Pro: U.S. reserves plus Canadian tar sands oil can provide relief for U.S. motorists
WASHINGTON EDITOR’S NOTE: The writer is addressing the question, Will lifting U.S. drilling bans and importing more Canadian oil help lower gas prices?
Americans now paying $4.50 for a gallon of gas are on the verge of open revolt. A price that high—and likely to go higher—is simply unaffordable for the millions of people commuting to work.
President Bush has heard the murmurs of revolution. He is against restrictions on drilling for oil offshore and in Alaska’s wildlife refuge. Though not an immediate cure for high prices at the pump, he realizes the United States cannot escape the closing jaws of the energy crunch unless it taps into its own vast petroleum reserves. In mid-July, he lifted the executive prohibitions on drilling on America’s outer continental shelves and Alaska’s protected land areas.
Rep. Henry Waxman, D-Calif., isn’t hearing the not-so-silent majority. He disdains any form of energy that derives from fossil fuel. His latest bete noir is oil extracted from Canada’s famous tar sands in Alberta—the largest such deposits on the planet.
In a Dear Colleague letter circulated on Capitol Hill in June, he argues for permanently banning it from the United States—noting that it is “dirtier” than conventional crude and adds to global warming.
Yet given the current groans from American motorists, one might think that Waxman would be glad to dip into that big reservoir north of the border rather than continue importing it from the turbulent Middle East. Unlike oil yet to be drilled, it’s available now—and from a friendly source.
Incredibly, Waxman seems to be laboring under the delusion that the 1.2 million barrels produced in Alberta each day have nowhere else to go, if rejected by the United States.
The stark reality is that the full-throttle economies of both China and India can gulp as much oil as Canadian pipelines can carry.
A few years ago, China unsuccessfully tried to buy into the Alberta tar sands fields and to help finance a proposed pipeline to transport it to Chinese tankers on Canada’s Pacific Coast. Nothing came of it then, but with crude oil now doubly crucial to their prosperity, it’s a sure bet the Chinese would return, waving open checkbooks.
Waxman couldn’t care less about the seller’s market for Canadian tar sands or he wouldn’t have slipped a purity test into the Energy Independence and Security Act (EISA) passed late last year.
According to Waxman, EISA bans all federal agencies and the U.S. armed forces from buying any “nonconventional petroleum”—a code name for tar sands—unless that fuel is as clean as the fuel it would replace. Tar sand oil cleans up pretty well during refining, but not quite that well.
President Bush’s lifting of the drilling prohibitions is likely to stretch the longstanding alliance between greens and Democrats to the breaking point between now and the Nov. 4 presidential and congressional elections.
The results should be intriguing, to say the least. An increasing number of Democratic legislators are starting to hear the voice of the people and indicate they may vote to support more drilling and lifting the ban on tar sand imports.
Sen. Barack Obama, the presumptive Democratic presidential nominee, remains opposed to drilling, but that could be his next flip-flop toward the center.
Sen. John McCain, the presumptive Republican nominee, who for years opposed offshore drilling, changed his mind a month ago. He supports it now, subject to decisions by individual states.
Two weeks before Bush lifted the administrative ban, the prestigious Zogby poll showed three out of four Americans favored offshore drilling and six out of 10 favored it in Alaska’s Arctic National Wildlife Refuge.
Gas at the pump has emerged at the most powerful political issue in the upcoming elections, and everybody knows it but Henry Waxman.
Bogdan Kipling is a Washington columnist who covers U.S.-Canadian relations for The Halifax Chronicle-Herald in Nova Scotia. Readers may write to him at Chronicle-Herald, 1650 Argyle St., Halifax, Nova Scotia, Canada B3J 2T2, or e-mail him at bkipling@herald.ns.ca.

Aug 7, 2008 at 10:36 p.m.
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to..whybesad, Must suck to be a frustrated republican in this day and age. Why don't the oil companies drill on the 68 million acres they have leased in the lower 48 and another 12 million up in Alaska? If they're not going to use these leased lands than they should give up the leases. Part of the 12 million up in Alaska is right next to ANWAR. The oil companies have no intention of "drill here drill now". They want to collect the land.
you see whybesad...They do not have any rigs available and guess what..?...They take the huge profits and buy their own stock back so they can inflate the price FOREVER. The corrupt polticians will lie, cheat, steal and kill for their sugar daddy oil. The republicans who are staging the theatrical sit in at the darkened congress this month are either stupid or sugar daddy is pulling their strings or both. I'm kind of hoping that the republicans will steal another election....why?. I don't think it fare to put a dem in the white house so folks like you and the corporate media can blame the dems for the destruction of America.
Aug 6, 2008 at 7:17 p.m.
