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Putting the brakes on $4 gas at the pump

A little more than two short years ago we heard presidential candidates vowing to fight to prevent rapid spikes in gas prices at the pump. Well, here we are again not too far in the future and $4.00 per gallon gas could be right around the corner. Like you, I’m hardly surprised.

The unrest in the Middle East should really clarify for President Obama that we can no longer remain dependent on foreign oil, especially from countries run by bad actors like Muammar Gaddafi. Unfortunately, the administration seems stubbornly resolved to halt American domestic energy production in its tracks to appease their radical environmentalist agenda.

I’m introducing new legislation in the near future that will reduce our dependence on foreign oil – from countries like Libya – by finally unshackling our own domestic energy sector from excessive regulation, while also directing a portion of those revenues to continued funding for alternative and renewable resources. Renewables and alternative fuels may be the future, but only our current administration has fooled itself into thinking these potential alternative fuels are right around the corner. We need our traditional energy resources as a bridge to help free us from dependence on foreign sources and sudden price fluctuations caused by uncontrollable world events.

Arguably most the important benefit of my bill to harness our energy sector’s potential: It would put many more Americans back to work than any of the other ‘job creation’ plans we’ve seen before Congress, while also reducing our federal and trade deficits.

In a recent meeting with BOEMRE Director Michael Bromwich about the de facto moratorium, he basically just repeated the administration’s talking point – there is no de facto drilling moratorium in the Gulf. And just recently, the Interior Department made great fanfare out of issuing one new drilling permit…one.

Until the administration responds to my repeated requests to start issuing at least 15 new exploratory permits, I’ll continue to block two of Obama’s key nominations for administration positions: Scott Doney, Obama’s nominee to be NOAA chief scientist and Dan Ashe, President Obama’s nominee to head the U.S. Fish and Wildlife Service under the Department of the Interior.

The Interior Department’s de facto moratorium has destroyed jobs in Louisiana, contributed to the bankruptcy of at least one major employer and could force everyone to have to pay for $4.00 per gallon gasoline.

None of us want to see $4.00 a gallon gas again, and a simple solution starts in Louisiana, just off our coast.

COMMENTS

  • Wubbies World

    You talk about government funding for renewable energy. The unending trough of government subsidies are a problem not a solution, so allow me to recommend an alternative.

    The civilian space program was launched with a one time “X-Prize” to reward the winner to meet the prize conditions.

    Why not create a one time prize for private sector innovation that meets the prize conditions like the X-Prize? This will prevent private companies from feeding at the trough like ethanol companies do now, or do you have campaign contributors who want this so they can feed in the trough?

    • Common_Cents

      instead of continually bleeding the taxpayer.

      Prizes on a deliverable project basis.

      This does much to eliminate bureaucracy which only does two things and two things only:
      1. only serves to maximize and increases budgets(use it or lose it)
      2. only serves to maximize staff (self importance) paper tiger

  • annas

    I am a geologist and come from a long line of “oilies.” Alternative energy is a possibility– down the line. Please do not be intimidated by this administration. Please hold firm! We need to drill here and drill now!

  • Raven

    Now THERE’S an effective and efficient “alternative energy.

    • glaucon

      Focus on removing government barriers to new oil companies and new gasoline refiners.

    • glaucon

      You got that one right.

    • phenne

      …. nuclear power plants supplying electricity.

      • rickbull

        Why not our homes?

  • hoosierteacher

    1. Allow drilling.

    First, I question whether the US has any business restricting drilling. I don’t see much need for a dept of the interior, and the dept of energy usefulness goes only as far as concerns about military access to energy and protecting items like uranium.

    Let the private sector handle the drilling, and keep our government (and the tree huggers) out of the way.

    2. (And this doesn’t seem to get much air time…) Allow our oil companies to build and update refineries.

    The restrictions set on refineries in the late 60′s and early 70′s have done nearly as much (if not AS much) damage to our nation’s access to cheaper and more plentiful oil / gasoline.

    In sum, get the government off the backs of so called “big oil” and let our oil companies compete in the free market.

