jump to navigation

Senator Obama, Please Explain How this Will Work. 5 April, 2008

Posted by David Anderson in Economic Policy, Election 2008.

Senator Obama is a very intelligent man so how does he justify adding costs to domestic oil consumption by forcing 150 billion dollars of their money to be invested in his chosen energy programs (not drilling or building new refineries that we desperately need )and robbing them of profits as a means to control gas prices. When we tried this in the 70’s it was a disaster. At least we can get gas when we want not wait in lines and decide for ourselves how to control our budgets.

The problem with the Democrat party and energy is that they have no realistic plan. We can’t mandate our way to affordable energy. There policies will increase the cost of energy not decrease it. I am a big believer in alternative energy. I now see it as a national security issue not just an economic one. On that basis, I favor a more aggressive approach of tax credits and other breaks and even government seed money for research, development, and start up companies. Alternative energy is important to the future of the nation. Encouraging conservation is also a good move. On this I agree with the Democrats.

Where I depart from them is that we need more government mandates and to “punish” oil companies for making money. I am all for them making whatever. They are not stealing the money. They are providing the world a service. They need not apologize nor suffer theft of their profits through some windfall profit tax while being expected to invest in other industries the rest of their profit. Weakening the dollar, preventing drilling off shore and in Alaska, moving away from nuclear reactors, and not approving refineries (all government policies) have done as more to contribute to high gas prices than any decision by Exxon/Mobil. Unfortunately, he addresses none of these issues. Don’t get jealous, just buy stock.

The oil companies have moved to become energy companies on their own. Giving tax credits would aid the process along. Companies would find what is most efficient in the marketplace and not what is the fad. If you force companies to give away x amount of money by a certain date, you will create bad decisions and may end up delaying new inventions which will give us cheap, clean, and renewable supplies of energy. The truth is we need oil companies to invest in developing new oil resources. If they want to diversify, great. If Senator Obama wants to run an oil company, he should run for chairman of the board of one not for President of the United States. Under our Constitution, you still have the right to control your money not the government and that includes a collective expression of personal rights represented by a corporation.

Another area I see is a problem is that Nuclear power is not mentioned. No other industrial country in world would even think that in the medium term any non emitting power solution could exist without a nuclear power dimension.

I think we need a comprehensive approach to energy policy based upon economics not pandering. On this score the senator fails. The energy issue is one too vital for us to be stuck with thinking that hasn’t changed since the ’70’s.



1. Colin Green - 5 April, 2008

“Companies would find what is most efficient in the marketplace and not what is the fad.”

Energy companies investing in “fad’s” deserve to go bankrupt. Anyone who does not invest on sound principles, i.e. investing in technologies the public is hot on, deserves to be sent packing. Investing in a “fad” technology will create an unrealistic economy similar to what is happening with the mortgage business right now. Making money by preying on poor and ill-informed investors should be considered a crime as it is bound to fail.

We need diversification of our energy supply, oil companies should not receive tax credits because of their ridiculous profits, we need to provide incentives for the generation of renewable energies. Drilling in Alaska will not produce a fraction of the amount of fossil fuels required to rid us of foreign oil and will only create larger profits for those who do not need it.

2. Barack Obama News » Blog Archive » Senator Obama, Please Explain How this Will Work. - 5 April, 2008

[…] Read the rest of this great post here […]

3. David Anderson - 5 April, 2008

I agree with the first part. I disagree with you on the latter. Drilling would be a big part. Anwar is the equivillent of Iraq in reserves. This nation off shore and in Alaska is another Saudi Arabia. Would you say that if Iraq and Saudi Arabia went off line it would not affect prices?

Oil is not a fad. It is the fuel of our economy. We need to encourage development of marketable alternatives. I don’t care who does it. We just need to get it done.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: