Sterling-Stickley: American Energy-Independence and Economy Revitalization Plan
Sterling-Stickley: American Energy-Independence and Economy Revitalization Plan
The "American's First" Energy Plan for safe, secure domestic supplies of Transportation energy.
Some background energy information
The defining feature of global energy markets remains high and volatile prices, reflecting a tight balance of supply and demand. This has put issues such as energy security and alternative energies at the forefront of the political agenda worldwide.
—Tony Hayward, BP CEO
There is an extremely dangerous game being played by the White House, Congress, and certain activist organizations that is placing the economy and the security of America at great risk. As a matter of national security and as a significant boost to the American economy, it makes no sense to not assure and achieve hydrocarbons energy independence.
America faces a very dark future as rapidly-increasing energy costs threaten to bankrupt the entire economy, bringing about a depression with no end.
Dr. Roy Cordato from the conservative think tank John Locke Foundation said. "This is a government driven scarcity," Dr. Cordato added. "It's driven by laws that has kept the United States off the exploration market."
With the exception of waters off Alaska and every Gulf Coast state but Florida, most of the nation's Outer Continental Shelf (OCS) is off-limits to energy exploration up to 200 miles offshore, thanks to a moratorium that Congress has inserted into an appropriations bill every year since 1982. Drilling has developed to the point that there is little danger of spillage or contamination. There is no reason to prevent drilling on our continental shelf.
The other major source of energy is the shale oil deposits out west. It has been estimated that the shale deposits contain more oil than all the reserves in the Middle East.
We need a "Manhattan Project" of energy development. We're crazy not to be using our own resources. Much has changed since the 1982 offshore drilling moratorium was enacted. Drilling technology has advanced over the past quarter-century. Oil companies can drill more efficiently in deeper water with significantly less risk to the environment. "Compared to worldwide tanker spill rates, outer continental shelf operations are more than five times safer,'' according to the Department of Interior's Minerals Management Service. Domestic drilling would also create a huge economic boost to America.
Both US political parties cling to long-standing positions on energy - then blame their colleagues across the aisle for blocking their efforts.
FLASH: The price of a U.S. gallon of gas in London today is $9.00. Stick that in your tailpipe and smoke it. That's where we are headed if we don't loosen up some of our domestic reserves. If the USA committed to produce an additional 5 million barrels per day more in 5 years, price would begin to drop immediately.
The impact of China-India energy demand growth, politics and economics on the global oil supply is extraordinary and is putting our country at tremendous risk of depression and future military conflict. Any move towards greater energy independence, including offshore exploration & drilling, shale oil, ANWR developments, should be championed by voters, as well as local, state , & federal government. To do less is simply irresponsible to the current and future people of this country.
Government could immediately reduce the many hidden imposts and taxes on fuel if they really wanted to contribute to easing the burden on ordinary consumers. For example, the MMS overcharges oil companies just for prospecting rights alone, effectively expropriating money from oil companies up front that could be used to fund drilling wells to find oil. For example the U.S. government just received $3.7 billion from company bids in a single Gulf of Mexico lease sale in March 2008.
US oil companies have to weave their way through a labyrinth of environmental rules that Congress has imposed on them, plus defend themselves against bogus legal attacks from green extremists. for example the Government recently got $2 billion from Shell for offshore Alaska leases via a recent MMS auction, then let lawyers stop drilling because the exploration ships "might bump into whales".
The despots who sell us oil at $140 a barrel love the US government, we fund their entire bloated economies instead of using our own vast and abundant energy supplies.
Oil is the fuel of the immediate future - you can bet on it! We must move forward to a future in which cleaner natural gas, electricity, and renewable energy fuels cars and heats homes. But this transformation will take 20-30 years. In the meantime, the current Anti-American-Energy Congress has long pursued an energy policy that has done nothing to ease the price at the pump. Yes we need to wean ourselves from oil, but only as fast as technology can replace oil energy while we keep our country and economy safe. This is breaking the backs of American consumers and domestic industry infrastructure still dependent on fossil fuels, This is unacceptable anti-social, Anti-American behavior. Change is urgently needed.
