oil

Hollywood screenwriters could come up with a fictional scenario that makes Congress look worse than it did in real life last week.

But it’s hard to see how.

Both Republican and Democratic leaders in Congress have professed their undying love for renewable energy resources. Their affection, however, took a back seat to rock ‘em, sock ‘em partisan politics when the Senate failed to move legislation extending various tax incentives for renewable resources.

If the game of chicken goes on much longer, the tax incentives will expire at the end of the year, and billions of dollars in wind, solar, and other clean energy investment capital is likely to go elsewhere, where the politics are less toxic and the financial certainty more solid.

Rather than putting money where their energy mouths are, both parties are playing for political trophies.

Reckless and feckless, that’s what they are.

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As the old saying goes, a conservative is a liberal who’s been mugged. A twist on that aphorism might be that a conservative is a liberal who paid $80 to fill up the Volvo.

Polls show that more Americans, even liberal Democrats, support expanded domestic oil production. What if the poll respondents learned that a vast pool of oil sits untapped? It’s three times the size of Saudi Arabia’s reserves and is emphatically within U.S. borders.

What are we waiting for? the poll respondents might exclaim.

Except that there’s a catch. Before the oil can be used, we have to wait 100 million years.

In an age when immediate gratification is considered a virtue, that simply won’t do. Shell is bringing technology to the rescue, to speed things up and tap the estimated 800 billion barrels of shale oil lying beneath the scrubby uplands of the central Rockies.

Shale oil is preemie oil. Strictly speaking, it’s a calcium carbonate rock containing a goopy hydrocarbon called kerogen. If we wait 100 million years, natural subterranean heat may turn the kerogen into crude oil. Since we can’t wait that long, Shell is experimenting with an audacious technology to heat the stuff artificially, and then bring it to the surface to quench our unquenchable oil thirst. More on Shell’s idea in a moment.

Instead of carrying begging bowls to Riyadh, why haven’t we tapped shale before? To answer that question, it’s important to know why crude oil is so valuable. ...

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My office phone rang and a chirpy 20-something calling from the 514 area code was on the line. A short time into the call, I knew what it was: an oil industry-sponsored opinion survey that smelled like a push poll.

With $4-per-gallon gasoline prices drawing near, what better time, in the industry's view, to make a renewed push to open up America’s coastal waters to drilling rigs. A poll designed to show that the voters support more drilling is a predictable part of the lobbying and PR strategy that is gathering steam.

The questioner tossed a lot of industry arguments my way – e.g. much of the oil that we use originates in North America, oil company profits are not out of line with other industries, scads of untapped oil lie beneath the coastal waters.

She asked me to rate the arguments' importance if they were verifiably true. For each one, I said, "not at all important." ...

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You know that the Democratic race for president has become a roving Salvador Dali painting when Hillary Clinton starts comparing herself to Theodore Roosevelt. Take that, Barack Obama!

Hillary mentioned the Rough Rider as a role model for her proposal to slap a windfall profits tax on the oil companies. In point of fact, TR’s Justice Department initiated antitrust litigation against the Standard Oil trust, the monopolist behemoth of his time. Roosevelt did not oppose large corporations on principle, and carefully chose targets for antitrust action.

Historical quibbles aside, Senator Clinton’s proposal is of a piece with Democrats' usual line of attack against high oil prices – promises to vigorously police Big Oil and stop its supposed price gouging.

Ho hum. As the summer driving season nears, lawmakers in both parties have scraped threadbare ideas off the bottom of the banality barrel to show the voters that they’re doing something.

Neither the Democrats' sloppy populism, nor the drill-till-we-drop legislation submitted by Senate Republicans deserves to be taken seriously. ...

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