Sat
Aug 2 2008
08:04 am

Why are we so often reacting instead of planning?

A Gang of 10 Senators, five Republicans and five Democrats, are proposing a new energy plan.

A bipartisan group of 10 senators offered an energy plan Friday aimed at producing more domestic oil via offshore drilling, reducing energy prices, and aiding the troubled economy.

The Gang of 10 include Sens. Mary Landrieu, D-La.; Kent Conrad, D-N.D.; Saxby Chambliss, a R-Ga.; John Thune, R-S.D.; Ben Nelson, D-Neb.; Lindsey Graham, R-S.C.; Mark Pryor, D-Ark.; Johnny Isakson, R-Ga.; Blanche Lincoln, D-Ark.; and Bob Corker, R-Tenn.

Drilling bans along the Pacific coast and the Northeast would remain in place under this compromise.

Only in the Southeast? Alrighty then.

Obama is willing to support the effort. Earlier in the day he was proposing $1,000 "emergency" rebate checks. Guess that wasn't enough.

Can we hope Congress will hold off on any decisions until after the Presidential election? Then we might have a new President with four years to actual devise a thoughtful solution without oil companies influence. Nah.

Opinari's picture

I guess the debate is over

I guess the debate is over the meaning of "thoughtful solution". I am in complete agreement that we need alternative fuel sources, and long range strategies. However, we need to address the supply side too. Those gasoline-powered engines just aren't going away overnight. I'm not just talking about cars. I'm also including lawn equipment, generators, etc. And don't forget petroleum-based plastics. Again, alternatives are needed, and soon. But we still need an infusion on the supply side today. Offshore drilling is not the answer, but it still should be part of the overall plan.

bizgrrl's picture

Agreed we need an overall

Agreed we need an overall plan.

infusion on the supply side today
Don't think off-shore drilling is going to help the supply side today, tomorrow, or next year. Maybe in 5-10 years.

What can we do today? Can we ask the American people to conserve?

Should we provide incentives to auto companies to hasten the availability of plug-in hybrids? Do you realize how quickly manufacturers changed to meet the demands of WWII? Should other cities be following Portland's lead on electric fueling stations?

We had our chance during the Carter administration and no one listened.

bizgrrl's picture

Agreed, a lot of people are

Agreed, a lot of people are conserving gas. It does appear to be changing some of their opinions on off-shore drilling, e.g. Florida and California. Conserving gas isn't fun.

Anonymous's picture

This is a great compromise

This is a great compromise place to start a real discussion. Obama is smart to see that we have to include some drilling in the mix. Ten years will be here soon and we will still need a lot of oil for a long long time. Otherwise he is in an untenable political position because it seems crazy to most Americans to refuse to bring some or our oil into the mix while we think long-term to move away from dependence on oil The fact that it is a bipartisan group is great as well. We all need to start moving to some reasonable middle ground that starts real movement. The Republicans are going to suffer if they don't get serious about finding other sources and real conservation and the Democrats are going to suffer if they don't get serious about allowing some drilling and having an open mind about nuclear power. If Obama and McCain and both parties can find a good middle ground than so much the better for the country.

From Harry Reid's statement on this

"This proposal includes some very good ideas to address our country’s many energy-related challenges, and while I do not agree with every part of it, I very much appreciate the bipartisan spirit in which it was constructed. ...

"I am hopeful this plan can begin to break the current legislative stalemate on the Senate floor. The American people deserve a real debate with productive Senate action on bipartisan proposals to help make energy more abundant, secure and affordable for America’s families and businesses."

rikki's picture

Democrats are going to

Democrats are going to suffer if they don't get serious about allowing some drilling and having an open mind about nuclear power

It is not reasonable to compromise between the truth and bullshit, and your characterization of the Democrat's position is bullshit. We have nuclear power plants operating all over the country, and a whole new wave of license applications is underway. TVA started and restarted reactors in the past few years, and Democrats did not stop them. They got dormant permits for new reactors at Watts Bar approved, and Democrats did not stop them. They have an application in process for new reactors in Alabama, and Democrats did not stop them.

Furthermore, many Democrats and even some environmentalists favor expansion of nuclear power generation, so what you are asking for already exists. Your bargaining position is bullshit.

Likewise, offshore oil fields in the Gulf of Mexico continue to be developed. New leases are issued regularly, and the Democrats are not stopping them. There is plenty more drilling to be done in the Gulf before we need to worry about opening up new regions to drilling. There are hundreds, even thousands, of active drilling permits in Tennessee and Kentucky, with dozens approved every month. Anyone who wants to drill for oil has opportunities. The only thing limiting drilling in the U.S. is the market.

