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The Compromise "Drill Anywhere" Plan

by: Dean Baker, t r u t h o u t | Perspective

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As global warming threatens the arctic circle, Congress debates controversial calls from the Bush administration and many special interests to start drilling in the Arctic National Wildlife Refuge. (Photo: Jonathan Hayward / AP)

    Senator McCain and the Republicans in Congress are calling Senator Obama and the Democrats environmental wimps for refusing to allow the oil industry to drill in the Arctic National Wildlife Refuge, environmentally sensitive offshore areas and anywhere else they please. The Republicans are claiming that the Democrats don't care about Joe Sixpack, who now has to pay $4 a gallon for his gas. Nor do they care that most of this oil is now imported.

    In addition to concerns about the environment, one major reason that Democrats oppose drilling is that Joe Sixpack will never notice the effect of any oil recovered from these areas, even if we did allow drilling. According to independent experts such as the Energy Information Agency, there is too little oil in the offshore protected areas to have any noticeable impact on gas prices.

    In other words, we are not debating about helping Joe Sixpack pay for his gas. We are only arguing over whether to put environmentally sensitive areas at risk for nothing. The Republican claims about the impact of drilling on oil prices simply are not true.

    But we all know that politics is about the art of compromise, so there is a simple compromise that opponents of drilling can put forward. Since the drilling advocates are telling us that increased drilling will bring down the price of gas, there is no reason not to take them at their word. Why not just give them the green light to drill in the Arctic National Wildlife Refuge, the Florida Coast and other offshore protected areas, Mount Rushmore and anywhere else on the planet that they want.

    However, open drilling season comes with a simple quid pro quo. The oil industry gets slapped with a windfall profits tax that takes away any revenue in excess of $3 a gallon. Since we know it takes time to search for oil and drill wells, we can even give the oil boys a six-month grace period before the windfall tax takes effect.

    Based on what Senator McCain and the Republicans are telling us, this windfall profits tax shouldn't be of any concern to the industry. After all, opening up these protected areas for drilling will lead to a huge gusher of new oil on the market. This increased supply should push the price of gas back below $2 a gallon. According to McCain and the Republicans, once we declare open season for drilling, $4-a-gallon gas will just be a bad memory of what happens when you let environmentalists run the country.

    It would be interesting to see the response if Senator Obama or Democrats in Congress put forward this proposal. If McCain and the Republicans believe what they have been saying, then they should have no problem putting a windfall profits tax provision into their bill, since they know it will have no effect. On the other hand, if they believe what all the experts are saying - that additional drilling will have no noticeable impact on oil prices - then they will strongly oppose this bill, since it would be a huge tax on their friends in the oil industry.

    In short, this compromise "drill anywhere" plan is a simple way to force Senator McCain and the Republicans to tell the country whether they really believe that drilling in protected areas will lower gas prices, or whether they are knowingly making false claims for political gain. The "drill anywhere" plan will make them tell the truth without waterboarding.

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Comments

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Agree, that the compromise

Agree, that the compromise should raise the Federal Revenue. After all, We, the U.S. Taxpayers, are funding a war for control over one of the world's best known proven reserves. I'm an environmentalist who cares about global warming too, but still think we should permit drilling (it's actual environmental risk is low) ... NOT so we can lower gas prices (which I believed 10 years ago should be $5/gal, just like in Europe, so we'd start to get that it's going to run out someday and take action to reduce consumption...but so that we can replenish the federal and state coffers so taxpayers can have a government that can afford to fix roads, provide health care to its citizens, etc. Invest in new bold technologies for energy, space travel, education, arts, and more. Windfall profits tax is good. $25B Environmental Damage Bond would be another. Increasing the Federal revenue percentage at the wellhead, increasing minimum annual lease fees ($1/ac today, I believe), shortening the time allowed to hold non-active leases, etc. There are many more ways that the U.S. Taxpayer can be compensated for the "taking" of irreplaceable public property, which would simply be fair. The trick is to not simply allow the oil companies to write the laws.

If they drill, we will not

If they drill, we will not see $4 gas, but $6-$8 gas as in Europe. The only difference is that they will pocket the INCREASED profit, as they have for over five decades. Taxes, either on their profits, or at the pump, toward maintaining infrastructure that is falling apart in the U.S. will remain lower than the fees they pay to drill in the Gulf and on federal land, which are miniscule.

The thing that bothers me

The thing that bothers me most about this is that drilling for yet more oil only exacerbates the most serious problem - that of poisoning our ecosystem. First we spew toxins all over the area drilled, then we distill the pertorleum into fuel that adds to the global warming issue, and plastics that end up in landfills. As I just wrote in response to another article (on Jellyfish), even a rat knows not to foul its own nest, and yet we're doing just that at an alarming rate. It's no wonder the planet is dying. ~~ Lane Baldwin - alifewithspirit.blogspot.com

The real problem with high

The real problem with high gasoline pricing is the lack of refinery capacity. Why does everyone including the political pundocracy of msmedia ignore this fact? We can import or drill for new oil all that we want, but gasoline price reduction will only be marginal until congress mandates in a bill that excess oil profits must be used for the construction of new refineries to replace all those that were purchased from small regional oil companies for the main purpose of decommissioning them in order to improve major oil's profit margin. What dunce doesn't know about this? Sheesh!!!! I am appalled at the obfuscation and pandering that is coming from our political class that is the new breed of robber barons and the enablers of corporate greed and theft from U. S. Taxpayers.

