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News Round Up, August 6, 2008
August 6, 2008

Round Up: August 6, 2008

New Webpage: Get the Facts on Energy & Gas Prices – LINK   

The Oklahoman- Proposed bill offers marginal wells aid- August 6, 2008

Excerpt: Sen. Jim Inhofe and Rep. Dan Boren have introduced legislation to give tax breaks and regulatory relief for low-producing, or marginal, oil and gas wells. The Oklahoma lawmakers said they want to protect a major source of domestic production. Oklahoma has more than 65,000 marginal wells — producing 10 barrels of oil or less per day — that account for nearly 80 percent of the state's oil production, according to the Oklahoma Marginal Well Commission. Nationwide, according to Inhofe, R-Tulsa, wells producing less than 15 barrels per day accounted for 335 million barrels of oil in 2006. "In my own state of Oklahoma, it is the small independents, basically mom-and-pop operations, that produce the majority of oil and natural gas,"' Inhofe said. Depletion allowance Boren, D-Muskogee, said the bill "ensures that the nation's policies recognize the economic importance and energy contribution of marginal well production."

Tulsa World- Oil prices drop steeply, Gasoline at many Tulsa pumps falls 7 cents.- August 5, 2008

Excerpt: Oil prices plunged to a three month low Monday, briefly tumbling below $120 a barrel in another huge sell-off after Tropical Storm Edouard seemed less likely to disrupt oil and natural gas output in the Gulf of Mexico.Meanwhile, gasoline prices continued their downward trend, with the common price in Tulsa falling 7 cents from the weekend.Crude’s steep drop — prices fell more than $5 at one point during the day — dragged down other commodities and mimicked the big nosedives of the past three weeks. Also weighing on prices Monday was a report by the Commerce Department that consumer spending after adjusting for inflation fell in June as shoppers dealt with higher prices for gasoline, food and other items. That fed investors’ expectations that a U.S. economic slowdown is sharply curbing U.S. demand for fossil fuels.Light, sweet crude for September delivery fell $3.69, or 2.9 percent, to settle at $121.41 a barrel on the New York Mercantile Exchange. Earlier, prices plummeted to $119.50. Crude has now fallen in six of the last nine sessions.At the pump, a gallon of regular gas fell on average nationwide about half a penny overnight to $3.881.Gas has fallen 5.6 percent since hitting an-all time high above $4 a gallon on July 17, but so far hasn’t kept up with oil’s steep descent, suggesting struggling filling stations are still saddled with gas bought when crude prices were higher.

The Foundry- Pelosi Running Out the Clock at Expense of National Security- August 5, 2008

Excerpt: To deflect "heat" on energy prices in the short term, Pelosi is advocating releasing oil from the Strategic Petroleum Reserve (SPR), which she says "would bring immediate relief within 10 days." Pelosi’s plan is not entirely fanciful. A major release of oil from the SPR could reduce gas prices. Pelosi, however, does not say how much oil she wants to release. And the exact size of the release would directly impact the size of the price relief — and our national security.

The Foundry- The People’s House, Not Pelosi’s Politburo- August 4, 2008

Excerpt: Asked Sunday why she refused to participate in a debate on increased domestic oil exploration, Pelosi said she refused to "mislead the American people as to thinking it’s going to reduce the price at the pump." This is a common talking point for Pelosi and her global warming alarmist allies. And they almost always cite the same Energy Information Administration study that "any impact on average wellhead prices is expected to be insignificant." But the left, as always, does not tell you the whole story. First of all, the study only looks at possible oil exploration in the Outer Continental Shelf. It does not even consider the combined impact of ANWR and Outer Continental Shelf oil production. Furthermore, the study only analyzes a possible Outer Continental Shelf ban lifting in 2012. Conservatives want to lift the ban today.