    As far as “renewable energy”, if it is cost effective then let it sink or swim on its own without government interference. At least a nuclear facility has one area for repairs or upkeep – windmills require the care and maintenance of many thousands of seperate entities. Get the government out of the way and we can all see what works.

    • glaucon

      And it would also be helpful if these new refineries were new players instead of the few behemoth companies we have now. Competition is key to lower prices.

      “2. (And this doesn?t seem to get much air time?) Allow our oil companies to build and update refineries.

      The restrictions set on refineries in the late 60?s and early 70?s have done nearly as much (if not AS much) damage to our nation?s access to cheaper and more plentiful oil / gasoline.”

  • averagevoterdotcom

    (AP) Obama Chills at the Links – Today President Obama took time off his hard work to give example to his citizens to drive electric vehicles. To his chagrin, upon arrival at the course, his advance team and golf managment failed to find an electric powered one. Obama stated, “That is OK, I will accelerate slowly and check the tire pressure at the turn. And, I want to note, that if the British invade Libya, I have nothing to do with it, nor did they consult me. Thank you and have a good day, I want to get back to the real game here.”

  • Pingback: Louisiana pols fiddle with facts while Japan’s reactors burn | TheLensNola.org : Investigative Journalism New Orleans

  • Pingback: Louisiana pols fiddle with facts while Japan’s reactors burn | The Lens

  • smitch61

    I finally found a full-time job after two years and 45 temporary positions. The job is 36 miles one way and I am thankful to have it. 4.00 gasoline puts a real snag in my happy day. Now give em hell !

  • Raven

    All of that oil goes to Europe.

    More importantly, we have 400 BILLION barrels of oil in the US (as according to the Department of Energy), NOT counting offshore (deep or shallow water) rigs. And that’s just what we Know about.
    It also does not include Natural gas or Coal reserves or, “god forbid,” uranium or other fissionable deposits.

    The Absolute worst thing we could do to our enemies is use our own resources.

    Take 25% of demand off the market and the price of oil collapses. As does every nation dependent on oil for survival (like Iran, Saudi Arabia, Russia, Venezuela…). It’s a literal who’s who of nations that hate us.

  • Death_of_the_Donkey

    an individual country’s oil goes, only the impact on total supply matters.

  • phenne

    … Well said.

  • ohtimtim

    overall problem is the regulations promulgated by out of control “Alphabet Soup” agencies under the control of the executive branch. Under the current system we basically have the President with two methods of making laws (executive orders and regulations), the judiciary making laws (activist judges), and the Congress making laws (they are the only ones supposed to make them). While many people feel that most of the regulatory agencies should be abolished as unconstitutional, that is not a reasonable expectation at this time. To return to a more Constitutional system I propose that all of the regulatory agencies be defanged and turned into research and advisory boards for the respective Congressional committees and sub committees with only the ability to suggest not to rule. Any actual laws would have to be enacted by Congress and the President and other leftist groups would be deprived of an extra-Constitutional method of promoting their agenda.

  • http://teapartisan.wordpress.com Loren Heal

    Redirecting a portion of tax revenue into researching alternatives to oil, coal, and natural gas is a fool’s errand. Unless we’re looking for problem-free magic energy mushrooms, we don’t know what conditions such alternatives will need to meet. That means it’s tailor-made to be a job for the free market.

    “Renewable energy” seems to be Washington code for ethanol and biodiesel, both of which are big-government boondoggles. As a resident of farm country, I understand the perverse incentives these programs create, turning foodstuffs into fuel while people in oil-producing countries riot for food.

    And the targeted tax incentives and subsidies trick farmers into accepting government handouts now, while all around their neighbors’ farms are being auctioned off to pay the death taxes needed (in part) to pay those subsidies.

    You want to do something good? Cut all aspects of the government. End the stranglehold of regulation and red tape needed to build nuclear power plants, coal plants, and fuel refineries. Cut the corporate tax rate into line with the rest of the world, so producing fuel and energy (and everything else) is profitable.

    Reduce the tax burden on the production and refinement of energy — a burden ultimately born by consumers — so that people chasing a profit could find those answers. These people are smart, and understand that whoever finds those “magic energy mushroom” will be rewarded handsomely.

