The oil drilling in Cuba — that exists only in Republicans’ imaginations

With Democrats and environmentalists opposed to oil drilling off the coast of Florida, Dick Cheney has decided to push the rhetorical envelope a bit.

With gas topping $4 a gallon, some Republicans are pointing to Cuba once again to bolster their case that the U.S. should be drilling along Florida’s coastline.

The claim: China has Cuban leases to drill for oil — miles from the Florida shore.

Even Vice President Dick Cheney got into the mix Wednesday, telling the U.S. Chamber of Commerce that “oil is being drilled right now 60 miles off the coast of Florida. We’re not doing it. The Chinese are in cooperation with the Cuban government.

“Even the communists have figured out that a good answer to high prices is more supply,” he added. “Yet Congress has said . . . no to drilling off Florida.”

I especially liked the “even the communists” line, as if those who oppose drilling are even worse.

It’s not just Cheney, either. Jonathan Stein noted that House Minority Leader John Boehner (R-Ohio) was given the same list of talking points to read. “Right at this moment, some 60 miles or less off the coast of Key West, Florida, China has the green light to drill for oil in order to lower energy costs in that country,” Boehner said.

Just this week, Rep. George Radanovich (R-Calif.) wrote in the Modesto Bee that “China, thanks to a lease issued by Cuba, is drilling for oil just 50 miles off Florida’s coast.”

There is, however, one small flaw in this line of argument — the Republican leaders have no idea what they’re talking about.

McClatchy’s story and headline were surprisingly straightforward: “GOP claim about Chinese oil drilling off Cuba is untrue.”

As Congress has debated energy policy over the past several days, an unusual argument keeps surfacing in support of drilling off the U.S. coastline and in Alaska’s Arctic National Wildlife Refuge.

Why, ask some Republicans, should the United States be thwarted from drilling in its own territory when just 50 miles off the Florida coastline the Chinese government is drilling for oil under Cuban leases?

Yet no one can prove that the Chinese are drilling anywhere off Cuba’s shoreline. The China-Cuba connection is “akin to urban legend,” said Sen. Mel Martinez, a Republican from Florida who opposes drilling off the coast of his state but who backs exploration in ANWR.

“China is not drilling in Cuba’s Gulf of Mexico waters, period,” said Jorge Pinon, an energy fellow with the Center for Hemispheric Policy at the University of Miami and an expert in oil exploration in the Gulf of Mexico. Martinez cited Pinon’s research when he took to the Senate floor Wednesday to set the record straight.

Another Republican talking point bites the dust. The only question I have now is, will Cheney & Co. stop using the line now that it’s been debunked, or will they keep repeating it anyway?

We’re being ENRONed again: this time by oil futures contracts speculators who are unnecessarily and very profitably driving up the price of crude oil and hence retail gasoline prices. Curious as to why you are suddenly paying over four dollars a gallon for gasoline? No, it’s not due to “supply-and-demand,” no, it’s not due to “OPEC,” nor is it due to “peak oil.” It’s due to totally unregulated electronic oil futures trading in world markets. Check out the very lucid article that explains the unseen financial machinations in oil futures markets written by F. W. Engdahl on May 2, 2008, entitled, “Perhaps 60% of Today’s Oil Price is Pure Speculation.” It may be viewed at .
http://www.financialsense.com/editorials/engdahl/2008/0502.html

In a nutshell, he suggests that the Bush Administration dropped the ball in January 2006, when they allowed totally unregulated electronic trading of oil futures contracts in New York. Previously these electronic trades had been made at the London Intercontinental Exchange (ICE) Futures Market. With that decision by the Bush Administration, all of the world’s oil prices were then opened to upward pressure from speculative futures contracts. In essence, oil futures contracts made by speculators, banks, hedge funds and pension funds all competed with real demand on the spot markets and had the effect of driving up both wholesale oil prices and retail gasoline prices. Speculators have made billions of dollars on their trading of oil futures contracts. All of their profits come right out of our pockets.

Even with a stable oil supply, there is a slow worldwide increase in demand for oil, which creates a long-term upward pressure on oil prices. However, with the relentless saber-rattling and war-mongering by Bush and Cheney in the last several years, and the more recent war talks by McCain and the Israelis, the oil futures markets are rife with speculation and paranoia. This war talk keeps ratcheting up the prices on the oil futures contracts and hence the wholesale spot market prices. It is an endless spiral of greed and paranoia.

