The noise at the pump isn?t the only sucking sound you hear
Guy T. Sturino
April 28, 2006
For five hours yesterday, Senator Ron Wyden (D-OR) stood his ground demanding a vote on his amendment to the Emergency Spending Bill now before the Senate. He says that his amendment will generate more than twenty billion dollars in revenue from oil companies to partially offset the 97 billion in emergency funds requested by President Bush. Senator Wyden talks about eliminating diminished royalties and sweetheart deals which were setup with oil companies at a time when oil was in short supply and the cost was around $16 a barrel. It was an interesting five hours.
In the first place, it took a while to really get a feel for what the situation was that Senator Wyden was trying to fix. The way I see it the situation is this. Sometime back in the early ?70's I remember that OPEC raised the price of its oil and cut output. I was on a road trip, and the price of gas went from 22 cents a gallon to 43 cents a gallon overnight. We needed to do something to reduce our dependance on OPEC, so we reduced the speed limit to 55mph and agreed to let oil companies drill on public lands. This is where things get really murky.
I listened carefully, but I never did hear just how much the oil companies pay us for the oil they suck from our property. Yes, I said our property, yours and mine. In this case, what we are talking about is a natural resource that belongs to the U.S. Government, which is us.
Evidently, whatever price we thought was OK for the oil companies to pay when the market value was $16 a barrel is still OK at $75 a barrel. Senator Wyden takes exception to this idea and so do I. Unfortunately, We-The-People seldom get to see the actual words that describe what our Senators say they are trying to do, so we have to make some assumptions. Since I don?t know exactly what is written, I assume that if the amendment is passed we will begin to receive a fair market value for the oil we own.
Based on Senator Thad Cochran?s (R-MS) many refusals to agree to a vote on the amendment, and Senator Pete Domenici?s (R-NM) insistence that these provisions don?t cost us anything, some in the Senate are insisting that whatever deals were made with the oil companies remain in place. The fact that Exxon made about 35 Billion dollars last year and nine Billion already this year doesn?t seem to faze these Senators.
To be fair, Senator Cochran seemed to be doing the job of a good soldier and following marching orders from Senator Frist. Having said that, I have to note that he was certainly not reluctant to do so. Senator Domenici took a different tack, and stated that Senator Wyden?s amendment was unnecessary because the deals with the oil companies don?t cost us anything. I guess that means that since it?s oil and not cash that?s flowing into the oil companies coffers it doesn?t count. Or maybe it?s because if the oil stays in the ground we don?t get anything for it at all. I don?t know which reason he used, but either way the logic sucks as much as the pump.
Obviously, the oil reserves in the Arctic won?t be such a prize for the oil companies either. If they have to pay us full value for the oil, maybe they won?t want it. As far as I?m concerned, that?s just too bad. But, there is something else that is also too bad.
Senator Wyden stood almost alone during his five-hour filibuster. The only substantial support came from Senator Durbin (D-IL) who took the time enter into a mock debate, which Senators often do to make a point when both parties are on the same side of the question. Had a few others helped in this way, maybe he could have gotten agreement for a vote. Unfortunately, it was apparent that his cause was not important to other Senators who simply wanted him to give up the floor so they could propose their own amendments.
Senator Wyden relinquished the floor at 3:20 yesterday afternoon with the comment that evidently he will never be allowed a vote on his amendment. I hope he is wrong. He took it upon himself to champion a cause for us. He has been rebuffed. It is we who stand to lose. I, for one, will be watching carefully to see how this plays out.
The November elections aren?t that far off. Maybe if enough people pay attention to what each Senator is doing, more of them will do what?s right for us.
A final note for the Senate. I know it sounds better to call it public lands, but that?s our oil the oil companies are sucking up from our lands. Work with us here. Make them pay full value for it.
In the first place, it took a while to really get a feel for what the situation was that Senator Wyden was trying to fix. The way I see it the situation is this. Sometime back in the early ?70's I remember that OPEC raised the price of its oil and cut output. I was on a road trip, and the price of gas went from 22 cents a gallon to 43 cents a gallon overnight. We needed to do something to reduce our dependance on OPEC, so we reduced the speed limit to 55mph and agreed to let oil companies drill on public lands. This is where things get really murky.
I listened carefully, but I never did hear just how much the oil companies pay us for the oil they suck from our property. Yes, I said our property, yours and mine. In this case, what we are talking about is a natural resource that belongs to the U.S. Government, which is us.
Evidently, whatever price we thought was OK for the oil companies to pay when the market value was $16 a barrel is still OK at $75 a barrel. Senator Wyden takes exception to this idea and so do I. Unfortunately, We-The-People seldom get to see the actual words that describe what our Senators say they are trying to do, so we have to make some assumptions. Since I don?t know exactly what is written, I assume that if the amendment is passed we will begin to receive a fair market value for the oil we own.
Based on Senator Thad Cochran?s (R-MS) many refusals to agree to a vote on the amendment, and Senator Pete Domenici?s (R-NM) insistence that these provisions don?t cost us anything, some in the Senate are insisting that whatever deals were made with the oil companies remain in place. The fact that Exxon made about 35 Billion dollars last year and nine Billion already this year doesn?t seem to faze these Senators.
To be fair, Senator Cochran seemed to be doing the job of a good soldier and following marching orders from Senator Frist. Having said that, I have to note that he was certainly not reluctant to do so. Senator Domenici took a different tack, and stated that Senator Wyden?s amendment was unnecessary because the deals with the oil companies don?t cost us anything. I guess that means that since it?s oil and not cash that?s flowing into the oil companies coffers it doesn?t count. Or maybe it?s because if the oil stays in the ground we don?t get anything for it at all. I don?t know which reason he used, but either way the logic sucks as much as the pump.
Obviously, the oil reserves in the Arctic won?t be such a prize for the oil companies either. If they have to pay us full value for the oil, maybe they won?t want it. As far as I?m concerned, that?s just too bad. But, there is something else that is also too bad.
Senator Wyden stood almost alone during his five-hour filibuster. The only substantial support came from Senator Durbin (D-IL) who took the time enter into a mock debate, which Senators often do to make a point when both parties are on the same side of the question. Had a few others helped in this way, maybe he could have gotten agreement for a vote. Unfortunately, it was apparent that his cause was not important to other Senators who simply wanted him to give up the floor so they could propose their own amendments.
Senator Wyden relinquished the floor at 3:20 yesterday afternoon with the comment that evidently he will never be allowed a vote on his amendment. I hope he is wrong. He took it upon himself to champion a cause for us. He has been rebuffed. It is we who stand to lose. I, for one, will be watching carefully to see how this plays out.
The November elections aren?t that far off. Maybe if enough people pay attention to what each Senator is doing, more of them will do what?s right for us.
A final note for the Senate. I know it sounds better to call it public lands, but that?s our oil the oil companies are sucking up from our lands. Work with us here. Make them pay full value for it.
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