Drill and drill now. We must take any and all action necessary to solve this very real crisis.
House Democrats keep blocking efforts to expand domestic offshore drilling. Not only has the Democrat controlled Congress failed to end our reliance on the Middle East for essential energy, they've actually helped grow that dependence to historic and dangerous new levels -- all because of their doctrinaire refusal to allow responsible energy production here at home.
Oil is the ultimate pocket book issue. Polls show that the price of gas is the No. 1 issue on voters' minds. A recent Consumer Reports survey found people place the blame for high gas prices first on the government, then on the foreign oil companies, and third is a tie between Congress and Middle East conflicts. In short, you the people are fed up.
Democrats need to announce their support for immediate domestic offshore drilling for oil and gas, ANWR oil production and oil-shale developments, to rapidly increase supply paired with investments in energy efficiency, if they are to have any hope of winning in November. Their "It Will Take Too Long, So Let’s Never Get Started" mantra is just plain stupid. Developing alternative energy will take even longer.
Creating alternatives to oil and gas isn’t as simple as flipping a switch or passing a mandate. Biofuels requirements for corn-based ethanol have already caused food inflation and global food riots. As for solar and other renewable sources like wind power that the daft media promotes. Both have serious disadvantages: the sources are inconsistent (the sun goes down and the wind stops blowing) and currently we don’t have the technology to store the power on a large scale. And they cost a lot more than existing energy supplies.
ANWR alone could be replacing 10% of America's imported oil within 3-5 years if enough drilling incentives are granted.
The energy needs of the United States have made oil our number one import and the biggest factor in our imbalance of trade. It is not just that oil holds us hostage to the rest of the world. This imbalance of trade means we cannot support ourselves and must borrow from other countries every day just to get by.
There is an Urgent Need for Affordable Transportation Fuels Sourced in America;
1. There is no substitute for energy. The whole edifice of modern society is built upon it…. It is not “just another commodity” but the precondition of all commodities, a basic factor equal with air, water and earth. E. F. Schumacher (1973)
2. Energy is vital in order to create and sustain economic and social development. Our whole economy reflects the relative costs of energy: the cars we drive, the houses we occupy, the kinds of factories we have, and the equipment in them.
3. Hydrocarbons feed the world: About 97% of nitrogen fertilizers are derived from synthetically produced ammonia. Natural Gas-based Nitrogen fertilizer made it possible for us to populate the Earth, and now we're hooked. 40 percent (soon to be 60 percent) of the Earth's inhabitants thus owe their survival to natural gas, a non-renewable fossil fuel.
4. ...If we lost all oil and gas products tomorrow, .the world would simply collapse. There would be an immense depression beyond anything we saw in the 1930s -- the economy would go back to a primitive state. There would simply not be a functioning society. It would be as if there had been nuclear war, minus the casualties from blast and radiation... In a word, we cannot as a modern society or even a modestly industrial society live without oil and gas. That is, [it is not] a luxury or a narcotic. [It is] a basic necessity of life, as basic as almost any commodity there is. Ben Stein
"Before you get all excited
about tearing down the energy industry, stop and think for a moment about what
makes your comfortable life possible. Your heat and most of your electricity
are provided through the burning of oil and natural gas. The thousands of
plastic items in your home, car and office are all made from crude oil. Much of
your clothing is woven of fibers made from petroleum.
Without the hard work and ingenuity of the men and women who work for the energy
companies, we would be living in the 17th century - no electricity, running
water, cars, trucks, airplanes, ships, factories, waterproof clothing, soda
bottles, safety glass, sterile food and medical containers, air conditioners,
televisions, microwave ovens, X-Boxes, I-Pods, or any of the millions of other
products made using power generated from the burning of fossil fuels."
