August 8, 2008

August 8, 2008

Aug 08 00:47 Exposing Steny Hoyer's Blatant Lie
Aug 08 02:51 Willful Blindness Or Outright Demagoguery?
Aug 08 03:28 George McGovern Opposes EFCA
Aug 08 04:13 An Open Letter To Ed Markey
Aug 08 07:26 Tester: Republicans to Blame For High Gas Prices
Aug 08 07:58 Pelosi Your Turn

Prior Months: Jan Feb Mar Apr May Jun Jul

Prior Years: 2006 2007



Exposing Steny Hoyer's Blatant Lie


Democrats must be feeling the heat on the gas issue because they're telling some whoppers. This statement from Majority Leader Hoyer is a perfect example of their inattentiveness to the truth. Here's Hoyer's quote:
"This week, Republicans are doing nothing but pushing the failed Johnny-one-note policies of the past."
This isn't even debatable. It's a blatant lie. Look at the provisions in the American Energy Act :
To improve energy conservation and efficiency, the legislation will:
  • Provide tax incentives for businesses and families that purchase more fuel efficient vehicles, as proposed in H.R. 1618 and H.R. 765 by Reps. Dave Camp (R-MI) and Jerry Weller (R-IL);
  • Provide a monetary prize for developing the first economically feasible, super-fuel-efficient vehicle reaching 100 miles-per-gallon, as proposed in H.R. 6384 by Rep. Rob Bishop (R-UT); and
  • Provide tax incentives for businesses and homeowners who improve their energy efficiency, as proposed in H.R. 5984 by Reps. Roscoe Bartlett (R-MD), Phil English (R-PA), and Zach Wamp (R-TN), and in H.R. 778 by Rep. Jerry Weller (R-IL).
Here's another set of provisions from the bill:
To promote renewable and alternative energy technologies, the legislation will:

  • Spur the development of alternative fuels through government contracting by repealing the "Section 526" prohibition on government purchasing of alternative energy and promoting coal-to-liquids technology, as proposed in H.R. 5656 by Rep. Jeb Hensarling (R-TX), in H.R. 6384 by Rob Bishop (R-UT), and in H.R. 2208 by Rep. John Shimkus (R-IL);
  • Establish a renewable energy trust fund using revenues generated by exploration in the deep ocean and on the Arctic coastal plain, as proposed by Rep. Devin Nunes (R-CA);
  • Permanently extend the tax credit for alternative energy production, including wind, solar and hydrogen, as proposed in H.R. 2652 by Rep. Phil English (R-PA) and in H.R. 5984 by Rep. Roscoe Bartlett (R-MD); and
  • Eliminate barriers to the expansion of emission-free nuclear power production, as proposed in H.R. 6384 by Rep. Rob Bishop (R-UT).
That's an awfully comprehensive energy bill. It's a more comprehensive bill than the Democrats have brought to the floor. Democrats say that they're for drilling, which is technically true. It's what they aren't for that says what they really believe.

Let's also stipulate that when there's an oil shortage, then focusing on drilling is the right solution. Truckers and farmers can't wait for hybrids to hit the market. They need petro ASAP. Short of waving a magic wand, there's no other way to provide it than through drilling. In other words, Hoyer is paying Republicans a compliment by sayign they focused on solving the problem.

There isn't any justification for keeping any part of the OCS offlimits now that oil and natural gas are this expensive. Still, Democrats insist on drilling only in areas that are already open to drilling. What good will that do? How much oil lies there? Does anyone think that it's the equivalent of what's waiting on the OCS? Or in the shale oil region of Utah, Wyoming and Colorado? Is there more untapped oil in the lands already open for leasing than there is in ANWR?

Questions to Democrats: Isn't it smart to explore where the biggest deposits are? It seems to me that that's the most efficient way of increasing oil supplies. If Democrats are serious about drilling, why won't they do it in such a mannner as to actually provide relief? It's possible that they want to drill a little bit, have prices stay high, then say that they tried drilling but it didn't provide relief.

