Transcript of API Conference Call Held 9/26/08
September 29, 2008
Blogger Conference Call: Energy Current Events
On Sept. 26, 2008, API hosted bloggers on a conference call to discuss current events, issues and legislation relating to energy. Topics discussed included the impact of recent hurricanes on supply, as well as access to U.S. offshore resources.
Download this transcript (.pdf)
Moderator:
Jane Van Ryan, Senior Communications Manager, API
Speakers:
Red Cavaney, President and CEO, API
Prentiss Searles, Marketing Issues Manager, API
Sara Banaszak, Senior Economist, API
Tim Sampson, Senior Advisor, API
Richard Ranger, Manager, Upstream, API
Bloggers:
Bob McCarty, Bob McCarty Writes
Cindy Kilkenny, Fairly Conservative
Devil’s Advocate, Copious Dissent
Doug Lambert, Granite Grok
Gail Tverberg, The Oil Drum
Geoff Styles, Energy Outlook
Greg Balch, Goat’s Barnyard
Jim Hoeft, Bearing Drift
Joules Burn, The Oil Drum
Joy McCann, Little Miss Attila
Michael Swartz, Monoblogue
Mick Orton, FedUp Network
Peter Carlock, OPNTalk
Pejman Yousefzadeh, RedState
A Chequer-Board of Nights and Days
Read the transcript here:
If Democrats Win, Drilling Ban Will Be Reinstated
September 26, 2008
I found this on a new blog, http://therogersinstitute.blogspot.com/. His report cites Rush Limbaugh’s show as the source of this news, but the article comes from CNSNews.com.
True to form, Steny Hoyer, Democrat House Majority Leader, told CNSNews.com that (if Democrats retain the majority) restoring the ban on new offshore oil drilling leases “will be a top priority for discussion next year.” Read the story here.
In other words, they know the public is watching, and we are for domestic drilling to lower our gasoline prices. If they tried to pass legislation now before November it would clue people to what their position is and possibly lose the election for them. So they are going to let the ban expire next week (knowing that oil companies will not take the chance of doing anything with the threat of more legislation pending) and then make it a priority as soon as the election is over as aoon they are out of danger of losing seats. If that doesn’t anger you, then nothing will.
The majority of the country is pro-oil exploration. We have seen what our energy policies have gotten us, and we want to change. But Democrats are beholden to environmental special interests. That’s where they get a LOT of money. Even if it hurts the American people, Democrats are promising to pass new legislation that bans drilling. We MUST change the majority to have a chance at changing the country.
When we started this website, we tried to be non-partisan. But it has become clearer that, on energy at least, the Republicans are the good guys and Democrats are the bad guys in this debate. That’s just the way it is… and they are even admitting it! – FedUpEditor
Energy and Economy Tied Together?
September 25, 2008
From Senator Mitch McConnell (R-K):
Over the last few days, the troubles in our economy have come into focus. It’s imperative – now more than ever – that we have leaders in Washington, D.C., who are fighting for sound fiscal policy to protect taxpayers and the Main Street small businesses that fuel Kentucky’s economy. To that end, Senator McConnell is driving action on two important issues – tax policy and energy.
On Tuesday the Senate passed tax incentives which will save taxpayers money and which Senator McConnell helped broker.
Most importantly, the bill protects 137,000 Kentucky taxpayers who would get hit with a massive tax increase next year if we failed to protect them from the Alternative Minimum Tax – saving them an average of $2,000. That’s money that Kentucky families need right now, and Senator McConnell is proud to help them keep it.
The bill also includes a wide array of tax incentives for development of clean American sources of energy – like plug-in hybrids and coal to liquids – that will help make us less dependent on Middle Eastern oil.
Senator McConnell is leading the charge toward American energy independence. Later this week, the Senate is poised to pass legislation that lifts the moratorium on drilling off our coasts and allow us to develop our vast oil shale resources.