"You would have to grow your own food, or ride your donkey to a nearby market,
where there would be no refrigerators or electric lights. You'd have to kill
and clean your own meat and cook it over an open fire. You'd have to chop down
the trees for your home, and provide your own light by making candles from the
fat of animals. Every single thing in your modern life is utterly and
completely dependent upon a steady supply of oil. Without it, the entire
Western world would collapse completely in a matter of weeks; tens of millions
would perish from starvation, exposure, and disease."
Todd Keister
The concept of using the rest of the world's oil first before exploiting our own is outdated; at $140 a barrel its either the result of mendacious policies or just plain stupidity. It has resulted in incredible unearned wealth being taken out of the pockets of every hard working American and bestowed upon entities in other countries, including governments and despots, some who fund terrorism aimed at murdering Americans.
Rep. Scott Garrett (R-5) said that "it is our responsibility to develop sound policies that will ensure energy security. What is a good energy policy? A good energy policy gives you more energy. More supply. A bad energy policy is one that makes us less secure and more dependent upon foreign sources like Saudi Arabia, Russia, and unstable regimes like Venezuela. Using 21st-century technology, the option to pursue deep-sea exploration would allow for the increase of American supply and result in a decrease in gas prices."
US current batch of elected officials have a better chance to reduce Earth’s gravitational pull than to reduce gas prices using their current anemic plans.
Help the World's Poor: by developing our own energy supplies America would free up the 13.4 million barrels per day currently imported, for other poorer country's needs and thus help ameliorate energy and food prices. This would go a long way in assisting the developing country's populations to enjoy a better standard of living.
China is expected to have 140 million automobiles plying its roads by 2020, seven times more than now, fueling demand for transportation infrastructure and services. If you think oil is going to go down in price with all this demand increase, think again.
SOME RECENT PRESS
OPEC Chief Sees $150-170 Oil in Coming Months; Crude oil prices could rise to as high as $170 per barrel in the coming months but are unlikely to hit $200 and should ease towards the end of the year, OPEC President Chakib Khelil said in an interview on Thursday. Source CNBC 26 Jun 2008.
OPEC President Chakib Khelil also said "...Threats against Iran would also support prices during the summer. A political crisis that would stop Iran's oil production would push prices over $200 a barrel, to possibly $400 a barrel, he said...." Source Bloomberg June 26th 2008
"....Are the ridiculously high prices we’re paying the
fault of the big, bad oil companies? No, the lion’s share of the blame goes to
politicians, who have locked away vast amounts of American energy -- both oil
and natural gas.
In the 1980s, Congress began restricting more offshore areas from energy
exploration -- prohibiting drilling in more and more places around the country.
With energy relatively cheap, it was easy to give in to the carping demands of
radical environmentalists, who (then as now) exaggerated the impact of drilling
and downplayed the benefits.
Then, in 1990, President George H.W. Bush issued a directive restricting new
offshore exploration and drilling. President Bill Clinton compounded this error
in 1998 by extending the directive to 2012.
Fast forward to 2008, and it’s abundantly clear that we can’t leave huge
deposits of energy to remain buried in our own backyard for another four
years...."
Source
Poll: 74 percent support offshore oil drilling in U.S.
Three in four likely voters – 74 percent – support offshore drilling for oil in
U.S. coastal waters and more than half (59 percent) also favor drilling for oil
in the Alaska National Wildlife Refuge, a new Zogby International telephone poll
shows.
Zogby International, Thursday, June 26, 2008
June 26th 2008. Alaska Governor Sarah Palin believes more oil and gas production from ANWR and offshore is crucial to America’s future..
"...the people who live here, want it drilled"
"Obama is way off base on all that. I think those politicians who don’t understand that we need more domestic supply of energy flowing into our hungry markets, you know, they’re living in La-La Land. And we’re in a world of hurt if their agenda continues to be to lock up these safe, secure domestic supplies of energy... "the people who live here, want it drilled. So that tells you that we have confidence in the safety and the responsibility that we’ll see there with the development of ANWR......"