Republicans want to fix this crisis. Democrats like Hoyer just want to run out the clock on the 110th Congress without doing anything. If that means lying about the Republicans' plan, then that's what they'll do.



Posted Friday, August 8, 2008 12:48 AM

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Willful Blindness Or Outright Demagoguery?


Last week, I said that Democrats, without exception, cited the same EIA report . I've said that it's like they don't want to trust industry experts, that they'd rather trust a bureaucrat than an industry expert. I'm about to destroy the Democrats' credibility with some new information :
Recently, for example, some have pointed an Energy Information Administration (EIA) report that estimated the amount of oil we could produce on the Outer Continental Shelf (OCS) if the drilling ban were lifted. EIA estimated this to be approximately 200,000 barrels per day.

Unfortunately, this figure, and the data it was based on, is fatally flawed. For example:
200,000 barrels per day is roughly equal to the daily production rate one new offshore platform in the Gulf of Mexico. The Thunder Horse oil production facility, which will be on line this year, is designed to produce 250,000 barrels per day. 2

The Atlantis oil platform currently producing in the Gulf of Mexico has a production capacity of 200,000 barrels per day. 3
It's difficult to believe that someone's research is that sloppy. It's more difficult to believe that Democrats didn't know this when they started citing this report. Either they're too lazy to dig into the veracity of the report or they didn't want to know or they knew the truth and just ignored it because it didn't fit their storyline. As damning as that information is, this information doesn't help Democrats' credibility either:
Historically, technological improvements and on-site exploration and development have increased technically recoverable resource estimates. For example, world proved oil reserves were estimated to be 521 billion barrels in 1971 when oil was $1.25 per barrel ($6.61 in 2007 dollars) and are estimated under present technology to be 1,317 billion barrels at an average price per barrel in 2007 of $67. 5

EIA's analysis is based on crude oil prices averaging around $50 per barrel in 2005 dollars 6 (or around $80 per barrel in 2030 assuming a 2 percent per year inflation rate), well below the current price of around $120 per barrel.

EIA's analysis assumes that exploration, development, and production of economical fields (drilling schedules, costs, platform selection, reserves-to-production ratios, etc.) in the OCS are based on data from fields in the western Gulf of Mexico that are of similar water depth and size. Since the majority of the resources under moratoria (55 percent) are off the coast of California, the analysis should have used data from the Santa Barbara Channel, which would have provided more realistic assumptions and higher production levels.

EIA's analysis assumes that leasing would begin no sooner than 2012, and production would not be expected to start before 2017. Yet, off the coast of California, some of these resources have already been leased. A report from Wall Street research house Sanford C. Bernstein says that California actually could start producing new oil within one year if the moratoria were lifted. The California oil is under shallow water and already has been explored. Drilling platforms have been in place since before the moratorium. 7

Further, Department of Interior Secretary Kempthorne announced in July a new 5

year plan that will allow leasing to start 2 years earlier, in 2010, implying production from currently unleased areas could begin as early as 2015. This new 5 year plan includes the areas under Federal moratoria. 8
In other words, the EIA's report isn't worth the paper it's printed on. First off, they're basing their report on faulty assumptions. Secondly, it appears as though they didn't take into consideration the fact that some California rigs were in shallow water with infrastructure already built. Did the EIA ignore those important factors? Or was their research just that sloppy? It's difficult to believe that anyone would be unaware of such important infrastructure.

Shouldn't Democrats be punished for being either ignorant or untrustworthy? Shouldn't they be held accountable for trusting in just one report, especially a report as fatally flawed as this one?

Finally, I find it disgusting that Democrats didn't dig into this report more. The numbers were astonishingly low, low enough to question. It's also disturbing that they were this sloppy or indifferent when people are hurting.