Compromising between what Republicans want and what Republicans believe is not at all reasonable, and at this point in time, there is little reason to view what Republicans believe as anything but bullshit. You've been lying to America for years, don't have the decency to apologize when you get caught, and you keep on lying. Once you can handle the truth, then we'll talk about compromise.

rikki's picture

advocates and abdicates

Why are we so often reacting instead of planning?

Because conservatives have completely abdicated responsibility. They don't give a damn about plans or solutions; they just deny problems exist and ridicule those who care. They are not part of any solution, just an obstacle. They take harsh stances on moral issues (which are not the provenance of government) to mask their intellectual void. They are vandals in the halls of government.

How else can you explain the Department of Homeland Security?

lovable liberal's picture

Amen. The Republicans claim

Amen. The Republicans claim that the so-called free market will provide solutions to all problems except those that involve sex and a few other taboo subjects.

Liberty and justice for all.

My home

Brian A.'s picture

What is the criteria used to

What is the criteria used to distinguish between those areas where the ban might be lifted, and those areas where it would remain?

If it is OK (i.e., "safe") to drill off Virginia or Louisiana, why is it not OK to drill off California?

Brian A.
I'd rather be cycling.

rikki's picture

There are many factors in

There are many factors in how safe drilling is in an area, including depth of water, strength and direction of currents, seismic stability and proximity to fisheries, beaches and other resources that could be damaged.

And of course their are state's rights issues. I'm not sure how far off the coast you have to be to fall under federal jurisdiction. Maybe one of the industry insiders who visit us on occasion can answer that.

Sarge's picture

People what we need is more

People what we need is more refineries, without the capacity to refine oil into gas the availability of gas will still be critically short in supply.

rikki's picture

what we need is more

what we need is more refineries

More bullshit. There is no gas shortage. Refineries have been steadily expanding capacity for years as the market requires and are delivering as much as we consume.

Anonymously Nine's picture

Proof?

More bullshit. There is no gas shortage. Refineries have been steadily expanding capacity for years as the market requires and are delivering as much as we consume.

Source please.

lovable liberal's picture

Dayum. Brevity is the soul

Dayum. Brevity is the soul of wit.

Liberty and justice for all.

My home

rikki's picture

source

It is plainly apparent that gas stations are not running out of gasoline, so I assume you want a source on refinery expansion. American Petroleum Institute good enough for you?

"The API statistics also showed that U.S. refineries and blenders produced record amounts of gasoline and distillate fuel oil in 2006 and refinery capacity expanded for the 10th straight year."

Just a national trade association about 90 years old that represents more than 400 U.S. oil companies...

Here is their latest news report, which shows exploratory drilling up 53 percent over the same quarter last year. So while Republicans have been wetting their pants about Democrats preventing drilling, drilling has actually been expanding. Republicans are literally 180 degrees wrong. I'm sure you are used to it, though.

Anonymously Nine's picture

One part of the equation...

Record amounts of supply do not mean that expansion is not needed. Demand outpaces supply does it not? I keep hearing that the reason for the high price of diesel is lack of refinery space. Your source doesn't speak to that.

An increase in exploratory drilling is good. Vehicles with better gas mileage is very good. People living near their work is even better. Telecommuting is excellent.

There is no silver bullet.

Justin's picture

I keep hearing that the

I keep hearing that the reason for the high price of diesel is lack of refinery space.

Source please.

Anonymously Nine's picture

Free Republic is quoted, careful you may pass out...

Source please.

Pick a source you are comfortable with. Try the Free Republic, guaranteed to irritate.

(link...)

Anonymously Nine's picture

Big list...

So, you do use biased sources. THAT"S UM{POSSIBLE!!>

It is a list of 150,000 sources. I would think the bias is well distributed.

If you looked at the list some think the high price of diesel is due to the requirement to refine low sulfur diesel. I don't know the answer. But I do know that we need more refineries with China and India sucking the oil tit.

I've got it, a wind powered car. That will save us.

Anonymously Nine's picture

Opps, he did it again...

Yeah, we should just nuke those capitalists.

But Butterfly, wouldn't it be more moral and also cheaper to just build the refineries?

reform4's picture

Here's some helpful data

Data from 2007 would be more worst-case than today, since people are driving less thanks to the Bush Economy.

