Thursday, August 7, 2008

MoveOn Calls On McCaul in Austin

Liberal Activist Group Parrots Paris Hilton on Oil Drilling

Today in Austin, the local affiliate of, delivered a petition to Rep. Mike McCaul demanding that the Congressman "offer real solutions to the energy crisis, not gimmicks like drilling."

Accompanied by 852 signatures, the cover letter also said "Rather than more drilling, we need a massive program to switch to affordable, clean alternative energy sources and end our dependence on oil." In big bold letters it exclaims: "America must commit to producing 100% of our electricity from cheap, clean renewable energy sources, like solar and wind, within 10 years." One of the groups talking points memos also states that more offshore drilling won't produce any new oil for about 10 years.

It's interesting that MoveOn's 10 year plan favors risky, unproven energy sources over a known source they admit would be productive within 10 years. What also seems lost on these activist types is that, according to the Energy Information Administration, the price of gasoline in Texas has declined $.20 since President Bush announced he was rescinding the Executive Order banning additional off-shore drilling (from $4.01/gal on July 14 to $3.81/gal on August 4).

Of course, this could in part be attributed to changing demand habits, like less driving and driving more fuel-efficient cars. (And, hey, I did my part. Last month, I unloaded by 21/mpg 1996 Ford Ranger for a 31/mpg 2008 Hyundai Sonata.) Yet, could it also be that speculators see the President's move to lift the off-shore drilling ban has signalled to speculators that the supply relative to demand could increase, thus making oil futures a less attractive speculative investment?


No comments: