Random thoughts on several issues
Posted 2/26/2008 02:30:00 PM
By Dr. James “Jim” Kadlecek I’ve been writing columns about public issues and politics for more than 25 years, and once in a while there are several things on which I want to comment, rather than just one topic. This also happens when I’ve been busy doing other things and the deadline to submit this column creeps up on me.
Such is the case today. So, here are a few random thoughts that I hope the reader will find of interest.
Oil and politics
A couple weeks ago, I wrote about oil and politics, and it got some thoughtful responses, both on Heath’s blog, and in several e-mails sent to me. It also got a response from congressional candidate Harry Teague. Harry said that even though he’s made a lot of money in the oil business, he is as mad as the rest of us about the high price of gas and would not be beholden to the oil industry if he gets elected. OK, Harry, I admit to being skeptical, but we will hold you to that promise should you win the election.
A couple people who commented on the same column attempted to be apologists for the oil industry and claimed that the high prices and the outrageous profits being posted by oil companies are the result of market forces, or that when adjusted for inflation, gas prices really aren’t too high.
Baloney! It doesn’t take a genius to see what’s happened. In Cheney-esque fashion, the oil companies have arranged to control the market and to set a price range, thereby generating huge profits. It is no accident that of the largest 10 companies in the world, six are multi-national oil corporations. Those six reported $134 billion in net profits. Their real profits are much higher.
Solutions: an excess profits tax on the companies, with price controls so they can’t pass it on to the consumer, or aggressive development of alternative energy.
An atrocious situation
The Doña Ana County Board of Commissioners heard a tragic presentation today from citizens concerned about the human rights violations going on just across our border in Lomas de Poleo. This little village sits right in the path of development for the bi-national city that some wealthy Mexican developers want to develop in partnership or collaboration with the El Paso-based Verde Group. The commission listened attentively as citizens, a priest, the bishop’s representative and others recited the list of horrors that have been inflicted upon the humble residents of this village (homes being torn down or burned, several deaths, their village fenced in with armed guards, etc).
The politically well-connected Mexican developers say they own the land, and the residents (who have lived there for more than 30 years) say they do. The issue is in the Mexican courts, but the developers are impatient and have been allegedly committing these atrocities to force the people off the land.
Our commissioners unanimously expressed outrage but failed to take any action, citing process as their excuse. They did agree to contact the governors of
No ethics reform, again
Finally, the state Legislature adjourned having dropped the ball again on ethics and open-meetings legislation. This failure should be a major issue in this fall’s campaign around the state. Those legislators who failed to support these very basic improvements in state government must be held accountable.
Kadlecek has lived in
Labels: 2008 election, 2nd Congressional District race, Doña Ana County, ethics reform, Growth and development, Kadlecek columns, Legislature
5 Comments:
Oil companies are indeed reaping huge profits, but so is govt.
Why was no one bitching when the oil companies were barely getting by on 10.00 a barrel?
Taxes on gasoline was supposed to go exclusively for roads; but for many years this gasoline tax feeds the general fund, which is appropriated to other worthy projects, and we wonder why roads are the way they are.
Why aren't the people complaining about the fed printing zillions of pieces of paper, which has significantly contributed to inflated oil prices?
Alternative energy is flat-out bogus, because none of them are competitive. Consequently, solar, wind and ethanol are subsidized by taxpayers. Furthermore, ethanol is driving up grain prices, which is beginning to be reflected in food prices.
The solution is free enterprise competition with the giant oil companies, cutting all subsidies to all energy production, significantly relaxing the hideous green regs that are strangling everyone and opening-up the locked-up land so that prices reflect reality instead of the current, persistent distorted views that have been shaped by those who gain within this awful system. Of course this won't happen because the majority are either too busy trying to make ends meet, prefer to remain ignorant or are just plain stupid.
Finally, regarding ethics -- why would bureaucrats and politicians want to change a system that works for them?
The Cheney Master Plan To Fool the American Sucker:
First, get rid of any goverment oversight that might be in the overall interests of this nation, in line with our economic, social, and national security goals.
Second, start a perpetual war in a geographic area that allows people to be constantly fearful we won't get enough oil...
Then:
Big oil consolidates its power and profit by buying up all the smaller oil companies, concentrating the control of oil in this country to a handful of very greedy folks.
Newly enriched big oil then buys up the smaller, privately owned refineries, closing all but a few to keep the amount of gasoline right at capacity. With no ability to produce slightly more gasoline to accomodate even predictable increases in demand, they can now charge us a premium every time we predict an increase because they can't produce enough gasoline! (Then, for good measure, disinform the public ad nauseum by saying we haven't built a new refinery in this country for thirty years...)