    While there is no guarantee that private researchers will find oil alternatives in the time frame you desire, there is also no guarantee that the answers exist at all. And certainly, since those answers may not exist, government-funded research may not find them. As importantly, there is no reason to suspect that government-funded research, paid by the research paper, will find those answers sooner than private researchers paid for results.

    And research isn’t the right paradigm. Because it may be that eventually we run out of oil and gas (or that worldwide demand causes them not to be affordable to us). At that point, we will change. But just as we need not artificially place ourselves in that situation, as the Obama administration is doing, we need not plan what the alternatives will be.

    That you would think government must fix this non-problem surprises me only because I thought you understood the workings of the free market. I guess I was wrong.

  • jfahy

    Senator Vitter, if we need to subsidize it it’s not worth it. Get off this Washington canard and get out of the energy business. No one in DC understands it and it just becomes crony capitalism.

  • gekster

    My car takes premium, but 2 weeks ago I paid $3.30.
    When Obama took office it was flirting with the $2.00 mark.
    I hope your efforts are successfull.
    High gas prices hurts only the ones at the middle and bottom of the food chain.
    You know, the ones the Democrats are supposed to help.

  • http://vitter.senate.gov/public/ Senator David Vitter

    Jfahy,

    You make a fair point about propping up failed alternative and renewable sources with government money. And, I should have been more clear that I see nuclear as a reliable and more attainable “alternative” energy source for the near future. In fact, it seems both parties talk a lot about nuclear being great, and the Obama administration has been given all the assets it needs. The current problem with nuclear is that President Obama?s NRC has been a roadblock to getting nuclear moving.

    See: http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/8519472

    I do believe it is important in winning the energy argument to take a portion of revenues generated from oil and gas production and dedicate that to continuing to research potential, profitable and attainable everyday energy sources. In my bill, we do that with revenues made off of the more than 15 billion potential barrels in ANWR.

  • fisk2521

    Hoped to have a good day today until I turned on Fox and found Geraldo giving his wisdom about $5 a gallon gasoline. Just seeing him doing the morning show ruined my day, but when he said that he ‘supported the idea of $5 a gallon”, but given the economy doesn’t think it would be fair to the working person during this crisis. How nice of Geraldo, after all he justs wants to wait for the economy and then slam the American public with taxes on gas to support ‘the green agenda.”

    Sometimes I do think we should insist that all ‘reporters’ must declare their annual incomes before they take positions. $5 won’t bother old Geraldo at all, nor Bill Gates, Steve Jobs, Warren Buffet or President Obama. But it will ALWAYS be a major problem for most Americans who rely on fair prices in order to pay their bills and get to work.

    I’m always grateful for the remote when Geraldo appears. He hasn’t a clue ….

  • caboose

    administration defied a federal court order to resume off shore drilling. States should not pay any attention to this administration and authorize immediate drilling off shore and other places. turn about is fair play. States tell the epa to shove and authorize nuclear plants to be constructed their respective states.

  • dsmurf

    results with renewable energy results? In Spain, it was 2 jobs lost for every subsidized alternative energy job created and in Scotland it was 4 jobs lost for every job created through government subsidization.

    Subsidizing Renewable energy does not win the future. Ethanol in vehicles does not help cars meet the Obama administration goal of getting 35 mpg, but using high octane gas does help by 5-9 mpg compared to gas.
    So who is reading through www.fueleconomy.gov?

    Who is reading in DC Mr Vitter? Hope there are signs of more people doing their homework and getting up to speed on the great global warming hoax and the Big Corn beggars that are wasting taxpayer dollars and not helping to lower food costs.

  • http://vladenblog.tumblr.com Steve Maley

    I work for a small GoM operator in Lafayette. Washington doesn’t seem to know or care that we small operators exist, but we account for most of the activity on the Shelf. Shelf operations do not present the level of risk that we saw with BP, yet shallow operations have been curtailed along with the Deepwater.

    It’s not just the lack of permits, it is the very real fear that the zeal of some ‘on the other side of the aisle’ will erect insurmountable financial obstacles to our continued operations.

    My company, and others like us, have refocused our efforts onshore.