As long as there is no tough and effective oversight of the electronic oil futures markets by the Bush Administration, the oil prices will climb endlessly. These oil prices will be quickly followed by hikes in the retail gasoline prices at the pump. The 60% speculation share of the $4.25/gallon gasoline price, is about $2.55/gallon, which is what we consumers are paying to these oil speculators as a “service fee.” Not a bad “fee,” since the speculators produce no usable goods or services…Just a few large greedy oil futures traders helping themselves to your gas money.
Without this added-on oil futures “service fee,” you would be paying about $1.75/gallon for gasoline. Write, call or smoke-signal your Representatives and Senators today and suggest that they read the June 2006 report by The U. S. Senate Permanent Subcommittee on Investigations entitled, “The Role of Market Speculation in Rising Oil and Gas Prices.” Then demand that they investigate and then force the Bush Administration to firmly regulate the computerized oil futures contracts trading in New York, London and Dubai.

This electronic oil price futures scandal is costing US drivers about $969,000,000.00 per day! That number is based on 60% speculation fee of a gasoline price of $4.25/gallon and on US 2004 consumption of 380,000,000 gallons/day. Tell you Senators and Congresspersons to simply shut down this unregulated electronic oil futures contract trading market. Then the price of gasoline will slowly drop to about $1.75/gallon…The only way that oil price futures contracts make money is if the price of oil goes up in the future, say, 30, 60 or 90 days later. This futures market serves no social need. It is just for corporate greed. The corporate speculators are probably also gaming/ENRONing the wheat and corn futures markets the same way.

  • The only question I have now is, will Cheney & Co. stop using the line now that it’s been debunked, or will they keep repeating it anyway?

    You are kidding, right? Since when have facts or the truth ever been of concern to Cheney & Co.?

  • Oh man, we’re gonna nuke Cuba now. That is sooooooooooooo yesterday.

    Edo, it’s truthiness. Truth no longer exists.

    (On a side note: Are you a first class snarker? I am looking for YOU! You’re gonna love this! Come join the fun and tell us why YOU are voting Republican.)

  • Oh come on, can we really imagine the communists would be so indiscreet that they’d actually send us engraved invitations about their oil theft in our waters? Haven’t you people ever seen a James Bond movie? It seems pretty obvious to me that they’ve got underwater oil rigs manned by communist robots that they’re eventually planning to send to the Florida coastline in order to cut it off and create New Cuba and thus further their oil exploration efforts.

    What do you people need, proof? I suppose you’d prefer that we wait until we’re buying Soviet gas before you finally approve of our plans to nuke the Gulf of Mexico. Fools! There’s plenty of time to find the evidence we need, but we need to act NOW. No oil for communists!

  • “Even the communists have figured out that a good answer to high prices is more supply,” he added.

    Would those be the same Communists who have been supplying cheap labor to US manufacturing companies for years now, Dick?

  • James @ #1 – Read through your links – interesting article. I’ve heard this before – have you seen anything that shows what can be done to reverse the price?

  • Will the NAFTA Superhighway connect up with these Chinese oil drilling platforms?

  • To Republicans

    Hey Hey Hey Hey Hey!!! Lets not be so quick to use the word “communists” in some sort of diminutive way. The cuban communist regime is scum, but our most excellent comrades in the east have a wonderful, fair & balanced system of government. And more importantly, who else but a wise and just nation would extend us a line of credit to finance our numerous foreign policy endeavours(wars)? China, that’s who.

  • If the Chinese want to drill for oil in the Gulf of Mexico, why don’t they just use horizontal drilling techniques and do it from home? (Answer- Because you need several exotic locations to make a James Bond movie, not just one in China.)

  • Brian, yes, yes they are.
    They will then use the NAFTA Superhighway to transport into the U.S. the WMD secretly shipped by Sadaam to Syria, then to China via North Korean ships that had brought nuclear technology to Syria. China then sent Sadaam’s WMD to Cuba via submarines, along with the communist undersea oil-drilling robots!
    How could we have missed all the signs?

  • “There is, however, one small flaw in this line of argument — the Republican leaders have no idea what they’re talking about.”

    Maybe, maybe not…

    A more likely explanation is that the rethugnicans just don’t give a damn about the truth. A good story will get Corporate News Media play with little likelihood of that media interrupting the story with the truth. A good repug story will become ‘common knowledge’ regardless of the number of times later refuted.

    An example:
    The wacko president of Iran. ‘Common knowledge’ is that he said he wanted to wipe Israel off the map! The truth is that the London Times printed that and the following day retracted it as being a misinterpretation of what he said. Doesn’t matter that it is not true, it keeps getting repeated by pols and media and virtually all Americans believe it!

    Same reason that polls show large percentage of american public still believes that Sadaam has something to do with 9/11.

  • What about the Bakken Formation in northwestern North Dakota, northeastern Montana and the extreme southern part of the Canadian province of Saskatchewan?

