Democrats Propose Nationalizing Oil
In reaction to President George W. Bush’s suggestion that the US should start drilling for oil closer to home, some Democrats have proposed to nationalize oil refineries. In case you are wondering; no, this is not a joke.
House Democrats responded to President’s Bush’s call for Congress to lift the moratorium on offshore drilling. This was at an on-camera press conference fed back live.
Among other things, the Democrats called for the government to own refineries so it could better control the flow of the oil supply.
They also reasserted that the reason the Appropriations Committee markup (where the vote on the amendment to lift the ban) was canceled so they could focus on preparing the supplemental Iraq spending bill for tomorrow.
At an off-camera briefing, House Majority Leader Steny Hoyer (D-MD) said the same. And a senior Republican House Appropriations Committee aide adds that “there were multiple reasons for the postponement” including discussion on the supplemental. But the aide said there was the thought that Democrats may wish to avoid a debate today on energy amendments.
Here are the highlights from briefing
Rep. Maurice Hinchey (D-NY), member of the House Appropriations Committee and one of the most-ardent opponents of off-shore drilling
1115
We (the government) should own the refineries. Then we can control how much gets out into the market.
Is the US going to follow in Hugo Chavez’s footsteps?
Or will Americans oppose such plans with a passion seldom seen?
I’m guessing the second. I think it’s a pretty safe bet.
Message to Democrats: nationalizing companies has never, and I do mean never, been a net positive for ‘the people.’ Trust me, it has been tried. In the Soviet Union for instance. And Cuba. And North Korea. And in Western Europe where we actually had to privatize those companies in the last decade or two because our economies would be destroyed if we didn’t.
That’s completely false.
……..
Chile, the poster-child for right-wingers, depends on a STATE RUN enterprise for its economic survival.
CODELCO is Chile’s national copper company.
It was created by a left-wing martyr named Allende. His killer, Pinochet, depended on it to fund his right-wing dictatorship. And with the re-establishment of democracy, no Chilean government dares privatize it.
It is regarded as the best run copper company in the world.
………
France depends on a STATE RUN company for its power.
EDF is France’s main electricity generator & distributor.
It was created by communist, and maintains itself with majority government ownership even with right-wing Sarkozy in power.
It is regarded as far more efficient than the United States’ system, and is credited for having capable managers and engineers.
………..
Saudi Arabia and the world depend on a STATE RUN enterprise to fuel the planet.
Saudi ARAMCO is Saudi Arabia’s oil monopoly.
It started as a private company. Then it was slowly nationalized.
It is regarded as the biggest oil company in the world. And it is consistently ranked number 1 in terms of management and production.
I think this is ridiculous. If there is one thing that needs to be done, though, it’s that we need more refineries. I haven’t studied the issue closely, though, so undoubtedly there’s a political aspect as to why we haven’t gotten any built in…I think it’s 20 years? I might be mixing that up with nuclear plants.
capitalist venezuela nationalized its oil long before chavez. a u.s. company ran the computer system at pdvsa, and most of pdvsa’s income was spent on contracts for corporations, many of them from the u.s. what chavez did was to redirect the income that came from the subsoil riches in order to benefit the majority of the people, who before chavez did not a share of the wealth.
I’m not laughing, if it is a joke. I am intrigued but not swayed by the status quo or this new idea. Let’s just say I don’t think the invisible hand can or should handle everything. OTOH, I don’t like state monopolies or sweeping solutions either. What I will say is that it is gutsy and will get the more emotional kinds of right-wingers higher blood pressure, and I really don’t like them.
Invade Saudi Arabia, the gulf states, Iran and Algeria. And take over that oil. The prices have gone up so much that war might actually be the cheaper solution.
In Norway, the petrol belong to the people, and the national company is a state company. Do you think that Norway is a dictatorship? Or that this country faces great economic difficulties?
Mister van der Galiën, you have the right to be against the nationalizations, by pure ideology, but not to employ unworthy arguments.
For everyone pointing out these other Countries that have nationalized industries, the United States is a net oil importer.
These other Countries are net exporters of their particular commodity. And yes, EDF in not a net exporter, but go ask an Italian about that expensive French energy. Actually I suggest you don’t unless you have a lot of time.
A myriad of problems would arise from the US nationalizing the oil industry, but the explanation would be too many words for a blog comment.
Simply put:
The experience of these other Countries has no relation to the topic at hand. Just think about it, what exactly would the US be nationalizing.
The US has no commidity to sell and therefore no wealth to transfer from another Country to the US
cfpete,
It would only make sense if the US did offshore drilling and opened ANWR
Paul Escobar,
I don’t know if you understand that in the US water and power distribution is considered public utility and are either owned by state or local governments or heavily regulated by the public service commission.