(link...)

Note that at no point on these graphs does refinery utilization break 98% of capacity, and the average is more like 92%.

I also find an EIA (DOE) page that shows a pretty linear expansion of refinery capacity since about 1994, rising from about 15Mbbl/day to 18.5Mbbl.day, and projected to grow beyond that to meet demand. Just remember the "we haven't built a new refinery" statistic doesn't mean that existing refineries haven't been expanding capacity at their existing sites- they have, I've been there and seen the expansions.

It's not the refineries, folks.

Anonymously Nine's picture

Questions still remain...

It's not the refineries, folks.

Then why is the price for diesel, which only has to be cracked twice, so much more than gas which has to be cracked much more? Something doesn't add up.

Is it the low sulfur requirement? Does there need to be a study of refinery capacity for diesel only? Is the problem the data is commingled?

Anonymously Nine's picture

Could it be?

Who buys diesel?

Republicans?

Brian A.'s picture

Despite the rise in gas

Despite the rise in gas prices, I haven't seen a rise in refinery utilization rate. In fact, as I recall, refinery usage has been dropping recently.

Brian A.
I'd rather be cycling.

Factchecker's picture

It would be more moral and

It would be more moral and more cheap to institute conservation measures that would save the amount the extra drilling and pumping would get us.

Or we could just preach about more drilling and keep driving our SUVs, figuring something else will give before it hits us too badly.

Anonymously Nine's picture

It would be more moral and

It would be more moral and more cheap to institute conservation measures that would save the amount the extra drilling and pumping would get us.

It is moral to force conservation measures?

That is where this is going. That freedom of choice thing is destroying the planet so I guess it has to go?

Anonymously Nine's picture

metulj

"There is one and only one responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game." -- Milton Friedman

If only there were a "third way".

Hopper's picture

It is moral to force

It is moral to force conservation measures?

That is where this is going. That freedom of choice thing is destroying the planet so I guess it has to go?

This is one of the most ridiculous things I have ever read.

Force conservation measures? So what? You can't hunt whenever you want. You can't kill eagles. In most places you can't build structures without getting certain permits, if possible. There are many commodities that "force" conservation due to cost or other reasons.

Freedom of choice guarantees gas priced less than $4/gal? I don't think so.

talidapali's picture

We already have forced conservation on the American public...

I wasn't born then, but I remember my grandparents and my older uncles and aunts talking about rationing during World War II (my mother was too young to remember much about it). Surely if we can ration meat and cigarettes and rubber and metal and OIL then (to support our troops with more than platitudes and empty promises), it should be no hardship on us now either. In addition, it is more imperative that we do so now since we are beholden to countries that DO NOT HAVE OUR BEST INTEREST IN MIND nor do those big oil corporations that are bitching and moaning about how they need more places to drill in, as if they don't have 68 million acres already under lease that are sitting fallow and unused.

Once we have gotten the conservation thing down pat and gotten used to it, we can then decide if we really, truly NEED to drill more in our country. If the demand goes down to a level where we can get by without being 70% dependent on foreign oil sources for our energy needs we should be FAR more secure in terms of economics and international relations.

If the Saudis get it in mind that they don't like what we are doing in their region of the world, how long do you think it will take for them to tighten their grips on our wallets???

It's their oil, they can inflate the price as much as they want or just not sell to us at all...do we then go to war over oil again, like we did in Iraq???

_________________________________________________
"You can't fix stupid..." ~ Ron White"
"I never said I wasn't a brat..." ~ Talidapali

Factchecker's picture

It is moral to force

It is moral to force conservation measures?

Oh brother. Here we go again. How about taking the lead in promoting and "incentivizing" conservation measures? No one need be forced, except it would benefit everyone's own pocketbook if they participated. If they want to pollute our world, make 'em pay to do it, hell yes! Just within the commercial sector, though, businesses would respond to conserving when they see green. They're already doing that, per Friedman's rule; no need for or thanks to getting the SUV-hugging freepers to pitch in individually. The rest of us will do it.

That is where this is going. That freedom of choice thing is destroying the planet so I guess it has to go?

The discussion? That's where you always take these things. Illogical extreme. If you're referring to the removal of freedom of choice, you're being ridiculous again. But, I guess if the choice were between the end of the planet and living in--God forbid--a Francophile world, then yeah, I guess I'd pick the latter. Even one of your spokes-heroes, Ann Coulter, is not too fond of freedom. At least the 1st Amendment, which pretty much sums it up.