Posted Friday, August 8, 2008 2:54 AM

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George McGovern Opposes EFCA


A man whose liberal credentials has given his two cents worth in this morning's WSJ. George McGovern opposes EFCA . This isn't a politician with strong union-busting credentials. This is George McGovern. Here's what Sen. McGovern says:
As a congressman, senator and one-time Democratic nominee for the presidency, I've participated in my share of vigorous public debates over issues of great consequence. And the public has been free to accept or reject the decisions I made when they walked into a ballot booth, drew the curtain and cast their vote. I didn't always win, but I always respected the process.

Voting is an immense privilege.

That is why I am concerned about a new development that could deny this freedom to many Americans. As a longtime friend of labor unions, I must raise my voice against pending legislation I see as a disturbing and undemocratic overreach not in the interest of either management or labor.

The legislation is called the Employee Free Choice Act, and I am sad to say it runs counter to ideals that were once at the core of the labor movement. Instead of providing a voice for the unheard, EFCA risks silencing those who would speak.

The key provision of EFCA is a change in the mechanism by which unions are formed and recognized. Instead of a private election with a secret ballot overseen by an impartial federal board, union organizers would simply need to gather signatures from more than 50% of the employees in a workplace or bargaining unit, a system known as "card-check." There are many documented cases where workers have been pressured, harassed, tricked and intimidated into signing cards that have led to mandatory payment of dues.

Under EFCA, workers could lose the freedom to express their will in private, the right to make a decision without anyone peering over their shoulder , free from fear of reprisal.
This isn't someone that just spews talking points provided by one interest group or another. He likely didn't just accept someone's word on this. It's likely that George McGovern read the bill for himself.

That means that Al Franken and El Tinklenberg are on the opposite side of a labor issue as a liberal icon who's read the bill. That's got to be unsettling for them. Prior to this op-ed, Democrats could just argue that Republicans were just causing election year trouble. They can't do that anymore.

George McGovern just took care of that with this op-ed.

UPDATE: Check out this post for more on the McGovern op-ed.



Originally posted Friday, August 8, 2008, revised 23-Dec 10:37 AM

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An Open Letter To Ed Markey


This morning, Rep. Ed Markey, (D-Taxachusetts), wrote an editorial in the WSJ criticizing Republicans for their insistence on drilling. This is my response to Rep. Markey:

Rep. Markey, I find this section of your Wall Street Journal editorial highly objectionable:
Ask most Americans how to break our dependence on oil and expensive fossil fuels and bring down prices, and they'll tell you to expand renewable energy production, produce more fuel-efficient cars and trucks, and be smart about using energy. Ask the oil industry, or their allies in Congress and the White House, and they'll have a singular answer: drill.

The problem is, a fire sale of our nation's beaches to oil companies won't bring down prices for at least a decade, and even then the effect would be insignificant. And that's according to the oil-centric Bush administration.
Considering the fact that you chair the House Select Committee on Energy Independence and Global Warming, I'd expect you to know about production levels of oil rigs on the OCS. Whether you agree or disagree with the report, certainly you've heard of this report by the Institute for Energy Research. IER's study debunks the myth you and other Democarts are spreading that drilling won't "bring down prices for at least a decade."

Rep. Markey, why wouldn't we see relief long before a decade considering the fact that rigs off California's coast would be producing substantial amounts of oil within two years?

I also find it offensive to read this in your editorial:
The drill first, worry later philosophy was tested by more than a decade of Republican Congressional rule. The result? Our current energy crisis.
If only this were true. Had President Clinton signed into law the opening of ANWR in 1995, we would've avoided this crisis altogether. Oil would've been flowing for several years by now. Minimum.

Rep. Markey, You know that drilling isn't just about oil, either. You know that there are substantial natural gas deposits on the OCS. With winter approaching faster than we'd like, working people are rightfully worried about heating their homes.

Saying no to drilling tells people in northern states that they'll just have to deal with high home heating bills this winter. You're telling senior citizens living on fixed incomes and single moms that high heating bills are their problem. That's morally unconscienable.

What type of person would do that to the most vulnerable in society?

