Blaming Big Oil

In an editorial headlined "Obama's Dry Hole," the Wall Street Journal dismisses Barack Obama's argument that the oil companies have been stockpiling leases on federal lands to manipulate gas prices.

Obama alleges that "68 million acres that have the potential to nearly double America's total oil production" have gone untouched.

"[T[he notion is obviously false — at least to anyone who knows how oil and gas exploration actually works," the Wall Street Journal says.

Then it applauds "liberals" for "finally acknowledging the significance of supply and demand."

I don't know if the Wall Street Journal is just noticing this (as many on the right seem likely to act these days), but the law of supply and demand isn't being "finally" acknowledged.

It is one of many factors that thoughtful progressives see as important (along with the need for conservation, the sense of urgency for finding reliable and renewable sources of energy and other factors) in the energy debate.

But "supply and demand" seems to enter the conversation these days (on both sides) with the accompanying question about "Big Oil" and its alleged role in all this.

Well, if you're going to insist on pointing your finger at someone ...

Newsweek's Robert Samuelson suggests a new culprit — the speculators.

"A chorus of politicians, including John McCain, Barack Obama and Sen. Joe Lieberman, blames these financial slimeballs for piling into commodities markets and pushing prices to artificial and unconscionable levels," Samuelson writes.

"Gosh, if only it were that simple," he continues. "Speculator-bashing is another exercise in scapegoating and grandstanding. Leading politicians either don't understand what's happening or don't want to acknowledge their complicity."

All the proposals I've heard for dealing with today's energy crisis seem to be based on the belief that there is a quick-fix solution out there to the reality of a finite supply of fossil fuels.

Whether the proposal is for a windfall profits tax (the logic behind the tax suggests that big oil is manipulating supply to inflate price, but such a tax is likely to restrict production and produce much less revenue than predicted) or a summer "tax holiday" (which would provide minimal — and temporary — financial aid to the consumer — while forcing state governments to cut their workforce — along with some important road maintenance projects), none of the "solutions" I've heard address the real issue of long-term energy needs — including independence from foreign energy suppliers.

So I guess, as Samuelson writes, the speculators are next on the blame list.

Isn't it time for our politicians to speak in depth about a long-term answer? I don't expect anyone to have the answer. How do we find it? That's the kind of vision we seek from our leaders.

We need a strategy.