The Million Dollar Way (The Bakken Oil Blog)

Thursday, June 9, 2011

From Carpe Diem: Don't Blame "Big Oil" for High Gasoline Prices

The administration's moratorium on exploratory drilling in new offshore areas has locked away billions of barrels of oil. Oil production in Alaska, which has been in decline for decades, could be doubled by opening up the Arctic National Wildlife Refuge and Arctic waters that are currently closed to drilling.

Combine these restrictions on drilling with instability in the Middle East and it's no wonder consumers are gritting their teeth at the price of gasoline. But we shouldn't blame oil companies for soaring prices, when they have nothing to do with the restrictions on domestic energy sources or the geopolitical events elsewhere that are the real culprits for higher gas prices.

Clear, concise, and correct.

[Scroll through all of Carpe Diem when you get there.]

Obama Hinting At Possibly Considering Maybe Tapping Perhaps Into the Strategic Petroleum Reserve This Month or The Next Month Or Maybe Waiting Until Next Year Or After One More Poll

Link here.

Random comments, some mine, some from the link, regarding tapping the SRP:

Tapping the SRP suggests a crisis; tapping the SRP to help the economy confirms economy is in crisis
Administration confirming economy is in crisis, same as those polled who think US heading for another Great Depression -- "the only thing we have to fear is fear itself"
13 days for SRP oil to reach the market
Americans know that the SRP would have to be refilled -- prices for oil would soar (can you spell "speculator"?) once "we" tap into the SRP
The last barrel of oil determines the price of oil; even as US releases SRP oil, OPEC could decrease production
All things being equal, tapping the SRP will not keep up with projected global growth and oil consumption
What happens when SRP is tapped and price of oil goes up anyway (can you spell "speculator"?)
Amount of oil tapped from SRP could probably be met by just fast-tracking oil permits
I can think of few things more idiotic in the world of commodities and economics than tapping into a reserve meant for "emergencies" -- on second thought, I can't think of anything more idiotic

Finally: Can There Be More Proof That EPA Is Out of Control? AEP To Shut Down Five Coal-Powered Plants by 2014; Loss of Jobs Minuscule (600) Compared To the Millions Already Lost in The Recent Recession -- Opportunity to Modernize

Link here.

Even administration supporters say the EPA has gone too far this time.

Utility giant American Electric Power said Thursday that it will shut down five coal-fired power plants and spend billions of dollars to comply with a series of pending Environmental Protection Agency regulations.

The company’s dramatic plan to comply with the regulations could give Republicans and moderate Democrats ammunition in their ongoing fight against EPA's efforts to impose new regulations aimed at limiting greenhouse gas emissions and air pollutants including mercury and arsenic.

Rep. Shelley Moore Capito (R-W.Va.) and Sen. Joe Manchin (D-W.Va.) immediately pounced on AEP's announcement.

“This is a perfect example of the EPA implementing rules and regulations without considering the devastating impact they may have on local economies and jobs,” Capito said.

Capito said she will write a letter to EPA Administrator Lisa Jackson asking whether the agency took into account the economic impact of its regulations.

The EPA's response to Capito's inquiry will be a one-liner: "Considering the economic impact of our rulings and regulations is not our mandate -- protecting the environment is our mandate."

Data points, to comply with EPA's proposed rules, AEP will close five (5) coal-powered plants by 2014

cost:$6 to $8 billion to comply
cost: 600 lost jobs
cost: utility rates to increase as much as 35 percent

Something tells me AEP is using the proposed rules as an opportunity to modernize; by law, utilities must be allowed a certain return on their investment.

AEP will do fine.