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Friday, May 09, 2008
Oliver North :: Townhall.com Columnist
Petronomics 101
by Oliver North
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Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


FORT BENNING, Ga. -- Here at the U.S. Army's biggest base on the East Coast, soldiers and their dependents are eagerly awaiting the arrival of their "economic stimulus payments." It's a good thing because, like most of us, these American heroes are going to need the extra money just to purchase their next tank of gas.

This week, the Internal Revenue Service begins mailing rebate checks to budget-crunching taxpayers. Bush administration officials hope the checks will be used for shopping sprees to resuscitate the U.S. economy. But instead of getting that new patio grill, consumers are more likely to apply Uncle Sam's payments to their next purchase of petrol.

When the price of oil hit $100 per barrel in January, I wrote in this column, "Those who wish to lead this nation in the future need to put more than hot air into solutions such as clean, safe nuclear energy for electricity and hydrogen fuel-cell technology for propelling people and products around the planet."

Unfortunately, few politicians seem to have given a second thought to the fact that this country hasn't had an energy plan for the past 30 years, and it doesn't look as if we will have one anytime soon.

While Washington's political elites in both parties have debated and dithered, the price of crude oil has risen to $123 per barrel -- nearly double what it was at this time last year. The average cost of a gallon of gas at the pump is approaching $4 per gallon. Some analysts now are predicting that the price of a barrel of oil could approach $200 in the next two years -- and that gasoline could be $6 a gallon. An equal amount of diesel may cost truckers as much as $7.50.

Meanwhile, Middle Eastern governments are raking in the petrodollars. At least one despotic regime is using its plentiful petrol profits to kill American troops, erect nuclear facilities, fund global terrorism, and strategize about new and creative ways to make Israel's 60th birthday its last as a nation.

Iran, just named by the State Department as "the most active state sponsor of terrorism" and "a threat to regional stability and U.S. interests in the Middle East," this week hardened its position with respect to going nuclear. Supreme Leader Ayatollah Ali Khamenei, who outranks the Persian Napoleon -- Iranian President Mahmoud Ahmadinejad -- said this week that Iran would not give up its nuclear program.

Last week, delegates from the U.N. Security Council nations plus Germany met to discuss incentives that might persuade Iran to cease its program of uranium enrichment. But Khamenei would have none of it, baldly stating, "It is a national duty not to fear any sanction." And just in case anyone might misunderstand, the Tehran theocrat added, "We should not allow anybody to deprive Iran of its legitimate rights," and declared, "No world power can make Iran retreat from its path."

Now, you don't need to have a degree in economics to see what's happening. The cost of crude oil is out of sight and climbing. Petrodollars are funding a radical Islamic jihad being waged against us. Here at home, the cost of everything from fuel to food is going up, and we're sending out of the country capital needed to resuscitate an economy that is, at best, sluggish and, at worst, foundering.

The majority in Congress has responded by proposing tax increases for domestic energy production, suggesting new mandates on producers, demanding that coal-fired electric plants be shut down, and whining that foreign governments need to increase oil production -- while opposing exploitation of reserves here at home. In a news conference two weeks ago, President Bush criticized Congress for blocking efforts to expand domestic oil production in the Arctic National Wildlife Refuge. And this week, in a noteworthy understatement, White House spokesman Scott Stanzel observed, "We have here, in this nation, resources that we are not utilizing."

No, really? The newest oil refinery in the United States was built by Marathon in Garyville, La., in 1976. Since then, every effort to construct new facilities has been thwarted by protests and lawsuits from "environmental" groups and government red tape. It has been 12 years since the last nuclear reactor came on line to generate electrical power in the United States.

Time and money are wasting. Sen. Kay Bailey Hutchison of Texas has proposed a realistic solution: the Domestic Energy Production Act of 2008. Her bill would permit exploitation of more than a trillion barrels of U.S. territorial oil and nearly 600 trillion cubic feet of natural gas -- more than the combined hydrocarbon reserves of Saudi Arabia, Mexico, Nigeria, Venezuela, Libya and Iran. The measure also would streamline the process for building new refineries and clean, safe nuclear power plants, as well as funding to develop alternative fuels.

But none of that -- and the consequent reduction in energy costs -- ever will benefit American consumers, unless Congress acts. Until they do, we will have to plan on spending our tax refund checks -- and a whole lot more -- at the pump.

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About The Author

Oliver North is the founder and honorary chairman of Freedom Alliance and author of The Assassins .

