Time to break impasse on energy policy
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Sen. Ben Nelson sagely pointed the way to the political center again last week when he and others in the “Gang of Ten” unveiled compromise energy legislation.
His stubborn colleagues on both sides of the oil ought to pay attention. Ideologues have had their day. They’ve produced nothing but impasse and standoff. It’s time for practical minds to take over.
Essentially the plan would loosen the federal moratorium on offshore oil drilling and end a tax break for oil companies.
The plan has merit. Technological advances have reduced environmental risks since Congress passed the offshore ban in 1981. In addition, the industry has posted a good record in the intervening period.
The draft legislation would allow oil companies to drill within 50 miles of Florida’s gulf coast, as well as off the coasts of Virginia, the Carolinas and Georgia, if those states agree.
The ban on drilling off the West Coast would continue, as would the ban on drilling in the Arctic Wildlife Refuge.
The $84 billion Energy Reform Act proposed by the Gang of Ten calls for 85 percent of new vehicles to be powered by non-petroleum fuels within 20 years.
The legislation would give consumers a $7,500 tax credit to purchase an electric or fuel-cell vehicle, and a $2,500 credit to retrofit their current vehicles into plug-in hybrids.The ethanol industry would receive $2.5 billion in new research money to create more efficient biofuels, such as cellulosic ethanol currently being studied at the University of Nebraska-Lincoln and elsewhere.
Costs of the legislation would be paid by excluding oil companies from tax credits that apply to other manufacturers.
“Frankly, there was a lot of dispute at the time it was granted to them,” said sen. Kent Conrad, D-N.D. “Circumstances have changed. With oil at these levels, we don’t think that manufacturers’ credit is necessary to encourage them to explore and produce oil and gas.”
At a time when ExxonMobil turned an $11.7 billion profit for the second quarter — the biggest in U.S. history — Conrad makes a valid point.
The energy proposal is not the first time that Nelson has been linked with gang activity in the Senate. Three years ago he joined the “Gang of 14” in ending an impasse over judicial nominees.
Nelson said he thinks there is a very good likelihood that when senators return to their districts and listen to constituents, they’ll find that “people will not accept delay” until after the November election.
He’s right about that. Voters are tired on unfilled promises. No sooner is one election over than the parties start jockeying for the next. Nelson’s bipartisan effort to formulate an energy policy is appreciated.
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Politics above all wrote on August 7, 2008 8:19 am:
Big Chief wrote on August 7, 2008 8:57 am:
Josh wrote on August 7, 2008 9:23 am:
What not free market solutions wrote on August 7, 2008 10:46 am:
SB wrote on August 7, 2008 10:48 am:
Tzi wrote on August 7, 2008 12:15 pm:
MarkyMark wrote on August 7, 2008 1:45 pm:
Ray wrote on August 7, 2008 3:35 pm:
That's because these leased lands that don't contain productive drilling operations likely are not lying idle as Obama implies. There are a lot of steps and procedures involved in setting up a productive oil well on leased land, both onshore and off. The Bureau of Land Management's Web site lists the regulatory hurdles that need to be cleared as part of the larger five-step life cycle of a well. The path to setting up an offshore drilling operation is even longer, as shown in a large flow chart developed by the MMS.
And there is a lot of activity occurring on leased lands that does not qualify as "production." For 2006, the BLM reported that there were 77,257 productive holes onshore in the U.S. Beyond that, there were 6,738 applications for drilling permits, 4,708 holes in which companies had begun drilling and 3,693 where drilling had ended among onshore lands. That's a total of more than 15,000 holes that were being proposed, started or finished that do not count as "productive" holes. And that doesn't even include holes that might have been continually drilled throughout the year for exploratory reasons. "
Zoomie wrote on August 7, 2008 5:33 pm:
McCain is opposed to this proposal. Why? Because he's opposed to the removal of the oil company tax breaks! And why shouldn't he oppose it. Just five days after flip-flopping on his opposition to offshore drilling, Hess Corporation's (an oil firm) senior 6 executives and 4 Hess family members gave him $300,000! Indeed, McCain and the RNC have received almost $1,000,000 since McCain flipflopped. "
renewable energy wrote on August 7, 2008 8:20 pm:
I want my grandkids' grandkids to have a world to live in, call me crazy. "
enlighten me geniuses... wrote on August 8, 2008 12:33 am:
Those reps who stayed in DC may as well go home and eat some crow and play some golf and enjoy their vacation.
Sinclair on south 48th is $3.54 today and Omaha is a dime cheaper and Iowa cheaper still. A week ago it was $4.04
Drill here drill now is a JOKE!
IT HAS NOTHING TO DO WITH IT!
Big money is unwinding their oil positions and buying financials on the cheap. Its a relief to know they are thru manipulating oil prices for a while. (A brief SURGE for labor day and back to college....anyone wanna bet?) Then a big drop going into the election which the GOP is DIEING to take credit for with a stupid Drill here drill now Rush Limbaugh bill.
The dems know this and won't be manipulated. Here's hoping the oil addiction can be broken. You can't break it by changing sources....ask a drunk or drug addict. Ya just have to draw a line, bow yer back and say NO!......NO MORE! "
Rxwoman wrote on August 8, 2008 5:31 pm:
TM wrote on August 9, 2008 3:39 am:
If congress passes a bill to lift offshore drilling you will most definitely see oil trading speculators trade the price of oil way down. Remember, this oil trading is speculative, if traders see we will ensure a good supply of oil prices won't be so high. "
TM wrote on August 9, 2008 3:45 am:
Ray wrote on August 9, 2008 8:29 am:
Did you notice that the day after Bush stated he wanted to end the moratorium on off shore drilling the price of oil dropped $6 a barrel and has been dropping ever since?
Of course you didn't. "