Oil On A Slippery Slope

SEARCH BLOG: OIL

Oil has declined to about $116 per barrel from its high of over $146 per barrel.

That's some good news for most of the economy. Of course, the bad news is that is because of reduced demand due to an economic downturn.

As Obama's website states:

Plan for a Clean Energy Future

“Well, I don't believe that climate change is just an issue that's convenient to bring up during a campaign. I believe it's one of the greatest moral challenges of our generation. That's why I've fought successfully in the Senate to increase our investment in renewable fuels. That's why I reached across the aisle to come up with a plan to raise our fuel standards… And I didn't just give a speech about it in front of some environmental audience in California. I went to Detroit, I stood in front of a group of automakers, and I told them that when I am president, there will be no more excuses — we will help them retool their factories, but they will have to make cars that use less oil.”

Well, yes. Conservation has always made sense. Forced conservation in the form of an economic malaise seems to make far less sense. Can we conserve our way to economic prosperity? Probably not in our lifetimes. Can we come up with a replacement for gasoline/diesel fuel vehicles? Probably not for at least 25 years. Is it the fault of the automakers that the marketplace sought larger vehicles? Probably not. Is Congress' mandate, which Obama has claimed as his own, the answer to more fuel efficiency. Probably... through the elimination of larger vehicles and replacement with much more expensive powertrains.

The real question is whether Obama's plan is necessary if Congress gets out of the way of the marketplace and stops restricting the supply side of the price equation. Despite Obama's best protests to the contrary, removing restrictions on supply will freely affect prices at least as much as forcing the people of the U.S. to do without... or with much less.

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AT&T Uverse And iPhone

SEARCH BLOG: AT&T

First let me say that I have had some good experiences with AT&T and I even know a Michigan executive within their ranks. In fact, he was the one who raised my awareness of Uverse... AT&T's answer to cable television.

AT&T has made some significant moves toward cornering a large part of information and entertainment distribution, not the least of which was their partnering with Apple on the iPhone launch and service. And I'd have to say that the service I've received through AT&T has been quite good so far. That's why I was disappointed when AT&T apparently forced Apple to remove the Netshare iPhone Tethering application offering for the iPhone.

It was exactly what I was hoping to have and I couldn't really see why after paying $30 a month each for 3 iPhones [and a 4th soon to be added] in addition to a heft slab of text messaging minutes and "Anytime" minutes, that AT&T was trying to wring some more pennies from my family's pockets... especially since they provided that utility with other phones on their network.

Now, back to Uverse. The other day we had to have a land line wires fixed outside of our home. After the serviceman reported that all was back together, I asked him about the availability of Uverse because I thought it might make sense to see what AT&T might have as an all-inclusive package for us. But before I got around to calling, this Netshare iPhone Tethering fiasco broke out.

Now I'm just not sure if I want to trust all of my telecommunications, television, and internet service to a company that seems inclined to employ a good old-fashioned "shakedown."

They may see it as à la carte pricing, but I believe customers see it differently. Penny wise, pound foolish?

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Something For Everyone

SEARCH BLOG: POLITICS

One might ask the question: if you are for everything, are you really for anything?

I have spent some time reading Barack Obama's website. It is really very well done. Clean looking. Red, white, and lots of blue. And there is literally something for everyone in his proposals. It reminds me of the Apple store. Goodies galore... and you barely notice the price.

The guys at General Motors could learn something about marketing on the Internet from this.

But back to the point: if you are for everything, are you really for anything? The list of everything is extensive. I am truly amazed by his grasp of everything.

But there is one theme common among all... Obama will give you something. Below are summaries or dot points... you can read more at Obama's site. As you read these, ask just one question: who pays?

Certainly not me! I'm going to get something!

___________________________________

For women and minorities

Combat Employment Discrimination

Obama will work to overturn the Supreme Court's recent ruling that curtails racial minorities' and women's ability to challenge pay discrimination. Obama will also pass the Fair Pay Act to ensure that women receive equal pay for equal work and the Employment Non-Discrimination Act to prohibit discrimination based on sexual orientation or gender identity or expression.

