Tag Archives: oil

Your Tax Dollars Wasted

In 2007, the US Government, despite the fact that Ethanol is the wost alternative energy source, spent $3 Billion on Ethanol. Solar, wind and Geothermal, which could prove to be our Nation’s salvation to so many problems one doesn’t know where to begin to list them all, received just $750 million while biodiesel, got $180 billion. This demonstrates the power of the oil and farming lobbies, both whom benefit from Ethanol. Sure solar, wind and geothermal could create millions if not billions of jobs, remove the need for foreign oil and move us to carbon neutral status (perhaps even carbon positive…or negative depending on which way you want to term a move to the better), and could be used to power homes on a mass scale, not just primarily for transportation; and sure biodiesel, unlike ethanol, could be made without sacrificing food and/or feed crop, and without food/feed crop space and uses far less oil to produce than ethanol, but why let these facts gets in the way of a politician pocketing some money. Why should the government do what it can to help the environment or the people of the US get high paying jobs when they can take the money for themselves and run?
Unfortunately, Obama’s initial stimulus plan doesn’t include an infrastructure upgrade which would create far more jobs and have a long lasting positive step on the economy, but hopefully after they get past this rushed version they’ll work on improving the nation’s infrastructure to support a move to solar, wind and geothermal… there is no reason we couldn’t get nearly every ounce of our energy needs from the three.
hat tip: Who wins federal dollars race? Ethanol does, by a long shot. An older story I meant to comment on a long time ago…
I suggest seeing King Corn just to see how important corn is to the farming industry and how they manage to get corn into everything… everything, despite it isn’t really that healthy for you.

Can’t Keep Quiet Anymore

First let’s talk about Palin… One has to worry when the VP choice is far more popular than the actual nominee. People are leaving after she speaks while McCain is talking, and when appearing separately, she draws far bigger and enthusiastic crowds. It’s sort of as confusing as people loving American Idol over far better TV choices… Then there is the fact she tried to ban books, then tried to fire the librarian for not complying… and other abuses of power (firing the guy for not firing her ex-brother in law… her staff not complying with the subpoenas)… hey she’ll fit right in with the Bush administration…
Then there is the offshore drilling. I have to say I like the provisions the Dems put it, let the White House and Republicans rip into it… What’s wrong with having the state it is about to be used in approve it? What’s wrong with having to actually drill the spots they have now before adding new ones? Nothing with any of them aside from the fact it doesn’t favor the oil companies.
Now to the AIG bailout. Okay, so lots of companies all around the world would have been hurt if it failed. The problem I have is that unless we take the money out of the accounts of the board and other executives who made the bad decisions that led the company down this path, than they have been rewarded for gross incompetency. I would at least bring huge civil suits against the board and the rest of upper management to help offset any burden the government will have. It’s would almost be like bailing out Ford or the other big 3. They were the ones who bet heavily on big cars, trucks and SUVs without a good range of smaller to midsized cars for when the economy went south… and they had to know that sooner or later it would go south and gas prices would jump high… yet these boards and executives make millions for being idiots. We shouldn’t reward people for being stupid, and when their decisions touch as many lives and companies as AIG did, then those idiots need punished. Of course the reality is that they will walk away multi millionaires, and be given charge of another company, where they can do it all over again, because these idiots never learn… Look at the big 3 who had the same problem when gas prices jumped in the 70s, corrected but went right back to making the big cars and trucks that got them in trouble then.

The Trouble with Offshore Drilling in America

Some polls suggest up to 73% of American’s support offshore drilling to help decrease our dependence on foreign oil.There are just so many problems it hard to know where to start… so I’ll just make a little list in no particular order.
Before I go on, I should point out that I don’t necessarily oppose offshore drilling, but I think the reasoning is misdirected and relies on American’s ignorance of markets and other issues.
Continue reading The Trouble with Offshore Drilling in America

Rethinking the Windfall Tax on Oil Companies

I have been an opponent of putting a windfall tax on oil companies, particularly in light of the fact that on profit per dollar basis, drug companies and banks make more than twice the profits of oil companies. However, in light of the current economic crisis, and the fact that they have risen diesel so much right before a bunch of new diesel cars come out, I have rethought my stance and think that we should put a windfall tax on them. This doesn’t mean I don’t think we shouldn’t put a windfall tax on the drug companies and banks as well, we should, but each of the three need to be separate bills. All three industries are taking advantage of average Americans, but the oil companies are the ones who probably need the biggest windfall tax of the three.
With gas at $3.60/gallon, diesel should be $3.71 (traditionally diesel has commanded a 2 to 3% premium in the United States over gas, though it is cheaper in most other countries), even if we say the new ultra low sulfur diesel costs a bit more to make then the old diesel (still cheaper than gas), we’ll allow it to be $3.78. Right now, with gas at $3.60, diesel is $4.35, a bit more than a 20% premium, not quite enough to offset diesel’s overall efficiency over gas, but almost. Clearly they are worried about the car companies coming out with diesel cars and are trying to scare average American’s away from diesel. After all, if people realized they can get better gas millage from a diesel than a hybrid, and have a lower CO2 emissions with that… then that spells thin days for the oil industry, especially since bio-diesel can be made so effectively and without sacrificing food crop space the way Ethanol traditionally does, and as a bonus, doesn’t need as much oil as Ethanol does.
Anyhow it isn’t just the diesel issue, it is the fact that gas prices are hurting the average American, and the oil companies, their investors and boards are making a killing by raping American’s wallets.