Your closing statement says that Harry Reid and Nancy Pelosi should be praised for their "their steadfast dedication to real solutions that will help our economy, our environment, and produce ample, inexpensive, clean energy for our generation and the ones to follow." Forgive me for not praising them.

They deserve scorn because they've abandoned the most vulnerable of society while pushing America's economy to the brink of a deep, long-lasting recession. They deserve scorn for putting OTR truckers in financial difficulty with $5/gallon diesel.

I'm betting that that isn't the type of New Direction voters thought they were getting. The good news is that they can correct their mistake this November.



Posted Friday, August 8, 2008 4:14 AM

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Tester: Republicans to Blame For High Gas Prices


SEn. Jon Tester, (D-MT), weighed in Thursday on the gas crisis. According to this article , Republicans are to blame for the high gas prices. Here's his explanation for his opinion:
Tester said Senate Republicans blocked a number of bills in the weeks leading up to the recess that would have helped ease the sting of high energy costs.

One bill would have reined in oil market speculators, another would have extended tax breaks for those who produce wind, solar and geothermal energy and a third would have doubled funding for a program that helps those with low incomes pay their home heating and cooling bills.

It doesn't make sense for lawmakers to return to Washington when Republicans are not willing to play ball, Tester said.
This is pure Democratic spin and utter nonsense.

The CFTC has already issue a detailed report saying that speculators aren't driving prices up. Their report blames rising demand as the 'culprit'.

Sen. Tester should also blame Sen. Salazar for obstructing a GOP amendment that would open up the OCS. Sen. Salazar object to opening up the OCS even if gas hit $10/gallon. There's a time for partisanship. This isn't one of those times. With people struggling, even hurting, now should be when Democrats should allow for real debate on balanced legislation, legislation that includes alternative forms of energy, increasing oil exploration and conservation.

Majority Leader Reid steadfastly refuses to allow real exploration amendments become part of the debate. That's unacceptable.
"If I thought we could get some work done when we went back there, absolutely, I'd go back tomorrow," Tester said. "The truth is, it's going to take a lot more than just the (Republicans') simple message of 'drill more.' It is not really going to get us to where we need to be."
Sen. Tester, there's a reason why Republicans have insisted on drilling more. It's the only way to increase supply and lower prices. If Democrats insist on preventing drilling, they'll pay a price this November.

Sen. Tester recently put out this statement on the gas crisis:
I believe that oil speculation and hedging has gotten way out of hand. Some folks on Wall Street are trading oil they never intend to actually use in order to make a quick buck. That creates artificial supply and demand, resulting in artificially high gas prices. That's why I support smart legislation cracking down on out-of-control manipulation of the oil market.
Again, I'd ask Sen. Tester if he has anything more to go on than just belief that speculators are to blame. I'd ask him if he's read the CFTC's report. If he hasn't, why hasn't he? It's insulting to think that it's possible bloggers across the nation know more about the CFTC report than does a sitting U.S. senator.
Unfortunately, a few White House allies in Congress shot down important legislation like extending tax credits for renewable energy, cracking down on speculators and hedgers, and getting tough on OPEC. They pay lip service to the need for renewable energy, then insist on voting only for legislation that gives big oil bigger profits.
What an idiot. Democrats like Tester refuse to acknowledge the fact that the best way to reduce Big Oil's profits is to increase supply. We've seen that keeping supplies low created big profits. Why won't the Democrats learn from recent history? At the end of Bill Clinton's administration, supplies were high. Oil profits were far from breaking records.

It's time that the American people told Democrats like Sen. Tester that it's time to stop their obstructionism. It's time we told Democrats that we won't put up with their cavalier attitude towards taking real steps in increasing oil production.



Posted Friday, August 8, 2008 7:26 AM

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Pelosi Your Turn


The St. Cloud Times posted my Your Turn editorial this morning. Stop past & read all about it .

The focus of the editorial is on Nancy Pelosi's telling vulnerable legislators to do whatever they needed to do to get re-elected.

I also pointed out the provisions in the American Energy Act.



Posted Friday, August 8, 2008 7:59 AM

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