For National Defense

• Invest in a 21st Century military [Barack Obama supports plans to increase the size of the Army by 65,000 soldiers and the Marines by 27,000 troops. Increasing our end strength will help units retrain and re-equip properly between deployments and decrease the strain on military families.]
• Build defense capabilities for the 21st Century [We must rebalance our capabilities to ensure that our forces have the agility and lethality to succeed in both conventional wars and in stabilization and counter-insurgency operations. Obama has committed to a review of each major defense program in light of current needs, gaps in the field, and likely future threat scenarios in the post-9/11 world.]
• Restore the readiness of the National Guard and Reserves
• Develop "Whole of Government Initiatives" to promote global stability
• Restore our alliances [America's traditional alliances, such as NATO, must be transformed and strengthened, including on common security concerns like Afghanistan, homeland security, and counterterrorism. Obama will renew alliances and ensure our allies contribute their fair share to our mutual security.]
• Reform contracting [Barack Obama will require the Pentagon and State Department to develop a strategy for determining when contracting makes sense, rather than continually handing off governmental jobs to well-connected companies. An Obama administration will create the transparency and accountability needed for good governance. Finally, it will establish the legal status of contractor personnel, making possible prosecution of any abuses committed by private military contractors.]

For criminals

Reduce Crime Recidivism by Providing Ex-Offender Support

Obama will provide job training, substance abuse and mental health counseling to ex-offenders, so that they are successfully re-integrated into society. Obama will also create a prison-to-work incentive program to improve ex-offender employment and job retention rates.

For the disabled

Obamas comprehensive agenda to empower individuals with disabilities fits in with the campaign's overarching message of equalizing opportunities for all Americans.

In addition to reclaiming America's global leadership on this issue by becoming a signatory to -- and having the Senate ratify -- the UN Convention on the Rights of Persons with Disabilities, the plan has four parts, designed to provide lifelong supports and resources to Americans with disabilities. They are as follows:

First, provide Americans with disabilities with the educational opportunities they need to succeed.

Second, end discrimination and promote equal opportunity.
Third, increase the employment rate of workers with disabilities.

And fourth, support independent, community-based living for Americans with disabilities.

For states

• Provide Additional Tax Rebates to American Workers - Stimulus: $20 billion
• Establish a $10 billion Foreclosure Prevention Fund
• Provide $10 billion in Relief for State and Local Governments Hardest-Hit by the Housing Crisis to Prevent Cuts in Vital Services
• Extend and Expand Unemployment Insurance - Stimulus: $10 billion

For taxpayers

• Obama will cut income taxes by $1,000 for working families to offset the payroll tax they pay.
• Eliminate Income Taxes for Seniors Making Less than $50,000

For Unions

• Fight for Fair Trade
• Amend the North American Free Trade Agreement
• ...more...
  

For Business

• Invest in our Next Generation Innovators and Job Creators
• Double Funding for the Manufacturing Extension Partnership
• ...more...

For Infrastructure

• Create a National Infrastructure Reinvestment Bank

For Education

• Early Childhood Education [multiple]
• K-12 [multiple]
• Recruit, Prepare, Retain, and Reward America's Teachers
  

For the Environment

Plan for a Clean Energy Future

“Well, I don't believe that climate change is just an issue that's convenient to bring up during a campaign. I believe it's one of the greatest moral challenges of our generation. That's why I've fought successfully in the Senate to increase our investment in renewable fuels. That's why I reached across the aisle to come up with a plan to raise our fuel standards… And I didn't just give a speech about it in front of some environmental audience in California. I went to Detroit, I stood in front of a group of automakers, and I told them that when I am president, there will be no more excuses — we will help them retool their factories, but they will have to make cars that use less oil.”

• Reduce Carbon Emissions 80 Percent by 2050
• Invest in a Clean Energy Future
• Support Next Generation Biofuels
• Set America on Path to Oil Independence
• Improve Energy Efficiency 50 Percent by 2030
  

For Ethics in Government

“I am in this race to tell the corporate lobbyists that their days of setting the agenda in Washington are over. I have done more than any other candidate in this race to take on lobbyists — and won. They have not funded my campaign, they will not run my White House, and they will not drown out the voices of the American people when I am president.”

