Why are Gas and Energy Prices So High?

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

*http://www.americansolutions.com

* http://youtube.com/watch?v=XXIvmJ8xenc

Obama says...We cant keep out homes at 72 degrees

For anyone who doesn't know anything about Barack Obama yet. Please read this quote and watch this video.

"We can't drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times and whether we're living in the desert or if we are living in the tundra and then just expect that every other country is going to say ok you guys go ahead and keep on using 25 % of the world's energy even though you only account for 3% of the population and we'll be fine, don't worry about us." (View Obama's quote on youtube)




Why not? There is no energy shortage. There is no such thing as 25% of the world's energy. There is 25% of the worlds energy production but why can't we just produce more energy. Because globalists like Barack Obama will not allow the U.S. to drill for oil, build nuclear power plants, build refineries, build coal power plants or create energy in any efficient manner.

THE ISSUE IS NOT THE PRICE OF GASOLINE, THE ISSUE IS THE COST OF ENERGY.

I drive and SUV because that is how much room I need to get to my in laws and to get to camp. My wife turns the heat up to 72 degrees when she is cold. Find some other way to save the planet but I am not changing either....and I dont feel bad about it at all.

Attn Senator McCain: I want to support you, but I cant...yet

Call it conservative angst, or call it standing on principals. I will obviously vote for John McCain in November as the Democrats offer nothing but socialism and retreat. The question now is can I give anything more than my vote to John McCain.

In the last two presidential elections and in the important Senate races here in PA, I was a contributor and a volunteer. I donated meager amounts of money, but more importantly over 75 volunteer hours making phone calls and knocking on doors. For me to reach into my checkbook or fit campaigning into my schedule I need to believe in someone. Right now, I still fear John McCain.
People talk about reaching out. Well reaching out means more than endorsements and speeches invoking the name of Ronald Reagan. It means a platform we will fight for. To get conservatives John McCain has to answer just these simple questions...

• You say you will secure the borders first. Great. I believe you so I am willing to give you a chance. Then what?
• Why did you use class warfare rhetoric when opposing the Bush tax cuts?
  
• How can you achieve energy independence without expanding the use of domestic fossil fuels? And how can you do that while drinking global warming kool-aid?
• In hindsight, what would you change about McCain-Feingold to make 527s more accountable while not infringing anymore on freedom of speech.
  

I think if you answer these couple questions, I will be with you 100%. Right now, I am a wishy-washy luke warm supporter.



...what do you think?

Winning the War on Terror

The most important part of the Republican Platform in 2008 must be winning the war on terror. Clearly we are in a time of history when a very small number of people can do an increasing amount of damage. As a society we have to find a way to protect ourselves from one crazy nut or a culture of murder and intimidation. The radical Islamists seek to rule the Middle East and destroy Western society for our lack of morals. Yet in their moral judgment killing innocent people and stoning rape victims earns them the favor of their god.

To win the war on terror the Republican party must first define the struggle clearly for the American people. President Bush has tried and started this process, but the next President must accomplish the goal of explaining how big of a threat the entire civilized world faces. We must stand up and say that some cultures and ways of life are better than others. There is good and evil. They are embodied in the difference between western civilization and the theocracy of globalist jihad. We are on the right side and we must win.

Once we define the fight, we must defeat our enemy. First on the many battlefields in Iraq, Afghanistan, against Hezbollah in Lebanon, Al Qaeda in Western Pakistan, the mullahs of Iran, and even Hamas in Gaza. If you preach the destruction of Israel and a global Islamic nation, then you are no friend of ours and you cannot be a part of the global economy or community.

So the Republican Candidate should promise these actions (in no particular order)

- Deliver one final crushing blow to the insurgents and terrorists in Iraq. Once achieved, reduce our troops significantly leaving behind a significant strike force for combat missions plus enough support troops to make our Iraq base a major deterrent for Iran. This base (or bases) will give the Iraqi government the additional strength needed to establish their new government.

- Work with NATO allies and other middle east allies to implement a "surge" in Afghanistan. Finish off the Taliban and the poppy fields so that this government can stand up fully across their entire nation.

- Focus on the Pakistan crisis now unfolding. Safe havens have to be denied and right now that is Waziristan. Whatever government that emerges in Pakistan must deal with their tribal areas quickly, or understand that we will. Action in this part of the world would mean drones, special ops, air power, and casualties. But we are at war and we must fight it where the enemy rests it's head.

- Fight for the rights of women in the middle east. The women are the key. No man or woman desires a life of a subject or 2nd class citizen. This is one of the way our culture is superior to the Islamic culture in the year 2007. If the women are empowered and make a stand, the moderate men will stand with their sisters, mothers and wives.

- Aggressively pursue energy independence as quickly as possible. Start with the immediate by slowly using the strategic oil preserve. We are at war and our enemy is using oil against us. This is why we have the reserve. Move next to the fastest new drilling that can be online in US territories which may mean off coast, Alaska, but also more exploration within the 48 states. Continue with encouraging a national gasoline blend and more refineries to streamline the cost of unleaded gasoline. Next move to the long term solutions of new nuclear power plants, wind and solar power, advanced car technology, etc. Begin forcing energy costs down for the American people and maintaining a policy of low energy prices for the US consumer and economy.

These five things would go a long way towards winning the war on terror. We are in for a long fight, but we can win. We must win. And to win we must have a strategy and sell that strategy to the American people.



This post is one element of the Grassroots Conservative Republican Platform 2008. To contribute to this effort, please comment on this post and help shape this platform. Send the link to your friends and lets take our party back to the conservative principals that lead President Reagan and that were the key to President Bush's victory in the election of 2000.