Sunday, May 11, 2008

Planning To Fail

With all due respect to the Democratic Party and Senator Debbie Stabenow of Michigan, your energy plan is the worst conceived and the stupidest think I have ever heard. It will probably fail in unprecedented proportions of any plan I have ever seen. It clearly demonstrates a complete lack of understanding of the problem as well as a total failure to understand basic economic principals. Before I dissect it further allow me to present the plan in their own words.

Senator Debbie Stabenow Delivers the Democratic Radio Address 5/10/08

"Good morning, I'm U.S. Senator Debbie Stabenow. When George Bush took office back in 2001, a gallon of gasoline cost about $1.50. Today, if you are filling your tank in my home State of Michigan, you are paying more than $3.70 for regular and $4 a gallon for premium.
"In every corner of our country, we are paying record prices. When gas prices first began to rise, it was an annoyance. Then it became a burden. Now it is a crisis for every American family - a crisis that doesn't just affect us at the pump, but also raises the prices of groceries, increases our home-heating bills, and squeezes small businesses trying to keep their heads above water.
"Enough is enough. The American people deserve real solutions. Democrats and Republicans have both offered plans, but our approaches could not be more different.
"Republicans want more drilling, more consumption, and more tax giveaways for the big oil companies. Democrats say that those are exactly the policies that got us into this mess to begin with. This week, Democrats offered a new plan - a clean break from the failed Bush policies that were literally written by the big oil companies.
"First, the Democratic plan ends the billions of dollars in tax breaks for big oil companies whose executives have been hauling record profits while we pay record prices.
"Second, our plan forces the oil companies to do their part by investing some of their profits in clean and affordable alternative energy.
"Third, we protect the American people from price gougers and greedy oil traders who manipulate the market.
"Fourth, we temporarily stop filling the national Strategic Petroleum Reserve - which is already 97 percent full - to increase supply here at home and lower prices.
"And fifth, our Democratic plans stands up to OPEC and countries who are working together to keep oil prices sky-high.
"George Bush, Dick Cheney and their Republican friends have had more than seven years to control our national energy policy. Time after time they have sided with big special interests and left the rest of us to pay the bill. Again, enough is enough.
"This fight won't be easy. The President and his oil buddies have gotten used to the spoils of plunder, and they won't give up without a fight. Democrats will fight just as hard - but we need your help. Call President Bush. Call your members of Congress. Tell them that you're fed up with record gas prices, and you want a plan that puts people first. A plan that puts people first is long overdue.
"That's the Democratic plan. That's the plan our country needs. And with your help, we can get real results for you and your family. I'm Senator Debbie Stabenow from Michigan. Thanks for listening, and have a great weekend."

Oil prices are fairly complicated so let me tell you the basic effects.
OPEC - A Union of Oil Producing Nations mostly of Middle Eastern Affiliation.
US Dollar - The current trading currency for Oil Purchase. Swings in the value of the dollar greatly effects price.
Speculation
- In essence gamblers predict what will happen in the market and cause it to value up or down. War and general unsettled behaviors around the key fields greatly effects price.
Supply/Demand - World demand is at a never seen high with so many nations entering into the market. Supply has not really changed that much in relation to demand. This falling supply drives up price.
Refinery Capacity - Oil is a fantastic base starting agent but it must be distilled down to its more then 100 distillates. We currently buy out a large portion of this activity.
Final distribution - Location is big even in the Oil market. The farther you are from the source the higher the price unless out weighed by volume.

We can fix four of the six and probably effect 6 of 6 by doing the following.
Drill Our Own Oil - OPEC has NO say over Our Oil. We use our own Money. Speculation has minimal effect. We can control supply and better meet our needs. We are refining oil either way. If WE DRILL at home we don't have to haul it halfway around the globe.
Build More Refineries - We currently don't have the capacity to refine all the oil we need. This forces us to not only buy oil in the open market but now we have to pay other nations to distill it.

It has nothing to do with the nonsense in the Democratic Radio Message. If they follow through on their plan $6 a gallon is looking to be an easy reach. Please call your elected representatives and tell them to toss this plan and explain to them what America really needs to have done. Americans want Real Change in Energy Policy, they want to drill their own oil, do the jobs that need doing, and fulfill our distillation needs. Those are the Changes America Wants.

Radio Message Link

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