ROLLA, Mo., Aug. 1, 2008

Obama Risks Voter Ire On Offshore Drilling

Democrat Crosses Public Mood On Energy Prices

(AP)  Barack Obama is once again betting that his eloquence can persuade price-weary consumers - read that as voters -to take the long view and not jump at a short-term fix when it comes to soaring energy prices.

It worked in his presidential primary contest against New York Sen. Hillary Rodham Clinton when she proposed a "gas tax holiday" for the summer, a pitch he opposed despite its popularity with many voters. But that was in April before gasoline shot past $4 a gallon.

Virtually all polls now show dealing with energy prices high atop the agenda of voters.

At issue for Obama's Republican opponent, Sen. John McCain, is opening up offshore drilling to boost production, a move McCain and others GOP lawmakers say would increase supply and help control soaring gasoline prices. Opponents, including Obama and many other Democrats, say new offshore oil would be years away from reaching consumers and even then would make little difference in prices and the ongoing U.S. need for foreign oil.

Republicans clearly have targeted energy prices, looking to boost their standing with consumers. President Bush has pushed Congress to permit the offshore drilling and warned that "the American people are rightly frustrated" because Democrats won't allow a vote on opening up offshore drilling.

For his part, McCain has his sights squarely on Obama's opposition to offshore drilling, labeling him "Dr. No when it comes to energy production." The tactic is not surprising, because polls have shown that consumers - even in environmentally sensitive states like Florida - are desperate for politicians to do something about energy and favor offshore drilling by big margins.

Obama is pressed on the issue repeatedly on the campaign trail, but he refuses to budge, preferring to take pains to spell out his reasons.

"Please be in favor of offshore production," Steve Hilton, a retired federal government worker in Lebanon, Mo., implored Obama during a tour of a diner there Wednesday.

"I'm in favor of solving problems," Obama responded. "What I don't want to do is say something because it sounds good politically."

Obama seeks to turn the issue on its head, arguing that McCain and Bush are practicing the old politics of simply promising people something that's symbolic without addressing the real problem. Discounting drilling, he proposes energy rebates, a crackdown on oil speculators who manipulate the market and a renewed focus on energy alternatives.

"Instead of offering any real plan to lower gas prices, Sen. McCain touts his support for George Bush's plan for offshore oil drilling," Obama said Thursday in Cedar Rapids, Iowa. "But even the Bush administration acknowledges that offshore oil drilling will have little impact on prices. It won't lower prices today. It won't lower prices during the next administration. In fact, we won't see a drop of oil from this drilling for almost 10 years."

Adding their own take on the debate are the Sierra Club and MoveOn.org, which announced Thursday that they will air ads criticizing McCain's call for expanded oil drilling and tax proposals that would benefit oil companies. The MoveOn.org ad depicts a man speaking to the camera complaining that McCain's proposal to lift a moratorium on energy exploration on coastal waters won't produce oil for years. "That's not a solution Mr. McCain, that's a gimmick," he says.

In fact, McCain opposes drilling in Alaska's Arctic National Wildlife Refuge, and during his 2000 presidential run opposed lifting the offshore drilling moratorium as well.

Although Obama makes the argument against offshore drilling much as he did against Clinton's gas tax holiday, he faces a tougher challenge now. The disagreement with Clinton was played out in front of Democratic primary voters, many of them closely following the race and its issues.

The argument with McCain comes before a general election electorate as frustrations over gasoline prices grow at the height of the summer driving season and as the nation prepares for winter and heating costs. Polls suggest a lot of voters are pressing for politicians to do anything, even if it's symbolic.

Voters in New Hampshire and other states hit hard by winter feel especially pinched by high fuel prices. Many homeowners enter into winter heating oil contracts during the summer.

"It's on people's minds," said Fergus Cullen, state GOP chairman in New Hampshire, where the cost of heating a typical suburban home has doubled since last winter, to about $5,000. "The issues that people care about have changed dramatically since 2006 here and, not incidentally, in a way that is beneficial to Republican candidates."

