Posted by
L Gravel on Saturday, June 07, 2008 4:07:06 PM
John Hood makes the following observation in the National Review Online:
Gasoline is about to exceed $4 a gallon in most of the country. Anyone who believes that isn’t the single most important number in American politics is fooling himself.
He's probably right. I would like to believe that Americans are far-sighted enough to make stopping Iranian nukes their number one issue. But hey, that might cause the end of the world in five or ten
years, whereas gas prices are hurting us now.
Meanwhile,
Robert Bryce in the American Magazine provides an excellent chart showing world supply and demand for oil (see table 2.1 in the article). The table speaks for itself. American supply of oil has declined slightly over five years, while American demand has held steady (bespeaking of increasingly efficienct usage offsetting increasing population). Meanwhile, global supply and demand have both risen, but the latter has outstripped the former, thus causing the price spike.
On the bright side, Loose Ukrainian sends me a
Bloomberg article detailing the current activity in the Bakken oil field:
... the Bakken formation [is] a sprawling deposit of high-quality crude beneath the durum wheat fields of North Dakota, Montana and southern Saskatchewan and Manitoba. The Bakken may give the U.S. -- the world's biggest importer of oil -- a new domestic energy source at a time when demand from China and India is ratcheting up the global competition for supplies and propelling average U.S. gasoline prices to almost $4 a gallon.
And unlike the tar from Canada's oil sands, Bakken crude needs little refining. Swirl some of it in a Mason jar and it leaves a thin, honey-colored film along the sides. It's light - -almost like gasoline -- and sweet, meaning it's low in sulfur.
Best of all, the Bakken could be huge. The U.S. Geological Survey's Leigh Price, a Denver geochemist who died of a heart attack in 2000, estimated that the Bakken might hold a whopping 413 billion barrels. If so, it would dwarf Saudi Arabia's Ghawar, the world's biggest field, which has produced about 55 billion barrels.
There are technical hurdles, but with oil at $125 a barrel, the Bakken is viable, and the environmentalists have been unable to put it off limits.
Finally,
Fred Barnes in the Weekly Standard brings us back to the political:
Where Republicans have succeeded is in selling their solution to soaring gas prices: drilling for oil offshore and on federal lands, areas now off limits. In the Gallup survey, support for drilling in precisely these areas jumped from 41 percent in 2007 to 57 percent in May.
So Republicans have an issue to exploit. And it's one on which Democrats are especially vulnerable because they promised in the 2006 campaign to offer a "common sense" plan to curb gas prices. They have yet to produce one, and the price per gallon of gas has risen by more than $1.60 since Democrats took control of Congress in January 2007.
Democrats have also insisted--unwisely, it turns out--on pushing to enact a global warming bill that would further boost the price of gas and rake in trillions of dollars in new revenue. This might have made sense a few years ago, but not in the days of public anger over $4 a gallon gasoline.
Speaking of that global warming bill, I did have a dark thought the other day that the Republicans could let the thing pass and let it wreck the country, just to teach the electorate a lesson. Go away, dark thoughts.