Late today, the House voted largely along party lines in a 236-189 vote to expand domestic offshore oil drilling.  You heard me right, along party lines, approving the measure…in a Democratic majority House of Representatives.  The Republicans did not support this pro-oil bill, so what’s not adding up here?

            As it turns out, the House bill does absolutely nothing to improve domestic oil production.  It’s merely a sham bill sponsored by Democrats so that they can say they voted to lower gas prices in an election year.  Think I’m being skeptical?  Let’s take a look.

            First, the bill permanently bans oil exploration and production within 50 miles of our coast line.  It then allows states to approve oil exploration and production within the 50 to 100 mile range, but the bill disallows those states from sharing in oil revenue generated off their own coasts.  Then, 100 miles and out, it’s fair game baby.  (Have fun, there are little if any proven reserves 100+ miles out.)

            Here’s why the devil is in the details: As the AP reported, Republicans did not vote for the bill largely because of “estimates that 88 percent of the 18 billion barrels of oil believed to be in waters now under drilling bans would remain off-limits because they are within the 50-mile protective coastal buffer.”  Well isn’t that great.

            Adding to the sham is the fact that all existing production infrastructure is also within that 50 mile off-limits area, meaning that we would need to install new pipelines and other necessities before drilling for the remaining fraction of known reserves outside of the 50 mile range.  For instance, we still would not be able to drill in the Eastern Gulf of Mexico or off the coast of California, where there are known large reserves close to existing pipeline infrastructure.  Using existing pipeline infrastructure is critical because it can shave years off getting domestic oil to the market.

            As I said earlier, under the bill even where drilling on known reserves within the 50 to 100 mile range is allowed, states won’t be able to share in the revenue that is generated.  Thus, states would have no incentive to allow drilling off their coasts.

Democrats are always talking about incentives.  Incentives for this, incentives for that.  Then why not here?  People don’t act without incentives, neither does government.  If states don’t stand to gain financially from their power to allow or deny offshore drilling, what’s the point?  Sorry, maybe that free market principle is above Obama’s pay grade too.

            It’s also worth noting that by not letting states share in off-shore oil revenues, the House has made a clean break from the on-shore practice of letting states share in oil revenue generated on Federal land within that state.  Not surprisingly, states like North Dakota that have huge oil reserves are encouraging oil production and it’s because they actually stand to benefit from it.

            House sponsors of the bill also included an end to the tax breaks given to oil companies back in 2004.  The new income produced by halting these tax breaks would then be spent on encouraging alternative sources of energy, though notably it would not create additional funding for nuclear power.

            Why are American liberals so afraid of nuclear power?  Notice I said American liberals?  Three Mile Island happened almost 30 years ago now and Chernobyl happened over 20 years ago.  We’ve learned from our mistakes, it’s time to move on.  Or is it because nuclear power has the taboo word “nuclear” in it?  Even the staunchly liberal French have gotten over whatever nuclear hesitation they may have had.  The majority of their energy (78%) is currently produced via nuclear power.

            The thing that’s frustrating about all this is that we hold the key to our energy problems.  Sure, we can’t drill our way out of this energy crisis.  Let’s move on from that talking point, you spoon-fed Obama supporter. 

Drilling for more oil will ease the energy crisis in the short term.  Oil is a speculative market.  Even if more domestic oil doesn’t reach the market for years, approving a real energy plan would see prices drop immediately.  Why else do gas prices go up before a hurricane dehabilitates the Gulf Coast?  Because the market runs on speculation!

            Then to add to all this oil frustration, liberals won’t let us build more nuclear power plants.  Rather, they believe we should keep trying to improve other alternative energy sources that are not nearly as efficient as nuclear power, and some of those other sources are not even viable at this point. 

Why waste time?  We know nuclear power is limitless and will get us right where we need to be.  We know that all the wind on the planet will not generate nearly as much electricity as a fusion reaction.  We also know that ethanol may lower fuel prices but raise food prices.

            But no.  Instead, Democrats are choosing to play games with the American public.  Rather than trying to bolster their campaign platform, how about they help the American people out for once?  I hate to admit it, but for the first time the French are actually kicking our butt at something - energy.

By John M. Rogitz

            You can read more of John's stuff at www.RogueReport.com

COPYRIGHT 2008 JOHN M. ROGITZ