Kudlow: Why don’t we
just liberate, and decontrol, and deregulate the whole bloody energy business –
whether it’s oil, gas, shale, nuclear, coal, natural gas, as well as wind and
solar – why don’t we just decontrol, deregulate, go for an America first energy
policy? Get independent of Saudi Arabia? America first. Create all of these
millions of high paying jobs. Why isn’t anybody talking about that in this race?
That’s the natural, Reaganesque thing to do. Isn’t it?
Palin: Yeah absolutely! You’re hitting the nail right on the head. That’s
what so many of us normal Americans are asking. The same thing. Why aren’t the
candidates talking like that? Where we can secure America and we can be more
independent when we talk about energy sources if we could drill domestically.
Here we sent [Energy] Secretary Bodman overseas the other day, and our president
had to visit the Saudis a few weeks ago, to ask them to ramp up development.
That’s nonsense. Not when you know that we have the supplies here. You have the
supplies in your sister state called Alaska, where we’re ready, willing and
we’re able to pump these supplies of energy, flow them into hungry markets
across the U.S. We want it to happen. It’s Congress holding us back...."
Source: http://www.cnbc.com/id/25394468
It would help if Politicians from both parties should stop telling energy mistruths to the America people.
The Congress's current energy plan is a bit like saying that during a famine the solution is to tax the farmers more. The Democrats energy policy unfairly punishes their union base. More US oil and gas exploration would mean millions of good paying jobs for American engineers, oil field workers, pipeliners, steelworkers and all the associated and downstream service industries involved.
Sooner or later the average American will realize they’ve been taken for fools by the Anti-drilling, Anti-war, Anti-defense, Anti-nukes, Anti-coal, Anti-shale….anti-American Congress.
Under our energy plan all these millions of people working in US on domestic energy projects would be able to buy a house here not fund someone else's in Venezuela or the Middle East.
Democrats now propose punishing everyone in sight; giving the federal government more authority to crack down on price-gouging by oil companies and smaller vendors, a bill requiring energy producers to relinquish any land not currently being tapped for oil or gas production, and a measure creating new restrictions for commodity traders whose speculation who they consider might have driven up the price of oil. Even a small child could figure out that none of these punitive measures will have any measurable effect on supplies or gas prices. We need more affordable supplies not more useless rhetoric.
Currently, sending $600+ billion a year overseas for imported oil is creating millions of jobs and untold wealth in other countries!
The American people don't need psychological relief or meaningless gimmicks ... they need real energy relief that will help them fill up their tanks at an affordable price and jobs to put food on the table. They need a new aggressive America-First Energy Plan.
The facts are:
There is an urgent energy emergency facing America today, causing the current recession to deepen rapidly. Much of the recessionary causes can be traced back to the increasingly high price of energy and the fact that 60% of the US oil requirements are imported resulting in $600 billion + p.a leaking out of the US economy. The energy crisis negatively impacts every citizen, business, and government entity in the country, as well as world markets.
The American economy is in dire peril at this time. Most of the malaise can be directly traced back to energy supplies and the ever-increasing price. Net petroleum imports represented 41 percent of the total 2007 US trade deficit and the number will be much higher this year.
Most oil producing countries around the world are nationalizing their oil reserves, increasing export taxes, cutting off needed investment, and many are reducing export production capability in order to supply their own rapidly growing local needs.
We are entering a new world order in which other countries with increasingly larger financial resources are competing for internationally available oil and gas resources and increasingly winning dwindling supplies by paying more, (China, India etc.). Global oil demand is expected to grow by 1.6 per cent a year over the next five years, rising from 86.9m b/d to 94.1m b/d. This is despite the IEA having slashed its forecasts for rich countries' demand because of lower growth, especially in the US, which is struggling under the double burden of a credit crisis and high oil prices.
There needs to be recognition that the depletion rates of existing mature oilfields world-wide are rising, and new oilfields are not coming online fast enough to replace the existing production capacity.
The supply and demand equation responsible for this situation is changing quickly. Demand for oil is no longer driven by developed economies like the United States and Western Europe. China, India, other developing countries, and energy producers themselves are transforming global energy markets through their sheer size and pace of growth.