Drilling off our coasts. Using American oil shale resources. Creating incentives for plug-in hybrids and conservation. Sound familiar? It’s exactly what Senator McConnell proposed in the Gas Price Reduction Act earlier this year. Another victory for the people of Kentucky.
Senator Harry Reid, Speaker Nancy Pelosi and her allies aren’t happy and say it will be up to the next President and the next Congress to determine whether these changes are permanent. That’s why it is critical that we elect strong leaders like Mitch McConnell and John McCain who will fight to expand domestic production, reduce our dependency on foreign oil, and lower gas prices.
Your assistance in this campaign is critical. We need volunteers to keep up the fight to ensure American energy independence and lower taxes.
Take a look at the article below from the Washington Post. Without Senator McConnell’s leadership in Washington, neither of these victories would have been possible. Because of his persistence offshore drilling and lower taxes will become reality. Thanks for your help on this important campaign.
From the Washington Post:
Congressional Democrats bowed to political pressure yesterday and agreed to let the ban on offshore oil drilling expire, a decision that would allow exploration just three miles off the Atlantic and Pacific coastlines unless the next president reinstates an executive branch order that prohibits drilling.
Democrats said they gave in to White House demands rather than risk a showdown over the “continuing resolution” Congress must pass to fund the federal government through next March. A new drilling moratorium would have been included in that wide-ranging measure, along with money for home heating assistance for the poor and a loan program for the auto industry that remain in the bill.
“At least temporarily, the moratorium is lifted. This next election will decide what our drilling policy is going to be,” said Rep. David R. Obey (D-Wis.), chairman of the Appropriations Committee.
Earlier this year, Sen. John McCain (R-Ariz.) reversed his long-held opposition to offshore drilling. Sen. Barack Obama (D-Ill.) has supported efforts at compromise that include drilling limits ranging from 50 to 100 miles offshore.
The most ardent drilling opponents, who contend that exploration of the outer continental shelf puts oceans at risk without producing short-term relief for gasoline prices, said there is still time for the next president and future Congresses to work out a new compromise before oil rigs are erected within sight of the nation’s coasts.
Drilling in the eastern Gulf of Mexico will remain prohibited within 125 miles of shore under a separate provision in the 2006 energy bill.
The Democratic reversal on drilling came as the Senate voted overwhelmingly to approve a $100 billion extension of tax breaks, including incentives for renewable energy sources and the annual patch that will prevent millions of households from receiving higher tax bills under the alternative minimum tax.
But House Democrats continued objecting to the financing for those tax provisions and plan to alter the language later this week, prolonging a fight over legislation that industry and environmental activists have championed all year.
The congressional drilling moratorium, which dates to the early 1980s, has been included in the annual appropriations bills that fund federal agencies, with this year’s ban set to expire on Tuesday. In July, President Bush lifted an executive branch moratorium. Congressional Republicans spent the summer holding rallies and protests demanding that House Speaker Nancy Pelosi (D-Calif.) allow votes on more domestic oil production.
“Lifting these outdated bans is a long overdue but crucial step toward American energy independence,” House Minority Leader John A. Boehner (R-Ohio) said yesterday.
Pelosi had hoped to include alternative measures in the continuing resolution that would have allowed drilling within 50 miles of either coast if state legislatures approved, but she faced objections from the White House.
“The White House made it clear that any new drilling provision was a non-starter,” said Drew Hammill, Pelosi’s spokesman.
As part of the continuing resolution, Democrats did gain concessions for an additional $5 billion in funding for the Low Income Home Energy Assistance Program, more than $23 billion for disaster relief and as much as $25 billion in loan guarantees to help the auto industry produce more hybrid vehicles.
The continuing resolution is expected to be approved by the House today and the Senate later this week.
The word on the street is that Democrats let the ban expire so that it would not become an anchor around their necks in this election season. This way they can pretend to support drilling while holding up new exploration with lawsuits from their liberal environmental pals. Then when Obama is elected they can pass REAL legislation… IF he does. Certainly this theory is not out of the realm of possibility, since Democrats, especially Pelosi, have made it clear that they are against any new oil exploration that makes sense. – FedUpEditor
Congress to let offshore drilling ban expire
September 24, 2008
From Reuters today, 9/24/08
WASHINGTON (Reuters) – The offshore drilling ban that became a flash point in the U.S. presidential election will expire next week after Democrats decided to drop the prohibition from a temporary spending bill that keeps the government running.