For the Religious

In June of 2006, Senator Obama delivered what was called the most important speech on religion and politics in 40 years. Speaking before an evangelical audience, Senator Obama candidly discussed his own religious conversion and doubts, and the need for a deeper, more substantive discussion about the role of faith in American life.

Senator Obama also laid down principles for how to discuss faith in a pluralistic society, including the need for religious people to translate their concerns into universal, rather than religion-specific, values during public debate. In December, 2006, Senator Obama discussed the importance of faith in the global battle against AIDS.

For Families

• Provide a Living Wage
• Expand the Earned Income Tax Credit
• Expand Paid Sick Days
• Expand the Family and Medical Leave Act (FMLA)
• Encourage States to Adopt Paid Leave
• Expand High-Quality Afterschool Opportunities
• Expand the Child and Dependent Care Tax Credit
• Protect Against Caregiver Discrimination
• Expand Flexible Work Arrangements
• Strengthen Our Schools
• Provide Universal Health Care and Lower Health Costs
• Protect Homeownership
• Strengthen Families at Home
• Strengthen Retirement Security

For improving Foreign Diplomacy

Obama is willing to meet with the leaders of all nations, friend and foe. He will do the careful preparation necessary, but will signal that America is ready to come to the table, and that he is willing to lead. And if America is willing to come to the table, the world will be more willing to rally behind American leadership to deal with challenges like terrorism, and Iran and North Korea's nuclear programs

[multiple points]

For the Uninsured

Plan for a Healthy America

“We now face an opportunity — and an obligation — to turn the page on the failed politics of yesterday's health care debates… My plan begins by covering every American. If you already have health insurance, the only thing that will change for you under this plan is the amount of money you will spend on premiums. That will be less. If you are one of the 45 million Americans who don't have health insurance, you will have it after this plan becomes law. No one will be turned away because of a preexisting condition or illness.”

For Homeland Security

• Protecting Our Chemical Plants
• Keeping Track of Spent Nuclear Fuel
• Evacuating Special Needs Population in Emergencies
• Reuniting Families After Emergencies
• Keeping Our Drinking Water Safe
• Protecting the Public from Radioactive Releases

For Immigrants

• Create Secure Borders
• Obama wants to preserve the integrity of our borders. He supports additional personnel, infrastructure and technology on the border and at our ports of entry.
• Improve Our Immigration System
• Obama believes we must fix the dysfunctional immigration bureaucracy and increase the number of legal immigrants to keep families together and meet the demand for jobs that employers cannot fill.
• Remove Incentives to Enter Illegally
• Obama will remove incentives to enter the country illegally by cracking down on employers who hire undocumented immigrants.
• Bring People Out of the Shadows
• Obama supports a system that allows undocumented immigrants who are in good standing to pay a fine, learn English, and go to the back of the line for the opportunity to become citizens.
• Work with Mexico
• Obama believes we need to do more to promote economic development in Mexico to decrease illegal immigration.
  

For Iraq

“Here is the truth: fighting a war without end will not force the Iraqis to take responsibility for their own future. And fighting in a war without end will not make the American people safer.

So when I am Commander-in-Chief, I will set a new goal on day one: I will end this war. Not because politics compels it. Not because our troops cannot bear the burden- as heavy as it is. But because it is the right thing to do for our national security, and it will ultimately make us safer.”