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No lets just fill up or tires and get tune-ups and then we can have a windfall tax on the oil companies that will bring down gasoline prices.
Aug 6, 2008 at 4:21 p.m.
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http://www.nextenergynews.com This is a great site. Show what other Countries are doing today.
Aug 6, 2008 at 4:17 p.m.
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Nowind......Jeb Bush is no longer Governor of Florida. Crist is Governor. Jeb wants the Vice President seat or he wants to run in 2012, for President. He is bidding his time. But a member of the Bush family is now in charge of the program for medical records to be transcribed on the internet. You know that program Bush has been pushing for 3 years.
Aug 6, 2008 at 4:07 p.m.
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The Dems had a Drill now bill on the floor for two weeks prior to their vacation. The repubs vote no. The president threatened to veto if passed. The second time the Dems brought it up with repubs demands to drill in Anwr the repubs refused to vote and filibustered. When a Senate party filibusters no voting gets done. The repubs have filibustered 90 times since the dems have gained a minimal majority. The Drill Bill required the Oil Companies to drill on the 68thousand Leases they have now and are not drilling on. 33 thousand acres of these leases are off shore. The second part of the Bill was to used 10 percent of Oil reserves which is paid for by our taxes and is 97 percent full. The third part was to complete the pipe line in the arctic to provide jobs. Pickens a multi millionaire Repub Oilman says we can't drill our way out of this one. Says the only off shore oil worth drilling is in the gulf. This is just Repub propaganda, remember how they sold the unnecessary illegal War. Well their doing the same thing now. Any Oil that will be drilled for won't help the gas prices. for five to ten years. Drilling is part of the answer, but the Repubs do not want to vote on alternative fuels. We have waited seven years for the Repubs to do something. What is six more months. This Oil Drilling HYPE is Rove dirty politic hype. We will pay higher gas prices for a while until people realise we are serious about alternative fuels. Don't give in to hype, demand alternative fuels, conserve fuel and energy, it is are only way of fighting back.
Aug 5, 2008 at 6:15 p.m.
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I may be wrong but didn't goverment invent taxes.
Aug 4, 2008 at 8:19 a.m.
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Government has never invented anything.
Aug 3, 2008 at 10:49 p.m.
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So you believe government is or should be in control of all aspects of your life? Only they are wise enough to produce goods and services?
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Amtrak is a buy-out of dying commuter rail transport lines, killed by faster and more flexible airlines. It rarely makes schedule on time. So why spend the money? Nostalgia?
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Companies will produce alt. energy because it's profitable. Do you think mp-3 players were developed because of credits? No... It was because they invested in research to make a profit using new technologies, otherwise you'd still be using the tinfoil phonograph.
Aug 3, 2008 at 10:12 p.m.
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We got plenty of oil here.
Aug 3, 2008 at 1:18 p.m.
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Or not considering the ReTHUGs (since we 12 year olds) have blocked any oppertunity for more energy efficiency in automobiles and appliances and the DoE cutting it weatherization program for low income folks. Oh and lets not forget that John McCain has been trying to kill Amtrak for years. Oh and who could forget that they recently blocked tax credits for alternative energy. Those republicans politicians, classy folks I tell ya.
Aug 3, 2008 at 11:48 a.m.
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Face it we need oil. If alternative energy becomes available we'll need that too. Either way the DemocRATS (Marxists, actually) will be there to tax it, limit it, control your life with it.
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It's who they are.
Aug 3, 2008 at 12:07 a.m.
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The theory that a stronger dollar will make a large difference in the price of oil is misleading.
The only thing a stronger dollar might do is place speculative money into the currency market and away from commodity market. Reality in the stronger/weaker dollar relationship on oil price is more telling. If as stated the weaker dollar is a leading cause in the increase in oil price (priced in dollars), then for other countries the price of oil would be going down; a direct reflection of currency…this is not true, The price of oil in Canada has risen the same percentage (based on their currency) as it has for America, yet the American dollar to Canadian dollar change is not in the same proportion to the change in oil.
There are many reasons for the rise in oil prices, the major one being speculation in the market. Like it or not speculators set the price not oil companies. Currently the speculators see increasing worldwide demand for a commodity (oil) without a corresponding increase in future supply. Even if we never drill in ANWAR, if legislation were approved for the possibility for drilling, this would ease speculators worries over future supplies. The same holds true for shale research and off-shore drilling.
Aug 2, 2008 at 8:55 p.m.
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“The oil pumped from any American off shore oil will still go onto the world oil market.”
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Statements like this epitomize the sort of desperate ignorance that liberals love to encourage. If you really believe that, then the U.S. should immediately stop all oil production. Hey, it isn’t our oil; it all just goes to China, right? Why despoil the Texas plains or Alaskan tundra? Oops. Wrong-o, buffalo breath.