I generally like your stuff,

I generally like your stuff, Mr Baker, but come on, will ya? Propaganda Chief Rove told us way back at the beginning of this 8 year nightmare that the Republicans are simply not members of the "reality based community". Darth and his dummy and all their enablers simply don't care about facts, evidence, tests, and all that other merely scientific rigamarole, any more than Ronnie and Bush I did. They are members of the reality creating community. Like God in the Old Testament, all they have to do is say something is so and it is so. Let there be scads of oil offshore and in Alaska! Gas prices drop to $1.50 a gallon. Let there be victory in Iraq! The Shias, Sunnis, and Kurds have a lovefest during which they give Exxon-Mobil all their oil. Let there be a booming economy in the US! Income up, jobs through the roof, E-Z credit for everyone, foreclosure and bankruptcy disappear, everybody drives big trucks. Let there be excellent health care in the US! Life expectancy up to the top, infant mortality lowest in the world, work time lost to illness drops to zero, pain disappears. Let unbridled "free market" capitalism reign and solve all problems! Er, that one seems to need a couple more wishes; we're working one it. Now see, Mr Baker, that was easier than reading My Pet Goat, wasn't it? So get with the program, eh?

To borrow from an analogy,

To borrow from an analogy, by Bruce Wilder, if I may, this is akin to Reagan's jumping in a canoe, paddling like hell downstream and yelling, 'whee look at us go' when we should have been working our way upstream ala Jimmy Carter with the end result instead of getting 60 miles upstream per Carter's model we wound u 80 miles downstream, or 140 miles from where we should have been. Like Ronnie, McCain is pandering to that most dearly held, the status quo or nostalgia (sometimes known as ignorance).

The Republicans that persist

The Republicans that persist in calling Democrats Wimps for not acquiescing to the demands to agree to drilling in the Arctic National Wildlife Refuge and other environmentally sensitive regions are hypocrites. The Republicans are being very hypocritical since the Oil Companies have several Hundreds of Leases in hand, and have had them for many years.. Leases that have not been drilled on as yet, even though oil is known to be there. These are located in almost all the States..and not on our Coastlines. So why the push to disturb one of the few Wildlife Refuges left in America ? Why not a Push to release some of the Reserve Fuel that our Government is hoarding, so it can be used now ? If this is not an Emergency situation..what is ? Is it because of a deal that has been made between this Administration and the Oil Companies. I cannot see a better stop-gap course to follow. The oil companies can stop holding out and use some of the Billions of profits that they have squeezed out of the people, and Drill on those Leases they have tied up and Held for decades. This present Administration is the worst run government in My lifetime of over Seven decades. Bar None !

Brilliant "compromise"! Get

Brilliant "compromise"! Get out the drill bits ASAP.

Regardless how much you

Regardless how much you drill, oil is not a renewable resource. Therefore our energy and planning should go in the direction of reducing the use of ouil. The two Dollar per gallon is nothing but a republican pipe dream that would actually increase the use of oil. We need to develop new sources of energy, or in about two years it will all be over. The earth will circle the sun as if nothing had happened.

once again another article

once again another article about oil that fails to mention the basic fact that no matter how much we drill THE OIL WILL STILL RUN OUT. it is inevitable and we are not ready. our non-negotiable american way of life cannot be maintained in the absence of cheap fossil fuel energy. period. end of story. oil companies can drill whereever they like and this fact will not change.

The only problem with DB's

The only problem with DB's plan is this: the Republicans will continue to childishly accuse the Dems of being wimps because, as we all know, only wimps compromise. And if the Dems give in - which they most likely will - the Republicans will call the Dems wimps for caving. IOW, the Republicans will label the Dems wimps no matter what, because that's what real wimps do - wimps like 5-deferment Cheney, and AWOL National Guardsman Bush, and Songbird McCain, and Turdblossom Rove...

It'll take the American

It'll take the American Enterprise Institute approximately six-tenths of a second to put out an economic paper which proves mathematically that the mere _threat_ or _existence_ of a Windfall Profits tax is enough to gum up the almighty perfect Free Enterprise System and abrogate any benefits of unregulated drilling. AEI will call this proposal "the worst of both worlds". Heck, they'll just take one of their Enron papers about electricity deregulation, scratch out "Enron" and pencil-in some oil company names. AEI will have a hundred representatives being interviewed on TV and in print within two weeks, while a half-dozen sane economists like Dean post flawless mathematical rebuttals to the AEI paper on their tiny blogs.