Just as the developing world’s oil demand is exploding, the world’s largest and oldest oilfields (and some newer offshore fields, too) are declining more rapidly than oilfields used to decline in the past. Just at this juncture of rising demand and stagnant supply, five countries that together produce some 13 mb/d of oil and, more importantly have the potential to produce an additional 5 - 10 mb/d, have become saddled with governments that are so incompetent, corrupt, and/or crazy that they cannot operate their oilfields rationally. The fast decline of fields - especially in the North Sea and Mexico where production is shrinking by more than 20 per cent each year - means that 14.8m of the 16m barrels of new supply from non-Opec countries over the next five years will go to making up for losses from old fields producing less and less each year.
The new prosperity caused by high oil prices is leading to increasing gasoline and, more generally, energy consumption among oil producing countries, including Azerbaijan, Iran, Russia, Dubai and others as construction and manufacturing are skyrocketing. The oil thirst is mounting in the Caspian region, the Persian Gulf, Russia, even in Africa, due to expanding wealth, booming construction projects, and growing populations.
At the same time, oil producing countries have created State-owned companies to control their own oil and gas resources and extract the maximum revenues from them, resulting in the locking up of over 80% of the world’s energy reserves from access to independent oil companies (IOCs).
America is the worst offender in blocking off access to its own oil and gas resources due to politically-created offshore and onshore drilling moratoriums, onerous taxes, imposts, bizarre regulations and laws. For example only a shameful 3 percent of the United States’ 1.76 billion acre outer continental shelf (OCS) is leased for oil and gas exploration and development.
Virtually every other country in the world is drilling on their continental shelf and onshore sedimentary basins to find oil and gas, very often using American capital and technology. Why is this happening? It is primarily because American politicians at the Federal, State and local levels have made it increasingly difficult if not impossible to produce oil and gas in America by closing the Offshore Continental Shelf (OCS) and other areas with moratoriums and with an ever-increasing array of permitting requirements as well as onerous taxes and imposts. Hence American energy exploration companies have moved resources to other countries where energy prospects are available for development and the permitting requirements are easier. IOCs often accept a very small profit participation because increasingly that is the only business opportunity open to them. Hence vast amounts of American financial, engineering and entrepreneurial capacity have been wasted away.
For politicians and commentators to continue blaming independent oil companies for the high price of energy is an outright falsehood. It is the decades-long inactions of American politicians themselves who have created the current American energy crisis.
With America facing it’s worse energy supply crisis it is high time for bipartisan affirmative action.
It is fiscally irresponsible (no, mindlessly stupid) to send more than $600 billion each year to other countries that are a lot smarter about energy than we, because they are willing to develop their own oil resources and sell them to us at a huge profit while we are not. This includes America-hating despots who sell us oil every day at a huge profit and are laughing all the way to their Swiss bank with our billions.
Without sufficient domestic oil and gas production Americans are being held hostage to foreign producers. For example U.S. imports of Venezuelan oil fell by 11.7 percent to a five-year low in the first four months of the year, while Venezuela boosted oil shipments to its budding ally, China, instead.
There’s a daunting avalanche of evidence and data to back up the growing belief among oil analysts and oil speculators that the daily or monthly import supply the US has has now will not be greatly surpassed at any future date.
Environmental Impact Misconceptions
Oil exploration and production off the coast of Louisiana has been going on for decades, providing a shining example of the safety, effectiveness and limited environmental impact of modern exploration technology. All around the world today, countries drill offshore without significant environmental consequences, then sell the oil to us and make their companies people rich off our backs.
There is something immoral about refusing to drill in your own backyard because "it is bad for the environment" while being perfectly willing to buy the oil pulled out of someone else's back yard. We use oil and gas, therefore we should be willing to accept the responsibility to find it on our own soil and deal with the (minimal) environmental risks of that process.
There hasn’t been any significant oil spill from U.S. waters in over thirty years. The oil industry now has an excellent environmental record. The amount of new technology, redundancy testing all but eliminate that as a possibility today.
