A great con game is being played out in Washington, D.C.
The public is clamoring to open the spigot for American oil
andgas. Drill Now. Drill Here. Pay Less. About 70 percent of the
public say we should end the ban on offshore drilling. Even most
Californians agree!
So the liberals who dominate Congress are going to do something
about the problem. The political problem, that is. Not the energy
problem.
They will have a vote on offshore drilling. Sort of. Just enough
so they can tell voters they "got the message" and "did something"
- but no more, and not enough to make a difference in gasoline
prices. And this pretense will be lumped in with a bunch of bad
ideas and big spending.
It will be a package deal, labeled "comprehensive" energy
legislation.
That's the word to beware - comprehensive. When applied to
immigration legislation, it was code that meant "includes amnesty."
When it was applied to housing, it meant that reforms of Fannie Mae
and Freddie Mac were accompanied by tens of billions of giveaways
to the industry and to left-wing groups.
When applied to energy, "comprehensive" means a little bit of
drilling and a lot of drooling over the goodies to be given
away.
House Speaker Nancy Pelosi, D-Calif., recently (and several
times) has telegraphed the message that a bill that includes some
offshore drilling can be brought up in the House despite her
long-time adamant opposition to that drilling. But, she carefully
caveats, a drilling provision will be considered only as
part of a larger package. Here's what to expect will be
included:
- Minimal expansion of offshore drilling. Very
minimal. It may resemble the recent proposal by the bipartisan
"Gang of Ten" senators, which would give only conditional approval
to drilling off the coasts of only four states - Virginia, North
Carolina, South Carolina and Georgia. Conspicuously missing are
Florida, the eastern Gulf Coast area, the entire West Coast and
offshore Alaska. Also missing is drilling on other public lands,
including the Alaskan National Wildlife Refuge. In other words, all
the areas thought to have large oil and gas deposits would remain
off-limits.
- The liberals' perennial favorite, a "windfall profits"
tax. The old Jimmy Carter-era version reduced domestic
production by about 5 percent, increased oil imports by about 15
percent and generated only a fifth as much money as sponsors
promised - all because it reduced incentives to produce domestic
energy. It didn't help then, and it won't help now. By adding an
extra cost, the windfall profits tax makes gasoline more expensive,
not cheaper.
- Other increases in oil and gas taxes, possibly in the
$35-85 billion range. Liberals want more tax monies to
give as subsidies to producers of alternative (but not nuclear)
energy. Despite years of massive subsidies, these alternatives
remain too expensive to compete with $120-a-barrel oil.
- A sell-off of oil from America's Strategic Petroleum
Reserve. This move might make a momentary blip of lower
gasoline prices, but it would leave us unprepared for military
emergencies. (Russia's attack on the Republic of Georgia and its
oil pipelines demonstrates how quickly supplies from overseas could
be cut off.)
- A "use it or lose it" restriction on drilling on public
lands. It's a bit of puffery intended to embarrass energy
companies for not drilling in areas where there's not enough
petro-carbons to justify it.
- A sham "crackdown" on commodity speculators.
In the liberal canon, speculators are the bogeymen who supposedly
made oil prices rise. Somehow, these imagined culprits disappeared
when prices fell.
- Lawsuits against OPEC.
Missing from the legislation will be any provision to remove the
red tape that has frustrated drilling, thwarted nuclear power
plants and blocked any new refinery construction for decades in the
USA.
The liberals don't want the package to reach President Bush's
desk; they only want news of it to reach voters' ears. That's why
they'll lace what should be a straightforward drilling bill with
all these poison pills. All they really want is a legislative fig
leaf that will let them pompously proclaim they are "for" expanding
offshore drilling, albeit in a highly nuanced "comprehensive"
framework. The strategy is to undercut the public gains made by
minority House Republicans (who continue to hold their rump session
while Congress is out of town until after Labor Day) with a bill
that leaves the GOP spluttering, "That's not what we meant!"
It's all a holding action to punt the energy issue into next
year, when a new president will deal with the issue - and with a
Congress that values politics as usual above all else. That's how
we got into this mess, and that's what will keep us in it.
Ernest Istook is
recovering from serving 14 years in Congress and is now a
distinguished fellow at The Heritage Foundation.