The Oklahoman- $100 oil: State crude price hits a milestone- August 5, 2008

Excerpt: AMONG the many milestones in Oklahoma's history of producing crude oil, the first always stands out. And the latest.The first was in 1897, when the state's premiere commercial well was drilled. The latest was in April, when the monthly average price paid to Oklahoma producers topped $100 a barrel for the first time in history.Hasn't oil been selling for $125 a barrel or more? No. Oil has been trading at $125 a barrel or more. That doesn't mean Oklahoma oil producers have been getting that price. Just 10 years ago, the average annual price for Oklahoma crude was just over $13 a barrel. Now that the $100 milestone has been reached, is there cause for celebration?Yes and no. Yes: Like all milestones, this is a historic moment. No: Oil production in Oklahoma is at historic lows. The disconnect side of high oil prices, even in a state connected to oil as much as Oklahoma, is that record prices for oil are being paid as production continues to decline year by year.If state government and the Oklahoma economy were dependent on oil for its petroleum-related income, there'd be little to celebrate. As it is, the dependence is on natural gas, not oil. Oklahoma is fifth in the nation in oil production and third in natural gas.

Ney York Times- A Push to Wrest More Oil From Land, but Most New Wells Are for Natural Gas- August 2, 2008

Excerpt: With the advent of $4-a-gallon gasoline has come a bruising debate in Congress over whether to intensify efforts to drill on federal lands, including part of the Arctic National Wildlife Refuge in Alaska. But while those hoping to lower prices at the pump are clamoring for new oil, most of the new onshore drilling of the past seven years has produced natural gas, not oil. The Bush administration, in its effort to expand energy production, has issued more than three times the number of well-drilling permits on Western lands as in the Clinton administration’s last six years. But oil production in that region during the Bush years is 12 percent below average levels from the Clinton era, according to federal data. Oil production declined over all to an average of 97.9 million barrels annually from 2001 through 2006, compared with average levels of 111.5 million barrels during the Clinton administration. Drilling in the West is more likely to provide natural gas. Natural gas production has increased by 34 percent during President Bush’s term in office, compared with the annual production levels during President Bill Clinton’s term. On federal land in the West, average natural gas production during the first six years of this presidency was 2.4 billion cubic feet annually, up from 1.8 billion, on average, during the previous eight years, federal data show.

The Oklahoman- Drill bit: Obama shift shows issue's potency- August 5, 2008

The senator is Exhibit A that GOP attacks on Democrats for blocking new development of known U.S. oil reserves are finding their mark. With $4-per-gallon gasoline, Americans want action, not hardheadedness.Until Obama's switch, Democrats had been slow to get the message. Speaker Nancy Pelosi closed down the House of Representatives last week by refusing to permit a vote on drilling. Republicans hung around, demanding a vote. When someone flipped off the lights, they railed at Pelosi in the dark, and they were at it again Monday. Even as the Pelosi Democrats dug in on drilling, Obama shrewdly warmed to the idea. You don't have to be a genius — or covet the White House — to know that when the public favors something 2-to-1, it's better be with the 2 than the 1.

The Hill- GOP energy revolt presses on; Dems dismiss ‘stunt’ – August 4, 2008

Excerpt: Energized House Republicans believe they have struck political gold with American voters angered by high gas prices through their unusual revolt on the floor, which Democrats on Monday tried to dismiss as a "political stunt." "When we began this on Friday at 11:20 a.m., we didn’t know where it was going to lead," said Rep. Tom Price (Ga.), who has been directing the group of some 30 Republican members who have stayed or returned to D.C. to protest the House’s adjournment.  "But we have been buoyed and heartened by the American people. And what they have said is ‘Thank you for leading’," Price said. He and other Republicans said they would continue to speak from the floor about the need for Congress to act on high gas prices through the August recess — even if no one is watching. C-SPAN cameras have not captured the GOP floor speeches on Monday and Friday, when the protests began, because Congress is adjourned. "There will be many more hours [of speeches] today and throughout the week," Rep. Mike Pence (R-Ind.) said at a midday press conference.