    It is unbelievable to me that an official in Sec. Salazar’s position could be as out of touch as his recent comments to the press and to the House Natural Resources Committee show him to be.

    As you can see with many of us on the Right, the perfect is the enemy of the good. Please keep up the good fight.

  • Doc Holliday

    they would just cancel the Iowa caucus or skip it. As long as politicos want to win the first primary contest, someone will push ethanol. The funny things is that corn demand is high, they don’t need the government hand out right now.

    Heck I own a company in the corn processing business(I own some stock that is). As long as the demand from China, India, and other emerging markets continue, corn will do well. The farmers can sell it to high fructose corn syrup manufacturers, our nation got into HFCS for the explicit reason to avoid the high price of sugar, something we don’t make much of. Ethanol subsidies are not needed, period.

  • glaucon

    Diesel vehicles get around 40% more mileage per gallon. Outdated environmental regulations essentially ban many very good mileage cars from Europe. Will Government Motors allow high-efficiency diesels to be imported?

  • http://impudent.edublogs.org/ kyle8

    It is an inchoate and blind quest for something ephemeral and quasi-divine.

    It can stand no doubting or prevaricating, it requires a pure heart and a strong will.

    It allows no dissent.

  • zippymczipp

    Absolutely, drill, drill, then drill some more! But at the same time, after increasing supply, decrease demand! Last summer I met a man driving a full size Ford pickup truck that he claimed was getting 33 MPG. When I looked under the hood, there was a V8 engine that appeared almost naked. He had removed all the belts and pulleys and replaced the water pump, fuel pump and even the oilpump and replaced each with an electric version. In front he had assembled a steel framework that had a large fan driving the alternator. As soon as he started moving, the fan would be driven by the air passing over the vehicle thereby producing electricity which then ran all of the gizmos previously powered by gas. Probably not ready for mass marketing though as he did the work of conversion himself and it cost about $12 grand for the fuel injection and other items. But, hey, it is a great example of what the entreprenuer can accomplish even in the midst of overbearing regulation and taxation. For the rest of us, we need cost reduction, the other stuff will come with time.

  • Common_Cents
  • renny

    Think he’s happy now?

  • usadying

    “while also directing a portion of those revenues to continued funding for alternative and renewable resources” stuck out like a sore thumb. Once one enters the DC bubble, he becomes part of the problem.

  • dsmurf

    vehicles, shows that diesel is indeed helpful in attaining the 35 mpg goal, without making feeble vehicles that would easily turn into a coffin in case of collisions. Aren’t there some diesel vehicles due back on the market soon?

  • http://teapartisan.wordpress.com Loren Heal

    However, I smell a rat in the proposed compromise.

  • http://vladenblog.tumblr.com Steve Maley

    I suspect that some compromise is necessary to get just about anything accomplished in Washington.

    There is one purist non-compromiser in the House — I believe his name is Rep. Paul.

    I’m glad our politicians, especially my Senator, think it worthwhile to come to RS to share their ideas.

  • sharonmcp

    but there are some residents and tourists in Florida, to which $4 per gallon would be welcomed.

    From ABC News Radio

    In Orlando, Fla., two gas stations that are the closest to the airport, and across the street from each other, are selling regular at $5.29 and $5.19 a gallon.

    You may want to read the comments responding to this Politico article to see just how angry and disgusted people are with the Obama administration’s energy policies.

    Interior appeals oil drilling ruling

  • usadying

    Unfortunately, all politicians see the government as part of the solution when the government IS the problem.

  • phenne

    Please tell me you will vet that idea, “In my bill, we do that with revenues made off of the more than 15 billion potential barrels in ANWR” with We the People.

    It ain’t the government’s (read: bureaucracy’s) money. Or, maybe we are mistaking your meaning — government employees will be doing the drilling & pumping & transporting of the Alaskan crude?

  • nilram

    I believe the Federal Govt. owns ANWR. I believe what the senator is proposing is a lease arrangement in ANWR and the revenue to which he refers is the revenue from the lease. I don’t think he’s talking about more taxes or taking the oil companies profits or any other such silliness.