Nationalizing the oil industry is completely different; and like has been pointed out, doesn’t even make sense unless we actually open up oil reserves, which Democrats are opposed to.
To the two posters who responded to my post on "National" companies around the world…
Sirs, my comment was not related to the proposal for nationalizing refineries.
The original commentator made this claim:
In a literal sense, he’s obviously wrong.
My first post simply intended to point that out.
…..
As for the "nationalization" of refineries…
I’m not actually clear on what is being proposed…
1) Are we talking transfer of ownership?
2) Or are we talking about building new refineries?
I see little benefit from option "1)". I don’t believe there is a conspiracy at the refinery level. If there was, it could be dealt with through legal means.
Option "2)" has much merit. There is certainly a need for refineries that can handle heavy crude sourced from Alberta & Venezuela. Oil companies have absolutely no incentive to build new refineries. The government, in the form of actual national projects or subsidies, can build more.
……..
Realistically though, the American government does not function to serve the national interest. So I see little traction in either direction.
Hope that clears things up.
Of course they don’t want to Nationalize it. That would take their record profits. They are holding us hostage. There is not shortage. There is not higher demand, other than the unjust war in Iraq. Just look where the money goes. TAKE THE POWER AWAY FROM PRIVATE CORPORATIONS!!!
Nationalization of Natural Resources in North America, (OIL)It is now time for the current US Congress to draft a law that will authorize the use of the Armed Forces of America to seize control of all Oil reserves, assets, and property within the borders of the United States of America. Americans are suffering financially because of the profiteering that is being sanctioned by the current Congress. The very survival of America will depend on the controls and relief to the consumer. By controlling the oil and refining process, the final price to the consumer can drop back to levels in the two digit margin, i.e. 39 cents. It is now a matter of National Security that this happen within a very short period of time, or every American will suffer the financial burden of out of control price per gallon for fuel, thus driving up every consumer product and service beyond the affordable means of an average income American.The American Republic will recommend that the current US Congress and President be held accountable for this "crime against Humanity" as well as numerous others.It is time to fire the US Congress and President, now and in November, 2008. A new Republic for North America is underway.We are a Legion of many, who will live a life of peace, and have respect for all living things, while having considerations for those who are different, and look for ways to truly accommodate those who are slow in understanding.We support the poor, helpless, and defenseless people. We support the freedom of Women, we support the sane treatment of animals and the environment, we support the freedom of religion and expression. We do not support ignorance, period.We are a growing nation of people that encourage anyone or Nation anywhere to become part of the New American Republic!NOVUS ORDO SECLORUM
Judah Ben-Hur, Sui Juris
Ambassador
The American Republic
Diplomatic Mission: North America
In as much as the rising price of oil deflates economic growth which will benefit Dems on election day, why would Dems shoot themselves in the foot by proposing any measure that would lower oil prices? Expect Dems to fight AGAINST anything that could make Bush and Republicans look good as we near the election season.
With Goerge Soros playing the oil futures market while financially backing Obama, he could be playing the primary role in high oil prices and future US Socialism!! He has manipulated curency markets big time in the past; he is surely a player in oil futures which could account for 40-50 percent of the price today.
March to Nationanlize US Oil Industry held on 9/11/08 in Los Angeles, CAThe march is scheduled for September 11, 2008 at the Federal Building 11000 Wilshire Blvd., Los Angeles, CA, Usa.
Congress WILL nationalize the oil industry!
CHANGE for America, for Americans.THE AMERICAN REPUBLIC
A Sovereign Republic
to the obvious intelligence of Judah Ben Hur. Wow sir you really need to look at some facts. Countries are producing at maximum production and to say that demand is not going up is uninformed to say the least and on the verge of down right stupid. I don’t know if you have heard of this small country that you may not of heard of called China. I know you might have to look it up it is pretty small and few have heard of it. Well if you did a little homework you would see that they have increased their oil consumption at an expnential rate, thus causing a shortage. I would also like to know what you think will happen to all the small independent oil producers in the midwest i.e. Oklahoma, Texas, Colorado… You know the companies that are locally owned and operated. Nationalizing oil companies would most certainly devestate these regions, when none of these businesses were proftiable anymore. I would also like to bring up the fact that no one offered help when oil hit an all time low of between 7-8 dollars a barrel around 10 years ago. No one said oh man how can we help these poor oil producers that are going broke and bankrupt. What happened to the American Dream? What happened to the pursuit of happiness? What gives anyone the right to tell you that you can’t make money, so long as you aren’t breaking laws. Maybe you should try walking somewhere if gas is too expensive. I’m from New York and I even think you are a complete idiot.