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Who will they blame next?
Dems come full circle with blame game
Washington,
Jun 16 -
Democrats seem to have come full circle in the last few months on the crucial issue of record-high gas prices. They started out blaming oil companies and their CEOs, then they moved down the list to speculators and price gougers and even settled on Republicans for a few days. But, now they are back to square one – the oil companies.
Democrats say Congress shouldn’t open up land for domestic energy production because oil companies already have access to land and aren’t using it. Before we look at the facts of that assertion, let’s look at the economics. Oil is at an all time high – well over $135 a barrel. If ever there existed a time and circumstance when an oil company would want to produce as much oil as it could – it would be right now, when it could expect to get the highest return for it. Even the Saudi Arabians are making plans to increase their oil production in the coming weeks -- to the highest level of output in more than 25 years.
But, that’s exactly what Democrats would have you believe oil companies are doing: squatting on oil reserves to artificially inflate prices higher than the already inconceivable (and likely unsustainable) mark of $140.
Consistent with that fundamental misunderstanding, Democrats have announced their intention to introduce what they’re calling “Use it or Lose it” legislation – a catchy phrase that goes against all economic reason and threatens to take away what little energy access we’ve got from those with the capabilities to produce it. Naturally, Democrats are advocating this position without even checking the facts -- because if they did, it’s a good bet they would’ve realized their so-called “Use it or Lose it” plan is already the current law.
Indeed, federal energy lease holders already must produce oil or natural gas within five to 10 years depending on the circumstances – and the Secretary of the Interior can cancel that lease if energy companies fail to comply. Title 30, Subsection 188(a) and (b) of the United States Code, “any lease … may be forfeited and canceled … whenever the lessee fails to comply with any provisions of this chapter, of the lease, or of the general regulations … Any lease … shall be subject to cancellation by the Secretary of the Interior after 30 days notice upon failure of the lessee to comply with any of the provisions of the lease….”
Once an oil company is granted a lease, that isn’t a green light to drill – far from it. Instead, it sets in motion a time-consuming process of red tape, paperwork and public review – a process Republicans have long attempted to update and streamline. Think of it like building a home. Just because you buy a lot doesn’t mean you can start digging the foundation that day. You have to hire contractors, get permits, and draw plans up well before you even consider drape designs and paint colors.
Instead of opening up our natural energy resources both on land and in deep ocean energy reserves – areas with known oil and gas supplies – and creating jobs in the process, Democrats have resorted back to pointing fingers, assigning blame and once again doing nothing to solve the problem in a substantive manner.
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