For the Poor

• Expand Access to Jobs
• Make Work Pay for All Americans
• Strengthen Families
• Increase the Supply of Affordable Housing
• Tackle Concentrated Poverty
  

For Farmers

• Ensure Economic Opportunity For Family Farmers
• Support Rural Economic Development
• Improve Rural Quality Of Life

For Volunteers

• Enable All Americans to Serve to Meet the Nation's Challenges
• Integrate Service into Learning [Obama will set a goal that all middle and high school students do 50 hours of community service a year.]
• Invest in the Nonprofit Sector
  

For Seniors

• Protect Social Security
  Obama believes that the first place to look for ways to strengthen Social Security is the payroll tax system. Currently, the Social Security payroll tax applies to only the first $102,000 a worker makes. Obama supports increasing the maximum amount of earnings covered by Social Security and he will work with Congress and the American people to choose a payroll tax reform package that will keep Social Security solvent for at least the next half century.
• Strengthen Retirement Savings
• Affordable Health Care
• Protect and Honor Senior

For Technology

Barack Obama understands the immense transformative power of technology and innovation and how they can improve the lives of all Americans. He sees that technology offers the tools to create real change in America. Obama’s forward-thinking 21st century technology and innovation policy starts by recognizing that we need to connect all citizens with each other to engage them more fully and directly in solving the problems that face us. In tandem with that goal, Barack Obama understands that we must use all available technologies and methods to open up the federal government, creating a new level of transparency to change the way business is conducted in Washington and giving Americans the chance to participate in government deliberations and decision-making in ways that were not possible only a few years ago. To achieve this vision, Barack Obama will encourage the deployment of the most modern communications infrastructure. In turn, that infrastructure can be used by government and business to reduce the costs of health care, help solve our energy crisis, create new jobs, and fuel our economic growth. And an Obama administration will ensure America remains competitive in the global economy. [multiple points]

For Urban Areas

• Strengthen Federal Commitment to our Cities
• Stimulate Economic Prosperity in our Metropolitan Regions
• [multiple subpoints of other issues]
  

For Veterans

• Allow all veterans back into the VA
• Strength VA care
• Combat homelessness among our nation's veterans
• Fight veterans employment discrimination
• Help for returning veterans [multiple points]
• Improved mental health treatment [multiple points]

For Women [multiple subsets of other issues]

For Fiscal Responsibility

• Reinstate PAYGO Rules
• Reverse Bush Tax Cuts for the Wealthy
• Cut Pork Barrel Spending
• Make Government Spending More Accountable and Efficient
• End Wasteful Government Spending
  

What do you mean you couldn't find a promise for you?

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PGA Championship Weather

SEARCH BLOG: MICHIGAN and WEATHER

The PGA Championship will be held at Oakland Hills Country Club in Bloomfield Hills, Michigan beginning Thursday.

It looks as if neither sweating nor sweaters are in these high temperature forecasts. Given the nature of the course, many of the scores may hover near the temperatures.

No Global Warming here, folks. Please move on.

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Increasing Supply Doesn't Matter

SEARCH BLOG: OIL

There is a notion that increasing supply won't affect the price of oil. As Barack Obama said:

"If we reduce our consumption of oil, that's what will reduce gas prices, the presumptive Democratic nominee said in a one-on-one interview with The Post-Crescent during a campaign stop in Kaukauna.

“There’s really no other way of doing it.”

“We can’t drill our way out of the problem because there's just a finite amount of oil out there and you have got increasing demand from countries like China and India.

“And so the way we are going to see gas prices reduced is when we start using the oil that we get, more intelligently than we are doing now.”

I'm inclined to agree with Sen. Obama. Even if there may be more oil in North America's coasts and shale and tar sands than all of the Middle East... and even if there may be 100 billion barrels off the coast of Brazil... and even if diesel technology allows us to double the average miles per gallon of many cars and trucks... there is no reason to believe that dramatically increasing the supply of oil will meet growing worldwide demand or lower prices. That's old economics and we need a change... we need to reduce our consumption so that the rest of the world can increase its... because.

It is better to force the masses into smaller vehicles that use expensive battery packs recharged from solar and wind power. This will allow us to redefine the nature of mobility so that we do not contribute to sating the greed of oil companies. It is better for the masses to struggle and sacrifice in harmony with nature rather than allowing oil companies to increase the supply of fuel and maintain their obscene profits. If our millions of children simply walked to schools rather than riding buses, we could eliminate obesity and millions of gallons of fuel daily. If all of taxis in all of the metropolitan areas were banned and people had to walk to the destinations, we could eliminate millions of unnecessary trips and the congestion that clogs our streets. If air travel were restricted to business-only travelers, people would learn to love their "stay-cations."

