Monday, August 11, 2008

Schauer: Drill Responsibly, Create New Energy Jobs

Anyone besides me a little bit ticked that we are falling for the Republicans latest diversion hook, line and sinker? Suddenly they are running around with their hair on fire like drilling is the be-all, end-all answer to our energy woes, when any sensible adult can look at the facts and see that it isn't. New drilling was always on the radar, but it was still a minor issue - until they realized they could use it as an election tactic. Now, I'm seeing a bumper sticker around town that says, "NObama. Drill Offshore Now." I wish I was kidding about that - I'm not. I've seen two. And the Democrats have to follow along, when it would behoove them to change the conversation, and get the upper hand on the specifics we talk about... for example, we should be talking about getting away from oil and moving to alternatives, instead of more oil production. No, it can't happen overnight, but it is the direction we need to go, and everyone knows it.

Maybe someday.

Well, since we have already gone down the drilling road, alrighty then, let's play your game, says Senator Schauer. Time to put up or shut up. From the inbox-

“We need to stand up to the oil companies and tell them to drill or get off the pot, and do it in a way that allows us to move toward a renewable energy future,” said Schauer. “As I've consistently said, drilling alone is not the answer, but while it is a part of the current system we should make sure it's done responsibly and that consumers and taxpayers benefit - not just the oil companies."


Yeah. Sounds good. Why are we talking about giving the oil companies more space to drill when they aren't utilizing what they have now? As we have mentioned before, they are taking their billions in record profits and sinking it into Wall Street, because new production involves risk, and they are adverse to that because it might hurt that precious bottom line. So, oil companies, you want to drill, then go drill. But don't sit and cry about how you need MORE land when you won't even drill what you have now. Use it or lose it.

Here are the highlights of Schauer's plan, keep in mind this pertains to leases in Michigan.

  • Demand responsible oil production in currently leased land
    - If no production in five years, land goes back to state to be re-leased
    - Financial penalties for stockpiling land to profit from reserves without producing
    - No new leases unless current ones are used

  • Modernize lease system to make sure taxpayers and consumers benefit from production
    - Switch from the outdated 1/6 royalty system to a 50/50 "working interest" model – as the federal government and other countries are
    moving toward. Other states like Alaska, Colorado, Texas, Wyoming, Oklahoma, and Louisiana all make more compensation for their taxpayers from production
    - Create fund where additional revenue is used to transition to renewable energy projects and job creation


  • According to the AP, details on this plan are still being worked out. Right now, the royalties from state oil and gas development go to the Michigan Natural Resources Trust Fund, which buys land for public recreation, and that's part of the state constitution. So, they would have to work around that by creating this new fund. And - one more little problem that stands in the way, besides the oil companies that would drag their feet on actually spending any of their money - can you guess what it is?

    The Senate Republicans. Of course.

    Since this involves creating jobs and benefiting the Michigan consumer and taxpayer, chances are they won't have anything to do with it. They have a track record to think about, you know. Or, they will screw it up so badly with amendments and changes that in the end the legislation won't bring us any new jobs or royalties, but will somehow find a way to benefit the oil companies.

    Call it a hunch. I hate to be so pesimisstic, but I've been watching these guys...

    Good luck Senator Schauer. It sound like a sensible solution; maybe when prices start to shoot back up again, Republicans will be forced to act for a change, instead of the usual obstruction and whining about how they can't have their way.

    We can always hope.