Republicans and my colleague Aaron Katsman are trying to blame Democrat Barack Obama for rising gas prices. This is election-year politics at its worst.
For one thing, as the Washington Post and other independent observers note, drilling for more oil will do little to alleviate the pain U.S. drivers are feeling at the pump. The available supplies are probably not going to make much of a dent in our never-ending thirst for the black gold. Remember, the oil may not be as easy to get or cheap to process.
"Drilling off the coasts would increase U.S. oil production but have no short-term impact on gas prices," the Post says. "While some analysts disagree, an Energy Department report last year said production would not start until 2017 and have no 'significant' effect on prices or supplies until 2030."
An even more ridiculous idea floated by Republican John McCain is the so-called gas tax holiday, which has been roundly denounced by economists and Obama as a dangerous economic gimmick. Experts estimate that it would save the average consumer a whopping $30.
There is plenty of blame to go around for high gas prices.
Oil markets are spooked by the war in Iraq and a potential war with Iran. Remember how Iraq's oil was supposed to pay the costs of our military? It has not happened yet. We also have not built a new refinery in the U.S. in decades. Speculators are bolstering prices though not to the extent some politicians suggest.
Corporate Average Fuel Economy (CAFE) standards are also a joke. "It was only last December that Congress approved new mileage standards, the first in 32 years," wrote Joseph Wheelan in the Atlanta Journal-Constitution. "If they stand, the present fleet standard of 27.5 mpg will rise to 35 mpg -- but not until 2020."
The problem is that we want more gasoline than the oil companies can deliver. The problem is that simple and that complicated.
Reader Comments (Page 1 of 2)
7-22-2008 @ 4:42PM
Jeff said...
but why solve the issue when you can get elected? (Reason # 1 for Republican downfall)
7-22-2008 @ 5:06PM
Dale Oakley said...
I am sick and tired of hearing that if we drill now for oil, there won't be any benefits to us. How stupid do you think we all are? If this had been done under Carter, we wouldn't be where we are now!!! We have to start now or down the road we will be facing being a third world nation. We also need to develop more nuclear plants, clean coal, wind and solar power and hydrogen power. Let's use all the knowledge we have. Psychology has its merits too when other countries know that we are developing our own resources for fuel. It will also make a difference in the pricing of oil now. I am sick at heart hearing the Democrats give their limited excuses for not drilling. Where are their brains? To think I was once a Democrat makes me ashamed I ever was one.
7-22-2008 @ 5:24PM
h0mi said...
"It has not happened yet. We also have not built a new refinery in the U.S. in decades"
If you have to ask why, you haven't been paying attention.
7-22-2008 @ 5:54PM
CEB said...
"For one thing, as the Washington Post and other independent observers note, "
Since when is the Washington Compost an independent observer? Like the New York Times is fair and balanced?
These libs just won't give up. They have prevented drilling and if we don't start now, we never will start. How dumb do they think we are?
7-22-2008 @ 5:56PM
Jerry said...
Lets see - Aren't Democrats at least a little socialist. That may increase taxes and laws that protect the consumer but it does not promote insane capilistic profits. Only a capilatist (republican) would give more profit to the rich.
7-22-2008 @ 5:56PM
peter o said...
Ok drill! but wait for the big news out of Canada in a few short months. TAR SANDS !! scoop here-scoop now- have OIL! new revloutionary process that is environmental safe and recycleable. It beats the old steam assist gravity drainage deal hands down
I have been a share holder for almost 5 years.
GO ESS-CAN AMERICA!!
7-22-2008 @ 6:26PM
cecil worthington said...
We should have increased our domestic drilling a long time ago. We need to take immediate steps to increase our oil production as well as develop more nuclear power. Increased oil production would be increased much faster than the critics claim once a go-ahead was given for new off-shore drilling. The high costs of energy will help with our conservation efforts but conservation alone will not solve our energy problem. For the long run we are capable of developing alternative sources of energy but to consider that a solution for now is rather naive.
7-22-2008 @ 7:09PM
Mark R. said...
Drill the wells now. If you want to pump them out before Cuba and China clean up the oil. Drill the wells and capacity is increased, supply and demand sat prices will fall. Get a brain Democrats.
You are turning us into a third world country, don't believe me? Look at Miami. I've seen third world countries that are nicer than Miami.
7-22-2008 @ 7:54PM
bill gause said...
High Gas prices should be blamed on Congress. The gasoline we burn in our cars is NOT Refined from Middle East Crude. Our gasoline comes from Texas & Oklahoma Oil Wells that have been paid for for centuries, and have been pumping oil out for years. The major oil companies are using the high price of Sweet-Crude from the Middle East as an excuse to raise the price of our gasoline. Our gas prices have Nothing-Whatsever to do with the price of Opec Oil!..................
Congress should be investigating Price Gouging, by the Major Oil Companies
7-22-2008 @ 8:38PM
The Sailer said...