And if China and India and other so-called emerging economies don't follow suit, we should call upon the United Nations to sanction them... like Iran.

They are all going after more sources oil. They simply don't understand economics of change.

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Great Lakes Not Dying From Global Warming

SEARCH BLOG: GLOBAL WARMING

Recently I wrote, "Where's the global warming? Not here." That's because this year has been cooler than normal in this area. Now the Detroit Free Press offers this:

After a parched summer last year that left docks stranded and boat propellers scraping sandy shallows, the Great Lakes are blissfully -- and surprisingly -- full again this year.

Heavy snow and rains since last winter have made the lakes rise. Scientists aren't sure whether this will last, but they're hopeful. The temperatures, moisture and ice cover next winter will be critical.

It is surprising to those who believed the alarmists who until recently claimed that global warming was killing the Great Lakes.

"Delay in confronting global warming and the protection of the Great Lakes will only make the problems worse and the solutions more costly," concluded the report's authors, which include environmental scientist Don Scavia of the University of Michigan. "It is imperative that lawmakers act now to stand up for the Great Lakes -- a national resource that millions of people depend on for their drinking water, jobs, and way of life."

To strengthen the Great Lakes to deal with unfolding changes stemming from global warming, the environmentalists urge Congress to pass a $20 billion package of fixes."

Sure, we had a few warmer and drier than normal years, but all it took was one wet winter and spring and the Great Lakes are within 4" of normal [average] levels. Congress was called upon to spend $20 billion dollars to fix things. That sounds like the trillions of dollars that so-called environmentalists want spent to fix CO2 increases.

Meanwhile, CO2 levels continue their independent trend from temperature and precipitation.

There are issues with the Great Lakes not related to global warming that should be addressed... like water diversion, invasive species, and pollution. Those are worthy of action, but it seems as if real problems must be shrouded in the blanket of "global warming" to get any attention these days.

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More On Netshare iPhone Tethering

SEARCH BLOG: IPHONE

Word is going around that AT&T is the bad guy behind Apple pulling the Netshare iPhone Tethering application. It's completely possible that AT&T wants to wring out every possible penny from the association with the iPhone... so much so that it is willing to risk alienating its customers and partner.

But this just goes to show how poor the research was with regard to customer wants... and the execution to fulfill those wants. Apple wanted to sell iPhones and AT&T wanted to sell bandwidth.

You'd like power steering with your car... sign here. Oh, you want windshield wipers? That's another plan. No, the speakers don't come with the entertainment center. Yup, another plan.

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Netshare iPhone Tethering

SEARCH BLOG: IPHONE

Saturday, I wrote about how a keyboard for the iPhone would enhance its usefulness, but the one that could be available had not been approved by Apple.

About the same time, Apple briefly offered an application [program] for the iPhone that would allow it to act as a wireless network for a laptop computer. That lasted a few hours and was pulled from the shelf.

The iPhone is my first experience with an Apple product. Overall, I think it is a wonderfully useful tool that isn't quite there... and it is apparent that Apple is doing its best to prevent anyone from improving upon it. They must have plans for "upgrades" that you can purchase for another few hundred dollars sometime in the future... after competitors bring them online.

So, Saturday when I wrote, "Meanwhile, using my iPhone with the virtual keyboard is like having a Corvette with a 100 hp 4 cylinder engine. It'll get you there, but it's no fun"... I should have said "with a 100 hp 4 cylinder engine and tube tires."

Apple has the marketing down pat. It simply needs to figure how to deliver a product that is up to the hype.

For now, I'll stick to my Vista-powered laptop to get real work done... and the iPhone will remain a potentially useful product.

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July Temperatures Near Detroit

SEARCH BLOG: GLOBAL WARMING

It should be pretty obvious to those living in Michigan that "global warming," like Joe Black, has taken another "holiday." July continued the below normal temperatures for this Detroit suburb. In fact, year-to-date, there have been only two 90° degree days... one in June and one in July.

