HELL AND ARE NOT GOING TO TAKE ANY MORE.

[vippy]

I am astounded to see from comments such as this one that people are not aware of the fact yet that congress and the senate are self-serving and never have done anything for the people. I guess people first have to find out when their income shrinks and they can't keep up with the raising prices that they realize they have been had. Look, congress voted themselves a $ 15,000 a year automatic pay increase and voted down your increase in min. wage. The Alternative Minimum Tax is looking us in the face come January 2009 and congress every year fights over it whether they should keep it in tact or give us an extension. Yet it was meant for the rich so they can pay their fare share of taxes but that would include them so they won't do it. Same goes for the cheaper gas. Had they put reigns on the Hedge Fund People, the speculators, we would not have needed the stimulus check. But we never learn. I see it coming, McCain will win because people can't bring themselves to vote for a black man.

[joebaggadonuts]

Good advice. Thanks.

[arvay]

This is a case of dumb vs. dumber.

Freidman sells books and enjoys speaking fees from corporations who love his "world is flat" mantra, which ignores the billions of people untouched by outsourcing booms in India and China, and glosses over the effects of poorly regulated globalization.

He sells a world of bright and cheery people in the third world, who are, wow! smart and ambitious. Gee, who woulda thought, and we needed Friedman to let us in on that!

Bodman is a typical Bush administration hack, the article contains sufficient detail on that.

[nomoredead]

Dubai announces revenue in 2008 from its Gulf Cooperation Council ( GCC ) will exceed 600 billion dollars. If I was younger I would move.

[BlackbirdHighway]

"we've spent $12 billion "to advance alternative energy sources including solar, wind, biofuels and nuclear power"

The problem is that solar, wind, and advanced batteries received very little of that money, the vast bulk of it went to subsidies for ethanol and nuclear, and hydrogen.

[joebaggadonuts]

Hmm. When did the administration ever speak the truth? They are all wannabe debaters pretending that a lie is a good as a fact to make a point.

[JBS]

A lie *IS* as good as a fact ... if you have a compliant news media that will report your talking point lies and ignore inconvenient facts.

[KillTheMessenger]

At the same time one can only wonder why the American consumer has not taken matters into their own hands years ago when it was already clear that the price of oil was rising and was not going to get any cheaper? Americans replace 16 million vehicles a year. Had our consumers been buying vehicles for four years in a row with only 100 gallons/year lower average consumption for the past four years (that's an increase of only 15% in average mileage), we would now be able to save 6.4 billion gallons of gasoline each year. That's 25 billion dollars spent less on fuel, on average, twice as much as the research money we are spending on DOE related energy research.

Instead consumers are still holding out for someone to fire that magic silver bullet that will take their pain away. Sadly, neither that bullet, nor the hand at it's trigger exist.

[joebaggadonuts]

Think of the frog in the pot of water getting slowly hotter.

[vipersdad]

Very eloquent - thanks again Mr. Learsy.

If you want to REALLY see an example of appeasement, you have to go no further than to see how the Bush Administration interacts with OPEC.

As an American, I see this and wonder how much money has to be on the line to allow yourself to be humiliated on the world stage. I guess laughing all the way to the (offshore-tax sheltered) bank is enough to ease the sting.

[elbzee]

The sickest part is these thieves are already millionaires. They've set their world up to line their pockets and those of all descendents (ergo abolish the inheritance tax). Is there no point at which they have enough?

[joebaggadonuts]

As long as they have slaves to make money for them, no.

[Torus34]

It must be said that the capabilities of the various Bush appointees have been, shall we say, somewhat less than stunning.

[larry278]

True, is there any evidence that any appointee of W ever got anything right?

[JBS]

Maybe Paul O'Neil - read "The Price of Loyalty".

[Liberal2]

On C-Span this morning, Bush's Transportation Fool was singing the joys of privatizing American roads. Right, citizens hate if government doubles a toll, but will love it when a private corporation quintuples the cost...cuz a CEO's gotta make a CEO's salary dontcha know?

Why does AmTrak and ConRail exist???? Because private companies let their assets wear out. When the cost of repair became too high, the railroad companies simply walked away and said to the government, "If the nation needs railroads, you run 'em." The same will happen to privatized road. After extracting exorbitant tolls, but not maintaining the roadways, the company will walk away.

[Synoia]

Right for whom?