True effect of Oil Spills
Timeline Lies
Many shortsighted politicians dismiss the opening up of US moratorium areas with statements such as, “it would take decades to bring the oil and gas to market, so let’s not bother”. This a not correct.
Its simple to get new American energy supplies quickly, Appeal to Corporate Greed: If oil companies are given enough financial incentives, they will move much faster than anyone believes and could find and start producing new oil and gas within 2-3 years, then ramp quickly up to produce enough energy to completely replace oil imports within 10-12 years.
With gas prices reaching deeper into motorists' pockets, attitudes about offshore oil drilling are shifting even in normally greener-than-thou California, with a majority of individuals and elected officials advocating its expansion. July 1st, 2008; The number of Democrats who said they saw increased production as the top priority jumped by 16 percentage points since February to 46 percent. There has been a dramatic increase in a span of just five months in the support for energy exploration and production among groups that have traditionally championed conservation as being the answer to the country's energy problems.
Oil and gas prices that have doubled in the past year have squeezed aside the war in Iraq as the No. 1 issue this election year and both parties are blaming each other for the price spike -- and for apparent congressional paralysis. Both the candidates' own advisers -- admit none of their energy proposals will have any impact on $4 gasoline or $130 a barrel oil in the near term, or even the intermediate term.
Come November any candidate for any seat who does not wholeheartedly support developing America's own energy resources immediately, is likely to get hit by a virtual "voter rejection train", poetically loaded with imported $5 a gallon gasoline from Chavez, Iran and Russia.
Continued US drilling restrictions will further
exacerbate the global demand-supply imbalance, and send “futures” prices even
higher. If we tell the world today that we
are launching an Energy-Manhattan-Project, if that call is clear and
unequivocal, then it will have an impact on the futures market and lower prices.
By imposing bans on leasing, and encouraging environmentalists to challenge seismic and drilling permits on existing leases, politicians ensure that we will never increase our proven reserves. In fact, reserves will decrease, as we deplete existing deposits and don’t replace them. The rhetoric is clever – but disingenuous, fraudulent and harmful.
The IEA warned governments not to blame speculators. It said: "Like alchemists looking for a way to turn basic elements into gold, everyone wants a simplistic explanation for high prices," bluntly adding: "Often it is a case of political expediency to find a scapegoat for higher prices rather than undertake serious analysis or perhaps confront difficult decisions."
Authors; Peter Sterling, and Martin Stickley.
Some supporting press: http://www.courant.com/news/opinion/commentary/hc-runoverridenour0622.artjun22,0,173929.story
The high costs of oil have been passed on to consumers at the pump, through more expensive goods and services, and in a weaker job market and lower stock prices.
Mideast Oil Producers Say,
'Thank You, America' "...OPEC
is the Oil Producing Export Cartel that determines how much we pay for oil and
gasoline. Here’s their message to us:
God gave your country all the resources that you need and you would be fine, if
you weren’t too stupid to harvest them. The OPEC minister will look
you in the eyes and say the following:
“We are at war with you infidels. Have been since the embargo in the 1970s (1972
and 1979). You are so arrogant you haven’t even recognized it. You have more
missiles, bombs, and technology, so we are fighting with the best weapon we have
and extracting on a net basis about $700 billion a year (AND RISING!) out of y
our economy. We will destroy you! Death to the infidels! “While I am here
I would like to thank you for the following: Not developing your 250-300 year
supply of oil shale and tarsands. We know that if you did this, it would create
millions of jobs for U.S. citizens, expand your engineering abilities, and keep
the wealth in the U.S. instead of sending it to us to finance our war against
you infidels...."
Today's oil price ;
https://www.
The tiny electric car the environment lobby would have us all driving is still not ready. Unfortunately the batteries don't last very long, and they are expensive. The very simple fact is that for an electric car, battery replacement cost alone is higher than the entire operational cost of a similarly sized gasoline car! Also, electricity doesn't grow on trees. Today, electricity is generated mostly from non-renewable sources: Carbon, oil, gas, uranium.; see here
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