Then, for good measure, have the US government purchase record levels of oil for the US Strategic Oil Reserves, at premium, above-market prices, billed back to the US Taxpayer. Then sit on it through thick and thin.
Continue to disinform the public that it's all about supply and demand...But, discourage conservation and innovation that would make us independent of oil as our primary energy resource
and.... Wah Laa!!!!!
We have America, 2008.
Don't be fools, folks. Get rid of this bunch of crooks and anyone who conspired to attack our country from the INSIDE.
May we PULEEZE have a limit on the # of times one person may comment on this blog.Since the comment policy change it's the same people saying the same things in different words,are you listening J.C.?In my opinion the policy change has made this a much less interesting blog with no redeeming entertainment value and content bordering on boring.
A couple people who commented on the same column attempted to be apologists for the oil industry and claimed that the high prices and the outrageous profits being posted by oil companies are the result of market forces, or that when adjusted for inflation, gas prices really aren’t too high.
Dr. Kadlecek,
Only one person posted anything about high prices, profits, market forces, and inflation. That was me. My name is Ben Glickler. I am not an apologist for the oil industry. You are welcome to respond to me by name in your article, since I am the only person who made the claims you're refuting.
. . . except you're not really refuting them. You article is basically anti-intellectual handwaving. I presented data, trends, analysis, and a theory. You refuted it by calling it baloney, apologism, and implied that I'm stupid. After all, it doesn't take a genius to get your point, right? And for proof, you offered up . . . well, you offered up nothing other than anger.
You haven't presented data to back up your argument. Information that you have discussed is devoid of any context, and presented in a way designed to inflame or confuse. Does it mean anything that oil companies are making huge net profits? Not really - that says nothing about the market forces at work affecting the actual price, nor does it say whether that price is fair, nor does it even say what the price happens to be. It's meaningless data designed to appeal to someone's emotions. That's cool if you want to demoguage the issue (like you did when you called me a stupid, baloney-spouting apologist) but it's not cool if you want to have a debate based on facts and developing solutions.
You want a tax whether or not it makes sense. That's a flawed ideology.
Take a look at how demand for oil has increased in the past decade. China's demand has gone up dramatically to keep pace with its rapidly-growing economy. It's set to do something like triple in less than ten years. China has its own oil, and it gets most of its energy from coal, but the rapid industrialization has had an impact on the price of oil. . . and this at a time when oil discoveries are down, when production is down. Saudi Arabia tried to keep up production after pledging itself to a $50/barrel threshold, but it failed because supply was not keeping up with demand.
Your idea - tax overall profits - doesn't address any of the underlying problems. It could actually exacerbate the problems. If our country had more oil to refine, the cost of gasoline would go down. Your plan would produce incentives for oil companies to import less oil. That's good for the fifty million people in China who have been lifted out of poverty through China's rapid growth, but bad for us. And if your plan did succeed in giving us more oil, it would necessarily be at the expense of others. It's a finite resource.
Your refutation is that there is plenty of oil and the oil companies are just screwing us. Well . . .in 2005, oil production was 84 million barrels per day (mdb) It was 84 mdb in 2006. It was 84 mdb in 2007. During the same period, another 300 million people were added to the planet and China's economy grew at 10%, or something like 25-30% growth over the entire period. China industrialized enough to become the number two producer of greenhouse gases and the number one producer of CO2. That's a billion and a half people wanting oil. The United States, for our own part, accounts for one quarter of the world's oil consumption, and we've shifted away from local sources and towards external sources over the last few years - a shift of about 2-3% in each direction. Since we're a net importer of oil, that's impacted the price as well because it increases demand.
Consider finally that the bulk of oil company profits come from the price of a barrel of oil, not the price of a gallon of gas, and consider that the price of that barrel of oil is based on open oil futures trading. That significantly deflates your conspiracy theory, and leaves you only with the charge that the oil companies are doing nothing wrong but we should take their money anyway because the size of their profits offends you. That is not a credible stance. Besides which, a tax on oil company net profits is a disguised tax on the price of a barrel of oil. Remember that the price of that barrel is based on futures trading. As you might say, it doesn't take a genius to figure out what a tax on oil would do to the price per barrel. :)
Have a nice day!
Ben Glickler
Dr. Kadlecek does offer up one good idea on the oil topic, hidden behind his broadside against data and facts, and stuffed behind his calls for price caps and profit taxes:
[A]ggressive development of alternative energy.
That is a good idea. Our country should invest in other sources of energy. That may not have an impact on the price of gasoline (it may actually drive the price up), but it is nevertheless a fantastic idea for foreign policy reasons, practical reasons, and economic reasons. Nuclear, coal, solar - there are many ways we can meet our energy needs that don't include oil, and we should pursue them.
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