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©Creators Syndicate
Great column as usual Col. but,
I disagree with your statement that the U.S doesn't have an energy policy. We do and that policy was implemented by and is maintained by THE DEMOCRATS IN CONGRESS. That policy is to subjugate the American people one way or another and the shut down of any possible advances in energy production in this country is getting the democrats what they want -- i.e. total control over the population in a socialistic state where they (the democrats) control all of industry.
Elect Obama and they will get our guns too.

TBC ~:>{)

Absolutely Oliver!
The enviros and anti-progress-ives have done great harm to our security and by extension to world security as well.
Senator Hutchison should hear support from each of us.
Congress should hear from each of us untill they cannot ignore the heat any longer.
This is becoming an issue of grave import and I say thank-you for raising it as you have!

No, you don't need a degree in economics
to see that stability and supply fears are driving oil prices higher but, it might help to understand that is only part of the driving forces. Another biggie is the dollar depreciation helped along by Fed policy to prevent a recession. That makes the price of oil go up holding everything else absolutely constant. Of course, there are many other non constants driving things. The link between oil prices and gasoline has been muddied by Congressional boondoggling. It is true we are not utilizing resources here but, they are a relatively minor factor.

The complaint about our dollars financing terrorism has been debunked already by a columnist here. Terrorism is cheap. There are other economies rapidly becoming as energy hungry as ours. So what if they get some of our dollars, we got the oil.

All the people obsessed with calculating peak oil and when we are going to run out are going to be awfully disappointed when Thomas Gold is proven correct. Wasn't the designer thoughtful? We harnessed the power contained within the atom but, refuse to use it. I guess Gaia doesn't like energy of any kind produced by the parasites infesting her. Or is it simply those half lifes they learned in school that has the children scared witless.

What has my brow furled is why the global warmism eco weenies aren't dancing in the streets with joy and praying for the price to keep going up. Oh ya, they all drive cars also and just want everyone else to save energy. Ooh, is that a Prius, I am impressed.

dumbstruck
Thats me. I have no idea why a nation, or at least the elected leaders of a nation would so readily abandon two great sorces of energy, oil & nuclear without just cause. I really dont care to analyze why they are doing it what I want is a political party to present ideas that will reverse this God awful trend of unreasoned self imposed national decline.

DEAR LIBTURDS!
Check out the ANTI-LIBERAL ZONE TODAY! Friday, 9 May, for a dedicated essay to you LIBS! Don't wait, read it BEFORE you pass out like Hal Drunkahue does by 1200.

http://noliberalspin.blogtownhall.com/

Here's YOUR chance to protest...the man. NO more spitting on the troops, keying their cars, slashing their tires, or sending aid to the Islamofascists like Code Pink did in Fallujah, NO!

So check out the ALZ TODAY and remember, today is: "Liberals drive without your headlights night to protest something or other."

McCain Implies Iraq War Is For Oil:
War for oil?

HP-During a town hall event in Colorado today, John McCain “decried the dangers of Americans reliance on foreign oil,” but “also seemed to suggest that this reliance caused the current struggle in Iraq.”

Here’s what he said:

My friends, I will have an energy policy that we will be talking about, which will eliminate our dependence on oil from the Middle East that will - that will then prevent us - that will prevent us from having ever to send our young men and women into conflict again in the Middle East.

WATCH

http://controlcongress.com/uncategorized/mccain-implies-ira q-war-is-for-oil-watch-video

This bill...
...looks like a drawing board. 1) It opens ANWR, 2) it opens oil shale production -- our 1.5 trillion barrel motherload, and 3) it encourages ethanol production.

Let's see what survives the legislative process.

As much as people might like to see the government cause gas prices to go down, the best thing government can do is leave the free market alone. Oil shale operations will be profitable as long as crude oil prices stay where they are now.

Source:
http://www.heartland.org/Article.cfm?artId=23210

John Konop
While it's true that if not for oil, we would care as much about the Persian Gulf as we do about the Kingdom of Tonga, the whole "War for Oil" thing is bogus.

If our foreign policy was only about oil, we never would have let Kuwait keep control over its reserves after the first Gulf War, and we could have probably grabbed off Saudi Arabia's in the process. Or we could have made some deals with Saddam, helped Iraq optimize its oil production and paid him a premium price, and it still would have been cheaper than fighting a war.

