1) U.S. Domestic Oil production has been shrinking since its peak in the 1970s. The oil companies have been hamstrung by Environmentalists, Lawyers, and Democrats since then; making drilling in the U.S. un-profitable.
2) U.S. petroleum consumption far exceeds production. That means we have to import it from the Middle East, Russia, Mexico, Canada, and Venezuela. None of these countries have any problem drilling THEIR oil and selling it to us, shouldn’t we drill for our own?
…worldwide consumption is also rising
3) The law of supply and demand is simple. When demand rises faster than supply, the price goes up. When supply rises faster than demand, the price goes down. The answer to lower gas prices is more supply. NOT taxing the companies that get the oil from the desert to my car.
4) Speculators are driving the cost of oil up, but only because it is a safe bet that oil prices will rise. “Speculators” buy an oil contract for 5 years from now. What they purchase sets the price. If the price went down, these investors would get creamed. If the U.S. quickly opened the way to new drilling in the continental shelf and A.N.W.R. the traders would be forced to bet on lower prices and other oil producers would have more competition. A commitment to new drilling could reduce prices in the next few months. By the way, who are these EVIL speculators…pension funds. (pass too tight a law against speculators and pensions could decline quick)
5) The last Nuclear power plant built in the US was is 1977. Yet Nuclear power still provides 19% of our electricity. Not building more plants has increased the cost of electricity dramatically. (France gets nearly 80% of their power from nuclear.) It currently takes longer to get a permit to build a nuclear power plant than it takes to build one.
6) Renewable energy is a future technology, not a “now” technology. Right now renewable energy accounts for just 9.5% of US electricity production compared to nearly 50% for coal, 20% for nuclear and 20% for natural gas. That is a huge gap that renewable would need to fill.
7) Wind is the only alternative energy source that is even remotely cost effective. Even Nuclear doesn’t compare to coal or natural gas. The reality is that carbon based energy is here to stay OR we cannot COMPETE in a global economy.
Cost Per Kilowatt Hour (cents)
| Low | High | Avg | |
| Natural Gas | 3.9 | 4.4 | 4.15 |
| Coal | 4.8 | 5.5 | 5.15 |
| Nuclear | 11.1 | 14.15 | 12.625 |
| Wind | 4 | 6 | 5 |
| GeoThermal | 4.5 | 30 | 17.25 |
| Hydro | 5.1 | 11.3 | 8.2 |
| Solar | 15 | 30 | 22.5 |
Plus..no one really knows what harnessing wind power will do to weather patterns and climate. A few wind farms here and there would have no impact. Enough to generate 50% of US energy demand, might cause some problems. Ted Kennedy doesn’t even want a wind farm where he boats….
8) Natural Gas production has also been completely flat or on a down trend despite increasing energy demand. This is thought of as the cleanest fossil fuel, but the ban on coastal drilling has kept much of US natural gas stocks in the ground instead of the pipeline.
9) Environmentalists are FOR high energy prices to encourage conservation. They are willing to pay MUCH more for environmental and supposed “health” benefits. Despite fossil fuels being the only economical option to power the US for the next 20 years. (or more) Harry Reid, leader of the Democrats in the Senate actually said “coal makes us sick” … “oil makes us sick”. While true if you live on top of a power plant; there is no widespread sickness sweeping the world. In fact life expectancy in the U.S. remains over 70 and rising.
10) When the cost of energy goes up, the price of EVERYTHING goes up. Can you afford $7 gas or $5 milk? I can’t. In fact, energy costs and taxes are the two fastest way to cause inflation so that your money isn’t worth as much. If gasoline, electricity, and natural gas costs continue to rise, then our economy will be in real trouble. But if we get out of our own way and take advantage of U.S. energy resources then we can be wealthy enough to clean up after ourselves. High energy prices means high food prices and inflation, that hurts everyone.
Sign the petition for Drill Here Drill Now and make sure Obama AND McCain are talking about new energy production immediately not some dream of alternatives that just aren’t ready yet. McCain is talking about Nuclear and some drilling but not enough. Obama is all alternatives, conservation, and wishing that the price of gas had just risen slower.
If you are not for more energy production, then you are FOR higher energy costs. So if we can’t drill? How do you generate more energy…or are you going to pass a law mandating that we can’t keep our thermostats at 72 degrees. If you are pro conservation, then start talking about rationing electricity and gasoline.
References:
1 - http://tonto.eia.doe.gov/dnav/pet/hist/mcrfpus1m.htm
2 - http://tonto.eia.doe.gov/cfapps/STEO_Query/steotables.cfm
3 - http://www.curriculumlink.org/econ/materials/sdlaws.html
4 - http://www.businessweek.com/ap/financialnews/D91INO8O0.htm
5 - http://wiki.answers.com/Q/When_was_the_last_nuclear_power_plant_built_in_the_US
5 - http://en.wikipedia.org/wiki/Nuclear_power
5 - http://www.msnbc.msn.com/id/16554514/
6 - http://www.eia.doe.gov/cneaf/electricity/epa/epat1p1.html
7 - http://peswiki.com/index.php/Directory:Cents_Per_Kilowatt-Hour
8 - http://tonto.eia.doe.gov/dnav/ng/ng_prod_sum_dcu_NUS_m.htm
9 - http://www.youtube.com/watch?v=SqR0Ui0g3wI
9 - http://www.infoplease.com/ipa/A0005148.html
10 - http://www.euractiv.com/en/cap/current-world-food-prices-high/article-173769
10 - http://www.newsday.com/classified/automotive/ny-bzecon025749064jul02,0,7109041.story
*http://www.wtrg.com/prices.htm
