Wednesday, September 24, 2008

Democrats Conceded to the GOP to Allow Offshore Drilling to Expire

Democrats Conceded to the GOP to Allow Offshore Drilling to Expire
Current mood: ecstatic
Category: News and Politics

Leadership is the ability to back up words with action. That is what John McCain has done by suspending his campaign and head to Washington to work with his colleagues to fix this financial crisis. Obama, on the other hand, says that Washington can call him if they need him, while being insistent that Friday's debate will continue on. I guess Obama forgot he is a Senator and is needed in Washington to help fix this mess. I see his priorities are still skewed.

Anyway, there is a bright light this week that the MSM has not made any headway to report to the American people. Today, Democrats in Congress will allow the moratorium on offshore drilling to expire on Oct 1, 2008, without any resistance. This is significant in ending a 26-year-old ban that was in effect since 1982.

It was revealed that both Democrat Majority Lead Reid and House Speaker Pelosi realized that they do not have enough votes to overturn a veto by the President. Therefore, thanks to the grassroots of Newt Gingrich and his "Drill Here, Drill Now, and Pay Less at the Pump" movement, the GOP has won the fight. In fact, the recently passed energy bill from the House of Representatives and the energy proposal from the "Gang of 20" was dropped allowing the ban to expire next week without a hitch.

This ending to the ban will forbid the US Minerals Management Service from spending tax payers money on anything related to offshore oil and gas leasing. Their primary role now will be only conducting environmental studies and introducing new leasing plans for oil and gas. Critics say that any new leasing will not produce anything in 5-10 years, but the markets will react differently. Mainly, the price of oil is base on future contracts. Therefore, if the price of future contracts on the purchase of a barrel of oil is low, then it will reflect positively at the pumps. In other words, we will see lower prices at the gas pumps.

This will not mean seeing oil rigs popping up everywhere, but it will allow oil rigs that were shut down a quarter century ago to restart production once again.