Friday, March 18, 2011

The $4-Per-Gallon President by Sarah Palin

Sarah Palin is about the only politician I trust to keep her campaign promises, and I also trust her instincts and values when it gets hard to do the right thing. Nevertheless, I understand that Sarah Palin will probably not be the Republican candidate for president in 2012. She is just too unpopular among Republican, blue-haired wives - and among women who fought for years for equal rights for women (they obviously didn't mean equal rights for a smart, tough, wonderful mother who lives her life as a practicing Christian).

One thing they cannot deny about Sarah, however, is that she became an expert on energy in her role as governor of Alaska. Her leadership, policies and tough dealing with oil companies have resulted in enormous benefits for Alaska's citizens. We can only pray that the price of gasoline in the rest of the country stops rising at $4.00. After all, didn't Obama say he favored $7.00 gas?

The $4-Per-Gallon President

by Sarah Palin March 15, 2011 Facebook

Is it really any surprise that oil and gas prices are surging toward the record highs we saw in 2008 just prior to the economic collapse? Despite the President’s strange assertions in his press conference last week, his Administration is not a passive observer to the trends that have inflated oil prices to dangerous levels. His war on domestic oil and gas exploration and production has caused us pain at the pump, endangered our already sluggish economic recovery, and threatened our national security.

The evidence of the President’s anti-drilling mentality and his culpability in the high gas prices hurting Americans is there for all to see.

The following is not even an exhaustive list:

Exhibit A: His drilling moratorium. Guided by politics and pure emotion following the Gulf spill instead of peer-reviewed science or defensible law, the President used the power of his executive order to impose a deepwater drilling moratorium.

The Administration even ignored a court order halting his moratorium. And what is the net result of the President’s (in)actions? A large drilling company was forced to declare bankruptcy, the economy of the region has been hobbled, and at least 7 rigs moved out of the Gulf area to other parts of the world while many others remain idle. Is it any surprise that oil production in the Gulf of Mexico is expected to fall by 240,000 bbl/d in 2011 alone?

But that’s just the Gulf. There’s also the question of a moratorium on the development of Alaska’s Outer Continental Shelf. It seems the Obama Administration can’t agree with itself on whether it imposed a moratorium there or not. The White House claims that they didn’t, but their own Department of the Interior let slip that they did. To clear up this mess, Gov. Parnell decided to sue the DOI to get a solid answer because such a federal OCS drilling moratorium would violate federal law.

Exhibit B: His 2012 budget. The President used his 2012 budget to propose the elimination of several vital oil and natural gas production tax incentives. Eliminating these incentives will discourage energy companies from completing exploratory projects, resulting in higher energy costs for all Americans – and not just at the pump. According to one study mentioned in a recent Wall Street Journal op-ed, eliminating the deduction for drilling costs “could increase natural gas prices by 50 cents per thousand cubic feet,” which would translate to “an increased cost to consumers of $11.5 billion per year in the form of higher natural gas prices.”

Exhibit C: His anti-drilling regulatory policies. The U.S. Geological Survey found that the area north of the Arctic Circle has an estimated 90 billion barrels of technically recoverable oil and 1,670 trillion cubic feet of technically recoverable natural gas, one third of which is in Alaskan territory. That’s our next Prudhoe Bay right there. According to one industry study, allowing Royal Dutch Shell to tap these reserves in Alaska’s Chukchi and Beaufort seas would create an annual average of 54,700 jobs nationwide with a $145 billion total payroll and generate an additional $193 billion in total revenues to local, state, and federal governments over 50 years. This would be great news if only the federal government would allow Shell to drill there. But it won’t.

It’s been five years since Shell purchased the lease to develop these fields, but it’s been mired in a regulatory funk courtesy of the Obama Administration. After investing $3.5 billion in exploration programs (a significant portion of which went to ensuring responsible spill response and prevention), Shell announced last month that it has given up hope of obtaining the required permits to conduct exploratory drilling this year.

That means no jobs and no billions in oil revenue from the Arctic anytime soon thanks to this Administration. Let’s stop and think about this for a moment. Right now Beltway politicos are quibbling over cutting $61 billion from our dangerously bloated $3.7 trillion budget. Allowing drilling in the Chukchi and Beaufort seas will enrich federal coffers by $167 billion without raising our taxes. If we let Harry Reid keep his “cowboy poetry,” would the White House consider letting us drill?

Taken altogether, it’s hard to deny that the Obama Administration is anti-drilling. The President may try to suggest that the rise in oil prices has nothing to do with him, but the American people won’t be fooled. Before we saw any protests in the Middle East, increased global demand led to a significant rise in oil prices; but the White House stood idly by watching the prices go up and allowing America to remain increasingly dependent on imports from foreign regimes in dangerously unstable parts of the world.

This was no accident. Through a process of what candidate Obama once called “gradual adjustment,” American consumers have seen prices at the pump rise 67 percent since he took office. Let’s not forget that in September 2008, candidate Obama’s Energy Secretary in-waiting said: “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” That’s one campaign promise they’re working hard to fulfill
Last week, the British Telegraph reported that the price of petrol in the UK hit £6 a gallon – which comes to about $9.70. If you think $4 a gallon is bad now, just wait till the next crisis causes oil prices to “necessarily” skyrocket. Meanwhile, the vast undeveloped reserves that could help to keep prices at the pump affordable remain locked up because of President Obama’s deliberate unwillingness to drill here and drill now.

Hitting the American people with higher gas prices like this is essentially a hidden tax and a transfer of wealth to foreign regimes who are providing us the energy we refuse to provide for ourselves. Like inflation, higher energy prices are a hidden tax on Americans who are struggling to make ends meet. And these high gas prices will be felt in the form of higher food prices due to higher transportation costs. Energy is connected to everything in our economy. Access to affordable and secure energy is key to economic growth, which in turn is key to job growth. Energy is the building block of our economy. The President is purposely weakening that building block and weakening our country.

2012 can’t come soon enough.

- Sarah Palin

Labels: , ,

AddThis Social Bookmark Button


At 9:52 AM, Anonymous mason said...

She is right on...couldn't be said any better.

At 2:47 PM, Anonymous Anonymous said...

I think that this country would have been better off with John McCain and Sarah Palin. Obama has done nothing but move this country backwards since he took office. He called it "Hope and Change." I call it the same old crap but worse. As for the "hope", we can only hope to be rid of him in 2012.

At 9:24 AM, Anonymous Anonymous said...

I disagree. Oil prices have little to do with what we do or don't or several weeks ago. They are being driven by supply and demand, and (recently more so)by speculation over current and potential mideast concerns. It is very unfortunate that our mindset is always so short term. Witness truck and other gas guzzling vehicle sales, witness the sudden urgent demand for the Prius, witness our progress on MPG requirements, witness the colossal failure of the BP disaster. Let's get our act together, THEN drill. Oil demand is a longterm problem. Oil not harvested today is still there tomorrow. There is no urgency and we have time to get it right. The fact is that the US population NEEDS this price increase badly.

At 9:53 AM, Blogger RussWilcox said...

Virtually all the progress made by mankind in the last 100 years is due to the employment of cheap energy, and oil is a fungible item. That is, any addition to the world supply benefits all users.

At 9:23 AM, Anonymous Anonymous said...

I can agree to disagree. Progress at any cost is not necessarily good progress. I agree that we have made major mankind progress and that oil is a key driver. However, that does not warrant an anything goes mentality today...drill, baby, drill. We have alternative fuels. We need to be moving cautiously. BP can confirm that as can Japan. And again I stess that the oil not pumped today is still available tomorrow.


Post a Comment

<< Home