oil

Tue, 2012-03-27 11:48Farron Cousins
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Beginning of The End for Big Oil’s Billion Dollar Subsidies?

Democratic Senator Bob Menendez (N.J.) has introduced legislation in the U.S. Senate to kill, once and for all, the billions of dollars worth of subsidies that are flowing from the federal government to the oil industry.

Under Menendez’s proposal, the $4 billion annual corporate welfare handed out to oil companies would instead be used to pay down the federal deficit and be re-invested into renewable energy technology.

Given the Republicans’ history of fighting for the oil industry and their subsidies, you would expect this bill to be dead on arrival. However, in an odd combination of arrogance and ignorance, Senate Republicans actually sided with Democrats in a vote to move the bill onto the floor for debate.

Republicans currently believe that any issue involving gas and oil is a home run for their party, so they’re banking on the issue actually helping them out, politically. Senate Minority Leader Mitch McConnell made the following statement about the issue:
  

“We’re going to use this opportunity to explain how out of touch Democrats are on high gas prices, and put a spotlight on the common-sense ideas Republicans have been urging for years – ideas that reflect our genuine commitment to the kind of all-of-the-above approach the President claims to support but doesn’t.”
 

McConnell’s comment demonstrates both the arrogance and ignorance of the Republican Party on the issue of gas prices.

Fri, 2012-03-23 13:55Ben Jervey
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Look to Canada for Proof that Neither Presidents Nor Pro-Drilling Policies Control Gas Prices

Another Spring, another round of totally uninformed and illogical arguments about gas prices.

You could be forgiven if you’re feeling some deja vu. As conservatives and Congressional Republicans scramble to blame the president for rising gas prices, you might have the feeling that we’ve been here before.

Oh, that’s right. It was just last year (almost exactly a year ago, actually) that prices were pushing towards $4 per gallon, and everyone from Sarah Palin (in a ludicrously misguided and ill-informed Facebook rant) to Speaker Boehner were misplacing blame for pump prices.

Anyone who takes the time to actually look into it can pretty easily learn that the president alone can’t do much about rising gas prices, through expanded drilling or approving pipelines or whatever else.

The AP just ran a definitive piece that looked at 36 years of data, and found “no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.”

And here are twenty experts from across the political spectrum (including the staunchly conservative American Enterprise Institute and the Cato Institute) stating clearly that domestic drilling has no real effect on gas prices.

A full 92% of economists surveyed replied that gas prices are set by external market forces, and not domestic policies. Even Fox News reported in 2008 that “no President has the power to increase or to lower gas prices.”

Still, the disinformation flies, and so I’ll throw another fact-based argument in the mix. You want more proof that we can’t drill or pipeline our way to lower gas prices? Look north, to Canada.

Fri, 2012-03-23 12:06Farron Cousins
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Tracking The Origins Of The "Blame Obama For Gas Prices" Talking Point

Since at least last summer, conservatives have been parroting the oil industry talking point that President Obama is somehow the one responsible for the spike in gasoline and oil prices. As we have pointed out, they base this on their assertion that the President has been “hostile” towards the dirty energy industry by prohibiting drilling and denying the passage of the Keystone XL Pipeline proposal. While the Keystone deal is currently on hold (although not even close to being off the table,) the assertion that the president has been hostile to the oil industry is beyond false.

Furthermore, the claim that Obama is responsible for the rise in gasoline prices is untrue on all premises. Just this week, the Associated Press released a report explaining the numerous ways in which gasoline prices are far beyond the control of the President, regardless of his actions or policies that he puts in place regarding oil exploration. Here are some highlights from the new report:
  

Tue, 2012-03-20 11:58Farron Cousins
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Fact Checking The New Paul Ryan Budget on Energy and Environment

Representative Paul Ryan (R–WI) has released his budget for fiscal year 2013. To almost no one’s surprise, his outline is filled with too many falsehoods and outright lies to count.

After analyzing just one section of his proposal – the section on energy and the environment – more than half a dozen false statements were found in a mere eight paragraphs.

Before analyzing Ryan’s claims from his budget, it’s important to understand why he feels the need to misrepresent what the Obama Administration has accomplished during the last four years.

Ryan, who is currently the Chairman of the House Budget Committee, has received $65,000 from Koch Industries during the course of his tenure in the House, with a total of more than $245,000 from the oil and gas industries to run his campaigns, according to the Center for Responsive Politics.

The fact that he is in the pocket of the dirty energy industry is clear with the accusations he makes in his proposal. Those claims are below, followed by the truth.

Thu, 2012-03-15 15:06Farron Cousins
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U.S. Chamber Front Group Holds “Whine And Blame” Facebook Party – Nobody Shows Up

American Free Enterprise, a front group of the U.S. Chamber of Commerce, held a complaint session on Facebook on Tuesday afternoon to let Americans vent about “who is to blame” for rising gas prices. Unfortunately for the group, few people attended their virtual party.

The pity party was an attempt to get Americans riled up at President Obama for allegedly being an enemy of the oil industry – a claim that conservatives have falsely been throwing around since he took office. But the lack of enthusiasm was evident by the low participation.

Here is the comment thread from the “discussion,” which I captured yesterday. Names and pictures have been covered:

Wed, 2012-03-07 20:03Farron Cousins
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Republican Claims About Gas Prices Demonstrate Lack Of Knowledge About “Free Market”

As the national average for gas prices pushes closer and closer towards $4 a gallon, Republicans have wasted no time in attempting to convince the public that President Obama and his “hostility” towards the oil industry is the reason we’re feeling the squeeze at the pump.

