Tuesday, September 21, 2021
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Big Oil: Advantage Boehner?

The right first reaction to news that Boehner says eliminating subsidies to big oil should be on the table, is to suggest Boehner is folding…once again… to liberal pressure to keep up the class wars meme. I was tempted to lean that way myself but, on second thought, I believe he’s on to something here. IF Boehner takes a leadership position on how we should be managing our relationship with our energy providers, I fully support what he suggests in this clip:




Taken as a soundbite, this can be seen as Boehner capitulating to Democrats on the matter of demonizing *big oil* and evil/greedy rich corporations who only care about profits and their bottom lines. What we all need to do is take a big step back, and look at the bigger picture here…not just at whether we need to “tax the rich because our bloated Government doesn’t have the testicular fortitude to reduce irresponsible spending.”

Consider the “business” of providing oil & gas to the American consumer, and what that entails (you should really take the time to read that article, by the way).

In order to get fuel into your car (or heating furnace or power generation plant…etc), billions must be spent in order to get permission, and actually DRILL, to acquire it. Then, billions more are spent to get it TO a refinery (that costs billions to get approval for, build, operate and maintain), “cook” it down to some usable byproduct, and deliver it wherever it will be consumed.

In order to afford all that…obviously…prices are set in ways that allow these energy providers to recoup their costs and make sufficient profits in order to keep doing MORE of what they do and – as the rules of capitalism necessarily dictate – have enough left over to live their lives and buy their houses (and their cars and boats and ski lodges in Aspen) and send their kids to college (or save for their retirement) each according to their ability to pay. Just like the rest of us.

There is no evil in oil production. This entitlement mentality that runs rampant throughout our Republic…suggesting we are OWED this product by the people that did the actual work of making it available for our consumption… is at the base of the love-hate relationship Democrats have helped foster with, in this case, *big oil* and no amount of taxing them more or punishing them more or vilifying them more seems to be enough to sate the handout-takers.

There are no evil people in oil production, either. There are people trying to make a living – just like everyone else – and not enough people seem to understand, or care, about the individuals that comprise the oil and gas industry. Where I see an opportunity for the Speaker to take back control of the dialog, however, is in his approach to the issue presented in this article; subsidies.

Removing a tax break is the same thing as a tax increase. With that said, however, we have an opportunity here to have a conversation with the oil industry about their giving back the handouts from us that were first given to ease their pain associated with exploring, extracting, refining, and delivering this product to the taxpayers. We have an opportunity – we, meaning Boehner and the current majority in the House – to negotiate a win-win for both sides. Take back subsidies at a time when overall profits are at nearly $400million dollars a day (meaning they can afford to NOT receive the subsidies) so taxpayers can have that money to address larger, more pressing issues with which they are presently confronted.

In exchange?

Open up more exploration opportunities, expand the number of available frontiers, reduce the red tape and outrageous fees and restrictions and anti-oil regulations handed down by Executive fiat. Break the EPA’s neck, and shut down their ability to circumvent Congressional authority. Make foreign oil less attractive than domestic oil to the consumers and the speculators by squeezing OPEC and making it harder for them to get our money. Do this, and we can regain a little independence from the Middle East, and our new pals in Brazil. Do it not, and gasoline will keep going up…to a point that none of us can afford it and our President will be out of a job. (that last isn’t so displeasing, btw)

Boehner has a chance to lead, and lead in a way and in a direction that many of us doubters out here would be willing to follow. He needs to get the American people to understand that *big oil* isn’t just about prices at the pump; “punish their success so we can pay less for their products” is not a winning formula. Give them incentives… reasons to invest their money in more development… and their increased volume(s) of production will take care of the prices at the pump.

We need Boehner to lead, and to do so in a way that gives us confidence he knows what he’s doing for the good of the economy and the American people. Let the Democrats fight for the scraps at the Big Oil Master’s table…and let Boehner fight for the personal and economic freedom of the American people.

[lead image via Politifake

haystackhttp://unwashedphilosopher@gmail.com
There's not much to say... I come from a long line of Appalachian folk that landed in America long before flipping off the King was even a twinkle in the eyes of our founding fathers. We have been Carpenters and coal miners... Soldiers & Sailors and pig farmers and Sunday morning circuit-riding preachers. Hell, I'm told we have even been fairly decent bootleggers too.

11 COMMENTS

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11 COMMENTS

  1. Excellent perspective haystack. I agree, take away the subsidies for big oil in exchange for less regulation and a lot more drilling and refinery building. I would also go as far as to include no more subsidies for wind, solar and ethanol. If those things happened the price of fuel and food would go down quickly.

  2. What is maddening is this: We here at UP, and our bretheren and sisteren out there in the ether, think we are so smart and all that for nailing the Dems and the Socialists and knowing just what the country needs, et cetera. But we are not really smarter than anybody else. These critters didn’t get, and haven’t gotten, elected to Congress and been successful in other areas, by being stupid. They know what capitalism and freedom and the profit motive and American exceptionalism are just as well as we do. But for some reason, they are chained to the Progressive vision and the bleeding heart mentality that has been successfully exploited by the opposition for forty years. They’ve got to do what some of the female conservatives started saying during the campaign last year – man up.