Roll Call- Republicans Return to House Chamber to Protest Energy Policy- August 4, 2008

Excerpt: Two dozen House Republicans took over the chamber again Monday to continue their talk-a-thon protest of Democratic leaders’ decision to go home for the August recess without a vote on expanding oil and gas drilling. "The microphones aren’t on, the lights are dim, the cameras are off, but we’re here because you’re here," said Rep. Tom Price (R-Ga.), talking to a chamber filled with tour groups.  The Republicans want Speaker Nancy Pelosi (D-Calif.) to call Congress back into session "so we can have a vote on American energy," Price said, and Republicans plan to continue their protest speeches on the House floor at least through the rest of this week. "We are going to stand our ground on behalf of millions of Americans who are tired of talk," Rep. Mike Pence (R-Ind.) said. In a joint memo over the weekend, Minority Leader John Boehner (R-Ohio) and Minority Whip Roy Blunt (R-Mo.) had urged Members to return to the Capitol, although they themselves didn’t show up. "It’s not a request we make lightly. But the American people are suffering," Boehner and Blunt said. "We’ve called on the Speaker to call Congress back into an emergency session this month and schedule a vote on the American Energy Act. We must continue to make a stand until the Speaker complies."

Politico-Pelosi: At-risk Dems back drilling- August 5, 2008

Excerpt: California Democrat Nancy Pelosi may be trying to save the planet — but the rank and file in her party increasingly are just trying to save their political hides when it comes to gas prices as Republicans apply more and more rhetorical muscle. But what looks like intraparty tension on the surface is part of an intentional strategy in which Pelosi takes the heat on energy policy, while behind the scenes she’s encouraging vulnerable Democrats to express their independence if it helps them politically, according to Democratic aides on and off Capitol Hill. Pelosi’s gambit rests on one big assumption: that Democrats will own Washington after the election and will be able to craft a sweeping energy policy that is heavy on conservation and fuel alternatives while allowing for some new oil drilling. Democrats see no need to make major concessions on energy policy with a party poised to lose seats in both chambers in just three months — even if recess-averse Republicans continue to pound away on the issue.

Journal Record- Energy No-Action Has Okla.'s U.S. Lawmakers Clamoring- August 4, 2008

Excerpt: On the other side of the aisle, U.S. Rep. Dan Boren is the one Democrat member of Oklahoma's congressional delegation, making him a member of the majority in a Congress strongly opposed to increased offshore drilling. But Boren is mindful that he represents a state where the oil and gas industry dominates its economy. In the midst of a tumultuous week on Capitol Hill that failed to produce an energy bill the two political parties could agree on, Boren announced his partnership with one of Oklahoma's - and the nation's - most conservative Republican lawmakers, U.S. Sen. James Inhofe, on a bill to support marginal well production. "Every day, hard-working Oklahomans are facing rising costs of energy and our country continues to be dependent on foreign nations for its energy needs," said Boren. "Congress must ensure that we are taking full advantage of every option available to increase our domestic energy supply." Originally published by Janice Francis-Smith.

Wall Street Journal- Unleashing America’s Ingenuity By Unlocking Its Energy- August 4, 2008

Excerpt: The fact is, the best, easiest way to boost American investment in alternative fuels and lower our nation's dependence on foreign oil won't cost taxpayers a cent. Democrats in Congress have placed millions of acres of U.S. territory -- far off our coasts, on the remote North Slope of Alaska, and in the Inter-Mountain West -- off limits for energy development. By freeing those domestic resources and increasing the supply of American energy, we can fund development of better solar, wind, biomass and other breakthrough technologies. And House Republicans have a plan to do it -- appropriately titled the American Energy Act, which reflects what we call an "all of the above" energy strategy. If House Speaker Nancy Pelosi (D., Calif.) would allow a vote on our comprehensive energy plan -- a vote House Republicans and hundreds of Americans demanded on the House floor this past Friday, after Congress adjourned, in a historic revolt -- we could create more American jobs, reduce America's energy dependence on nations with ties to global terrorism, cut emissions to promote a healthy environment, and raise our quality of life. And, we could do it without raising taxes -- and even without spending $10 billion.

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