That's not to say there won't be anymore 90° days... August has begun with some near-90° days... but their frequency is well below "average." We would have to experience another 10 days of 90°+ temperatures... just to reach the "on average" point [see below].

If we go back 8 years, we read this from NOAA:

*********
JUNE 2000
*********

...ONLY 90 DEGREE OR BETTER DAY RECORDED THE ENTIRE SUMMER...
...20TH WETTEST JUNE ON RECORD...
...WET SPRING CONTINUES INTO EARLY SUMMER...
...SEVERE WEATHER FREQUENCY PICKS UP DURING THE MONTH... 

SHOWERS AND THUNDERSTORMS VISITED THE AREA FREQUENTLY, ESPECIALLY AFTER
THE 10TH, AS CLASHING AIR MASSES MET OVER THE REGION. IN RESPONSE TO
THE FREQUENT AIR MASS CHANGE, TEMPERATURES PIVOTED FROM ABOVE NORMAL
TO BELOW NORMAL AND THUS, BREAKS FROM THE HEAT AND HUMIDITY CAME
REGULARLY. NO RECORD HIGHS OR LOWS WERE SET DURING THE MONTH BUT A
91 DEGREE READING ON THE 10TH WAS THE ONLY 90 DEGREE OR BETTER
TEMPERATURE REACHED DURING THE ENTIRE SUMMER. ON AVERAGE, WE SEE 
ABOUT 12 DAYS OF 90 DEGREES OR BETTER IN A TYPICAL SUMMER. JUNE'S
ABOVE NORMAL TEMPERATURE DEPARTURE WAS DIRECTLY RELATED TO ABOVE 
NORMAL NIGHTTIME LOWS, RATHER THAN DAYTIME HIGHS, WHICH ACTUALLY 
AVERAGED JUST SLIGHTLY BELOW NORMAL.  [urban effect?]

It's difficult to reconstruct the annual summaries for the decade in this area... some are in different formats and 2006 summary appears to be missing or archived in another location than the other years. Some summers are a bit hotter and some cool. Michigan seems to reflect the national pattern.

Generally, there is virtually no correlation between the frequency of high temperatures and atmospheric CO2. There is virtually no correlation between between average temperature and any measured increase in atmospheric CO2. There only appears to be a correlation between political hot air and CO2.

Where's the global warming? Not here.

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iPhone Keyboard

SEARCH BLOG: IPHONE

A couple of months ago, in anticipation of buying an iPhone, I posting this:

A Bluetooth keyboard for the iPhone?

by Stephen Chinnadorai on Jan 22, 2008 at 03:25 PM

The Macworld Expo is like CES - so many products to see that you forget about most of the smaller ones. But sometimes, the smallest products are the coolest and most innovative out there. Macworld picked up on something quite special: The $100 BTKeyMini from MacAlly. It’s a small, portable, foldable Bluetooth keyboard - something that many of you will have seen before in the past. So what’s so special about the BTKeyMini? A writer at Macworld had a talk with one of the MacAlly representatives, and apparently when the BTKeyMini arrives in March, it will be compatible with iPhone. If this is true - it will be a first. You will be able to use it in any iPhone application where the normal touch-screen would be used as a keyboard input.

I contacted this company and they said that as much as they would like to sell a keyboard to me for my iPhone, they could not because Apple has not given them approval to use the keyboard with the iPhone.

That's an interesting concept.

You can't use Turtle Wax on your Toyota until Toyota approves Turtle Wax. You can't use a Panasonic DVD player with your Samsung TV until Samsung approves the Panasonic DVD player.

Meanwhile, using my iPhone with the virtual keyboard is like having a Corvette with a 100 hp 4 cylinder engine. It'll get you there, but it's no fun.

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Driving Down - Taxes Down?

SEARCH BLOG: GASOLINE TAX

I received this as part of a response from the COO of the Michigan Department of Transportation on a traffic management issue:

With regard to your comment about the amount of revenue generated from the windfall gasoline sales tax, there is a misconception that higher gasoline prices results in more tax revenue for MDOT. However, studies have shown that people tend to drive less miles, drive more fuel efficient vehicles, use public mass transit, and increase carpooling in order to save money. Therefore, less gasoline is consumed which, in turn, yields less tax revenue for the state.

