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Dick Durbin and the Democratic majority fail on energy

For years, proposals to enhance the US's domestic supply of energy, such as responsible drilling in remote areas of Alaska and offshore and the expansion of safe, effective nuclear power, have been blocked by liberal members of Congress like Senator Dick Durbin.

Durbin has declared repeatedly that "we cannot drill our way to lower gas prices." On August 1, 2006, Durbin declared "The U.S. does not have enough domestic oil to meet our demand. We will not reach energy sufficiency by drilling for more. Not only is it short-sighted, it will fail."

Even with this obstinacy, Dick Durbin and the Democratic Congressional majority have offered no coherent, effective solutions for our nation's energy crisis.


Click to enlarge

In fact, each time the Democrats in Congress took any action, their ideas had no effect on gas prices in the US or oil prices around the world.

On July 14, 2008, when President Bush removed the executive ban on offshore drilling, gas prices in the US dropped immediately as seen in the graph above. In addition, world oil prices have fallen from a high of nearly $135 at the time of Bush's removal of the ban to $118 as of last week. The only thing now standing between the American people and even lower gas prices is the Congressional ban on drilling.

Simply talking about drilling and increasing the US domestic supply resulted in an immediate drop in prices. Imagine what actually beginning to drill would do to prices.

For an in depth look at the failures of Durbin's ideas for addressing our energy crisis, view the links below.

  1. Block oil exploration in ANWR and offshore (5/13/08)
  2. Complain about high gas prices at press conferences in front of gas stations (5/19/08, 5/28/08, & 5/29/08)
  3. Sue OPEC (5/20/08)
  4. Sue oil execs (5/21/08)
  5. Blame speculators and increase market regulation (6/12/08)

5/13/08 - Durbin and the Democratic majority block oil exploration in ANWR and offshore

On May 13, 2008, the US Senate voted to block oil exploration in the Arctic National Wildlife Refuge (ANWR) and the offshore areas of the Pacific and Atlantic coasts. After the vote, Sen. Richard Durbin, an Illinois Democrat, dismissed the idea that domestic energy production will do any good, declaring, “We can’t drill our way to lower prices.”

According to a NewsMax.com article,"It is indeed remarkable how quickly the U.S. Senate can organize a negative vote when the issue is of such magnitude and importance to the economy and welfare of the nation."

The article goes on to point out that "The National Center for Policy Analysis also on Tuesday, identified the U.S. Congress as the responsible party for the high price of gasoline and summed it up in this manner: 'Over the last 28 years, Democrats in Congress and a few Republicans have again and again opposed our drilling for oil in Alaska’s ANWR; during the past 31 years Congress has repeatedly prevented us from building any new oil refineries; most recently congressional Democrats defeated and discouraged any bill that would let us drill in the deep sea, 100 miles out.'"

According to the Energy Tribune, "We’re told repeatedly that A.N.W.R. won’t make much difference in terms of new supplies. Not true. According to the U.S. Geological Survey, the refuge holds about one-third of America’s oil reserves and more than half of its gas reserves."

In spite of the fact that the majority of Americans want increased drilling and oil exploration in order to increase domestic supply, the Democrats in Congress refuse represent the wishes of the people.

 


5/19/08, 5/28/08, & 5/29/08 - Durbin complains about high gas prices in a press conference at a gas station but offers no real solutions

Durbin has spent a lot of time standing in front of gas stations complaining about gas prices. He was across the street from a gas station in Urbana on 5/19/08, in Moline on 5/28/08, and in Aurora on 5/29/08. His short-sighted proposals at these publicity stunts include suing OPEC.

Durbin's ideas fail to address major causes of high gas prices, including taxes. "Considering the Chicago area has the HIGHEST gas prices in the nation, perhaps Sen. Durbin and Rep. Foster should consider other problems that contribute to high prices much more within our control. Skyrocketing federal, state and local taxes are a major chunk of each gallon's price."

In his speech in front of a gas station in Moline, caught on video below, Durbin made a poignant argument. "If we're going to get this economy back on its feet and avoid a recession, we've got to have more aggressive leadership in Washington to get that done."

Yet Senator Durbin, the number two man in the US Senate, has been content to throw his hands up in the air and whine that there's only so much he can do. If one of the most powerful men in the country cannot give more aggressive leadership to actually accomplish something, then it is time for him to move on.

 


5/20/08 - Congressional Democrats pass a bill to sue OPEC

On May 20, 2008, the US House voted to allow the US government to sue OPEC for high oil prices. This is in spite of the fact that "The U.S. has no legal right to compel foreign companies (or countries) to produce more of anything." The Energy Tribune argues "When it comes to energy policy, Congress goes from dumb to dumber. The latest example: a bill passed by the House of Representatives on May 20 that will allow the U.S. government to sue OPEC for conspiring to raise prices."

The Energy Tribune article goes on to point out that "The other problem with the House measure is its blatant hypocrisy. Congress has restricted drilling in the U.S. by making (for example) the Arctic National Wildlife Refuge and other areas off-limits to oil and gas exploration. Thus, the U.S. wants to protect its own environment – by preventing new oil production in America – while demanding that foreigners spend billions to drill on their lands."

Energy & Capital mocks the plan, stating that "trying to sue OPEC for limiting oil supplies and setting crude prices is like a junkie trying to sue his dealer for not giving him enough heroin at a price HE thinks is reasonable. If you ever needed any evidence that most of our elected officials have absolutely NO clue as to what's really going on here, this is it."

