The Conservative Edge

Although I left these thoughts as a comment to one of my posts, I wanted to make a separate entry containing some feedback concerning oil and gas prices. It seemed appropriate, as I just read a column by Bob Herbert, regarding Obama’s “two-year, nationwide effort to jump-start job creation in America…we’ll put people back to work rebuilding our crumbling roads and bridges…”.

Thanks to Mark for a comment about the temporary drop in gas prices. I too will not be selling my fuel-efficient vehicles anytime soon. For the record, I own a 2004 Chevrolet Aveo and an old 1990 Ford Festiva that I use for work-related commuting. I bought my Aveo back in 2005, when I thought that gas would rise past $2 a gallon. It turns out I was right, although I never expected to see gas at $4 a gallon!

Also, I agree with “crude oil futures”, in the fact that oil prices can be excessively high, or low, depending on the supply/demand relationship. We need to be mindful of this, as our President-elect plans to introduce infrastructure projects to spur job creation. Infrastructure materials (especially asphalt) need to be affordable, which means that petroleum needs to be plentiful. Since it’s a safe bet that foreign countries won’t be too cooperative, we should be vigilant in securing our own supplies to keep up with future domestic demand.

Do you think that Iran and Venezuela, who have recently demanded cuts in oil output, will be as eager to increase production if our demand goes up? In fact, there are reports that OPEC will likely cut production again as soon as mid-December. Remember, infrastructure and construction projects require energy; more of it needs to be supplied here at home!

After writing my previous post, I found a very interesting article on Yahoo. This, to me, validates what I wrote about gas and oil prices and their effects on cities’ efforts to keep up street and road repairs.

Here is the link to the article: http://news.yahoo.com/s/ap/20081109/ap_on_bi_ge/asphalt_shortage

I’d also like to include a short excerpt from the Yahoo article:

“Dozens of road repairs were delayed last summer and municipalities around the country may face another shortfall next summer. Road-maintenance projects that have gone forward cost significantly more as the price of asphalt nearly tripled over the past year.

The dearth of asphalt compounds the challenges states, counties and cities already face in fixing bridges, highways, local streets and other critical infrastructure at a time when budgets are squeezed by falling income, sales and real-estate tax revenues — not to mention higher costs for fuel, steel and other raw materials.”

This is why we can’t stop using oil. Doesn’t it make sense that we need to secure our own supplies, and not subject our economic stability to the whims of foreign countries? If, for example, Nigeria experiences a coup, and the oil production stops, why should that affect us, if we have established our oil drilling and production? A lot of jobs could be created, from the extra workers needed to repair roads in small towns, to the people hired to drill/pump/refine/transport oil and oil products. The Democrats have talked about infrastructure projects being key to reviving the economy, but cities and towns need to be able to afford the materials. Think about it!

So now that the election is over (although the media is still obsessing about Sarah Palin’s clothes), it’s time to think about what to expect after January 2009.

I personally believe we will see higher oil/gasoline prices beginning in Spring of next year. President-elect Obama is already considering using Presidential authority to reverse the executive decision made this year by President Bush to expand drilling in U.S territories. Many Democratic leaders and other liberals are expressing concern about the fragile and delicate environments in Utah and Alaska. I wish they could show equal concern for the tremendous economic price we pay for buying foreign oil. It is truly mind-boggling to think that there are Americans who adamantly oppose the production of American energy.

I recently read an article in my local newspaper about the difficulties many communities are experiencing in keeping their roads paved. Some towns are cutting back on repair and repaving of roads and streets. This is due to the dramatic increase in the cost of asphalt, which is a PETROLEUM-based product. Simply put, we could get more people working to pave more roads, if only asphalt was cheaper. What are we to do—start driving our cars on solar panels, instead of blacktop?

Let’s take it further—what other products have become more costly due to higher oil prices? How about all of the plastic containers that store all of those food products in the supermarket? How about cosmetics? Vaseline, for instance, is actually PETROLEUM jelly! Think of all the plastic chairs we sit on, or the computers made with polycarbonate materials. Think of how it costs more to get the oil changed in your car—you never see any $9.99 service specials any more. Tires cost more too. And let’s not forget how much more shipping charges we pay now, when we buy something from QVC or Amazon or eBay.

So, if the Democrats want to stimulate the economy, they should EXPAND oil and gas production, not restrict it. Think of all the jobs that would be created in the exploration, drilling, production, refining and transporting of oil, gasoline, and natural gas. Not to mention all of the related industries such as service and repair companies, trucking, and others that would increase hiring as well.

And we needn’t get upset with the oil companies’ profits, either. We’ve made the Saudis far richer with the money we’ve been sending them for the past few decades.

By the way, have you ever see the Democrats who are so concerned about the environment, actually spending time IN the environment? I’m not sure they could tell the difference between a maple tree and a pine tree. There aren’t too many of them I could equate with a Teddy Roosevelt!