"If Saudi Arabia were to increase its production by 1 million barrels per day that translates to a reduction of 20 percent to 25 percent in the world price of crude oil, and crude oil prices could fall by more than $25 dollar per barrel from its current level of $126 per barrel. In turn, that would lower the price of gasoline between 13 percent and 17 percent, or by more than 62 cents off the expected summer regular-grade price – offering much needed relief to struggling families. "
So said Senator Chuck Schumer, Democrat from New York recently at a hearing designed to embarrass, berate and attack the oil industry and not to find real solutions to our energy problems. This ersatz oil industry expert knows as much about energy markets as I do about brain surgery. Schumer reminds me of Blanche DuBois in "A Streetcar Named Desire" who breathlessly stated as she was led to a mental institution, "I have always depended on the kindness of strangers." In this case the strangers are the Saudis.
Schumer later said that a potential million barrels a day from exploration in ANWR would only yield a 1 cent decrease in the price at the pump. I don’t know how he gets his hat on with his head screwed on so wrong.
As always the political class is trying to sell the "free lunch" theory to an American public that is more than willing to hear that there will be no sacrifice or pain required of them.
Well it’s time for some honesty in the energy debate. Here is the speech I would like to hear a political leader regardless of party give to the American people.
My fellow Americans.
It is long past time to have some honest talk about oil and the seemingly endless rising price of gasoline.
Folks, we have painted ourselves into a corner and we must accept that there is no shortcut or quick fix. We didn’t get here overnight and we will not get out of this situation overnight.
We have seen a lot of activity in Washington, most of it political posturing and outright demagoguery. It is what Washington does best.
But never confuse activity for action.
There are no easy answers to our energy challenge.
And it is not a problem unique to the United States. But we have it within our power to take charge of our energy future if we are bold.
Some say we need to conserve. I agree, but that is not enough.
Some say we need to explore for new sources here at home. I agree, but that alone won’t do it.
Some say we need to invest in new technologies. I agree but those solutions are years away from widespread practical implementation.
My plan calls for common sense conservation, aggressive exploration and visionary innovation.
Exploration and conservation will help us meet the challenge in the short term, and innovation can bring us to a future where fossil fuels and its associated pollution are a distant memory.
Common sense conservation means watching your consumption, taking fewer trips, riding public transit or carpooling.
Aggressive exploration means we open areas previously labeled off limits by using the latest environmentally sensitive technologies to increase supply.
And visionary innovation means that we form a public private "Manhattan Project" that pursues the technologies such as turning coal into a liquid fuel, fuel cells, biomass and all other means of alternative fuels.
The first decade of the 21st Century is coming to a close and we still have a mid-20th century energy infrastructure. So we also need a crash program to upgrade, repair or replace our aging energy infrastructure of refineries, pipelines, power grids and power plants. This would include building more power plants that run on the cleanest fuel available-nuclear.
The fault for the condition of the energy infrastructure does not lie entirely with the oil companies, utilities or power plant operators. In our zeal to embrace environmentalism, we have stymied the very things we need to supply our economy with a modern energy infrastructure.
We cannot conserve our way out or drill our way out of our problems. And the new technologies we are working on be ready won’t be ready any time soon. Those are the stubborn facts.
And the price at the pump won’t come down anytime soon. Any politician who tells you that is a bald-faced liar.
But a focused national effort that embraces the three principles I have outlined today can put us on the road to charting our own course and not be dependent on unreliable sources to meet our energy needs.
When the world sees that the United States is serious about addressing our energy future by conserving what we have, exploring our own plentiful resources and using good old American know-how to create new fuels, then and only then will we see the price of a barrel of oil come down and the pain at the pump ease.
On December 7, 1941 an unprepared America, was thrust into World War II. After the initial shock we pulled together, got to work and defeated he enemies of freedom.
This challenge is no less important if we are to maintain our way of life and with it our economic freedom. We owe it to those generations who came before us and the generations yet to come to cowboy up, pull together and get to work.