The end of the ban will not lead to a rush of new drilling any time soon, but it would be a big win for Republican Presidential nominee John McCain who has made opening most U.S. offshore areas to drilling a key part of his campaign. His Democratic rival, Barack Obama, supports limited offshore drilling as part of a bigger overhaul of U.S. energy policy.
The mammoth spending bill to keep the U.S. government operating through next March includes a $25 billion loan guarantee package for the auto industry but makes no mention of offshore oil drilling, pushing the politically hot topic to the next president and new Congress.
“The next election will decide what our drilling policy is going to be,” said House Appropriations Committee Chairman Rep. David Obey.
Obey said the drilling ban will expire because Democrats could not reach an agreement with Republicans on how much offshore areas should be opened to energy exploration.
Read the rest of the story here.
The truth is, Democrats are feeling the heat from us and our opposition to high gas prices, especially when the solutions is close at hand and just offshore! Keep the pressure on and go to our Take Action page… and take action!
API Responds to “Bill’s Comment”
September 23, 2008
Back on September 8th we posted a story from API (American Petroleum Institute), “Gang of 10 Becomes Gang of 16 as Senators Defect”. On September 22nd, Bill Hepler left a comment on our website disputing some of the claims in the story. To be fair, we responded as best we could, but forwarded an e-mail to API’s Jane Van Ryan asking her to respond.
Bill’s comment was this:
This note seems to come directly from “EnergyTomorrow.org” – which appears to be a group of “big oil” companies, with a distinctly short term view of our energy problems.
Comments that the US could have as many as 30 billion barrels of undiscovered, but recoverable oil on lands that are off-limits, ignore reality – that is – oil is a finite resource that we are using rapidly. I understand the US uses >20 M Barrels of oil/day, so 30 BB would last less than 1500 days – less than 5 years at current consumption rates.
Oil is presently a critical part of what provides us with a good standard of living, but, the fact is we will end up using less of it – it is a finite resource. We need to get onto alternatives – even though these alternatives are almost certain to be more expensive than oil.
(BTW, I think it is good that oil companies are making large profits from present oil prices – first of all that’s how free enterprise works, and secondly high prices are a very effective way to encourage conservation of oil. Like you, I oppose the windfall profits tax). I do think that all countries (including the US & Canada) should impose a “carbon tax” or an equivalent on all fossil fuels.
Really, in the long term, countries who eliminate their dependency on the finite supplies of fossil fuels are going to be much better off than countries which continue to stay wedded to fossil fuel use. For one thing, if global climate change or other environmental factors do not stop them from selling fossil fuels – it can become something to export rather than something that is depended on and must be imported!
Here is API’s response from Jane Van Ryan:
Thanks for giving me a chance to comment on Bill’s letter. First, www.energytomorrow.org is owned and operated by API. There’s nothing secretive about that. It is properly disclosed on the website in several places.
Second, Bill’s calculations on how quickly the US would consume the undiscovered oil do not align with the facts. This country would not – and could not – drain these undiscovered resources while ignoring oil from all other sources, including existing producing wells. The US is the third largest oil producer now and could greatly expand production if more areas were opened to exploration and production. This new oil could help to power the US for many years to come. Perhaps more importantly, newly developed domestic oil would help to lessen our dependence on oil from unstable countries and greatly improve our energy security. Wouldn’t the US be better off if it could develop its own energy resources, create jobs for US workers, and invest more dollars in the US?