Adding to that pressure, Obama will face the full force of the GOP and the McCain campaign. To counter it, Obama cited Exxon Mobil's record profits - the company on Thursday reported second-quarter earnings of $11.68 billion, the biggest ever by a U.S. corporation - while contending that the GOP candidate's plan for offshore drilling won't help consumers and "reads like an oil-company wish list."

Obama concedes that crossing the public mood on energy prices could be risky - and he's right. Though the public has largely turned against a war in Iraq that McCain fervently backs and Bush's popularity is at record lows, polls show the election remains tight, with Obama clinging to a small lead.


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Add a Comment See all 58 Comments
by tslogg1 August 2, 2008 4:12 PM EDT
Obama wants to change, and he keeps changing to be same as McBush.
Reply to this comment
by grandesign August 2, 2008 12:28 AM EDT
A couple other aspects, if you will allow the your mind to open more: Since the Fed open the window for direct investment banking borrowing last year, and Freddie Mac/Fannie Mae this year, you might expect them to soon provide it for the Insurance industry or the Mutual Fund industry--once these fall from grace like the others. Then you gotta ask yourself, do I put my money in the equities, or bonds, or mutual funds or leave it in the bank where they all lose value? You are not looking at the long term strategy, that of building the country. No, you use guilt trips to make obsolete points that support backward thinking. Get a bead on the future, will ya.
Reply to this comment
by grandesign August 2, 2008 12:27 AM EDT
Well I hope you feel the same way after a few people freeze to death this winter because they had to pay 4.5o a gallon for heating oil. The US consumer may be able to deal with higher prices but not this high.
Posted by jschmidt27 at 07:47 PM : Aug 01, 2008

In the time since my last post, I took public transportation twenty miles home. This transportation does not use the combustion engine to travel. This is one of many ways to reduce demand, and reduce costs. You don''t seem knowledgable enough to argue with on all levels, $5 dollars in the world market is not much, U.S. currency devaluations and all. Price inflation due to increased fuels costs is a reality; interest inflation based on the Fed''s long term interst rate is in check. The yield curve is not inverted. This is the best time for innovation and investment in new technologies.
Reply to this comment
by jschmidt27 August 1, 2008 10:47 PM EDT
Grandesign- you must be an envrinomentalist who feels the US consumer must feel the pain of higher gas, heating oil and heating gas prices for the betterment of the environment. Well I hope you feel the same way after a few people freeze to death this winter because they had to pay 4.5o a gallon for heating oil. The US consumer may be able to deal with higher prices but not this high. You''ve now given the consumer choices, medicine, food or heat. Have a good sleep. The Dems will be surprised in November.
Reply to this comment
by grandesign August 1, 2008 10:39 PM EDT
Grandesign- well I''''ll just throw out the polls that say Obama is leading. Our domestic supply from drilling oil has not kept up. We need to drill as much as we can because the alternative energy plans will not come online fast. Posted by jschmidt27 at 07:27 PM : Aug 01, 2008