If you think gas prices are bad now, then just wait and see what happens if we leave Iraq in a hurry--somebody's going to fill the vacuum, and it will probably be Iran.

Mr.North
President Carter tried to place, an energy plan before the American people in 1978.Where were you?Oh,I forgot,planning the Iran-Contra affair.How did that work out for you?Not well!The price of gasoline is being driven by "Speculators",who have entered the market seeking a profit.I know, that the "TRUTH" is a stranger to you,but please try,to meet it once in your sad life.Trying to "Hoodwink" the American people, with this "False" argument is downright pathetic.Even for someone like you!!!This election will not be shaped by military events.But,keep trying,people like you always do.Also,you threw the president, that Pardoned you, under the bus.Self-preservation,is the first law of nature.

Petronomics 101
The first problem we have in this country is leadership. What we have now due to two wars in the middle east is leaders. These men, including my son, are not motivated buy Enron and special interest greed. They are motivated by honor and courage. We need to get these men elected to congress and the senate. It is time for people like North and others to step up and provide that leadership. What is happening in this country with oil is a national security issue. Why don't we have a total nuclear navy that doesn't rely on oil? It is time we elected leaders and time for leaders to step up.
Mike Barnish

In 1975, I worked for GE...
in Schenectady, NY. One of my jobs was keeping up with the over 200 nuclear units being planned and scheduled to be "on line" by 1985.

Over 95% of these units were cancelled. Why? Because the Liberal Democrats in Congress allowed the energy policy of the USA to be "kidnapped" by the "Enviro-Nazis".

Even France gets over 75% of its electricity from nuclear power (and their engineers aren't even close to being as good as our engineers).

This country has been "scr*wed" by the Democrats and their lack of intelligence (or worse). It will take 10 years to undo the energy problems they have caused over the last 30 years.

And it is going to get worse. Get ready for $5.00 a gallon gasoline.

Mike
I always "Cringe",when people proclaim the attributes of their children.America has no Great Leaders,including but not limited to your son.If military action is your premise,then we are wasting thoughts.Warmongers are the ones,who have "US" grabbing our cheeks now.We live in a world,which demands cooperation and respect.That is a world,which calls for "Statesmen".Has anyone seen Ben Franklin? Also,no one told "US" to put our future in the hands of foreigners.Never "Gamble" on something you do not control.The train moves,not the station.

killer
huh??

Grey Ghost
Correct me if I'm wrong, but isn't there a difference between our nuclear program and France's nuclear program.

I seem to remember that France settled on one design for each size reactor (small, medium and large, for simplicity). They researched the daylights out of each design. They then told all the companies that if they built to the approved design, their approval process would be weeks, not years. The costs, since the designs were standardized, were lower, too.

I believe that France also has a series of what might be called "neighborhood reactors," small generating plants.

Here, we have 110 reactors. Most of them are different, which means a huge increase in costs and approval and construction time.

As I said, I may be wrong.

But even if I am, isn't this one way to harness the American assembly line and innovative talents to solve the problem?

Barry

killer writes:
Mr.North
President Carter tried to place, an energy plan before the American people in 1978.Where were you?Oh,I forgot,planning the Iran-Contra affair.How did that work out for you?Not well!The price of gasoline is being driven by "Speculators",who have entered the market seeking a profit.I know, that the "TRUTH" is a stranger to you,but please try,to meet it once in your sad life.Trying to "Hoodwink" the American people, with this "False" argument is downright pathetic.Even for someone like you!!!This election will not be shaped by military events.But,keep trying,people like you always do.Also,you threw the president, that Pardoned you, under the bus.Self-preservation,is the first law of nature.

In 1978, I don't think LTC North was in any position to even think about planning Iran-Contra, since the Contras did not come to power in 1979, and the Shah was still in power, and would be untl 1979. I have a little personal experience with this. During the Sandinista Revolution in July 1979, my ship the USS Wainwright CG28 was detailed to observe Nicargua, and we did for 34 straight days, in July and August.

Lumberjack:
killer is either a moron, or a troll.

To suggest that Carter had an energy plan that would have solved all our problems is the height of idiocy.
I don't know where he was in 1978, but I clearly remember long gas lines and gas rationing--in California we were restricted to buying gas only on certain days of the week.
If killer had any brains at all, he would know that it was Carter who was responisible for our problems then--rather than the solution he so ludicrously suggests.

Independent Thinker writes:
Lumberjack:
killer is either a moron, or a troll.