  3. Boehner should tie this to the upcoming debt ceiling debate: End all subsidies to Big Oil to help the government income stream.

    Play up the oil subsidies, BUT include ALL subsidies, including the disasterous ethanol subsidies which are driving up food prices around the world.
    Combined with eliminating all EPA regs *Requiring* ethanol in gas, thereby instantly increasing everybodies gas mileage and reducing import requirements.

  4. Well we shall see. Just remember this fact as Boehner goes forward. As with everythiing else, we are in a world market now. “Big Oil” ….is not so big anymore. The top 5 supermajors – includiing ExxonMobil BP and Shell – all together only have access to about 10 or 20% of the world’s proven reserves. The otehr 80% is in the hands of the state controlled “national oil companies” such as Mexico’s Pemex, Hugo Chavez’ PdeVesa, Putin’s LukOil, China’s CNOC, Saudi Aramco, etc. They are definitely state-funded, non market controlled, and why the remaining free market companies have to drill in harder and harder places to find oil. They (the market based companies) are figting a desperate game to preserve their 10-20% market share. Every bit Obama chips away at them, I reckon they will not get back – example drilling in the Gulf – where BP gets nudged out, Cuba backed by China is moving in to drill. Hope this strategy works, if it is indeed a strategy.

    • yep-exactly right. And…the profits are still there with the “majors” while, more than likely, the OPEC nations and our commie pals to the south are raking in the dough, paying terrorists, and oppressing their citizens.

      Not getting who, exactly, is evil in this game.

      • In this instance haystack, there can be no confusion about who the good guys and the bad guys. If we let the publicly traded US oil companies like Exxon, Chevron and Conoco continue to go into the market with their better technology and talented private workforces, they will, as they have for 90 years, bring us plentiful supply of gasoline at the pump at market prices of $3/gal (or price adjusted for inflation going back in time). OTOH if we let Obama destroy the US energy industry, the price of gasoline will be set on the Blackberry in Hugo Chavez’ pocket, and it will be $6/gal or more, and it will be at the pumps for you in America – occasionally & when he feels like it. Frightening? It’s true. And, Obama thinks if it happens just that way…. it will be just great. Obama is making this play in front of everyone’s eyes and we had better recognize it for what it is.

  1. Excellent perspective haystack. I agree, take away the subsidies for big oil in exchange for less regulation and a lot more drilling and refinery building. I would also go as far as to include no more subsidies for wind, solar and ethanol. If those things happened the price of fuel and food would go down quickly.

  2. What is maddening is this: We here at UP, and our bretheren and sisteren out there in the ether, think we are so smart and all that for nailing the Dems and the Socialists and knowing just what the country needs, et cetera. But we are not really smarter than anybody else. These critters didn’t get, and haven’t gotten, elected to Congress and been successful in other areas, by being stupid. They know what capitalism and freedom and the profit motive and American exceptionalism are just as well as we do. But for some reason, they are chained to the Progressive vision and the bleeding heart mentality that has been successfully exploited by the opposition for forty years. They’ve got to do what some of the female conservatives started saying during the campaign last year – man up.

  3. Boehner should tie this to the upcoming debt ceiling debate: End all subsidies to Big Oil to help the government income stream.

    Play up the oil subsidies, BUT include ALL subsidies, including the disasterous ethanol subsidies which are driving up food prices around the world.
    Combined with eliminating all EPA regs *Requiring* ethanol in gas, thereby instantly increasing everybodies gas mileage and reducing import requirements.

  4. Well we shall see. Just remember this fact as Boehner goes forward. As with everythiing else, we are in a world market now. “Big Oil” ….is not so big anymore. The top 5 supermajors – includiing ExxonMobil BP and Shell – all together only have access to about 10 or 20% of the world’s proven reserves. The otehr 80% is in the hands of the state controlled “national oil companies” such as Mexico’s Pemex, Hugo Chavez’ PdeVesa, Putin’s LukOil, China’s CNOC, Saudi Aramco, etc. They are definitely state-funded, non market controlled, and why the remaining free market companies have to drill in harder and harder places to find oil. They (the market based companies) are figting a desperate game to preserve their 10-20% market share. Every bit Obama chips away at them, I reckon they will not get back – example drilling in the Gulf – where BP gets nudged out, Cuba backed by China is moving in to drill. Hope this strategy works, if it is indeed a strategy.

    • yep-exactly right. And…the profits are still there with the “majors” while, more than likely, the OPEC nations and our commie pals to the south are raking in the dough, paying terrorists, and oppressing their citizens.

      Not getting who, exactly, is evil in this game.

      • In this instance haystack, there can be no confusion about who the good guys and the bad guys. If we let the publicly traded US oil companies like Exxon, Chevron and Conoco continue to go into the market with their better technology and talented private workforces, they will, as they have for 90 years, bring us plentiful supply of gasoline at the pump at market prices of $3/gal (or price adjusted for inflation going back in time). OTOH if we let Obama destroy the US energy industry, the price of gasoline will be set on the Blackberry in Hugo Chavez’ pocket, and it will be $6/gal or more, and it will be at the pumps for you in America – occasionally & when he feels like it. Frightening? It’s true. And, Obama thinks if it happens just that way…. it will be just great. Obama is making this play in front of everyone’s eyes and we had better recognize it for what it is.

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