President Obama’s energy plan might be a case of too little, too late. A snippet from the WSJ‘s report:
At the same time, Mr. Obama’s plan wouldn’t allow new oil and gas development off the coasts of Northern Atlantic states or California, whose political leaders have long opposed offshore drilling. The administration will call off a plan drafted by the administration of former President George W. Bush that would have given oil companies access to Alaska’s Bristol Bay, an area teeming with wild sockeye salmon and many commercial fishing interests concerned about the impact of drilling on their livelihoods.
Something is better than nothing, sure — but cheap energy and thousands more high-wage energy jobs wouldn’t exactly suck. Then there’s MSNBC’s take, which blames the rise in oil prices on greedy capitalists:
“People are using oil as a store of value rather than as a commodity,” Beutel said. “It’s the investors who are buying.”
Maybe if we had an Administration with even the slightest interest in protecting the value of the dollar or just maybe stopping every now and then on their endless quest to wreck our finances, investors wouldn’t be looking for hedges in commodities.
I do not trust Obama. Is he going to do anything to prevent frivolous lawsuits by the leftist environmental goons? If not, he is merely wasting our time.
Um, correct me if I’m wrong, but don’t investors generally buy commodities, as an investment, say like buying pork bellies or winter wheat (or even cattle futures, which I understand you can turn a $1000 investment into $100,000 in a single year).
The distinction is that, for example, part of what drove oil up to $140+ a couple of Summers ago was investors buying heavily into petroleum options (futures). This had a very strong impact on the price, both moving up and moving back down to the $30 range where it bottomed out. Rather than users buying the commodities (as consumers, distributers, etc.), or purchasing futures as a hedge against volatility (Southwest was the only airline for a few quarters that was making a profit during the oil crunch, as they had purchased “Calls” against petroleum, betting on the sharp rise in prices; this mitigated the actual expense they had to incur as actual consumers of the product).
I don’t endorse MS-DNC’s point of view that this is evil. The futures markets, when used properly, is both a great source of wealth, and a viable means of protecting a vulnerable position with commodities. But that is what they are referring to, in their inept attempt to bash Capitalism yet again.
The President has made a politically expedient move that, if it results in even one oil rig or new energy-based job will be a miracle akin to the second coming.
Great information today on… American Solutions? Newt’s site. I’ll do more research to get the rest of the details (forgive me running off of memory). Essentially, and Steve I know you know this already, the President has closed more of America to drilling than he’s opened. PLUS, he’s not addressed the issue of revenue sharing with the states. So it’s all smoke and mirrors, typical Obama-style.
In summary: it’s a lie. Again.
Thanks for the plug, Kathy. Here’s American Solutions’ take on Obama’s false promise to drill:
http://www.americansolutions.com/drill/2010/03/obamas-false-promise-on-offshore-drilling.php
As Steve alluded to, the only real news in the announcement was that there was no news. All the President did was delay drilling until at least 2012.
Nukem: agreed. I would go even further and say that no one in this administration even understand how a free market works, much less a profit-based company. Re-read the quote above; they’re complaining about the buyer’s motivations & goals.
I bet if Greenpeace started snarfing up oil futures to reduce their carbon footprint the administration would be tickled pink. Excuse the expression.
I don’t know, Casey, I think Obama may understand the free market well and is intent on destroying it or at least putting his foot up its ass. He cloaks himself in his hopey/changey messianic cape, but probably knows full well what he’s doing.
I mean, here’s a supposed “constitutional scholar” who believes the Constitution is a flawed document because it focuses on what government CAN’T do. Hello? That’s the point, sir! That’s what makes Anerica exceptional.
He’s a dangerous moron–let’s compromise with that label.