To suggest that Carter had an energy plan that would have solved all our problems is the height of idiocy.
I don't know where he was in 1978, but I clearly remember long gas lines and gas rationing--in California we were restricted to buying gas only on certain days of the week.
If killer had any brains at all, he would know that it was Carter who was responisible for our problems then--rather than the solution he so ludicrously suggests.

I'd say his a submoronic troll. We had the same situation in Texas. If your license plate ended in an even number you could fill up on even numbered days. If it was odd on odd numbered days, except the 31st. No one could, to keep the number of days even, and to allow gas stations to partially fill their storage tanks.

If I remember, Carter's plan included raising the thermostat to 78 in summer, wearing light clothers and lowering the it to 68 in winter, and wearing sweaters. Some plan.

for Hitchhiker
Hitchhiker writes: "The complaint about our dollars financing terrorism has been debunked already by a columnist here. Terrorism is cheap."

That's a LIE.
That columnist was full of it--and so are you.

The terrorist ACT is cheap.
But the PROPAGANDA to entice Muslims to become terrorists costs many billions of dollars--and the Saudis are paying for it.

80% of the mosques right here in America are funded by Saudi money. And with that money comes books and materials published by the Saudis that is virulently anti-American and anti-Semitic. Freedom House looked at the crap that the mosques are distributing from Saudi Arabia and it's shocking.

Saudi Arabia actually spends more money to promote Islamism in the world than the Soviet KGB used to spend to promote Communism during the Cold War.

They've paid professors of Middle Eastern studies to spout their bull.
They've lobbied Congressmen.

And they are doing that to anesthetize Americans like you to their attempts to proselytize for radical Islam.

They create the climate for radical Islam, and then the terrorists are grown in that fertile soil.

Barry 10:33am
Excellent questions!!!!!!!!

It as been 26 years since I had any connection with the Nuclear Utility field; but I believe you are correct concerning France.

However, in 1975, there was much talk about doing the same thing and also deciding whether we would go with "PWR's" or "BWR's".

For over 30 YEARS, the US has been in a "Time Warp" due to the Dumocrats. Even if we standardize and start construction tomorrow, it will be 10 years before a substantial amount of our electricity can be produced via nuclear power.

As I said above, the Dumocrats scr*wed us.

new U.S. refineries
The mentioned Marathon refinery in Garyville is being expanded. The expansion should be online next year. Shell is also building a refinery in the U.S.

Picky
Good column and I don't want to be picky, but Benning is a "Post," not a "Base."

Right on
Ollie! Tell the dim witted butt monkeys in DC that we not only have to pay for our gas, but we are paying for theirs too! In the short term, open up this country to more drilling and before you enviro-whackos say anything, I am a hunter which makes me an Environmentalists, so STFU before you even start. It is safe!

http://www.audacityofhypocrisy.com/
http://eclipptv.com/viewVideo.php?video_id=956&title=Vietn am_Veterans_Against_McCain&vpkey=62acaf320c

http://www.immigrationshumancost.org/text/crimevictims.htm l
Free Ramos and Compean

"Energy Plan?"
"Energy plan". "hydrogen fuel-cell technology"

Thank you, Jimmy Carter.

What "conservative" thinks there should be energy plans and government involvement in the development of new technologies?

There's a tape here on Townhall of a speech Ollie gave back in the 90s. 95% could've been written by Ron Paul. It was vintage hardcore conservatism and inspiring.

Now, Ollie is just another socialist neocon mouthing the big government party line.


Conclusion
Nancy Pelosi and The Sierra Club are essentially supporting terrorists and destroying our economy.

Whatever goes up...

Doesn't necessarily come down.

But if we don't drill now...

Chinese mothers will be telling their wasteful children...

"Don't you know there are people starving in America!"




lumberjack and thinker
Please go back into your own history.In 1978 President Carter tried to increase "CAFE" standards to 30 miles per gallon.In my post, I did not suggest, that he had a plan to solve "ALL" our energy problems.Try to pay attention. The statement about Mr.North and the Iran-Contra affair, was meant as an insult.Also,most events happen far before their physical manifestation.That is why the word planning is used.In the future,please do not respond to my post.They are meant for the "Educated",or at least people with a BRAIN...

killer writes
That is why the word planning is used.In the future,please do not respond to my post.They are meant for the "Educated",or at least people with a BRAIN...