  • Menlo

    Why does no one seem to understand how little oil (about 12 percent) actually comes from the Middle East? Most of it comes from Canada and Mexico. Yet, events there are almost never tied to gas prices.

    Regardless, there is no threat of an oil shortage anytime soon. Oil prices are not related to supply and demand or to realistic projections of supply and demand. Perhaps what is needed is better education on where the nation’s oil comes from, where demand is, and how different future scenarios would change that.

    It seems to me that not until gas prices become a true reflection or projection of supply and demand can such action be of any benefit.

  • usadying

    The Treasury/Fed dollar printing press is contributing to the problem, too.

  • Doc Holliday

    and historically Brent North Sea cost less than Texas light sweet crude. Now Brent costs more, it must be a demand issue. Again, it is a world market,not local. If any oil producers go off line, the price will go up.

    The idea of energy independence is a joke for those that think windmills and solar will fix things. If you want to see how wrong that is, look at Europe. Drilling int he USA will not make us energy independent, but it will allow us to put more supply on the open market. It will allow us to make some money on oil.

    wind and solar a a joke. These technologiies could never replace fossil fuels. It so happens that these ideas have been around for a very long time. Much longer than those that believe in them have been alive.

  • gracepmc

    This Administration’s plan for the country is Failure — on all fronts. Any other conclusion escapes me at this point. Now Salazar disregards the ordered lifting of the bans, Holder worries about “his people”, there isn’t an “Islamist extremist” anywhere in the world gunning for the infidel US, ,Obama woke up one morning and decided not to enforce DOMA (that surely being the most pressing issue of the day), suing states is de rigeur, and let’s not allow any of our agents in Mexico the opportunity to protect themselves. Hooey. States should give as good as they get — disregard these flights of whimsy — and do what’s best for your state and the country. Obama campaign binge! Next thing you know Trumka will be VP.

  • Menlo

    There is no impending shortage of oil, domestically or globally. We don’t need a bigger supply to meet demand. In addition, there is really nothing new going on in Africa or the Middle East that threatens the oil supply.

    Better and more widespread education on the oil market (and world history) is going to be the best way, IMO, to keep gas prices within reason. As an added bonus, people can better decide and agree on the policies and regulations that will work best.

    Unfortunately, that may be asking too much in a society where kids who could not even find Egypt on a map are allowed to pass to the next grade level and to graduate.

  • Doc Holliday

    I just don’t know what to say to you, really there is nothing to say. I don’t think the average “dumb guy” is involved in the spot oil market. Actually those most involved in the oil futures are the the most educated about oil, funny how that is.

    I will blame public ignorance for continuing to elect Democrats, people who want oil and coal prices high, and want to poor unwashed masses to wipe their buts with pine needle while the dems wipe theirs with copies of the Constitution.

  • Menlo

    Then they are deceiving the public (seizing on their ignorance) in order to get more money for themselves.

  • Doc Holliday

    I firmly disagree with the “perfect markets” theory that the market price is always right because there are so many players. I would not be an investor if I did not believe I had some ability to pick more winners than losers. And the only way to do that is buy things that are undervalued by the markets at a specific moment. You claim oil is overvalued, and that is fine, many people agree, they fight it out every day in the futures market. For one person to buy a barrel of oil, some other guy has to sell it. He would not sell it if he thought it was going to be much more valuable tomorrow.

    And I think we all know there are groups that try to control the price of oil, to artificially inflate it as high as the market is willing to play, re. Opec. The more oil we produce on our own, the lower percentage of the oil market in Opec’s control.

    But we all need to understand a basic truth. Private American companies are not going to spend the money to find oil just so the price will go down, they want to make money too.

  • http://vladenblog.tumblr.com Steve Maley

    …that sounds like the pricing decision of two local entrepreneurs who are trying to squeeze the last few nickels out of the hands of visitors to the Magic Kingdom.

    Much as I’d like to, it’s hard to blame local price gouging on President Obama. Maybe you should take it up with the Orlando Visitors and Conventions Bureau.

  • zippymczipp

    Lamarr (see Blazing Saddles) because he and George Soros stand to make a killing with the Green agenda! Oh yeah, don’t forget about GE, either.