Let's do the math using national average gasoline prices:

• July 2006 - gasoline prices peaked near $3 per gallon
• July 2007 - gasoline prices again peaked near $3 per gallon
• July 2008 - gasoline prices peaked near $4.10 per gallon - up about 33%
• In Michigan sales tax revenues on gasoline increased 33% [slightly less than 6 cents per dollar]; gasoline taxes remained constant per gallon [Michigan has two taxes on gasoline]
• Let's presume a hefty 10% drop in gasoline consumption over one year due to less driving and more efficient vehicles versus 1% overall nationally *.
  
• Then, with a 10% decline in gasoline sales, the State of Michigan received
  - 19 cents per gallon gas tax plus
  - 22 cents per gallon [effective rate at $4] sales tax ** or
  - 41 cents per gallon total state taxes versus 35 cents per gallon total state taxes when gasoline was $3 per gallon yielding only 16 cents per gallon sales tax
• 41 cents per gallon is 17% more total state taxes per gallon in 2008 than 2007 which more than offsets even a 10% decrease in consumption

Looking at it in dollars and cents, if [for example only] the state collected taxes on 100 million gallons in 2007, the total state gasoline taxes would have been about $35 million. If consumption were reduced to 90 million gallons [10% reduction], total state taxes would have been $36.9 million or an increase... overall... of 5.4%.

Now the person at MDOT who responded may have been sincere in his belief that the state was collecting less gasoline taxes, but unless the decline in consumption was significantly more than 10%... it does not compute!

What is the case, however, is that the State is not making all of those taxes available to MDOT for transportation maintenance and improvement. Who's to say where the money goes once it's in the State's coffers?

Actually, Jack McHugh of the Macinac Center for Public Policy had some answers to that:

Bruce - the truth is even uglier than you imagined: Not a dime of sales tax on gasoline goes to transportation funding in Michigan. To add insult to injury, the sales tax is imposed on the 18.4/24.4 cents per gallon fed gas/deisel tax - a tax on a tax - (but not on the state 19/15 cent per gallon gas/diesel tax).

Check out this bill analysis of a relevant bill for some useful numbers and background: http://www.legislature.mi.gov/documents/2005-2006/billanalysis/House/htm/2005-HLA-4204-4.htm

Bottom line - there is a windfall to the state - to schools, actually, which get 73 percent of sales tax revenue, and local rev sharing, which gets 10 percent (http://www.legislature.mi.gov/documents/2005-2006/billanalysis/House/htm/2005-HLA-4204-1.htm) but transportation funding is a loser.

So, as drivers, we pay more gasoline taxes on a percentage and absolute basis and we get in return:

• traffic signals that cannot be properly maintained and timed to save us gasoline
  
• roads and bridges that are in disrepair reducing our safety and comfort
  
• higher maintenance and repair bills from our vehicles bouncing through bad pavement and rocks in our windshields

_____________________________________
* U.S. gasoline consumption [million barrels per day]:

2005 - 9.16
2006 - 9.25
2007 - 9.29
2008 - 9.20 est. [1% decline overall] - source U.S. Energy Information Agency

** Michigan Sales Tax. Michigan's sales tax is 6%. Retail gas stations do not pay sales tax on the 19 cents per gallon state road tax included in the price of a gallon of gasoline but do pay on the federal tax of 18.4 cents. The calculation of the state sales tax portion of the cost of a gallon of gasoline is complicated because the sales tax for gasoline, unlike the sales tax for other products, is already included in the posted retail price. The ultimate total sales tax paid by the station is calculated by taking the retail price per gallon minus 19 cents (state road tax) divided by 17.67 (the denominator that accounts for the fact that sales tax is already included in the posted retail price).

