Friday, August 01, 2008

Congress Insists On Outsourcing Oil Jobs Overseas

In a comment, Bob Wright asks "Why does the Democratic Party insist on OUTSOURCING oil industry jobs to Saudi Arabia, Venezuela, Iran, Iraq, Russia, and Nigeria?" - see chart above showing rising imports and declining domestic production since 1985, EIA data here.

Bob links to today's WSJ editorial "Pelosi's Energy Stonewall," here is a quote:

The Democratic leadership is stonewalling any measure that might possibly relax the Congressional ban on offshore drilling. Nancy Pelosi and Harry Reid know that they would lose if a vote ever came to the floor, and they're desperate to suppress an insurrection among those Democrats who are pragmatic about one of the top economic issues. Behind this whatever-it-takes obstructionism is an ideological commitment to high energy prices. The rulers of the Democratic Party want prices to keep rising.

MP: Good point, Bob. One of the benefits of more domestic oil production is MORE DOMESTIC  OIL JOBS.


At 8/02/2008 8:36 AM, Anonymous Anonymous said...

There is another benefit of drilling. It would greatly reduce the trade deficit. The deficit is declining and the only thing thats keeping it as large as it is the amount of oil we import. If were to cut the amount of imports down, we would see the deficit decline and the dollar would strengthen.

At 8/02/2008 12:14 PM, Anonymous Anonymous said...

It is difficult to reconcile some of the positions coming out of Washington:

1. On the one hand, many politicians advise consumers to "buy local" because imports have a higher carbon footprint due to their transportation. Such considerations, however, do not seem to apply to oil.

2. The Democrats and a few Republicans keep trying to pass legislation to tax "windfall profits" of domestic producers and force them to invest in renewables that are not economically viable. These costs however would not apply to foreign producers. How do these policies help the U.S. achieve oil independence, increase the oil supply to lower prices, reduce the trade deficit, and create jobs?

3. One hears contentions that oil companies are gouging consumers. If oil companies do not set the world price of oil, how can this be possible? How can taxes on windfall profits lower the world price of gas which is set in the global marketplace?

4. Politicians pushing renewables seem to be hell bent that Americans should stop using oil altogether. At present, there is no alternative energy infrastructure in place to replace gasoline. America cannot produce enough ethanol to replace existing gas consumed. Wind and solar power cannot provide stable base load electrical power and few Democrats are willing to expand nuclear or hydro-electrical generation. With regard to electrical cars, the fundamental challenge is developing a battery which can store sufficient charge without overheating. There are prototypes due out in 2009-2010 but at present, they are not licensed in all states.

5. The Democrats and some Republicans are blocking oil exploration in ANWR and on both coasts. Setting aside the question of ANWR, neither coast represents a national wildlife preserve. How does one justify these restrictions given the advances in technology?

6. Politicians harp on about currency manipulation by the Chinese but maintain policies which actively block expansion of oil exploration, drilling and refinement in the U.S., with the result that the U.S. sends billions of dollars offshore to pay for foreign oil.

7. Politicians say that they are committed to the war against islamofascism yet buy oil from countries like Venezuela and Iran that sponsor terrorist groups. Restricting domestic production helps to keep the price of oil high.

These misguided ideas are heard from Democrats and Republicans. Fortunately, we have the "invisible hand" to help solve the problems.

At 8/02/2008 4:55 PM, Blogger bobble said...

i'm for drilling in anwr and off-shore.

but, i think it's laughable that this blog would ever use the word offshoring in a negative context. this blog is one of the biggest cheerleaders for offshoring everything possible.

"MP: Good point, Bob. One of the benefits of more domestic oil production is MORE DOMESTIC OIL JOBS. "

LOL! good point MP, lets stop offshoring everything and there will be LOTS MORE DOMESTIC JOBS of all kinds.

At 8/03/2008 8:33 AM, Anonymous Anonymous said...

bobble, I believe the outsourcing offshore comments are based upon economics. I see no viable economic reason to send oil jobs overseas.


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