Bryan D. Brown

I didn’t watch the State of the Union (SOTU) last night, and from what I’ve read, I didn’t miss much. Usually, I try to catch President Bush’s speeches for the soul-crushing hilarity they provide me. I did hear excerpts, however, and this one is my personal favorite:

Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we have done and reduce gasoline usage in the United States by 20% in the next 10 years - when we do that we will have cut our total imports by the equivalent of three-quarters of all the oil we now import from the Middle East.

Let’s compare this to what he said last year, during his 2006 SOTU address, where he said:

Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. (Applause.) By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past. (Applause.)

Wow, from 2025 to 2015. Just like that. Does anyone else get the feeling he’s making this stuff up as he goes along?

According to an article by the American Petroleum Institute, oil demand did slip slightly in 2006 compared to 2005. But that wasn’t due to a reduction in consumption or an increase in alternative fuel sources. That was because “stockpiles of crude oil and refined products stood at their highest levels for end-August in several years, thanks to extraordinary high imports and near-record domestic refinery production.”

And while our stock piles and imports have increased, so have oil company profits. And I quote:

Analysts polled by Reuters expect industry leader Exxon Mobil Corp. to post annual net profits of $38 billion (19 billion pounds), beating a record $36 billion in 2005.

Record profits are also predicted for Royal Dutch Shell , the second-largest western oil company by market capitalisation, at $25 billion and for London-based BP at more than $22 billion.

So there’s supply and demand for you. So the next time some Libertarian nut starts rattling off Ayn Rand quotes and lecturing you on how the market works, do yourself a favor and punch them right in the nose. Violent? Yes. But it’s like putting your dog’s nose in the mess it made on the rug - it’s the only way they’ll learn.