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Oil Leases - Use It Or Lose It

SEARCH BLOG: OIL

From Rep. John Boehner's website:

CLAIM:

“In an effort to compel oil and gas companies to produce on the 68 million acres of federal lands, both onshore and offshore, that are leased but sitting idle, House Natural Resources Committee Chairman Nick J. Rahall (D-WV) today introduced legislation that gives Big Oil one option - either ‘use it or lose it.’” (Release, 6/12/08)

THE FACTS: “Use It or Lose It” is already the law of the land.

• The Secretary of the Interior ALREADY can “cancel” a lease if the lessee “fails to comply” with the law, regulations or the terms of the lease.

• The Law on Cancelling Leases: According to Title 30, Subsection 188(a) and (b) of the United States Code, “any lease … may be forfeited and canceled … whenever the lessee fails to comply with any provisions of this chapter, of the lease, or of the general regulations … Any lease … shall be subject to cancellation by the Secretary of the Interior after 30 days notice upon failure of the lessee to comply with any of the provisions of the lease….”

So what was Nancy Pelosi proposing?

Responsible Federal Oil and Gas Lease Act

On June 26, the House voted on the Responsible Federal Oil and Gas Lease Act, the "Use It or Lose It" bill (H.R. 6251). This legislation will compel the oil industry to start drilling on the 68 million acres which they are currently warehousing or be barred from obtaining any more federal drilling leases until they demonstrate that they are diligently developing those lands. While 223 Members voted for the bill, it failed to get the two-thirds support necessary for passage.

Details of the bill:

• The “Responsible Federal Oil and Gas Lease Act of 2008” would bar companies from obtaining any more federal leases for drilling onshore or on the Outer Continental Shelf, unless they can demonstrate that they are producing oil and gas from the leases they already hold or are in the process of diligently developing the leases they already hold. The bill directs the Interior Secretary to define “diligent development.”
• This bill gives companies an incentive to relinquishing their non-producing leases, creating an opportunity for another company to explore for and perhaps produce oil or gas from them. Under the bill, the terms of leases which are in production, or which can demonstrate diligent development, are extended.
• For nearly 30 years, companies that lease federal coal resources have been required by law to diligently develop their leases. This requirement has discouraged the rampant speculation that once existed in the federal coal leasing program.

Is she saying that we need a law to force enforcement of a law? Is that like needing an immigration law to force enforcement of immigration laws?

What does John Boehner say about all of those "unused" leases?

MYTH: Oil companies are sitting on 68 million acres of federal lands without drilling for oil or gas on any of it.

FACT: This false claim has become one of the Democrats’ top talking points, but they can’t back it up with any facts. Energy companies already are actively exploring their currently-leased lands to find oil or gas. Once they determine that oil or gas is present, only then can they actually begin drilling. The entire process can take years.

As the independent American Association of Petroleum Geologists noted in a letter to House leaders yesterday, “[O]il and natural gas exploration is not simple and it is not easy. It requires geological ingenuity, advanced technologies, and the time to do the job right. It also requires access to areas where exploration ideas can be tested – the greater the number of areas available for exploration, the higher the chance of finding oil and natural gas traps.” In other words, energy companies cannot be expected to drill on every acre of land every single day.

What does John Boehner propose?

“House Republicans have a plan to help lower gas prices by supporting more production of American energy, encouraging more conservation and efficiency, and promoting greater use of alternative fuels. Today, we’ve transformed our plan into a single bill that reflects our ‘all of the above’ strategy. We have only nine days remaining before the August recess, and it’s time for Speaker Pelosi to bring this bill to the floor so Members on both sides of the aisle can give it the support we all know it would receive.

To which Nancy and Harry have politely responded: "Screw you!"

Nothing to look at here, folks. No, no substance. Ignore the haze.

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Mandate For Congress

SEARCH BLOG: CO2 and POLITICIANS and 2015

I sent the following to Sen. Carl Levin's senate website:

I would like to see Congress exhibit good faith in its concern about CO2 limitation in two straightforward ways:

1. mandate that all official government [non-military] vehicles average 35 mpg by 2015

2. mandate that all government facilities be converted to geothermal heating and cooling by 2020

These both are achievable goals and would show that government officials are willing to live with the consequences of their own policies.

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