The recent request by President Bush to allow drilling for oil off America’s shores and Senator McCain switching his position to the virtually the same thing shines an even brighter light on the Democratic Energy Policy which is to raise taxes on oil companies. The result of the Democratic plan would be that the oil companies would pass on the taxes at the pump. That means, under the Democratic plan, you and I would be paying the additional taxes!
Democrats in the Senate and House came out in opposition to the plan to drill off shore, stating that you can’t drill our way out of the high cost of gasoline. Some said that drilling won’t change the cost at the pump soon enough. Some said that there wouldn’t be enough oil to make a difference. Some criticized the oil companies for not drilling where they already have off shore leases. Some said it didn’t make sense to authorize drilling because there are no ships available to drill from.
I would argue that it makes more sense to drill for oil than to raise taxes. One eventually results in more oil and one does not. What isn’t being said is that when the U.S. faced a similar crisis in the late 70s, a program to build plants that would create synthetic fuels. The program would only have been successful if oil prices remained high, but when the United States started a program that would reduce our need for foreign oil, the price dropped from about $38 dollars per barrel to $8 dollars. President Reagan then ended the government support for the synthetic fuels program.
I don’t think it was a coincidence that the price dropped. I think that there is a good chance that oil prices will drop drastically before the first barrel of oil reaches the surface! OPEC wants nothing to do with the U.S. being energy self-sufficient. They count on our need for oil. They know that China and India are coming on line, but they want to keep us addicted to their oil as well.
Now if Congress isn’t too busy trying to sneak an immigration bill by the American public, or if they aren’t too busy making speaches and having hearings that try demoralize our military, or if they aren’t too busy investigating some sort of “problem” happening in professional sports, then maybe, just maybe, they might vote in favor of what over 60% of Americans want. That is to begin drilling for oil and get us off dependence of foreign sources.