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Fact is, the U.S. uses oil. Lots of oil. And we’re not going to start using less any time soon. Go ahead, tune your engine, fill your tires, and the difference in our oil consumption will be somewhere in the .000000001% range. OK, maybe less. It’s simply not going to drop significantly in our lifetimes.
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Let’s say that X is the amount of oil we consume, and Y is the amount we produce. So if we produce no oil, we must import X amount of oil. No way around it. But let’s say that the amount we produce, Y, is equal to X. Zoot alors, that means we import nothing! No dollars go to Iran, or Argentina, or Nigeria, or some other places that take our money and use it to make our lives miserable. So, that’s an ideal solution, but it ain’t a-gonna happen. So, what we want is to get Y as close to X as possible. By maximizing our production, we minimize our importation. This is the object of the exercise. There are limited areas to find new oil on U.S. soil. So, drilling off-shore and ANWR are about the only choices left. The next best solution, and it’s a complimentary rather than exclusive solution, is to get the oil from someone who is (fairly) dependable and trustworthy. Canada being the best example. Banning tar sands imports is recklessly ignorant, and solves absolutely nothing.
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Go ahead, vote Democratic. Your representatives can then vote to tax the “windfall profits” the oil companies are making, and you can go to bed feeling good about yourself. Of course, the higher tax will get passed right back to you at the pump. I for one won’t feel too good about that, but then I’m not a liberal. Pelosi, Waxman, and their ilk are full of ideas for increasing our taxes, increasing the cost of our goods, and lowering our wages. What’s not to like? Everything!
Aug 2, 2008 at 7:56 p.m.
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The oil companies are making a lot of money. They have us over a barrel (pun intended, snicker, snicker).So what to do? Refuse them the opportunity to find more oil here to punish their avarice? What will they do? Find oil in other countries paying royalties to foreign governments with the money we pay them as the supply of oil shrinks with the only limiting factor on demand being the rising prices? Move their headquarters and operations to other countries to escape the punishing taxes many politicians promise to levy? Will we feel a glow of self satisfaction as oil shortages and high energy prices cripple our economy?
If we open up oil fields within our borders that we know have oil, the products of those fields benefit Americans, the taxes levied are paid to America, the oil fields are regulated under American environmental laws and the employees hired will be Americans protected under American labor and safety laws. And the world wide supply of oil will increase stabilizing prices.
Refusing to allow more drilling to get even with oil companies is like cutting off your nose to spite your face.
I posted this comment at another article comment board on GazetteXtra. I hate to repeat myself here but it seems to be appropriate.
Aug 2, 2008 at 1:30 p.m.
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You can say lower demand all you want but, people are losing there jobs because of the cost of gasoline. People need to drive to work and make money. Products need to be shipped to stores. The demand is still going to be there since third world countries are now using oil to, They aren't going to conserve. We have the oil why not use it until we find a reasonable and economical alternative energy source.
Aug 2, 2008 at 10:49 a.m.
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By the way, There are only two things these days that will lower prices at the pump.
1. A stronger Dollar
2. Lower Demand
The reason prices have gone down the past couple of weeks is because of Lower demand. Of course this is because the folks here have decided they can live without there SUV's, Or thay can't live with them.
Either way, Less Demand, Lower Prices
Aug 2, 2008 at 10:43 a.m.
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The President used to oppose off shore drilling near Florida. He did this for two reasons.
1. to keep his Brother in the Governors office.
2. to help his elections in Florida.
He is not running for office this time and the tide has turned.
As far as banning the Oil from the Tar Sands in Canada, well it may be a bit late for that. That little pipeline that is almost complete running through our state is for the purpose of bringing us Canadian Crude.
And who can deny it is better to get it from the Canadians than sending it to the middle east and supporting terrorists.
Aug 2, 2008 at 8:23 a.m.
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What's the solution then Hatch? Vote democrat and all our problems will be solved? Didn't that happen when they got the majority of the house and Pelosi said they were going to lower the price of gasoline at the pump? Didn't happen.
Aug 2, 2008 at 7:42 a.m.
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The only people that will benefit from off shore drilling will be the oil company people. The oil pumped from any American off shore oil will still go onto the world oil market. Because oil companies are privatised, American soil oil is not Americans oil......sorry folks......oil companies are using republicans as puppets. Republicans are getting pockets full of cash to spew and askew......They have us by the short hairs.....don't expect things to get better with a republican administration. Our only hope is to vote Democrat. We need to get a 60 seat minimun senate and a filibuster proof congress plus a Democrat in the white house if we even stand a chance of overcoming the capitalist and corporatist and coruption of the past eight years....harummmppphhhh
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