Apr 06 The Next Economy Killer?

In 2008, gas prices reached $4.00+ a gallon. Speaker Pelosi tried passing gimmick drilling bills then just like President Obama is playing gimmicks now. CNBC's Rick Santelli is predicting the return of high gas prices:

"We have the cyclical side; we're going to have $4 gas this summer probably anyway," Santelli explained. "It's a great trade. Maria. You know, we've been to $150 before and I don't see why it couldn't happen again."

If President Obama thinks that people won't notice that his exploration announcement is a gimmick, he's making a major miscalculation. Gimmicks don't work when gas is $4 a gallon. If gas hits $150/bbl, people will demand solutions. They won't settle for the Democrats' gimmicks.

Their heating bills will skyrocket, as will their groceries. It isn't a stretch to think that companies will lay people off to offset their increased energy costs.

Republicans will be able to highlight the Obama administration's and Speaker Pelosi's refusal to drill, baby, drill. They'll start asking why there isn't a robust plan to harvest the oil and natural gas on the OCS and in ANWR. Democrats will be in a pickle if they don't propose that type of plan.

Conversely, Republicans can highlight their all-of-the-above plan:

Republicans should have graphics made to highlight the bill's balanced approach to energy reform:

To increase the supply American-made energy in environmentally sound ways, the legislation will:

• Open our deep water ocean resources, which will provide an additional three million barrels of oil per day, as well as 76 trillion cubic feet of natural gas, as proposed in H.R. 6108 by Rep. Sue Myrick (R-NC). Rep. John Peterson (R-PA) has also worked tirelessly on this issue.
• Open the Arctic coastal plain, which will provide an additional one million barrels of oil per day, as proposed in H.R. 6107 by Rep. Don Young (R-AK);
• Allow development of our nation's shale oil resources, which could provide an additional 2.5 million barrels of oil per day, as proposed in H.R. 6138 by Rep. Fred Upton (R-MI); and
• Increase the supply of gas at the pump by cutting bureaucratic red tape that essentially blocks construction of new refineries, as proposed in H.R. 6139 by Reps. Heather Wilson (R-NM) and Joe Pitts (R-PA).

To improve energy conservation and efficiency, the legislation will:

• Provide tax incentives for businesses and families that purchase more fuel efficient vehicles, as proposed in H.R. 1618 and H.R. 765 by Reps. Dave Camp (R-MI) and Jerry Weller (R-IL);
• Provide a monetary prize for developing the first economically feasible, super-fuel-efficient vehicle reaching 100 miles-per-gallon, as proposed in H.R. 6384 by Rep. Rob Bishop (R-UT); and
• Provide tax incentives for businesses and homeowners who improve their energy efficiency, as proposed in H.R. 5984 by Reps. Roscoe Bartlett (R-MD), Phil English (R-PA), and Zach Wamp (R-TN), and in H.R. 778 by Rep. Jerry Weller (R-IL).

To promote renewable and alternative energy technologies, the legislation will:

• Spur the development of alternative fuels through government contracting by repealing the "Section 526" prohibition on government purchasing of alternative energy and promoting coal-to-liquids technology, as proposed in H.R. 5656 by Rep. Jeb Hensarling (R-TX), in H.R. 6384 by Rob Bishop (R-UT), and in H.R. 2208 by Rep. John Shimkus (R-IL);
• Establish a renewable energy trust fund using revenues generated by exploration in the deep ocean and on the Arctic coastal plain, as proposed by Rep. Devin Nunes (R-CA);
• Permanently extend the tax credit for alternative energy production, including wind, solar and hydrogen, as proposed in H.R. 2652 by Rep. Phil English (R-PA) and in H.R. 5984 by Rep. Roscoe Bartlett (R-MD); and
• Eliminate barriers to the expansion of emission-free nuclear power production, as proposed in H.R. 6384 by Rep. Rob Bishop (R-UT).

Once again, it's time that Republicans highlighted these provisions in every townhall meeting back in every district across America.

This has the potential for doing alot of political damage to Democrats. If they don't put a viable plan on the table that will reduce prices and reduce our reliance on foreign oil supplies, they'll be portrayed as obstructionists who are controlled by their environmentalist allies.

If there's anything that won't sit well with people, it's a political party that won't act because they're owned by a special interest group. If I've learned anything about the TEA Party movement, it's that they demand to not be forgotten. Another thing they demand is that politicians take them seriously. If voters figure out that Democrats are playing games, they'll abandon them in droves.

There's a political hazard for President Obama, too. People saw how he cut deals and twisted arms to get health care passed. If they see he isn't pushing to dramatically increase domestic energy production, they'll take that as proof that he isn't serious about solving this problem.

Meanwhile, Republicans will be able to offer an appealing, all-of-the-above solution.

Comments welcome at LFR.