Tuesday, June 17, 2008

The Real Candidate for Change -- John McCain

John McCain has embraced the basic facts of economics and geo-politics. If supplies of a commodity are barely meeting demand, the price will rise. But rising prices -- in a functioning market -- will, if allowed, lead to the delivery of greater supply. Better still, the sources of these new supplies of oil are domestic. Hence, Americans will earn high pay getting the valuable commodity of oil into the hands and gas tanks of Americans. An increase in oil drilling will generate more sales tax revenue, more income tax revenue, more corporate taxes and further stimulate all aspects of our domestic energy industry. Good news all the way around.

Domestic oil drilling also sends a clear message to middle east oil sheiks. Saudi Arabia announced plans to increase daily oil production to almost 10 million barrels, an increase of about 500,000 barrels a day. The Saudis understand who butters their bread. Meanwhile, it's an overlooked fact that US oil production is almost 8 million barrels a day. An end to the Federal moratorium on off-shore drilling would open the door to a speedy increase in domestic production.

It would take a couple of years to start oil flowing from some off-shore reserves. But others can begin producing in a hurry. The Saudis are sensible enough to realize that any additional oil extracted from US reserves is oil that cuts into their revenue. If the US raises production 1 million barrels a day, the Saudis feel the pain twice -- first because they will see their sales volumes decrease, and second they will see revenue decreases as prices fall.

It may seem hard to believe, but oil prices fell to $10 a barrel TWICE in the 1990s, when supply exceeded demand by a remarkably small degree.

It boils down to this: McCain for Change. John McCain has seen the light and now realizes that it is foolish to punish the entire world with soaring oil prices. Nobody except the middle-east tyrants win when oil sells for stratospheric prices.

But Obama does not understand or accept economic and technical realities. He and his cult believe solar power and other alternatives can replace oil at a revolutionary pace. THAT CANNOT HAPPEN. Science and technology does not advance on political timetables.

Obama, in his desire to oppose change, believes in turning back the clock. He wants to recreate the days of Jimmy Carter, who believed that confiscating corporate profits was the path to lower energy costs. But it was free-market forces that dropped oil to $10 a barrel several times in the years AFTER voters tossed him out of the White House.

McCain hits Obama on windfall profits tax

SAN ANTONIO (AP) - Republican Sen. John McCain criticized Sen. Barack Obama's call for a windfall profits tax on the oil industry on Tuesday, despite leaving the door open to the same idea last month.

The presumed GOP nominee leveled his attack in prepared remarks in which he said the next president must be willing to break with policies of both the Bush and Clinton administrations to reduce dependence on foreign oil.

"This was a troubling situation 35 years ago. It was an alarming situation 20 years ago. It is a dangerous situation today," the Republican presidential contender said.

While McCain was speaking in Texas, the energy-producing state that is home to President Bush, he is attempting to chart his own course on energy issues. He parts company at times with the Bush administration as he courts independent voters, opposing drilling in the Alaska National Wildlife Refuge, for example. Yet he announced on Monday he favors lifting the federal moratorium on offshore drilling to allow states to decide whether to explore coastal waters, an approach backed by Bush that drew quick criticism from some environmentalists.

McCain criticized Obama, his Democratic rival, repeatedly in excerpts of a speech planned for delivery Tuesday evening. He cited Obama's advocacy of a tax on excess oil industry profits as well as the Democrat's vote for President Bush's energy legislation in 2005.

McCain reserved his sharpest words for the windfall profits tax.

"If that plan sounds familiar, it's because that was President Carter's big idea, too. ... I'm all for recycling, but it's better applied to paper and plastic than to the failed policies of the past," McCain said in the excerpts.

McCain said United States' dependence on foreign oil has grown markedly worse since the Arab oil embargo of the 1970s.

He said he favors lifting the existing moratorium on offshore oil drilling and leaving it up to the states to decide whether to explore for energy sources in coastal waters.

That amounted to a reversal from his position in his first presidential campaign in 2000, when he said he favored the existing ban.

He also called for greater use of nuclear power as well as for alternative energy sources and greater conservation measures.

"Over time, we must shift our entire energy economy toward a sustainable mix of new and cleaner power sources. This will include some we use already, such as wind, solar, biofuels, and other sources yet to be invented.

"It will include a variety of new automotive and fuel technologies—clean-burning coal and nuclear energy to put the power of the market on the side of environmental protection," he said.


Anonymous Riva said...

Good for people to know.

9:32 AM  

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