I happened to catch the president’s energy speech while sitting in Route 30 traffic today watching an Escalade burn gas.
Just the fact that Bush said something is good because it sends the oil speculators running to take some profit; gasoline and oil dropped a few cents. Oil fell 45 cents to $72.88 a barrel today in reaction to Bush's speech from a high of $75.35 last week.
Otherwise, the speech was somewhat useless.
---I heard the word “all� used to describe pushing incentives for hybrid buyers. Does this mean that I can trade in my 50 mpg car and get a “hollow� hybrid SUV that gets half the mileage and still get the incentive? There needs to be a fuel mileage minimum for incentives so our tax dollars are actually going to people who want to reduce oil dependence. The irony of the current federal incentive is that for Toyota and Honda, the only manufacturers who produce 45+ mpg hybrids, the incentive is being phased out because they sold too many.
--The president asked the EPA to relax pollution standards for gasoline mixtures during supply crisis situations. There are currently about 7 different blends of gasoline used around the country to reduce pollution in different climate/altitude/seasons. There is currently a problem with getting ethanol transported. What’s great about this is that the same companies who missed the ethanol deadline and made profit on the shortage have been provided an opportunity to create more pollution.
--He wants to stop filling the Strategic Petroleum Reserve, which although it’s almost full, is still our weapon when dealing with terrorism. ``We'll leave a little more oil on the market'' by halting deliveries to the reserves, Bush said. This will increase the domestic supply by less than 1 percent. The amount is so small it will hardly make any difference.
He also suggests that consumers are to blame because "the prices people are paying at the gas pump are a reflection of our addiction to oil." And the alternative is...? Maybe the addiction referred to is the current profit orgy taking place in the commodities market.
So here we have it folks, incentives for large hybrid SUV’s, more pollution, less national security and we have been scolded for craving crude in our sleep.
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--I totally agree with everything you said, 'cept the last part about consumers. Consumers --or perhaps those of the gluttonous variety-- are totally to blame for high gas prices. If everyone drove a high mileage vehicle and/or did their best to conserve, then I would have sympathy on "Joe Consumer." But I can't shed any tears for those ubiquitous people on the news topping off their V-8's and whining about how they're getting gouged by the oil companies. If more Americans demanded higher fuel economy standards, higher mileage vehicles, conservation-minded politicians, the oil companies wouldn't be in a position to demand higher prices at the pump.
That last part of the post about consumers was a bit of sarcasm. I do believe that consumers have a responsibility to use common sense.
Bush telling people they are addicted to oil is a lot like if RJ Reynolds Tobacco Company would blame smokers for getting cancer. Government leadership is in a position of power. It can either guide the public for the good of the whole or guide the public to make more money for a special interest.
Although I am a firm believer in the free market system, I don’t believe that the oil/energy business is part of the free market system at this point. Mega-mergers and high level politics deeply rooted in the oil industry is only going to push the price at the pump higher and marginalize alternative energy sources and real solutions until some other force decides that this monopoly is gone far enough.
Since that speech all's we're hearing from those that can "mandate" is...we need more hearings! I agree that some maybe necessary. But if your gonna do these things...get it right! Something like I heard today...about looking into "THEIR" tax returns and how some of this Imported oil/gas" is priced from the well-head to you and me. Lotta things happen when them tankers fill-up and run around the ocean for a few "extra days"...don't ys think??
It keeps getting mentioned from all these "govnment experts" that all "alernatives" for consumer vehicles are on the table. You know the normal list...Flex-Fuel, Hydrogen cell, battery powered, etc. I think most of us would agree that Solar/battery powered vehicles are usable for some but not for the bulk. But they never mention about one other (or two) that could be used for the bulk of vehicle owners AND those that move the major freight in this country. I'm talking about the "air-powered vehicle"(www.aircaraccess.com). It's a long gone system but was used in the US and Europe up until the late 30's. It's history goes back to the Civil War era and it's use for freight trains. YES, air power which is high-pressured/high volume and can be re-charged at "stations" just like gas stations.
There is a company(MDI)or two that is producing these vehicles now for "mass transit" and personal vehicles. Too bad these are made in France(www.theaircar.com)and everyone is iqnoring this type of transportation.
Here's what's going to happen (I thought this up sitting in traffic myself.) At some point, all vehicles will be gas/electric hybrids, with awesome mileage. This will not slow the amazing per-barrel prices, it just means that cars will have smaller fuel tanks.
In ten years, it's still going to cost me $30 to go 400 miles, it's just that I'll be buying a lot less gas for $30. I wonder what it's like to retire and get four hundred million dollars and a private jet.
And if demand goes down...so does the price.
On the topic of retiring with four hundred million dollars and a private jet:
Interesting enough "Exxon Mobil Corp. (XOM) reported a 7% rise in first-quarter net income Thursday, buoyed by higher commodity prices and production, but the results still fell well short of Wall Street expectations" DOW JONES NEWSWIRES
I have two theories: It is costing more to extract existing oil reserves to get the same volume or they are cooking the books to fend off a windfall profit tax.
Those news reports have been also saying that Exxon says, "most of these profits are from overseas operations". Mmmmm??? And thier profits here in the "States" is soooo, little. Mmmm? Seems to me, like it's a "cooking of the books and a few other things". I wonder how many more of those CEO's are suddenly gonna retire???