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Wednesday, September 06, 2006

Why “No” Is Costing Us At The Gas Pumps

Idaho Senator Larry Craig:

We are experiencing higher gasoline, oil, and natural gas prices today because of decades of restricted development of new sources of petroleum.

From ANWR to off-shore development such as Lease Area 181 in the Gulf of Mexico, we have identified oil and natural gas reserves that can be developed and used responsibly. Yet time and time again efforts to increase supply, and reduce prices, are blocked. For instance, ten years ago President Clinton vetoed development in ANWR.

For decades, the minority party has blocked one effort after another to responsibly develop the energy resources our country possesses, transforming vast areas of opportunity into "The No Zone."

Because of current U.S. policy, U.S. companies are prohibited from developing oil fields that lie in Cuban waters and come within 50 miles of Florida.

However, Cuba is exploring and potentially developing these oil fields, estimated by the U.S. Geological Survey to possess more oil than the Alaska National Wildlife Refuge, and Cuba is partnering with China and other countries, such as Spain, France, and Canada.

Now, as we sit idly by, worried about development 100 miles from Florida, China is actively exploring oil fields 50 miles from Key West, Florida. U.S. companies are barred from working in this area because of U.S. policy . So, instead of allowing the most environmentally responsible companies to operate there and increase our domestic supply, China, who has a dismal environmental record, is sucking close, lucrative oil reserves dry.


Here's a map showing what Senator Craig is calling the "No Zone."

This chart from the Senator's website is also worth looking at:

CraigChart051006_OilSupplyDemand copy.jpg


Ask yourselves why domestic production of oil has reduced even as domestic demand for gasoline has risen.

Angry about high gas prices? Don't blame conspiracy theories about oil industry collusion, blame the politicians who have prevented the expansion of domestic oil production by preventing drilling, preventing the building of new refineries and taxing the hell out of gasoline in general.

Comments

Avatar for molly stillman

steve irwin u should rest in peace i loved ur shows and miss u not be on tv hope u like heaven and think of ur wife and baby too i love u and miss u croc hunter i will track down tat bloody stick ray xxxxxxxxxxxxx molly s

molly stillman on September 6, 2006 at 09:37 am

Rob: Notwithstanding the deranged troll content above, this is a great article.  My general position is to disseminate the truth instead of playing politics, which is what we conservatives should be doing, and you are right on the mark with this.  It isn’t all that difficult to understand, really.  You can’t forbid oil development in the domestic area, forbid the building of new refineries, and still have energy independence.  When the dependence is on those who practice or support the practice of terrorism, you have a problem.  This isn’t rocket science.


Leftie political philosophy, from a DU commenter:

It doesn’t matter if it’s true or not. RUMOR IS TRUTH. The modern laws of media hype and political warfare have a useful tenet: Repeat ANYTHING or raise false concern over ANYTHING and it is likely to be planted in the conscious/subconscious of many voters.

robert108 on September 6, 2006 at 10:14 am
Avatar for kbiel

You can’t forbid oil development in the domestic area, forbid the building of new refineries, and still have energy independence.

Why can’t you?!?  If you can tax your way to a booming economy and rid the country of poverty with school lunch programs, then surely you can have energy independence without drilling for evil petroleum.

</democrat>

kbiel on September 6, 2006 at 01:38 pm

kbiel: Sarcasm and heavy irony noted.


Leftie political philosophy, from a DU commenter:

It doesn’t matter if it’s true or not. RUMOR IS TRUTH. The modern laws of media hype and political warfare have a useful tenet: Repeat ANYTHING or raise false concern over ANYTHING and it is likely to be planted in the conscious/subconscious of many voters.

robert108 on September 6, 2006 at 02:02 pm
Avatar for FreeRepublicans.com

From Business Week

A Pump Price Conspiracy?

Dark talk of a conspiracy at the pump has been swirling for weeks. The reason? Retail gasoline prices clung to $3 a gallon, even as wholesale prices were dropping steadily. The result was clear: Gas station owners saw profit margins get fatter and fatter, even as drivers saw little relief.

Now, finally, pump prices are getting cheaper. According to GasBuddy.com, the average price for regular gasoline on Sept. 6 was $2.70 a gallon, down from $3.02 a month ago. AAA’s Daily Fuel Gauge Report puts the average at $2.72, down from $3.03. These are the lowest prices since last April.

Read the whole thing.

While this dismisses the collusion claim, it does actually admit that, left to their own devices, station owners won’t pass along savings to their customers.

THIS IS SUPPORT OF MORE COMPETITION NOT MORE GOVERNMENT INTERVENTION.

FreeRepublicans.com on September 7, 2006 at 08:35 am

Free: “While this dismisses the collusion claim, it does actually admit that, left to their own devices, station owners won’t pass along savings to their customers.”

This is an uncalled-for generalization.  In my neighborhood, one station is regularly below the rest of the stations, by a few cents.  Every Sunday, they lower all three grades by ten cents a gallon.
You see, anyone willing to lower the price gets the business.  Arco is regularly a bit lower than anyone else.  Chevron is usually the highest.  There is choice and competition amongst gas stations, in reality.  Valero, new to my area, is competing with Arco to be the lowest.


Leftie political philosophy, from a DU commenter:

It doesn’t matter if it’s true or not. RUMOR IS TRUTH. The modern laws of media hype and political warfare have a useful tenet: Repeat ANYTHING or raise false concern over ANYTHING and it is likely to be planted in the conscious/subconscious of many voters.

robert108 on September 7, 2006 at 08:42 am
Avatar for FreeRepublicans.com

robert108,

I think it’s awsome that you left out my main point entirely.

THIS IS SUPPORT OF MORE COMPETITION NOT MORE GOVERNMENT INTERVENTION.

FreeRepublicans.com on September 7, 2006 at 08:44 am

Free: Your main point?  Why did you mention an article that says otherwise, then?  You said nothing that would “support more competition”, which was why I mentioned the reality of the competition that exists in my area among gas stations.  IMO, you gave a misleading impression that, even if there is no collusion, “station owners won’t pass along savings to their customers"(to quote your article).  In fact, that isn’t how markets work.  Anyone who can lower the price can take market share from those who don’t, and there is more money to be made from selling more product than from keeping prices high.  This is basic market econ.


Leftie political philosophy, from a DU commenter:

It doesn’t matter if it’s true or not. RUMOR IS TRUTH. The modern laws of media hype and political warfare have a useful tenet: Repeat ANYTHING or raise false concern over ANYTHING and it is likely to be planted in the conscious/subconscious of many voters.

robert108 on September 7, 2006 at 08:52 am
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