Wednesday, October 15, 2008


by DM

The discovery of oil in the United States helped build an economy that was the envy of the world. Now, dependency on oil is destroying the United States.

Conservatives tell us that we need to drill for American oil on-shore and off-shore. That our only salvation will be to get more of our own oil so we are not dependent on foreign powers.

They don't talk about conserving oil or developing alternatives to oil.

They also ignore the conservative mantra that supply and demand should dictate the market. This is because they have no intention of letting an increased supply effect market changes. If there is more oil to sell, then that just means more profits, not reduced prices, even though demand is reduced.

Do you think a million barrels of oil drilled from the shores of Alaska or Mexico will lead to a price decrease in the cost of a barrel of oil? It should, but it won't. Now that we as a people, a government, have abdicated our responsibility of regulating industry and have turned the regulation of industry over to industry itself, industry will maintain artificially high prices for oil to increase their profits. You don't really think that something as trivial as sound economic principle would play a role in the decisions of energy executives do you?

Absolutely not!

If we let the oil companies drill as they want, they will not lower the price of oil just because the supply goes up and the demand goes down! They will regulate the price as high as they like, because we the people, our government, have turned our collective backs on responsible regulation of industry.

Ronald Reagan himself promised that with deregulation would come innovation. That industry regulated by government couldn't afford to innovate (though I can't remember a single year during decades of regulation that saw decreased oil profits). We were told that a deregulated energy industry would find new, innovative ways for us to power the American Dream. Well, energy profits (oil profits in particular) have soared, in the past generation of deregulation; but, I haven't really seen much innovation - especially from the oil companies.

So, no, I don't think we should allow drilling right now. Not until the American people grow a set of balls and take back our nation from the pirates who have mismanaged it with the powers they have been given under Reaganomics, and restore it to the post-war glory that includes unyielding growth, huge profits, lots of jobs, and flourishing regulated industries.

Industry doesn't know how to act like responsible, good citizens, unless they are taught and guided (like a miscreant). They need (like all misbehaving citizens) to be punished and controlled, just like other sociopaths.

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1 comment:

Anonymous said...

I'm voting for Sarah Palin because she's a hunter!