Ladies Logic

Sunday, May 11, 2008

Solutions

Congressman John Kline had an Op-Ed in yesterdays Star Tribune that speaks to many of the struggles that Minnesotans are facing in the current economy and what the House Leadership promised to do to address these issues...

Like most Americans, Minnesotans have had enough. They've become increasingly frustrated with the skyrocketing costs of everyday items such as food, household products and gasoline.

Just 16 months ago, Nancy Pelosi accepted the gavel from John Boehner at a historic moment in our nation. She and the new majority in the U.S. House of Representatives were ushered into leadership bolstered by a repeated promise for change that included a "common-sense plan" to lower gas prices.

...and what they have done to fix these problems...

Rather than seize the opportunity, the majority leadership squandered it, and you are paying the consequences for their broken promises by the gallon every time you pull up to the pump. In January 2007, the average cost of gas in Minnesota was $2.14 per gallon -- already too high. Sixteen months later, Congress has seen no "common-sense plan," and the average price of gas in the Twin Cities earlier this week was $3.64 per gallon. Meanwhile, the only solution offered by the majority leadership was House Energy and Commerce Committee Chairman John Dingell's plan for a 50-cent tax hike on every gallon.


...and what should be happening to solve the problems...

There should be debate on the House floor to find ways to reduce our dependence on Middle East oil and develop long-term energy alternatives.

Some say America has an addiction to oil. What is abundantly clear is our addiction to foreign oil, which is not only an economic issue but also a national-security concern. Congress should examine ways to increase domestic production, explore long-term energy solutions and advance a real energy plan that increases American supplies in all forms:

•Congress should consider opening the Arctic National Wildlife Refuge to environmentally safe production and increasing offshore drilling on the Outer Continental Shelf. Clearly, drilling for oil in Alaska or in the Gulf of Mexico is not a short-term solution, but if we continue down this course of inaction, we may still be discussing plans for rising energy costs when gas reaches, say, $8 per gallon. The Chinese are drilling for oil on the Outer Shelf because it is off the coast of Cuba. Yet, lawmakers -- Republicans and Democrats -- in Florida and California are standing in our way, blocking any efforts for the United States to drill on the shelf some 100 to 230 miles off our coasts.

•We should build new oil refineries. While production at our existing refineries continues to rise, we have seen no new refinery construction in 30 years.

•Clean-coal technology is another exciting energy resource that we must continue to explore; we have the domestic coal reserves to power our economy for generations.

•Renewable energies like wind and solar also should be part of the equation, along with nuclear energy, which is the top source of emission-free electricity.


Congressman Kline has long been a voice of reason and fiscal responsibility in the House. His recent Club for Growth ranking of nineteen (3 behind Congresswoman Michele Bachman and 82 ahead of that paragon of fiscal conservatism, Congressman Ron Paul) is just one more reason why his constituents have sent him back to DC as often as they have.

Congressman Kline understands how tight the voters budgets are right now and is working to provide ways to ease the crunch. We need a dozen more like him.

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5 Comments:

  • During the Bush years Congress has not challenged the oil or automotive manufacturing industries. Instead they have awarded tax breaks. The rise in gas guzzling SVU can be attributed to the classification for tax purposes that allowed business owners tax credits for purchasing these types of vehicles. Similarly, the oil industries are allowed a tax deduction provided to them as "manufacturers" of oil and gas products. The repeal of the Section 199 manufacturing tax credit for the five largest oil and gas companies would raise $17 billion over 10 years. That would certainly help reduce the national debt which has skyrocketed during Bush's term.

    Boehner (and now Kline) are trying to blame Pelosi, but before any changes can be made the Senate must agree and President Bush would have to sign off ... fat chance ... now with a new Senate and a new President (even McCain), then if nothing gets done then blame Pelosi.

    Does Kline support the royality payment structure that caps what oil companies pay regardless of what the cost of a barrel of oil is on the open market?
    Does Kline support continuing paying royalities to Alaska residents ... which potentially could be increased if ANWAR was open.
    Has Kline spoken out before about opening up trade with Cuba ? Minnesota farmers are missing out on a great export opportunity (just ask Jesse Ventura.)

    By Anonymous Anonymous, at 8:21 PM  

  • I see that the DNC talking point implant is working well anon. How about a few FACTS to refute those talking points.

    FACT: for the last 28 years DEMOCRATS in Congress have blocked any new domestic drilling while our demand has grown dramatically. All the while our domestic output due to that blocked domestic drilling has steadily declined.

    FACT: Since 1980 DEMOCRATS in Congress have blocked the building of much needed new refineries and nuclear power plants. All the while other nations are reducing their need for petroleum buy utilizing alternatives like nuclear.

    FACT: During the CLINTON years alone, US Oil production shrank by 1.34 MILLION barrels while our foreign imports INCREASED 3.57 MILLION barrels!

    Here is another fact that you and many in Congress are ignorant of. WHEN SUPPLY OF A PRODUCT IS HIGH, THE PRICE IS LOW AND WHEN THE SUPPLY IS LOW THE PRICE IS HIGH. That is an economic fact that you can not will away anon.

