18 May 2008

Why are Gas Prices So High?

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Investors Business Daily finds a key part of the problem is right here at home.

As President Bush traveled to Saudi Arabia to ask the House of Saud to open the oil spigots a bit wider, Congress showed once again how clueless it is when it comes to energy policy.

Underscoring its failure to grasp the nature of our current problems, the Senate Appropriations Committee on Friday refused to end its moratorium on oil shale development in Colorado.

“If we are really serious about reducing pain at the pump,” Colorado’s senior senator, Republican Wayne Allard, said, “this is a vote that would make a difference in people’s lives.” He’s right.

But the shale proposal went down to defeat with Allard and 13 other Republican members in favor and 15 Democrats opposed. Once again, Democrats were on the wrong side, opting to keep oil in the ground and punish you with higher prices as a result.

This was no minor thing. Estimates put the amount of oil locked in shale in both Canada and the U.S. at more than 1 trillion barrels. Pulling out even a tenth of that would quadruple our current reserves.

This is the same Congress that refuses to allow drilling in Alaska’s Arctic National Wildlife Refuge, which holds up to 20 billion barrels of crude, or offshore, where another 30 billion await.

Meanwhile, Brazil — which recently made a major oil discovery almost in sight of Rio’s beaches — announced that it has leased 80% of the world’s deep-sea offshore oil rigs. In other words, Brazil unlike the U.S., isn’t dithering as prices soar. It’s drilling. …

The U.S. uses about 21 million barrels of oil a day. But only 8 million come from our own sources. That leaves a 13-million-barrel-a-day deficit that, at $126 a barrel, will cost us $600 billion to plug this year. That’s more than two-thirds of our total trade deficit.

Congress could reduce much of our oil shortfall by drilling for more on our own territory. This would lower prices and increase security. Yet, Congress seems dead set on doing the opposite.

With its failure to tap the vast supplies in ANWR and offshore, its passage of costly global-warming legislation and now its refusal to exploit our massive resources of oil shale, Congress has set us on a path to less energy, higher prices and weakened national security.

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5 Feedbacks on "Why are Gas Prices So High?"

EDDIE

well why didnt the republican congress vote to drill in anwr and other places before we got a democratic congress in november?



LEO MOZOLIC

VERY INTERESTING ARTICLE. BUSH HAS BEEN BLAMED FOR EVERYTHING AND IT IS THE DEMOCRATES THAT ARE HOLDING UP THE DRILLING OF US RESOURCES. SHAME ON THEM. POLITICS AS USUAL. IF A DEMOCRAT BECOMES PRESIDENT ,I’M SURE WITH A DEMOCRATIC CONGRESS ,THERE WILL BE DRILLING ALL OVER TO MAKE THEMSELVES LOOK GOOD.



JDZ

That majority was bogus, as it included too many RINOs who voted with democrats on issues like that one.



kirk buch

both sides are to blame. but this congress is not considering the problems of high oil because of campain contibutions to them. non popular policy is only pushed when it is imparative. it takes collective policy change,not partisain politics to address issues on high pricing



jackson

I’d recommend reading this report on the rising costs of oil, it lays out everything pretty well.

http://blackandwhiteprogram.com/report/oil-and-gas-prices



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