This is the same false hyperbole that was used by Reagan for getting rid of the solar panels on the White House. The polls have less to do with it. We need the price of gas to escalate to the point that it is not rational to keep up this polluting form of energy supply, and we use technology to develop better, cleaner fuels. I find your point futile, that you cannot realize that ten years ago, this form of technology we use to communicate, the Web, had only been available through dial-up using 55K modems. Now with the advancement of technology, and the economy growth dependent on it--we have cable modems, 100mb transfer rates, and other technologies that have driven the market. Every industry must derive efficiences of scope and scale, and the petrochemical industry HAS NOT. IT WILL NOT until we make it so. This will hapeen with clean energy, as long as we don''t fall back into the malestrom of false advertising, as you seem to be doing.
Reply to this comment
by jschmidt27 August 1, 2008 10:27 PM EDT
Grandesign- well I''ll just throw out the polls that say Obama is leading. Our domestic supply from drilling oil has not kept up. We need to drill as much as we can because the alternative energy plans will not come online fast. Even if we conserve the 3rd world nations will not so our demand worldwide will continue to rise. I guys you''ll just have to throw out all those focus groups and marketing polls that sales people use. The American people want drilling now. Some experts believe that announcing offshore drilling, will bring prices down now. And Congress can look at the 8000 lawsuits by envrironmentalists against oil companies on current leases. But they won;t because their are more environmental lobbyists in DC than oil lobbyists. and the envrinomental lobbyists give to Democrats. Democrats want high oil prices to foster the alternative energy development. So thye do not care about what citizens have to pay for energy. In November, after people figure out what they have to pay for oil and gas to heat their homes this winter, they will surprise the Dems at the polls.
Reply to this comment
by grandesign August 1, 2008 10:03 PM EDT
and the other 2 polls- or do you just throw at all polls that seem to your liking?
Posted by jschmidt27 at 06:03 PM : Aug 01, 2008

Personally, having taken & given polls, I know how the language is construed to get the answer desired. I also know how the inflection in one''s voice leans people to answer a certain way. In fact, I have spent more than a decade in sales, I know how to ask the right five or six questions to maneuver a target''s decision making in my favor. None of this is the point.

The point is, drilling for more oil, either offshore or in Alaska is NOT the answer to our National energy needs. And I don''t believe even the majority of Americans believe it is. You can poll 500 people, or 33 people, do your stastical analysis on this sample, and derive that they entire Nation believes likewise. It doesn''t make it so.
Reply to this comment
by jschmidt27 August 1, 2008 10:02 PM EDT
Truth-http://www.eia.doe.gov/oil_gas/petroleum/info_gl ance/petroleum.html
We have supply problem since 06,Q4. When demand and supply are so close, any interruption in the supply makes a huge difference in price.
http://money.cnn.com/2008/06/06/news/economy/birger_shale.fortune/index.htm?postversion=20080606 17 -The link above tells about the blocking of shale oil rules.
Oil''s profit margin is about 8.5%. healthcare facilities? 48%. Drug manufacturers, 17%. Insurance brokers, 16. Beverages, wineries, distilleries, 15%. Long distance carriers, 15.8%. I mean, railroads, railroads, 13.9%. Steel and iron, 13.8. Cigarettes, 13.7. Integrated circuits, semiconductors, 13.6. Oil is 8.5. Hedge fund makes 81.7. S Democrats single out oil companies because it is an election year. The Democrats have done everything to stop any supply increase such as forbidding drilling in ANWR since 89 and off the coast since 81, and in June preventing rules from being developed to process the 1.7 trillion barrels of oil locked in oil shale in 3 western states.
Energy department report on Shale Oil- covers a lot of the issues
http://fossil.energy.gov/programs/reserves/publications/Pubs-NPR/40010-373.pdf
In Colorado, Shell says it has a process that can make shale oil profitable at $25/bbl.The process involves no open-pit or subsurface mining.Creates no leftover pile of tailing avoids potential groundwater contamination, minimizes unwanted byproducts and water use


Reply to this comment
by jschmidt27 August 1, 2008 10:00 PM EDT
Truth-http://www.eia.doe.gov/oil_gas/petroleum/info_gl ance/petroleum.html
We have supply problem since 06,Q4. When demand and supply are so close, any interruption in the supply makes a huge difference in price.
http://money.cnn.com/2008/06/06/news/economy/birger_shale.fortune/index.htm?postversion=20080606 17 -The link above tells about the blocking of shale oil rules.
Oil''s profit margin is about 8.5%. healthcare facilities? 48%. Drug manufacturers, 17%. Insurance brokers, 16. Beverages, wineries, distilleries, 15%. Long distance carriers, 15.8%. I mean, railroads, railroads, 13.9%. Steel and iron, 13.8. Cigarettes, 13.7. Integrated circuits, semiconductors, 13.6. Oil is 8.5. Hedge fund makes 81.7. S Democrats single out oil companies because it is an election year. The Democrats have done everything to stop any supply increase such as forbidding drilling in ANWR since 89 and off the coast since 81, and in June preventing rules from being developed to process the 1.7 trillion barrels of oil locked in oil shale in 3 western states.
Energy department report on Shale Oil- covers a lot of the issues
http://fossil.energy.gov/programs/reserves/publications/Pubs-NPR/40010-373.pdf
In Colorado, Shell says it has a process that can make shale oil profitable at $25/bbl.The process involves no open-pit or subsurface mining.Creates no leftover pile of tailing avoids potential groundwater contamination, minimizes unwanted byproducts and water use


