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.

Oil drops, like they waned it to

A barrel of oil dropped from $147 to $129 in the last week. Reasons are myriad from the experts. The real reason is that the powers behind the oil increase (Big Oil & Big Money) need to have oil not be a factor when the election rolls around in November. With oil lower, Americans will feel more confident voting Republican in the fall. Big Oil needs a win so it can gain its much desired drilling rights in the Alaskan Wilderness Preserves. A Democratic win almost ensures that these drilling rights will take much longer to get. Look for oil to continue its rise in earnest after the election, regardless who wins.

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.

Gov. Eliot Spitzer finally gets nailed by his enemies

The champion of fiscal responsibility, Eliot Spitzer, was finally nailed by his enemies in the financial sector and the government. Caught up in a prostitution scandal, Spitzer will have to resign as a result of a year long investigation by the IRS and FBI. According to the reporting financial institution, “large sums of money” were being transferred from several accounts into a dummy corporation account. The large sum of money was $4300.

From the financial institution to the Department of Justice, all were enemies to a Democrat in high office who tried to clean up the system.

One would wonder why $4300 would trigger such an investigation. There was no history of such transfers prior to this one. The bank was required to report suspicious activity the involved things like terrorism. Was the governor of New York a terrorist suspect? Of the names supposedly kept secret (client names were replaced by number), why was the Governor’s name singled out for release to the public? Why were details of the Governor’s sexual preferences necessary to release?

The answer is that an enemy of the state, Eliot Spitzer, had to be taken down. Like the governor of Alabama, Don Siegelman, he was set up by his enemies and cut down like a dog in the street.