Which certainly let's you out. Carter's plan was a joke, just like he was. It actually had the parts I suggested. I rember his "glorious years" in the WH. Hell, he spent more time arranging tennis court schedules than he did in trying to develop an effective the military to deal with the new threats, especially after he gutted it.

BTW, I'll match my education against your any day of the week.

The wave is coming... bye bye ethanol
Persian Gulf, bye bye!

http://zeropollutionmotors.us/
http://zeropollutionmotors.us/?page_id=39
http://www.popularmechanics.com/automotive/new_cars/4217016 .html?series=19

McCain & ANWR
Unfortunately, John McCain's stand on drilling in ANWR is the same as that of the Sierra Club and Nancy Pelosi.

If McCain loses in November, it will be becuase he alienated conservatives in attempting to appease liberals, a long-time McCain fault.

Col North
Thank you for another great column! I'll contact my Senator (Feinstein - for all the good it will do) and let her know how I feel.

A sidenote - I can remember watching the Senate hearings way back when I was college age and was so struck with the dignified way you handled the yourself. You and Reagan brought me solidly to the conservative way of thinking and I've always respected you. Thank you for being such an incredible example of an American.

God bless you!

Iraq IS about Oil
The simple fact is that oil plays a big part of the Iraq issue. If al-Quida had access to the revenue of Iraq's oil we'd all be in deep, deep, deep doo-doo. What would our enemies do with those unlimited funds do you think? What would they buy? The truth is: more weapons to use against us. We can't throw in the towel and just let them have the oil revenue. Depose one ruthless leader to relinquish Iraq to the control of new bullies and thugs? I don't think so. We can't leave till things are settled in Iraq.

Lumberjack
Where did you go to school?You are eligible for a refund.Why?They forgot to teach you how to spell "Rember".At the little Northeastern school,in which I attended, we spell it, remember.Do you see the difference?DUMMY!!!

Brickhouse
Brickhouse wrote, " The simple fact is that oil plays a big part of the Iraq issue. If al-Quida had access to the revenue of Iraq's oil we'd all be in deep, deep, deep doo-doo. What would our enemies do with those unlimited funds do you think? What would they buy? The truth is: more weapons to use against us."

Oil did play a role and still does for the reasons you stated. The Bush administration has said that we need to stop the terrorists from using Iraq as a safe-haven. That would include siphoning off Iraqui oil revenues for their own nefarious plans. Saddam was using oil revenues to develop WMD that he used against the Iranaians and the Kurds. God bless the Israelis for taking out his nuke plant back in 1982.

Alt fuels
Col. North left out a few factors that have elevated the price of gas in the US. I'm confident he did so in the interest of brevity. Ethanol made from corn is a major factor as well as speculation by investors.

The sooner our nation can diversify its energy needs away from petroleum the better. Liquid natural gas is feasible now and electric will be soon. We can be 100% enery independent for years to come with LNG and/or electric. Of course, if the Dems continue blocking drilling for natural gas that could be a hindrance too.

Why aren't LNG vehicles being sold yet? What is the holdup? Converting gas stations to add LNG pumps shouldn't be THAT hard... Converting existing autos only costs around $1,500.00 last I heard. LNG would be cheaper than gas while burning just as efficiently and being 100% clean.

A rapid conversion away from oil to LNG would destabilize countries whose economies are heavily invested in oil and underdiversified but that can be dealt with.

Of course, everybody knows that hydrogen or solar would be the optimal solution but we aren't there yet.

Reply to bc3
McCain is on record against drilling in ANWAR. While that absurd stance will help him get elected, it sure does infuriate conservatives.

The only way for McCain to win is to attract swing voters that can go either way. Elections are decided in the middle. He has to get enough swing voters to vote for him by adopting liberal policies on a few things like immigration, ANWAR, global warming, campaign finance reform, etc.

Let's not get on McCain's case too much until after he's elected. There's too much to lose if Obama or Clinton get elected.

oliver i remember him well
i have either been a little out of touch for awhile or i am in a state of deinial about this guy named oliver.. isnt he the able assistant to presiden reagan who betrayed him to a congressional committee. didnt he get convicted of various crime, and then acquitted on a legal technicality.,he should be writing about the merciful qualities of a legal system thatt decided somehow not th put him in jail.

When??
Mr North,

When will you tell the truth to the American people about your engagements of selling drugs and weapons around the world?

True American heroes use honesty as their sword.
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