Last time I checked we do

Last time I checked we do not have a "nationalized" oil industry, ergo the oil from offshore drilling will go into the Global Market, not into USA gas tanks as the framing imagery from the GOP would suggest. The Oil companies headquartered in our country have no patriotic allegiance, they are just companies, and will sell to anyone anywhere that will pay them four dollars plus a barrel.

The trick is to get oil out

The trick is to get oil out of the mindset. Oil is an obsolete and inefficient source of energy and has been for decades. It's 2008 and we are using 1908 technology to literally run our system. Drill for more oil in a National Wildlife Refuge? Joe Sixpack's feet are already sore. Stop shooting his feet. We have enough oil. I believe we need to supplant the very old and tired notion that oil will make things better and consider renewable resources as the alternative. I will be as bold to say that hydrogen looks promising. Hydrogen is 10 times more combustible than gasoline and it's exhaust is water vapor that can then be recycled back into a combustible system. Why haven't you heard about such a technology? Would you consider it if it did exist?

DAR Hydrogen is a

DAR Hydrogen is a completely unworkable black hole. Unlike oil, there is no hydrogen to drill or mine. You have to make it. And when you do, you always use more energy to make it than you can ever get out. You always lose and would always be better off using the original energy rather than converting by using it to make hydrogen. Yes hydrogen is very combustible but unless you compress it to thousands of PSI it has very little energy. The enormous Hindenburg held over 7 million cubic feet of hydrogen gas. All of that gas contained the energy equivalent of approximately one gallon of gasoline. Get informed about hydrogen. An excellent article here (scroll down): http://www.skeptic.com/eskeptic/08-03-12.html D.

Yeah, sure, we look backed

Yeah, sure, we look backed into a corner. Sooner or later we have to tell the truth. We're a country addicted to the quick fix and a country addicted to our oil-dependent cheap energy lifestyle -- neither of which is going to help now. We can turn Big Oil loose on the environment tomorrow afternoon and we won't see any benefits, even small ones, for 10 years. What we will see is a ruined environment. Republicans can lie -- again -- but we're stuck with this one. Let's tell the truth. It's a real dare, a big-time political risk to stay the course. But I vote we try. I'm not ready to cave to the Big Oil opportunists.

Let 'em drill; maybe that

Let 'em drill; maybe that will shut them up. They won't see a drop of oil for ten years, in any case. By that time, we'll have been fighting the Russians and Chinese over the Caspian Sea deposits and won't give a hoot about a piddling few billions of barrels from the North Slope, anyway.

Truth and facts don't

Truth and facts don't matter, the oil companies control McCain and the media. Television news is misrepresenting most of the facts, and obviously voters are buying their crap. Obama has reiterated that he is mostly against offshore drilling, but if it will lead to getting a bill passsed with real solutions, he will backoff. Since when is being reasonable flip flopping? It seems like people believe all the senseless spinning the media throws at us. Do your homework and find the facts or we will end up with 4 more years of mental anguish and economic downturn.

We have just spent over $4

We have just spent over $4 trillion and over 4,000 American lives to get Iraqi oil for Exxon, Bp, and RD (Shell). What have we got in return for Cheney/ Bush energy policy? $4,00 gas and blame the Democrats! I presume that we are still putting oil into the (national reserve). For what? To push the oil up higher so the oil barrons can drill.

Nice stunt, Republicans, to

Nice stunt, Republicans, to play a sympathy card for the "Joe Sixpacks" of America (mind you, the economic blow is hitting everyone, even Marve Martini) for McCain and a Republican win. Do you really think that screaming at our Speaker to reopen the gates for your "debate" and using your stunt to voice your freshman blasts last night at other Demcrates pulled the wool over our eyes. You're clearly playing softball here. We discovered there was not enough oil in Alaska to make a dent many years ago. You mind as well screamed at the podium, "Let them eat OIL, OIL,OIL!!!" and stomped your feet.

This is exactly why Pelosi

This is exactly why Pelosi isn't bringing the so-called energy bill to a vote. If we have an aecess profits tax on Big Oil, maybe we can use some of that to fix our bridges and hiways. In essence, that is what Venezuela, Brazil and Argentina have done. Let's give the money back to the people it came from. Also, check out the latest news from MIT regarding the latest technology in solar energy. It appears this technology will beat the drilling and oil recovery time by at least a couple of years.

I wonder if the majority of

I wonder if the majority of the American public who supports off shore drilling believes that oil is actually coming t o the US? Maybe if the public demanded all off shore oil would come to the American consumer. It might make a difference.

If the GOP cared a lick

If the GOP cared a lick about Joe Sixpack, they'd cut taxes for the middle class. If the average American got a $1000 tax rebate, the increased price of gas wouldn't sting so bad. Ford Motors announced this week they'd be making smaller. more fuel efficient cars. Just like they are about 8 years too late, the Republicans are still stuck in oil-based profiteering, sucking prosperity right out of the heart of the middle class.

If drilling and retrieving

If drilling and retrieving more,new oil for the US market won't affect gas prices, then how are we to believe putting a marginal amount more of air in car tires will have any effect worth mentioning, let alone 'as much gas as we could drill' from these contested areas?

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