The Democratic controlled Congress must qualify in the words of Comic Book Guy from the Simpsons, “Worst Congress ever!”
So I have heard that the Democrats are reportedly going to be producing a new energy bill – except that all the states on the coast where the drilling areas are to be opened up are not going to be allowed access to any of the resulting revenue…
So who is going to develop those new oil and gas fields? My guess is nobody. This is about appearing to pre-empt the Republicans on this issue but playing to their party activist base, whose politics are nearly insane. While I’m not going to pretend that opening up those areas will make the US energy independent, I can say that there is a reasonable comparison to be made with Britain and North Sea Oil.
An independent and substantial domestic production increase will take the edge off the current price of oil and depress it, perhaps not substatially but a minimum of 10-15% reduction in the wholesale price of oil will do a great deal for freeing up US capital for other projects.