Reply to this comment
by truth-b-toll August 1, 2008 9:20 PM EDT
offshore drilling is just ANOTHER PLOY to make big oil RICHER$$$ You can fool some of the people ALL OF THE TIME...more BUSHWHACKING to come...
Reply to this comment
by jschmidt27 August 1, 2008 9:03 PM EDT
Grandesign:
and the other 2 polls- or do you just throw at all polls that seem to your liking?
http://money.cnn.com/2008/07/30/
news/economy/poll_drilling/index.htm?postversion=2008073012
CNN/Opinion Research Corporation poll released Wednesday.

The poll, which surveyed more than 500 adults by phone in July, found that 69% of respondents support the idea of offshore drilling, while 30% opposed it. In June, 73% were in favor of offshore drilling.

http://www.naplesnews.com/n
ews/2008/jun/26/poll-74-percent-support-
offshore-oil-drilling-us/
Three in four likely voters 74 percent support offshore drilling for oil in U.S. coastal waters and more than half (59 percent) also favor drilling for oil in the Alaska National Wildlife Refuge, a new Zogby International telephone poll shows.
Reply to this comment
by grandesign August 1, 2008 9:01 PM EDT
I say NO to Obama.Please join Me....
Posted by mr2258 at 05:56 PM : Aug 01, 2008

No
Reply to this comment
by grandesign August 1, 2008 8:59 PM EDT
jschmidt27: Using your source,

"The latest Rasmussen Reports national telephone survey, conducted June 26, shows that 59% of voters nationwide now support offshore drilling. That%u2019s down three percentage points from a week ago when 62% favored the proposal advocated by Republican nominee John McCain."

"Before being asked if they support offshore drilling, the survey participants were told that McCain favors this approach and says it will help bring down prices and that Obama opposes drilling and says it will not reduce gas prices. The survey wording was identical in the June 18 and June 26 surveys."

So back to my point, not 75% of the American Population want offshore drilling.

"In both surveys, 87% of Republicans favor offshore drilling; and "In the first survey, 41% of Democrats favored offshore drilling while 43% were opposed."
Reply to this comment
by mr2258 August 1, 2008 8:56 PM EDT
I say NO to Obama.Please join Me....
Reply to this comment
by mr2258 August 1, 2008 8:55 PM EDT
Fact-Obama wants to appoint judges to the U.S. Supreme Court and Federal judiciary who share his views on the second amendment.
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by mr2258 August 1, 2008 8:53 PM EDT
Fact-Obama wants to restore voting rights for five million criminals including those who have been convicted of using a gun to commit a violent crime.
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by mr2258 August 1, 2008 8:50 PM EDT
Fact-Obama wants to increase federal taxes on guns and ammunition by 500 percent.
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by mr2258 August 1, 2008 8:48 PM EDT
Fact-Obama wants to ban rifle ammunition commonly used for hunting and sport shooting.
Reply to this comment
by mr2258 August 1, 2008 8:47 PM EDT
Ract-Obama wants to close down 90% of the gun shops in America.
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by mr2258 August 1, 2008 8:46 PM EDT
Fact-Obama wants to ban the manufacture,sale and possession of handguns.
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