    Isn’t there supposed to be some 500 million barrels of proven and extractable crude there, not to mention as much natural gas?

  • Maybe I am mistaken but didn’t George take the coast of Florida off the list of potential drilling sites to help his brother out?

  • Our local right-wing radio host was ranting about this today–he usually sticks to the approved talking points, so I wondered what the hell he was talking about. Thanks for the enlightenment, CB. Usually Boortz is behind the curve–guess someone decided he was worthy of first go-round BS.

  • SOV @ 12:

    Absolutely – once you get in the MSM, even if it’s wrong, others can point to it as the truth because it came from a “credible source”.

    This has been the strategy of Rove, Cheney, and many others. It’s important to point out how they are manipulating public perception and planting these stories to distract people from reality.

    Simply put- They make outrageous statements as a smokescreen, because it works.

    The best way to defeat this is for comedians and/or emotional journalists like Olberman to lambast it. Emotionless facts won’t accomplish diddly – thankfully great ‘snark’, along with a fact or two, will.

  • Iludium #13 – a good article on the Bakken Formation here:

    http://en.wikipedia.org/wiki/Bakken_Formation

    Estimates seem to range from about 4 to 200 billion barrels of recoverable oil with current technology, depending on the politics of the estimator. This is a real can of worms, pardon the inapt metaphor. This is an old find, first announced in 1953. I suspect it’s more hoopla than bonanza, else why aren’t we already getting a few million barrels a day from it? Oh yeah, those nasty commie red Democrats. How could I forget?

    Nevertheless, it’s a Republican talking point lately, along with ANWR and those horrible commies stealing our oil off the coast of Florida.

    Anything but alternative energy, conservation and ending the mess described by james k in #1, as far as the Republicans are concerned.

    I’m finding the only place to find issues discussed is on C-Span and C-Span 2 lately. All they talk about on the cable shows is the horse race, process, strategy and tactics.

  • Aren’t the Chinese, at least in Wingnutia, also taking over the Panama Canal?

  • I think Dick Cheney will probably go on TV to day that there is no doubt that China is drilling off the coast of Florida!

  • I especially liked the “even the communists” line…

    Because communists are the opposite of capitalists, and the opposite of capitalists are environmentalists. Therefore, communist = environmentalist.

  • Another Republican talking point bites the dust. The only question I have now is, will Cheney & Co. stop using the line now that it’s been debunked, or will they keep repeating it anyway?

    Given that their audience doesn’t have a collective single-digit positive-number IQ, what do you think they’ll do?????

  • You guys oughtta update your friends at the New York Times – they seemed to be under the impression 2 years ago that Cuba had leased oil exploration and drilling rights to China directly on the Cuba side of the Florida Strait:

    http://www.iht.com/articles/2006/05/09/news/cuba.php
    http://www.iht.com/articles/2006/05/09/america/web.0509.cuba.php
    http://www.nytimes.com/2006/05/09/washington/09drill.html

    Are they now going to issue retractions and apologies for those stories? I guess NYT must have jumped on board that Vast Right Wing Conspiracy…

  • They will keep pounding away at this. They can use the word Cuba and Communists in the same sentence to whip the hard core into a froth. They know sane, inquisitive, and/or informed people won’t believe it – that isn’t who this meme is directed to. They know it isn’t the truth – I doubt they care – this is just something they can use. And heck it makes them feel macho and nostalgic for the Cold War days.

  • There is no shortage of cleverness in denigrating the one Repub line that got on the MSM news shows, and you still don’t know but that it is the truth, but where is the clever solutions to the gas price, and the lack of oil supplies coming from US territory, while our dollars go overseas to support anti-US activities and bring down the value of the dollar? Pelosi has accomplished absolutely nothing, not even a clever line about the other party. Oh yeah, she did acknowledge Iran was rsponsible for the US troops’ success in Iraq. Dems must be proud of her and alll she has done for the economy (to choke it. Name one thing.)

    But back to oil. What are the Dims doing to keep gas prices where US citizens can pay them and afford to buy food requiring transportation?

    You geniuses are fiddling while Rome burns. Burns a hole in your pocket, because you buy gas at the same price as do the Repub’s. But you think (and I use the word loosely) it is clever? Why don’t you drive a car with solar cells on the roof, just under the windmill on top?

  • I’m with SadOldVet – they don’t care if they’re telling the truth or not…

    James at #1, I read the Senate report the other day about speculators driving up oil prices that prompted the article you linked to. Here’s something more to think about. Hedge funds and the other speculative investors that are driving up the cost of oil are doing the same thing to medical care and are now making moves into food. All necesary items to live. “Investment” into commoditites that the public needs to survive need to be regulated or the profit motive will kill us all.

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