This is Only a Drill

So it appears that Speaker of the House, Nancy Pelosi, is now open to the idea of drilling for oil off of the U.S. coast. This is at least a step in the right direction, but be warned, this shift in opinion is only a vehicle to deliver to the world some great new legislation. Here is a big-picture look at a couple of things that the Democrats are sure to push (and the Republicans will probably be dumb enough to go along with).

'The Windfall Profits Tax'

Arguably the worst idea in history, the proposed Windfall profits tax is intended to punish oil companies for making 'too much profit.' It's not difficult to reason through all of the reasons why this is a bad idea, all you have to do is take a step back and look at the big picture.

First of all, who does it hurt when oil companies are prevented from making a profit? The answer is, you. A corporation is an entity made up of people. In the oil businesses the beneficiaries of the 'record profits' are the stock holders. These very stocks, are likely in your 401k. So if the oil companies lose money, you lose money.

Secondly, who is going to pay these taxes? Again the answer is, you. The oil companies will simply pass the extra overhead on to the consumer, resulting in higher prices at the pump.

Thirdly, the windfall profits tax is likely to cause a widespread fuel shortage. If the government places a cap on the amount of profit that an oil company is allowed to make, then why would that company waste its time in trying to sell the gasoline? It's common sense. Oil companies are not out to do consumers a favor...they are trying to make money, and rightfully so. What does lack of supply create? Long lines at the pump, and skyrocketing fuel prices. The windfall profits tax is one of the worst ideas I've ever heard, and it does nothing to fix the problem, it only makes it worse. If this is included in any package to drill for oil off of the coast, it will immediately negate the positive effects that drilling would provide.

Releasing Oil from the Strategic Petroleum Reserve

This is nothing more than a quick fix at best, and a national crisis waiting to happen. With our dependence on foreign oil. The availability of our strategic petroleum reserve has never been more important. Thanks to our tense relations with OPEC countries, we never know when our oil supply could be cut completely. The lack of a petroleum reserve would leave us vulnerable to our enemies in the worst way. It's a terrible idea.

Nationally Mandated Speed Limit

Another plan that has surfaced is to enforce a national Speed Limit of 55 mph. Again, looking at the big picture, you can see all of the negative effects that this would have on the economy. Slower speeds means slower transit times for goods across the country. It means instant slowing of the economy. It means that truck drivers have to spend more time out on the road, making transit more expensive for businesses.

Drill Only, or Do Nothing at All

If we allow such a plan to pass, we do so at our own peril. The free market will solve the energy crisis in America in due time. We should drill now in order to remain competitive against foreign oil, but we should not make any other concessions to fulfill politicians' personal interests. Call, write, and email your representatives...please.