Obama Goes After McCain's "Energy Strategy"

It takes a pretty brave politician to tell folks the truth, that solutions to our energy problems won't be super easy and fixed by "drilling more at home."

Obama ridicules McCain's plan to tap offshore oil

3 hours ago

WASHINGTON (AFP) — Democrat Barack Obama Tuesday accused White House rival John McCain of "posturing" as the Republican, tapping voters' anxiety about sky-high fuel prices, called for offshore oil drilling.

In a speech later in the Texas oil capital of Houston, the Arizona senator was to call for a 27-year-old moratorium on offshore exploration to be lifted -- reversing his own support for the ban when he ran for president in 2000.

McCain was again to push for a summer suspension of federal taxes on gasoline, to ease a little of the pain at the pump for voters already reeling from an epidemic of home foreclosures and job losses.

Obama, who has been hammering McCain and the Republicans on the economy, said his White House opponent's support of the moratorium in 2000 was "certainly laudable."

"But his decision to completely change his position and tell a group of Houston oil executives exactly what they wanted to hear today was the same Washington politics that has prevented us from achieving energy independence for decades," the Illinois senator said in a statement.

"Much like his gas tax gimmick that would leave consumers with pennies in savings, opening our coastlines to offshore drilling would take at least a decade to produce any oil at all, and the effect on gasoline prices would be negligible at best since America only has three percent of the world's oil.

"It's another example of short-term political posturing from Washington, not the long-term leadership we need to solve our dependence on oil."

More Peak Oil Analysis... Yay! $4 Gas Is Here!!

More great analysis from our friend, Chris Nelder. Chris tries to break through the persistent denial that we can "drill our way out of the problem."

-Maltok 5

Peak Oil Consequences of Bush's Failed Energy Policies

Illusions of Candor

By Chris Nelder
Wednesday, May 21st, 2008

Rising oil prices just seem unstoppable.

Even I was amazed to see crude pushing $130 on Tuesday. Not because it had gotten to that price, but because it got there so fast. That's 30% over where it was at the beginning of the year.

The peakers (or, if you like, the "peak freaks") have won the debate about oil supplies, and it was the price shock that ended it. I'd still prefer that the discussion revolved around flow rates—that is, whether we can really get from 85 million barrels per day (mbpd) today to 116 by 2030, as the IEA has predicted—but I'll settle for not having to see some "expert" on TV predicting that oil is going back to $45, or $25, or whatever, anymore.

At least the message that oil prices are never going back to those levels seems to have gotten through.

Last July, the National Petroleum Council joined the chorus predicting that oil supply would reach 115-120 mbpd by 2030. I lambasted them for it, along with many other knowledgeable observers.

One of those observers was Matthew Simmons, the world's top oil investment banker, who remarked, "We don't have any idea where those reserves are going to come from or how we are going to get them out of the ground. The odds of this ever happening are zero."

Simmons had argued for years that oil was far too cheap, and would soon go into triple digits. He saw $150 oil not too far into the future, and eventually perhaps $300 oil, but in mid-2007, he was widely ridiculed for it.

Well, Simmons was right. He wasn't the only one, either.

Legendary oil investor T. Boone Pickens agreed with Simmons, and placed his bets accordingly, which made him a fortune. Pickens' latest bet is that we'll see $150 oil by the end of this year.

Goldman Sachs is another. They were the only investment bank to correctly predict today's oil prices last year. Their latest prediction? $148 a barrel this year.

I think that's about right. It might even be a bit on the conservative side.

But not everyone in the oil and investing business has had the vision to see the future of oil clearly, or the guts to make such bold predictions.

Unfortunately for America—indeed, for the world—our president, with all of his experience and knowledge of the oil business, has been one of the last to come around.

The Jawbone of an Ass [more]