Monday, June 23, 2008

Drill now...or $8 per gallon gas? What is your choice?

Like many of you, I've been listening to the daily talk shows on both the radio and on cable discuss the oil crisis. I believe that unless the Democratic Congress figures out how to get gasoline back down under $4 per gallon, the energy crisis will be a much bigger factor on the November election than the Iraq War or anything else Democrats can stir up. Let's face it: the Iraq War has not been the primary factor in the November elections since 2002 (yes, BEFORE we went in!) when Republicans (and Democrats) campaigned on a strong forceful approach to Iraq. In 2004, Senator Kerry had plenty of skeletons in his closet that our Swift Boat friends were happy to enlighten us about. In 2006, the Republican Party had both entangled itself with various scandals and Democrats did a good job of exposing the wasteful government spending of Republicans. In 2008, I believe the issue that will eclipse the Iraq War will be the cost of gasoline and what each candidate (at all levels) proposed to do about it.

This is where we have a HUGE advantage! Regardless of your income level, political affiliation, or other concern, everyone is affected by the price of gasoline. Even my mass transit friends who still ride the MAX bus from San Pedro to El Segundo (and hence do not commute in a car) have to purchase groceries and other things that are becoming more expensive due to the cost of transportation. Lower income families are affected the most, as they are seeing a higher percentage of their disposable income having to go to the rising cost of gasoline and related expenses. So...our new leaders HAVE to have viable solutions to this growing problem.

The ideas coming from the Democrats center around this basic premise: We have to find someone to BLAME! It's either the speculators, or the naughty SUV drivers (like me) or maybe even the greedy oil companies that want to (heaven forbid) actually make a profit doing business. The latter two "causes" have recently become less promoted by Democrats, likely because most of their fellow voters are also driving SUV's, and voters are starting to see that adding taxes to businesses like oil companies will simply raise the prices at the pump. (Remember - businesses don't pay ANY taxes! Consumers do when the increase costs are flowed into the prices of goods and services.) I particularly like the recent emphasis on blaming the speculators, particularly because Democrats won't admit that the solutions proposed by Republicans would actually address the issue of speculation.

Republicans have been leading the fight to declare now as the time to consider drilling oil domestically. Presidential candidate John McCain has recently acknowledged that high prices combined with our dependency on foreign oil have re-prioritized our need to explore and utilize our natural resources while our technological advances are busy working to strengthen viable energy alternatives. While I hope that all states with oil resources will choose to tap into them, I think McCain has the proper position that gives states the right to decide whether they will drill. (This is one of the basic tenets of the Republican Party - states' rights over federal rights as much as possible). All three states with the most oil reserves, Alaska, California and Florida, are experiencing recent increases in their unemployment rates. Opening the opportunities for oil companies to invest in drilling operations in each of those states will almost assuredly increase employment. What else will it do? Increase supply, of course!

But Democrats claim that we would not see any significant amounts of oil from these operations for 10+ yuears. Thought more credible engineers state that we wold see significant amounts within 3 years, wouldn't forecasts of higher oil amounts (even later than sooner) have a significant impact on the speculation of oil volume? So wouldn't increasing the oil supply take away the alleged "power" of the speculators?

This is more of the Democrats' need to have issues with parties to blame, rather than viable solutions that could dry up an issue. Such is the case with the homeless, the state education system and affirmative action. If any of these issues were to suddenly be declared resolved, activists of these issues would be without purpose. Unfortunately for them, they underestimated the will of their allies, the far-left environmentalists, to drive the price of gasoline so high.

Even Senator Obama has been quotes as saying that he thinks prices should be this high, but that he wishes it hadn't risen so fast. I guess he was hoping that we'd all have to wait for him to be elected before paying so much for gas.

Don't worry Senator! With your party in control of Congress, we're on a pace to see $8 a gallon gasoline by October. What will Americans do then?

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