Petrogram - Fall 2008 - (Page 33)
Industry INSIGHTS The Right Candidate? t is election season again, and we have t wo very different presidential candidates. With so much at stake these days, the presidential race Patrick Eakins is expected to be hotter than normal. The problem is how do we choose the right candidate - more correctly, is there a right candidate? Gas prices have skyrocketed resulting in consumer draw back. In our industry, volumes are off, expenses continue to rise and cash flow is gone! The question seems to be: “Which candidate will do our industry the most good?” “Who can help us turn this around?” The diﬀerence between this and prior elections is we have two candidates with voting records. All candidates make promises, many never kept; however, the voting record is a sure way to determine a philosophy. The senate records are very clear for both candidates. According to the Americans for Democratic Action (ADA) and the American Conservative Union (ACU) McCain is a moderate-conservative. On a 100-point scale, McCain scores a 76. Conversely, Obama scores a 5 making him an extreme, far-left liberal. In the 2006-2007 sessions of Senate, McCain and Obama voted opposite each other 69 percent of the time. Out of 58 roll calls, they only voted the same 18 times. As it pertains to the oil industry and business in particular, McCain voted to cut capital gains taxes and business taxes; he voted to repeal the Minimum Tax I and death tax; he voted for more oﬀshore drilling; and for a Constitutional Amendment protecting the ﬂag against desecration. Obama voted in opposition to each of these. It is evident from their voting records how diﬀerent they are. McCain consistently votes on a conservative line, while Obama votes consistently liberal. Their energy policies are quite diﬀerent as well. Obama supports taxing the windfall proﬁts of oil companies. He does not support oﬀshore drilling or drilling in the Arctic National Wildlife Refuge (ANWR). He wants to subsidize coal energy and corn energy, and he would not lower the tariﬀ on imported sugar ethanol. He wants to double the CAFÉ standards and immediately increase the standard to 40 miles per gallon. On the opposite end of the spectrum, McCain wants more domestic drilling; however, he still opposes drilling in the ANWR. He supports reforming the oil trading market, and he does not support a windfall tax on oil company proﬁts. Like Obama, he supports subsidizing coal energy; however, he wants to discontinue subsidizing corn ethanol. McCain wants to lower the sugar ethanol tariﬀ and allow free market to take over. He does support subsidizing cellulosic ethanol research and development. As far as the CAFÉ standards go, McCain wants to increase the standards but has not determined to what extent. Generally, he supports incentives for new energy developments rather than government mandates. McCain’s energy policy makes nuclear power its centerpiece. Obama is undecided over nuclear. So, what can we expect if Obama is president? From his voting record, written policies and speeches we can ascertain that Obama will seriously increase personal and corporate taxes. The oil industry will suﬀer greatly. His philosophy is not new. As a matter of fact, Obama’s approach to politics is closely related to Jimmy Carter’s. For those who remember the 1970s oil embargo and doubledigit inﬂation, a return to the failed policies of the past is not something any of us should look forward to. McCain’s policies, on the other hand, resemble Ronald Reagan’s. His approach would bring lower taxes and more stimuli. He is a believer in the free market system, while managing abuses such as those going on with oil trading. Market based energy reform is a hallmark of his philosophy. Gas prices have skyrocketed resulting in consumer draw back. In our industry, volumes are off, expenses continue to rise and cash flow is gone! The question seems to be: “Which candidate will do our industry the most good?” Petrogram | Fall 2008 | 33
Table of Contents for the Digital Edition of Petrogram - Fall 2008
Petrogram - Fall 2008
Welcome, New Board Members
Getting the Message Out There
Spotlight on FPMA's 2008 Convention & Trade Show!
Out & About the Industry
Alcohol Beverages & Tobacco Regulation: Questions and Answers
Hedging 101: Part II
What Owners Should Know
The Price-Gouging Statute
Conference of Committees Registration Form
Index of Advertisers
Petrogram - Fall 2008
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