February 23, 2011
As viewers of TV’s ESPN know, there is a segment on the regular schedule called “C’Mon Man!” During these programs, the announcers describe a play that is extraordinary and immediately respond with a “C’mon Man!” It could be for the best “dunk” or missed dunk or the longest run or the worst run in football, but it always ends with an emotional C’mon Man.
So, to Washington D.C. we say, “C’mon Man!” Have you looked at gas prices recently?
As Warner Wolf, a well known New York sports broadcaster would say, “Let’s go to the videotape.”
In 2010, the U.S. imported $337 Billion of oil. In 2009, because of the recession, imports were only $250 Billion. Remember the campaign slogan of 2008, “Drill, baby, drill?” The imported oil bill was $450 Billion that year, and $319 Billion in 2007. I won’t do the math for the 4 year total, but it does start with the dreaded “T” word.
Wouldn’t it be ironic if the oil producing countries did a profitable arbitrage trade by capitalizing on the dry and sunny weather? They could deploy solar installations to replace oil burning facilities that generate power in their respective countries while still maintaining high levels of exports to the rest of the world.
In 2010 crude oil prices averaged $79/barrel and today crude is trading at $99. Don’t forget that many analysts were calling for $100 well before the Mid East tensions because of the global economic recovery. Imagine what the prices for gasoline will be this summer as motorists take to the roads for family vacations? C’mon Man: at $4, I’m stayin’ home! My car will be in the driveway.
Where are we today? President Obama says, “For the sake of our economy, our security, and the future of our planet, I will set a clear goal as President. In ten years, we will finally end our dependence on oil from the Middle East.” C’mon Man.
In 2006, George W. Bush said, “The best way to break this addiction is through technology. Since 2001, we have spent $10 Billion to develop cleaner, cheaper, and more reliable alternative energy sources.” C’mon Man.
Look back to the first oil crisis of the 1970’s; the U.S. created the Strategic Petroleum Reserve to stockpile oil. C’mon Man.
Since the 1970’s, every President, and probably every candidate for national office has stressed energy independence. And, what are the results? Where is the energy policy? How many more dollars does the U.S. need to export?
Today, U.S. Treasury Secretary Geithner said at a Bloomberg breakfast, “The economy is in a much stronger position to handle” rising oil prices. “Central banks have a lot of experience in managing these things.” C’mon Man. What are you lookin’ at? Have you filled up your car with gas lately? This is crude oil that we’re talking about, not Treasury securities.
Better yet, click on the following link:
The U.S Energy Information Administration (EIA) said in a February 8, 2011 release that “EIA expects a continued tightening of world oil markets over the next two years. World oil consumption grows by an annual average of 1.5 million barrels per day (bbl/d) through 2012 while the growth in supply from non-OPEC countries averages about 0.3 million bbl/d this year and remains flat in 2012.” Maybe Secretary Geithner should chat with his neighbors at EIA.
Let’s try a novel approach. Create an energy policy. Cut the export dollars and spend it on new forms of renewable energy.
C’mon Man. That’s too easy.