Losing It
Congress failed to pass the "Use it or lose it" energy bill yesterday. The vote was 244-173, but the expedited process required 2/3.
The law commands oil companies to explore the lands they've leased for drilling, or lose them. This is cynical even by Congressional standards. In an attempt to distract from the possibility of letting them drill in new areas where there actually is oil, Congress is trying to pass legislation demanding they do what they'd do anyway if it were good for business. The law must be based on the premise that the oil companies could find more oil if they wanted but are just too evil or too lazy to make the effort. (Maybe there's a more reasonable theory behind the law, but I can't figure it out.)
posted by LAGuy @ 12:38 AM
5 Comments:
Democrats say we can't drill out way out of this problem. Unless we drill where there's no oil, I guess.
The theory behind the legislation is: you've got places to drill that aren't (nearly as) environmentally sensitive. Don't tell us you'd prefer some easier, cheaper, but more environmentally sensitive spots until you've fully explored the former.
Here's a theory -- "We've got control over these lands already, but we think the current prices for oil and gasoline make conditions ripe to gain access to sensitive areas that have been reserved for other purposes. Let's jump on it. In the meantime, aggressive pursuit of oil from our existing leases would not help this cause."
I assume they thought there was oil there at some point or they would not have pursued the rights in the first place.
Incredible. People defending the indefensible. The oil companies have this land which they've been surveying for years, and the perfect opportunity to make more money than ever, but they've decided not to make the money. That is actually the theory of the commenters.
And you know that they've been "surveying [all of their existing leases] for years" how? A citation would maybe add some weight to your incredulity. The idea that oil companies would behave in a long-run strategic manner that did not maximize short-run profits is not inherently implausible.
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