AllupInyourBiz

According to a NY Times article this morning, rising oil prices have left Iraq with a $79 billion budget surplus. The article points out that little or no funds from the Iraqi budget are being allocated towards rebuilding the country, because the US is paying for all of it. The article quotes John Warner (R. Virginia) as saying “The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects.” The article also quotes Mr. Levin, the chairman of the Senate Armed Services Committee as saying, “It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves. We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank.” No kidding! In fact, it wouldn’t be too far fetched to add in a request for a little bit of reimbursement. This situation is especially frustrating, given the fact that American officials promised that Iraqi oil would pay for the reconstruction of the country. That promise may have indeed been the catalyzing factor for many of those who initially voted for the action in Iraq. Who do we hold accountable?

Today, Barack Obama announced his dumbest idea yet, regarding the oil debacle. According the the NY Times, “Obama, who as recently as last month argued against tapping into the petroleum reserve located in caverns in Texas and Louisiana, proposed that the government sell 70 million barrels of oil from its stockpiles and said that releases from the reserve in the past have lowered gas prices within two weeks.” Flip flopping aside, this plan preys on the ignorant. Obama, by using big numbers, like 70 million, deceives those who have no concept of how much the US consumes, into thinking that his plan will actually put a dent in the current problem. According to the US Energy Information Administration, the US Consumes over 20 million barrels per day. In case math is difficult for you, Obama’s proposal would sell roughly 3 and a half days worth of oil from the reserves. Yeah man, that will totally solve the problem.

Another part of Obama’s plan is to increase domestic production by allowing off-shore drilling (something that he was also opposed to, a few weeks ago). Why this wont work either: The US currently produces less than half of what it consumes per day, in crude oil. It does not take a brainiac to figure out that even if every current drilling ban were lifted in the US, It would be impossible to double the current production. Would anyone want to live in a place where oil exploration trumps all, anyway? In my opinion Obama’s plan is to continue polishing the brass on the Titanic. Even a realistic plan (..not likely to exist) to become independent from foreign oil, would only be prolonging the inevitable. How hard is it to realize that oil production, regardless of the source, is not sustainable? Does the federal government not read the numbers that they publish? Am I taking crazy pills?

It isn’t about production, or consumption of crude oil. It is about alternative fuels. Must… focus… on oil alternatives. Even though Obama’s plan is pathetic, it was refreshing to read about an bonafide issue, today. All of the rhetoric and finger pointing about who is campaining dirtier is so tiresome.