Fox News recently leant space on their website to let Republican National Committee Chairman Reince Priebus feed debunked talking points to Fox readers in an error-filled op-ed:

Fri, 2012-03-02 16:50Farron Cousins
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U.S. Chamber Hits The Road To Promote "Oily" Highway Transportation Bill

A bitter fight has erupted in Washington, D.C. in recent weeks surrounding the fate of a much-needed transportation and infrastructure bill. Congressional Democrats wanted to pass a bill that would fund projects to help rebuild roads and bridges, but Republicans were against the idea.

So, in an attempt to get something more tangible out of the legislation, Congressional Republicans loaded the bill down with dozens of handouts to the oil industry, including immediate approval of the Keystone XL pipeline and expanded access to U.S. lands for oil exploration. The amendments would also take national gas tax money away from public transportation projects, and reduce the amount of federal contributions to public employee pensions – two actions that will have devastating effects on middle class America. And with the fight bringing the discussion on the legislation to a halt, the U.S. Chamber of Commerce took it upon themselves to hit the road and sell the bill to the American public.

From the U.S. Chamber:

The business group will be hosting breakfasts, lunches and policy roundtables with local chambers and business associations this week in 12 different cities in Ohio, Idaho, Georgia, North Carolina, South Carolina, Alabama and Louisiana.

Janet Kavinoky, the Chamber’s executive director of transportation and infrastructure, will be on the road trip, along with Alex Herrgott, one of the business group’s transportation lobbyists.

“The idea is to get out, give people a good sense what the bill is and get them talking to their members of Congress and have them get the bill done,” Kavinoky said. “We want Congress to feel like it needs to come back to Washington and get the bill done and put it to bed.”
Tue, 2012-01-24 15:11Farron Cousins
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Another Industry Talking Point Laid To Rest: Oil Production Soars But Gas Prices Remain High

It is hard to believe that it's been almost four years since Americans were bombarded by the cry of “Drill baby, drill” that echoed throughout the halls of the Republican National Convention in 2008. That slogan became a rallying cry for conservatives who believed that increasing oil drilling – in spite of the environmental costs – would lead to an economic boom in the United States, and would also help ease prices at the pump for American consumers.

So today, nearly four years after those words were uttered to millions of conservatives, we have domestic oil production reaching a 24-year high, according to new reports. By industry and conservative logic, this should also mean that economic productivity has risen while consumer gasoline prices have fallen. But nothing could be further from the truth.

It turns out that increased oil production has nothing to do with the prices Americans pay at the pump. While industry leaders point to increased production in 2008 that was followed by lower prices, experts counter that the drop in price was due to simple market fluctuations: specifically, a drop in demand due to the global recession.

People travelled less and therefore didn’t use as much gasoline, creating a surplus that companies had to expel by lowering prices. These same experts also say that a rise in renewable energy use contributed to lower fossil fuel prices during this time period.

Wed, 2012-01-18 11:11Ben Jervey
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Keystone XL Pipeline Would Increase Oil Prices in Midwest

Twitter is ablaze with the news that the State Department will announce today that the original TransCanada presidential permit application is dead in the water. Details are murky, so stay tuned for more, but what this likely means is that the State Department will allow TransCanada to re-apply for the permit with a new route that avoids the heart of Nebraska's Ogallalla Aquifer.

While it's good to see that President Obama is standing up to oil industry bullying and Republican pressure to fast-track the permit, this still means Keystone XL is very much in play. If it's ever built, Keystone XL will allow the expansion of the Alberta tar sands that climate scientists worry will send us down a dangerous path of global warming pollution. 

What's more, the Keystone XL tar sands pipeline, if built, would increase oil prices in the American Midwest. That’s the shocking takeaway point from a bombshell report about Keystone XL as an export pipeline released today by the Natural Resources Defense Council and Oil Change International.

We’ve reported time and time again here on DeSmogBlog, the proposed Keystone XL tar sands pipeline would not improve America’s energy security, but never has that reality been more clearly conveyed than by this one real-world point that is worth repeating. The Keystone XL tar sands pipeline would increase oil prices in the Midwest.

To understand how, exactly, an increased supply of oil to America could increase oil prices domestically, you have to understand two things about the Keystone XL pipeline.

First, Keystone XL is is an export pipeline, funneling foreign crude through American soil to Gulf refineries that will profit most by processing the low-grade tar sands crude into diesel to sell to the booming international market.

Tue, 2012-01-10 15:41Farron Cousins
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The Fracking Job Creation Myth

The prospect of job growth in the United States has been a major selling point for industry in the four years since the beginning of the recession. And even with positive gains being made in the job sector over the last year and a half, unemployment is still hovering around 8.5%. That is why unemployed Americans are still eager to jump onto plans that promise to create much-needed jobs in our country.

The dirty energy industry is well aware of the fact that promising jobs in these times can get you ahead, and they are using this to their advantage. In an attempt to push for increased hydraulic fracturing (fracking), the industry is touting the alleged job creation benefits of the practice. They are pitching fracking as a snake oil salesman would pitch a “cure-all tonic,” claiming that allowing them to continue fracking and drilling activities will help our economy by creating jobs and it will help our country by solving our energy problems.

But fracking has been going on for decades, the industry likes to remind us, although it has picked up tremendous steam in the last 5 years with the advent of directional drilling. So where are all those hundreds of thounsands of jobs that we’ve been promised? The answer to that question is simple: They don’t exist - At least not in the numbers the industry wants us to believe.

Helene Jorgensen from the Center for Economic and Policy Research outlines how the dirty energy industry has tried to hoodwink the American public:

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