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Thursday, June 19, 2008
Debra J. Saunders :: Townhall.com Columnist
McCain's Energy Crisis
by Debra J. Saunders
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Who won Tuesday's presidential debate?


"We can't drill our way out of the problem." Democratic presidential candidate Barack Obama has said it. Senate Majority Leader Harry Reid has said it. It's one of those bromides sincerely repeated by Democrats with such conviction that for years left-leaning audiences duly nodded their heads, never questioning whether the truism was indeed true. Until gasoline leaped above the $4-a-gallon mark.

Now some polls show that Americans support more domestic drilling. President Bush seized the moment Wednesday when he asked Congress to lift its ban on offshore drilling.

Even Republican presidential candidate John McCain has seen the light. A longtime opponent of drilling off the coasts of California and Florida, as well as in the Arctic National Wildlife Refuge, McCain has come out in favor of lifting the oil-exploration ban off the coasts.

Economic adviser Douglas Holtz-Eakin told the New York Times that McCain had supported the drilling moratorium until 2006, when Washington and Gulf Coast states reached a compromise that permitted some offshore oil-and-gas exploration.

I don't care how McTeam tries to package it, McCain has flip-flopped on offshore drilling -- and it's about time.

For too long, McCain talked like a Democrat. He was in favor of greater energy independence, of reductions in greenhouse gas emissions and of no new drilling off the coasts or in ANWR -- and cheap gasoline. To believe all that is possible in this global market, you essentially have to believe in a good energy fairy.

When gas prices exceeded $4 per gallon, McCain, like many taxpayers, hit the tipping point where he could no longer afford the romanticized view that oil should only be pumped from yucky places. So he began to talk about Washington offering financial incentives to get coastal states to agree to new offshore exploration.

Why does McCain believe in states' rights for Californians and Floridians, but not Alaskans, who support drilling in ANWR? I asked Holtz-Eakin. His answer: Some places are simply too "special."

Wednesday, Gov. Arnold Schwarzenegger released a statement that reaffirmed, "I do not support lifting this moratorium on new oil drilling off our coast." Be it noted that Schwarzenegger agreed to increasing Indian gaming, and now wants to pump up the lottery to raise needed money for state coffers -- but he won't dirty his hands with offshore oil. Gambling is one thing, but producing more of a commodity used by all is beyond the pale. Continued...

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Subject: SJ Doc - re Hydrogen
As a matter of fact, yes, I have seen hydrogen fires. Nearly every day for about five years.

And you are correct, they are virtually invisible in daylight, and have a pale blue light at night.

Not only that, but hydrogen produces a lot of static electricity and is prone to burst into flame with no ignition source. We refer to that as auto-ignitability. Dangerous stuff.

Perhaps you misunderstand the concept of a hydrogen economy. There will be hydrogen generation via sunlight and water, with very mild compression into dedicated pipelines, then the hydrogen is burned instead of natural gas in power plants to produce electricity.

The electric power is sent out as usual to the end users, including recharging electric vehicles.

As to not being able to amortize their refinery investments, please refer to Shell's announcement today (July 8, 2008) that they are cancelling plans for a new refinery due to uncertainties over product prices longterm, and the escalating construction costs. (check out Reuters for more info.)

This is not an anomaly, but will be more and more the norm.

energyguy - Some sort of Townhall glitch
-- MORE --

Hydrogen-based energy technology isn't going to be implemented as quickly or as easily as you seem to think it will.

Beyond this consideration, there's also the fact that petrochemical feedstocks - required for manufacturing everything from plastics to clothing to building materials to pharmaceuticals - are still going to be needed, though admittedly the amount of crude oil and coal and oil shale and suchlike to get these chemicals isn't going to require the volumes of exploitation demanded by the use of these volatiles as fuel.

Despite your sunny disposition'd confidence in this new bench science, I don't really think that you've got solid grounds for saying that the energy companies won't be able to amortize the investment in:

"...multi-billion dollar production and pipeline facilities..."

...over the next decade or two.

Also, bear in mind that developing *ONE* new drug - from NCE discover to putting it on the shelf in the pharmacy - can easily run between $500 million and $2 billion (less for a Levitra-type knock-off, more for a much more risky product with a genuinely new MoA).

The pharma industry does this all the time (though I'll admit that since the MBA jerkwads took over the big drug companies from the PharmD and MD people back in the '90s, they've done a truly Christless job of it).

Do you think that the energy industry can't and won't do the same, and do it even more cost-efficiently?

If the government just gets to hellangone out of their way, they will.

And you needn't worry about them losing their shirts - or to any significant extent exacerbating "global warming" - in the process.

-- 30 --
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