The Oil Crisis – Desperate Measures

U.S. President George W. Bush and Senator John McCain have called for an expansion of U.S. domestic oil drilling to Alaska, federal lands and the Outer Continental Shelf (OCS) off the U.S. East and West coasts. This could not be more timely, if only it was realistic. The biggest roadblock on the way to more U.S.-produced oil is the Democratic majority in the Congress and its fellow travelers. Oil-rich rulers, from King Abdullah I of Saudi Arabia, to Mahmoud Ahmadinejad to Hugo Chavez are probably opening champagne. U.S. Senator Barak Obama, the presumptive Democratic Presidential candidate is supported by his party's congressional delegation, which says in chorus, 'we cannot drill our way out of this oil crisis.' The Democrats have no monopoly on dead-end energy decisions. In 1989, when abundant oil was $14 a barrel, U.S. President H.W. Bush signed an executive order which banned drilling and exploration along the coasts. As a result, America has no idea how much oil is down there. Now lifting that executive order cannot restart domestic drilling without Congressional cooperation. Around the world, plans to increase supply through exploration and production are being frustrated by heightened political risks, domestic conflicts, and mismanagement. Anti-competitive and monopolistic national energy policies in the oil-producing countries are doing the energy markets much harm.