Why drilling in the Arctic Preserve won’t decrease gas prices

The Republicans are stepping up their campaign to allow Big Oil to drill in the Arctic Wildlife Preserve. They are saying that allowing the drilling will increase the amount of oil produced and therefore will force oil prices down. More supply equals lower price. This will not work the way they say it will.

Republicans readily admit that any oil to come from drilling in the preserve will not hit the market for 7 to 10 years, so there will be little effect to be felt until then. But there is an important word in that last sentence, market. The US will be selling leases to drill to Big Oil not so that America will have more oil, but so that the world has more oil. The oil is coming from our nation, but it will be sold on the global markets.

What do you think demand will be like in 10 years? While demand may be lower in the US in 10 years, global demand (Asia) will be much, much greater. So, much of the oil we take from our borders will most likely end up going to China and India. Will prices at the pump in the US be lower ten years from now? The smart money would be that prices will be significantly higher than today, despite whatever lower demand we can achieve. As long as global demand rises, prices will climb.

So face facts boys and girls, the only winners here would be Big Oil & Big Money. The rest of us would be the losers. If you want to allow the drilling at least make sure your lawmakers know that you want American oil for Americans. Its the least we should expect since we’re putting our environment at risk.

Trilby Lundberg: In the pocket of the oil companies.

In this weekend’s survey, Trilby Lundberg announced in no uncertain terms that the oil companies were not at fault for the increasing gas prices. According to Lundberg, the rise had nothing to do with the oil companies’ profit margins. Thank you for letting us all know. How could we have thought of such a thing? If not for you stressing the point in your interview we might have made a grave mistake. Nice to have such an “independent” voice covering the industry for over 50 years.

Big Oil Faces Congress

The “Big Oil” companies again face Congress to prevent the removal of billions of dollars in subsidies it receives from the government. The House has passed legislation that would remove the subsidies, but the Senate, once again, has not. Why? Because they want money out of the oil companies to fund their present and future re-election campaigns. We will get a lot of posturing from the Senate, but this will only be for show, yet again. In the end the oil companies will keep their subsides, and the Senators will get their campaign contributions. A beautiful relationship made in Hell.

Government Bailout of the Financials Begins

After accumulating billions in bad mortgage debt, the financial institutions have finally conned the government into bailing them out. The first on the list is Bear Stearns. The Fed is set to trade good debt that it is holding for bad debt, which Bear Stearns has in spades. According to the article, this may be just the tip of the iceberg. Get ready for the Savings and Loan bailout all over again. That only cost US taxpayers a half-trillion dollars.