    The Democrats solution is more of the same - no domestic drilling, no deep water drilling, no increase in supply while you and I take in the shorts. Oh sure, they will talk a grand game, but until the day that alternative fuel sources can be made WITHOUT using petroleum products gas prices and food prices and the cost of everything else that needs gasoline to be shipped to market will go up and up and up and up.

    Blaiming this on President Bush when the FACTS are that these policies have been in place since JIMMY CARTER is just the height of ignorance of American History.

    LL

    By Blogger The Lady Logician, at 8:10 AM  

  • Please reread my comment as it is based on a flawed tax policy.

    Yesterday, the Senate voted down on drilling in ANWAR (Roll Call 123 which failed by 18 votes) with Norm Coleman voting against it (as did Mel Martinez R-FL as former Governor Jeb Bush was opposed to drilling in the Gulf.)
    I personally have no objection to drilling in ANWAR, but want an equitable royality from the oil companies - not with a cap. Also, there is no reason that Alaskan residents to get rebates.

    IF you want to go back to Carter years, shouldn't the Reagan/Bush years also be factored? Did the Saudis being are friends and relatively stable oil prices contribute to that decision?
    I worked for a company that made product for the oil industry and in the early 80's there was an oil drilling boom in the US and when it when bust there were hundreds of drill rigs sitting idle. We ended up cutting over 100 employees and it was a long time before that business came back. It was unprofitable to US rigs to operate when oil could be brought in from outside the US (and isn't Canada our biggest supplier of oil?) And don't forget that it is the American Navy that is protect the Iran/Iraq straights and worldwide shipping lanes at no cost the the Chinese or other countries.

    I agree that supply and demand has an impact on prices, but so does market manipulation. Bush's saber rattling with Iran has not helped. I have participated in the commodities market (not oil) and S&D only is one aspect when price is determined by a commodity.

    Also, as America embraces alternative energy, shouldn't Congress change the restrictions on importing sugar-based ethanol from Brazil but once again, Congress has import fee to protect the sugar producers.

    I also have no problem with expanding nuclear power production as it makes sense but so does Wind Energy which a recent government study said could supply 20% of our energy needs. Why hasn't Kline pushed wind harder.

    These are not Democrat talking points as I am not a Democrat. I voted for Bush before I voted against Bush.

    By Anonymous Anonymous, at 4:05 PM  

  • Since you mentioned the Club For Growth, did you see thier story on Republican Don Young (of Alaska) suggesting a $1 /gallon tax increase ?

    http://www.clubforgrowth.org/2008/05/don_youngs_arrogance.php

    By Anonymous Anonymous, at 8:48 AM  

  • Following up on my earlier comment regarding blaming Carter, I suggest that you consider the political climate of the '70s. If you remember the OPEC tried an embargo in 1973 to get the US to change it's support for Israel. It didn't work.
    I don't know about you, but I still have my Goldwater / Miller pin from '64 and and recall Goldwater saying that America would be at the mercy of foreign governments in thirty years as we would be out of domestic oil production (since South Dakato just discovered oil, we're still not out.) In '75, Congress passed CAFE (mileage requirements) as America made an attempt at improved efficiency. Some were beginning to realize that improving effieciencies would be beneficial.

    Carter took office in January 1977.

    In the late '70s, the leading exporters were Saudi Arabia, Iran, Kuwait and Venzuela. Iran, as you may recall was run by a US-sponsored Shah who was very friendly to America. In 1979, when the Shah was disposed, that caused the demise of Carter's presidency but also allowed an opening for the Soviets to invade Afghanistan in December. read the Iran - US history . My company was impacted as we were a subsidiary of Exxon and were working with Kellogg, Brown and Root (which more people know today from KBR's Halliburton newstories) and it took almost a decade to get the frozen Iranian monies released to cover our damages.
    Although Iran is still a major producer, I don't believe that it is a top supplier to the US (Canada is our number 1 foreign supplier.)

    The Soviet threat to extended its influence into the entire region concerned everyone.
    America had been working toward more domestic oil production ... are you familiar with George Bush's Arbusto Energy ?

    I believe that the US believed that it was in thier best interest to have Saudi Arabia producing oil as an ally as opposed to being influenced by the Soviets. The Saudi's provided cheap oil and American companies were actively involved. Remember that those countries supply vertually all of Japan's oil, etc. The politicans did not care that the world oil price drove American companies out of domestic oil extraction business (read the Arbusto link above). As I stated my company ended up laying off over 100 employees.

    Carter may be an easy target, but the Reagan's policies helped propped up the OPEC nations.

    There is an economic point where production can become profitable. When oil was in the $9 to $25 range, US extraction was not viable. Even domestic ethanol was not profitable until the price of oil rose. How much was a barrel of oil when Bush came into office (I'm guessing in the low-$40s). What is it at today ? The blame cannot be strictly put on increased world demand from China and India (China has signed contracts with African producers to get oil.) How much of the price run-up should be assigned to Bush's foreign policies?

    World demand has increased - and will increase more over time - but the best thing we could do would be reduce our comsuption through iniatives like improved CAFE standards that have worked in the past. The automotive industry has no desire to change -- that's why Government has to step in.

    These are my comments based on my life experiences and recollections - not some DNC talking points. If your facts dispute these, please educate your readers.

    By Anonymous Anonymous, at 10:35 AM  

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