Anonymously Nine's picture

Would would Jimmah do?

But, I guess if the choice were between the end of the planet and living in--God forbid--a Francophile world, then yeah, I guess I'd pick the latter.

So rationing, to save the planet, would be acceptable?

rikki's picture

So rationing, to save the

So rationing, to save the planet, would be acceptable?

You are the only one talking about rationing or saving the planet. The grown-ups are talking about internalizing costs in our flawed markets so they will tend toward sustainability instead of exhaustion.

Anonymously Nine's picture

I like the way...

The grown-ups are talking about internalizing costs in our flawed markets so they will tend toward sustainability instead of exhaustion.

you talk.

Flawed markets and sustainability. Al would be proud.

Andy Axel's picture

Apparently this nationwide

Apparently this nationwide liquidity crisis is a "feature."

____________________________

"It's gettin' so a businessman can't expect no return from a fixed fight. Now, if you can't trust a fix, what can you trust?"

rikki's picture

Republicans could put Al

Republicans could put Al Gore out of business by adopting a carbon tax. No more guilt market if we know we are paying for our emissions.

Factchecker's picture

Freedom of choice guarantees

Freedom of choice guarantees gas priced less than $4/gal? I don't think so.

Yep. Been there, doin' that.

By the way, if we could lower gas prices by producing more, it would increase demand enough to offset the extra supply. The invisible hand would keep us at $4/gal.

Such is life on the downside of peak oil.

R. Neal's picture

In the completely free and

In the completely free and unregulated market dreamworld, gas would be $10 to $20 per gallon. If you complained about it, the oil companies would laugh in your face and tell you to go drill your own oil and refine your own gas if you don't like it.

Anonymously Nine's picture

I have not heard that...

In the completely free and unregulated market dreamworld, gas would be $10 to $20 per gallon.

So does that mean the federal government subsidies the difference?

R. Neal's picture

No, it means the Sherman Act

No, it means the Sherman Act (you know, a regulation) forbids price fixing and collusion. So the fact that it's forbidden means they can only get away with it occasionally, usually when Republicans are in control.

lovable liberal's picture

Anonymously Nein is

Anonymously Nein is seriously out of his depth here with Rikki, Metulj, and our esteemed host pwning him.

Liberty and justice for all.

My home

Factchecker's picture

Excerpt: Who thinks adding

Excerpt:

Who thinks adding under 100,000 barrels a day in supply sometime after 2020 — some one-thousandth of total supply — would be more than the proverbial drop in the ocean? Remember the Saudis couldn’t stop prices from rising now by announcing that they will add 500,000 barrels of oil a day by the end of this year!

And more:

...two years ago, we opened most of the Gulf of Mexico — with its estimated 41 billion barrels of oil — and oil prices then doubled. The remaining prohibited coastal areas have only 18 billion barrels, of which 10 billion is off of California and likely to be blocked by the state.

Factchecker's picture

$250 million/day just in Iraq

In the completely free and unregulated market dreamworld, gas would be $10 to $20 per gallon.

We might already be paying that through our defense budget to protect assets not ours.

SteveMule's picture

Does anybody have any idea

Does anybody have any idea what a repeal of the offshore drilling bans would do to/for oil stocks, oil futures, and other financial aspects of the oil world? I suspect that the current push for removing offshore drilling bans has more to do with making money now than addressing questions of supply/demand and prices.

Take Care, Be Good and don't play in the street!

SteveMule

Brian A.'s picture

I wish I knew so I could get

I wish I knew so I could get in on the action.

My guess is that it is so far off that it would have little immediate impact. Furthermore, we wouldn't know for a while who would be doing the drilling, would we?

Brian A.
I'd rather be cycling.

lovable liberal's picture

It's about the money

The Republican push for offshore drilling and oil shale exploitation has nothing to do with reducing gas prices. It's about giving their buddies and campaign contributors yet another lease on future profits.

Liberty and justice for all.

My home

bizgrrl's picture

Exactly. They have to do it

Exactly. They have to do it before the new President and Congress take office.

gonzone's picture

If offshore drilling is the answer

Then it had to be a really stupid question?
or

Then the question was "What will make oil companies even wealthier?"
or

The question was "How can we destroy the earth ever faster?"
or

The question was "What to suggest when you have no new ideas?"

"When the going gets weird, the weird turn pro."
Hunter S. Thompson

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