I heard Arnold's speech today about blowing smoke. I am so frustrated by the stupidness of half the commentary that I hear. So I think I will spew my common sense out so all can benefit.

As far as energy goes. We made the bed now we have to sleep in it. Oil wells aren't faucets that we can turn on and off. We should have been accessing today's situation 10 years ago. We didn't.

Now that we have oil headed to 150. We should be looking at our options 10 years from now. Does that make sense? Not in congress, they are trying to place blame on oil companies and speculators. It is all about the American Greed

The oil companies first. Congress is looking to impose windfall taxes on profits to offset the pain at the pump for our lower income citizens and to fund alternative energy. Where do I start? Oil companies pay more in taxes than they make in profits. Royalties, Permit Fees, Inspection Fees, State Motor Fuel Tax, Federal Motor Fuel Tax, State and Local Sales tax, and finally state and federal income (probably missing a few). Why not tax our oil companies even more? Sounds like a great idea!!! Because then what motivation do they have to explore, produce and refine oil. None. It is a robin hood story. Take the rich oil companies E&P money and give some it to the poor (buying votes) and throw some in the trash (alternative energy). Congress is talking about a few other bills that would charge oil companies fees after five years for not exploring "leased public lands" or the company would have to give up the lease. There is already so much red tape on drilling an exploratory well that permitting take 3 to 5 years if the everyone (government, state, EPA etc...) wants you to drill the well. If any of those are against it you may never get the required permits. Then the government could (drum roll please), LEASE IT AGAIN. Win, Win for Congress, lose, lose for us. Then there is the issue of only 100 or so floating rigs around the USA that cost $300,000 to $500,000 a day to lease. Noble has a backlog until 2020 on some of their rigs. If the lease prospects are 50/50 with today's technology that it is going to be a dry hole, the oil companies move to greener pastures and wait for technology to improve the odds. A dry hole cost 10+ million in the gulf.

Then there is the traders. Breaking news. People make money stocks, futures, and options. People making money must be EVIL. The talking heads are looking for a scapegoat. Try again.

The economics are simple. Are banks loaned money to anyone that wanted it for houses that weren't worth it. When house quit flipping the banks when in the crapper. Most of those 30 year notes will be cleared up in the next 25 years. So now our Dollar is weak because of our banks and Fed Reserve throwing money at the problem with low interest rates. Low dollar means we pay more for other peoples oil. Our government has made sure all our poor people have pretty much the same thing our middle class has through welfare programs. In the past 20 years our lowest income bracket has become our fattest, weighting for the next government handout to put gas in their Detroit gas guzzler.

Now every other nation wants to be like us. So everyone in the world wants a car, electricity and all the oil they can burn. I hear GM has them on sale with zero percent interest.

To my congressmen, drill hear, drill now, and shut up.

Forty years ago a president came on TV wearing a sweater and told us is his own way to get our shit together.  He was ridiculed and beaten like a drum by a fool who didn't know that trading arms for hostages was wrong.  And Reagan sang a lullaby and we went back to sleep.  I stood in those gas lines, and I'm not impressed by anyone who is new to this revelation.  We will not EVER drill our way to energy independence.    

I remember waking up one morning and the Russians had 'beaten' us into space.  The American people were shocked but ten years later we put a man on the moon.  If we decide something is important, we can actually do it.  Bush won't ever do it, his touch on reality is no better than Reagan's.  The point is, neither McCain nor Obama will do it, unless the American people indicate that they want energy independence, not lip service.

Snowman: "Really the only thing you can do is clear up the lies in your own life so you are better equiped to see the truth"

So True, so true.   One of the wisest statments I've heard in a long time.  

When you get your house in order,  the picture becomes clearer. 

US halts solar energy projects over environment fears

http://www.telegraph.co.uk/earth/main.jhtml?xml=/earth/2008/06/27/easolar127.xml

I heard about the the halting of Solar for because they didn't have an environmental impact study.  Too hilarious.

Right now is definately a time to get your crap together.  I have locked down the buget and am paying down debt as fast as I can.  The storm is coming. I don't think it is going to be a depression but the rainbow is far away.

spshapiro: "We will not EVER drill our way to energy independence."  I agree totally.  We won't solar, hydro, nuclear, drill, wind .... anything else you can think of into energy independence.  That is a pipe dream, and I quit hitting the pipe a few years ago.  This is a global economy.  A barrel of oil goes to the highest bidder worldwide.  We will never be independant, we are fully developed and user more oil per capita than anyone.  We need a policy to manage our energy needs.  I think free market is the way to go.  Subsidizing has got us more expensive gas and corn by way of "renewable ethonol." We need to reward innovation but not pay companies to develop junk that isn't economically viable.  Let the free market create.  Then pump in money to get a finished product to market. 

I think sticker contols on the types of cars we allow on the road would be a great idea as well.  Charge more to license a gas guzzler.  Start increasing the fees in 2009 for anything at isn't rated at 25 MPG or more.  Put it on the consumer.  That way consumer demands will influence what the auto makers provide.  They can't build what we don't want and make it.   Provide an exception for work vehicles and occupations that need a V8.  Provide exemptions for hybrids and such.  Use this to fund road repairs because our highway infrastucture is in deep dodo.  I doubt the federal goverments is going to raise their fuel tax right now. 

There are a million ideas.  I just don't understand why congress couldn't make a hard decision that benefits us if their lives depended on it.

IF the main concern was the price of oil, AND the cost is truly determined by supply and demand, why aren't China, India, etc, who are supposedly creating all this new demand, paying more for THEIR barrels of oil and passing the cost of their new growth on to THEIR citizens? IF supply and demand is the way oil is supposedly priced, why don't the countries who are using the most pay more for 'THEIR' share of the oil.

Never happen, but would seem to me this might fix at least a few problems, at least in this area?

Corbinb2,  just curious what makes you think China and India aren't paying more for their barrels of oil.   It's my understanding they pay the same price for a barrel of oil on the open market as we do (oil futures are based on US dollars).   Are you suggesting they should pay more for oil than the market price?   I know China (not sure about India) provides gas subsidies to their citizens.  China just starting reduce the amount of these subsidies allowing their citizens to pay more for gas with the hopes of reducing demand.

Upod...IF the price is going up because of demand AND the demand is being caused by specific countries, including the USA, in a large way, then yes they should pay more for their barrels of oil. What they do within their own economy is, or at least should not matter with regard to the rest of the global market. Why should American drivers pay the price for growth in China or India or whichever country is supposedly causing the increased demand. The same would be true  for other countries with regard to our usage.

If oil is going to be dictated and traded on a global scale, then the individual customers (i.e countries) should pay more for for needing more, based on supply and demand anyway. If a country outputs more oil into the global market then it could use that to offset demand price increases. This would ensure that countries with good growth manage it properly and also promote increased exploration into new sources of oil and or alternative energy.