Listening to Nancy Pelosi and Co. make excuses is sickening. Just how stupid do they think we are?Drill now wherever it is believed worth drilling and build new refineries. Build Nuclear power plants. Develop clean coal electric generators. Lastly take back our education systems that teach kids nothing but eco-frauds so the Democrats can't get away unchallenged with their socialistic lies.
7-22-2008 @ 9:17PM
Ed Young said...
Remember "PIK" (payment in kind) program? Yes, it's uncle Sam's social welfare system for the farmers. You get paid for not planting. Why? to prop up crop prices. I won't be surpirsed uncle Sam already has a program for the oil companies - it is called subsidies. Outside the US, it is called OPEC. Drill or not drill, we all get screwed. Pardon the
7-22-2008 @ 9:48PM
ALFREDO said...
Ok your editorial ends by saying the problem is that we need more gasoline than what oil companies can deliver. ok go back for the last twenty years and see what party has blocked more oil production to meet the demand we currently have today. thats thE DEMOCRATS
7-22-2008 @ 10:14PM
Steve said...
Between now and the time we can pump more oil build refineries and find alternatives ;something that is only delayed by pointing fingers. Lets try something we all can do together CONSERVE DRIVE 55, 62 TURN DOWN YOUR HEAT ' 76 TURN UP YOUR AC. Or just send you DOLLARS right to the oil people in fact have them just set up automatic withdrawals
7-23-2008 @ 12:06AM
Bill Chase said...
This posting is not very insightful. In fact, it is straight from the democrat party talking points. Since the Democrats took control of Congress, the cost of a barrel of oil has doubled. They have to blame the Iraq war to divert attention from their own inaction and their prusuit of a long term policy intended to limit domestic supply. The democrat energy policy seeks to increase prices and thereby limit domestic consumption. This has long been the policy advocated by left wing environmentalist. Hence, we have no drilling, no refineries, and certainly no nuclear plants. Their chickens have come home to roost. The new tact is to claim new drilling won't impact our supply for 10 years. This is untrue on almost every level. The threat of actual exploration and drilling will impact prices immediately -- but they don't want to upset their environmentalist supporters. We will all pay more instead.
7-23-2008 @ 12:38AM
NYC Banker said...
"There's a few reason's why oil and energy prices are so high and one of the most significant is the Dems' and the enviromentalist."
LOLZ!!!
Chinas oil demand
http://www.peakoil.nl/wp-content/uploads/2007/02/chinese_consumption.png
Chinas and Indias actual and projected GDP
http://www.propertyinvesting.net/cgi-script/csNews/image_upload/specialreports_2edb.GDP%20Global.GIF
Democrats did not make the US energy policy thats your guy Bush, Democrats do not control interest rates which effect the value of the dollar thats the Fed, democrats don't control world demand.
Sorry for posting the facts here guys. I know the religious right isn't to keen on "facts." But its called a futures market for a reason. Yes DRILL NOW! Exxon mobil will love having all that extra supply when oil is $200-$300/barrel in 10 years.
7-23-2008 @ 1:43AM
sosted said...
I had a friend that didn't want to back to college after serving in Viet Nam because it would be 4 years before he would benefit from the degree.
How many years would he would go by before he benefited from a degree if he didn't go to college??
Same stupid arguement by the same stupid people
7-23-2008 @ 3:24AM
Mopared said...
Dale Oakley ..........once a Dem always a good Dem.
Why would you want to be called stupid,a parrot,a bush d-suxer and anything that fits the republicans ?
Republicans are the worse trash on earth.
We just didn't wake up one day low on oil,it was a set up to make more richer.
7-23-2008 @ 6:05AM
brad said...
A record 1.6 million barrels a day in U.S. refined petroleum products were exported during the first four months of this year, up 33 percent from 1.2 million barrels a day over the same period in 2007. Shipments this February topped 1.8 million barrels a day for the first time during any month, according to final numbers from the Energy Department.
The surge in exports appears to contradict the pleas from the U.S. oil industry and the Bush administration for Congress to open more offshore waters and Alaska's Arctic National Wildlife Refuge to drilling.
7-23-2008 @ 6:06AM
brad said...
A record 1.6 million barrels a day in U.S. refined petroleum products were exported during the first four months of this year, up 33 percent from 1.2 million barrels a day over the same period in 2007. Shipments this February topped 1.8 million barrels a day for the first time during any month, according to final numbers from the Energy Department.
The surge in exports appears to contradict the pleas from the U.S. oil industry and the Bush administration for Congress to open more offshore waters and Alaska's Arctic National Wildlife Refuge to drilling.
7-23-2008 @ 6:24AM
Betty said...
Add your comments: You know...I am getting sick and tired of hearing about oil..Let's just stop using it whenever we can or only using what we have to. If we don't buy it, there won't be any demand for it. Prices will go down to lure us back. If we keep this attitude instead of buying more gas they will stay down. We just plain out and out need to find new ways of transportation and use car pooling etc. I bought a motor bike to ride 11 miles one way to work and I am a 61 year old female.