 


5/21/08 - Durbin proposes suing oil execs and grills them at a Congressional hearing

Dick Durbin blames oil companies for high gas prices, and recently went after them at a Senate committee hearing, asking "Does it trouble any of you when you see what you are doing to us?"

The Washington Times points out that "the Illinois Democrat's question was aimed at U.S. oil executives, but would have been more appropriate if it came from millions of Americans and was directed toward Mr. Durbin and other policymakers."

CNN reports "The executives said it did, and that they are doing all they can to bring new oil supplies to market, but that the fundamental reasons for the surge in oil prices are largely out of their control. The place to start the free market is in our own country," said one executive. [The drilling ban] sets the stage for OPEC to do what we are doing in our own country, and that is effectively limiting supplies."

The Washington Times article goes on to state that "Beyond the finger-pointing, it's important for Americans to understand that America's 'big oil' industry did not place us in our current predicament. Congress and state legislatures - with the aid of special interests groups - are largely to blame. Today, U.S. energy companies have very little influence on the price of oil."

According to NewsMax.com, the Democrats plan to punish oil companies with a windfall profits tax "will no doubt be used by these far left zealots for their own political gain, no doubt for social programs to buy votes in the upcoming elections."

The NewsMax.com article goes on to argue that "the oil companies must preserve these profits which are desperately needed at the present to build new refineries and to develop new oil fields when the next and hopefully more energy-wise Congress is elected."

Rush Limbaugh panned Durbin for ignoring the real problems, the criticism is excerpted below.

Now, little Dick Durbin, sits there all sanctimonious, lecturing these oil company executives. He has the nerve to complain that, in his state of Illinois, Chicago residents are paying the highest gasoline prices in the country, and he points his finger of blame right at the Big Oil executives.

"Tired of seeing the price at the pump jump every time you need to buy gasoline? Well, the record-high price of gasoline in the Chicago area is linked to a record-high rate of taxation: nearly 20 percent of the Chicago price," CBS 2 Political Editor Mike Flannery reports. "Illinois Sen. Dick Durbin complained to oil company bosses at a hearing on Capitol Hill about Chicago having the highest gasoline prices in the United States. Largely ignored was the role taxes are playing -- an astounding 10 levels of taxation." And also in Chicago, when the price of gas goes up, the tax goes up. The federal tax stays the same, 18.4 cents, but in Chicago, a lot of other places, too, you raise the price per gallon and the tax goes up proportionately, and that of course is exactly the point for the politicians.

So while these guys, Durbin, Blagojevich, are all over television whining and moaning trying to relate to the consumer about this high price of gasoline and pointing evil fingers at the Big Oil execs, they're privately, behind closed doors, they're rubbing their hands, "Boy, we are soaking these people, and we are never going to get the blame and we're going to be able to get some money." So the prices in Chicago land are higher because of government taxes.

 


6/12/08 - Durbin blames speculators for the high cost of gas and proposes increased market regulation

In addition to using OPEC and oil companies as a scapegoat for his own lack of action on energy policy, Durbin also cites speculators as the cause of the current problems. An article from the Wall Street Journal describes the problems with this approach, specifically the fact that it accomplishes nothing.

To listen to Democrats, Congress can't wait to crack down on all those greedy "speculators" who are driving up the price of oil. To listen to one Democrat in particular, Illinois Sen. Dick Durbin, is far more illuminating.

If the powerful majority whip is looking a little thin these days, it's because he has been feeling the squeeze.

On his left is his party, wild to find a villain on whom to blame high gas prices, intent on deflecting attention away from its own antidrilling policies. It has settled on those unfortunate traders who deal daily in contracts for the world's short supply of oil.

It's a "carnival of speculation," howled North Dakota Sen. Byron Dorgan, who introduced a bill to "shut down casino-like betting." His colleague Maria Cantwell decried the "dark" market and demanded "rules." "We are putting oil speculators on notice," intoned House Speaker Nancy Pelosi, who wants to "investigate all energy contracts." Mr. Durbin's local airline, United, has also joined in, looking for a scapegoat for its own financial woes.

What is this tough new oversight of the futures industry? Mr. Durbin's bill calls on the CFTC to do more "investigation" of the market, and (bonus!) offers to supply that agency with the funds to hire a whole 100 new employees.

As one Republican put it to me: "It's fabulous. We call it the 'Just Keep Doing Exactly What You're Doing But With A Little More Money Act.'" GOP senators were so thrilled with the Durbin nonbill that they incorporated it into their own energy legislation, robbing opponents of a key talking point.

What we have here, in short, is Congress's most fraudulent debate since Chuck Schumer saved private equity from his own party's tax grab. Mr. Durbin's Democratic colleagues know exactly what he's doing, and are winking and nodding all the way. If they really meant what they said, they'd be slamming him and his bill, while moving forward with their worst regulatory impulses.

Instead, under the Durbin strategy, they can continue the sham of getting tough on speculators, all the while knowing he will see to it they aren't allowed to wantonly destroy U.S. financial markets. As a bonus, Mr. Durbin can privately take credit for rescuing his hometown industry, sucking up its support and donations for his re-election bid this fall. The only losers are voters, who've yet to be let in on the joke of this "speculation" farce.

If this weren't enough, Mr. Durbin has a few more insurance policies for the industry. Left largely unnoticed is that Washington Sen. Cantwell is impeding three key nominations to the five-person CFTC, hobbling the very agency Democrats expect to step up the regulatory pace. Mr. Durbin is meanwhile set to mark up a spending bill designed to fund his CFTC "reform," though Senate Democrats have zero intention of bringing any appropriations legislation to the floor.

 

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