We agree with Bill’s comment on alternatives. In fact, the oil and natural gas industry believes this nation needs all of the energy it can get, including alternatives, renewables and fossil fuels. Government statistics clearly show that our energy consumption is rising, and we will need a portfolio of energy sources to meet future demand. In the meantime, we can’t just turn off the oil spigot. Rather we need to continue to produce oil and natural gas until our economy can make a shift to whatever alternative energy sources are adopted by the marketplace. I am reminded of a comment made by Sheik Yamani many years ago. Yamani was Saudi Arabia’s oil minister when he said that the world didn’t leave the Stone Age because it ran out of stones. His point was clear: the world won’t leave the Age of Petroleum because it runs out of oil. Instead, it will find something that is more efficient, more affordable, more portable and flexible than oil. We haven’t found it yet, but some very smart scientists and engineers are working hard on new technologies and fuels.
If you want to direct Bill and others to third-party information that provides basic facts about supply, demand, estimates of the amount of undiscovered oil in the US, etc., look at this document: http://www.api.org/aboutoilgas/upload/truth_primer.pdf It is a compilation of charts from government agencies and other sources. By the way, this information did not originate at API; we merely compiled it into one easy-to-read document.
Greenwatch America Has a Fax Campaign
September 23, 2008
The following is a special message from one of our advertisers. From time to time, we receive opportunities we believe may be of interest to you. Please note that the following message does not necessarily reflect the editorial positions of GreenWatchAmerica.
The American people, struggling because gasoline still costs too much at the pump, asked Congress to provide real solutions. By an overwhelming majority, the American people chanted the mantra “Drill Here, Drill Now” and pleaded with Congress to lift the moratorium on domestic drilling.
On Monday, just before 10 o’clock in the evening, Pelosi submitted a previously unseen 294-page bill to Congress and using procedural shenanigans available to the Speaker of the House, she demanded a vote take place within 24-hours. And on Tuesday evening, 15 Republicans joined 221 Democrats to actually PASS THIS FRAUD ON THE AMERICAN PEOPLE!
But wait! It gets worse. Pelosi claims her bill was a compromise… a change of heart that ALLOWS off-shore drilling.
Expect more of this Soviet-style hi-jacking of the legislative process if Barrack Hussein Obama is elected President and Nancy Pelosi is his Speaker of the House. That’s why NOW is the time to tell our elected officials in one resounding avalanche of FAXES that WE WON’T LET THEM GET AWAY WITH IT!
If You Think We’re Making This Up… …don’t take our word for it:
And in what is probably the CRUELEST CUT OFF ALL, Pelosi’s sham bill just doesn’t effectively cut off domestic oil production, IT RAISES TAXES AS WELL!
If At First You Don’t Deceive, Try, Try Again! Those are the words of former-Speaker of the House Newt Gingrich in an e-mail which he sent a short time ago titled; “New Left Wing Anti-Energy Strategy: Drill Nothing, Tax Everything.” Commenting on the supposed willingness of Pelosi and Obama to allow domestic drilling, provided certain vague and unspecified conditions are met — Gingrich also said:
But you don’t have to take this deception lying down. The election is less than 60 days away. Politicians have a tendency to become accommodating when an election is just around the corner. If you let them know — in no uncertain terms — that deception simply won’t work, they’ll do what you want… kicking and screaming all the way… but they will accommodate! NOW is your chance to have a real effect and join other patriotic Americans to flood their offices with a message they cannot ignore!
Coulter again:
To put it more bluntly, it is really about control. When we are helpless and depend upon them, they gain power. In most cases, liberal politicians simply encourage dependency. But some are more radical in their methods and more sinister in their motives.In fact, some Democrats in Congress have made what they’re really after abundantly clear. Recently, Congressman Maurice Hinchey called for the “Nationalization” of Oil Refineries:
Congresswoman Maxine Waters flubbed a statement on the floor of the House which is being played over and over again on the Internet website YouTube:
She’s talking about SOCIALISM! It’s all about SOCIALISM! ExposeObama.com is the only nationwide organization at the forefront of the movement to expose Barrack Hussein Obama and extreme liberals in government and the media to the American people. We’re not backing-down when it comes to taking the fight for the hearts and minds of the American people directly to B. Hussein Obama and other extreme liberals in Congress! And we’re not just going to Expose the Obama-Pelosi energy farce! We’re going to STOP IT!  Floyd Brown |
Obama Has A Plan – A Bad One
September 22, 2008
I just got an e-mail update from the Barack Obama campaign with their economic plan… And they think this is going to win people over?
Here are some key elements of Barack’s plan:
- A $1,000 emergency energy rebate to help families with high fuel costs right now while putting $50 billion into job creation to get our economy back on track. [So what happens when the $1,000 runs out? Will gas be less expensive, or will Obama send us more cash? This is the stupidest idea ever; pandering of the worst kind. He's trying to buy votes! - FedUpEditor]
- Families making less than $250,000 a year will get a tax cut three times larger than under John McCain’s plan and will face absolutely no tax increases. [More class envy. Apparently he is banking on the fact most people make less than $250,000 a year and this is going to help us how? How about eliminating the federal gas tax for a start??? - FedUpEditor]
- While John McCain has voted against raising the minimum wage 19 times, Barack would raise the minimum wage and set it to rise automatically with inflation. [All this does is raise the water level. As soon as things cost more, businesses adjust the cost of things to absorb the costs... and so the raise actually doesn't help anyone. Besides, minimum wages are higher in most states than the federal level. Thanks for nothing! - FedUpEditor]
- Invest $15 billion a year in green energy research to reduce our economy’s dependence on foreign oil and create 5 million American jobs a year. [They have been investing in green energy for about 10 years now. It has not improved the situation and will not. Oil, as we've shown, is the best producer of energy than any other alternative. It's another big government giveaway to special interests! - FedUpEditor]
If You Want Higher Gas Prices Vote Democrat
September 22, 2008
They are not even covering it up. They are saying it. “We don’t want to drill for our own oil.” It has got to be the principle since it makes no sense otherwise. Anybody out there without a job? Blame Pelosi. She’s the one running the legislation in the house, and it’s her fault you don’t have a job in the oil industry.
It’s not about global warming. That’s a sham. If we drill in China or we drill in Saudi Arabia, we are drilling somewhere. If we drill in the US then we won’t have to drill in other places as much. But we will still use as much oil regardless of where it takes place.
Pelosi MUST go. Our only chance to lower gas prices is to get her permanently out of the house and the leadership. Vote Republican so she doesn’t have the majority anymore. It will be her own fault and her own undoing.
If you don’t think this is true, look at the damaging legislation they are pushing through while the election is going on, and they think we are not looking! Here it is.
For the Record…
September 22, 2008
The Patriot Post reports:
“[T]he House of Representatives approved a bill to allow offshore oil drilling, but nearly all the Republicans voted against it… It isn’t a drilling bill, it’s an anti-drilling bill. If it becomes law, nearly all the oil and gas in the Outer Continental Shelf would be off-limits forever… This bill permanently bans all drilling within 50 miles of the US coast, which just happens to be where most of the recoverable oil and gas reserves are. It permits drilling between 50 and 100 miles out only if the adjoining states agree – which they won’t, since the bill denies them any share in the royalties the oil companies would have to pay, thereby eliminating any financial incentive for a state to say yes. Virtually all the oil off the California coast and beneath the Eastern Gulf of Mexico would be locked up for good. Don’t be fooled: The only offshore drilling this bill really opens the door to would have to be 100 miles or more out to sea, where the oil companies have no infrastructure… According to the Interior Department, the offshore areas where drilling is restricted contain more than 19 billion barrels—that’s equal to 30 years of current imports from Saudi Arabia. The bill would deny Americans access to as much as nine-tenths of that oil. A good deal? I don’t think so.” —Jeff Jacoby
Megavote Lists Upcoming Legislation – Renewable Energy and Job Creation Act of 2008 – H.R.6049
September 22, 2008
Hold on to your wallets. This passed the house and is in the Senate. The Senate is scheduled to take up this bill to extend temporary tax provisions that expired at the end of 2007. The President has threatened to veto it.
