Dumping Money On the Ground

When I worked for Avis, we were required to take a class on responding to fuel spills.  The district manager said that since I had worked in and been around the oilfield when I was younger, I probably didn't need to take the class.  I told him that unless the proper response to a spill was to throw some dirt on it, I'd better take the class.

When I visited my grandparents for the summer when I was about 7, I went to work with my Grandpa Tom in the oilfield.  When the tanks are full, he would have to hire a truck to come out and haul all the oil to his buyer.  Since the cost of having the truck come out is the same no matter how much oil they haul, you would of course want to have as much oil as possible be taken in a trip.  A tank could be full, but still have a lot of saltwater in with the oil.  Oil sits on top of the saltwater (think oil spill in the Gulf, the oil stays on top). So, there was a valve on the bottom of the tank.  Grandpa would open this valve and let the saltwater spray out onto the ground.  It was my job to sit beside this spraying valve and watch for the saltwater to turn into oil.  Grandpa would go do his maintenance on the pumpjack or whatever else he needed to do.  I didn't want to let any oil spray out, that would be just like throwing away money.  So I sat staring at the brownish saltwater spraying, waiting it for it to change from coffee with cream color to coffee with no cream color.  When oil started spraying out, I would yell for Grandpa and he would close the valve to let the well produce for a couple of more days to maximize the truck's load of oil.  It was a great practice economically, but probably not so great environmentally.  Oily saltwater leaves an ugly mess on the ground.  

I think even the most environmentally insensitive oilman sees this as a bad practice today.  So, to a degree regulations were needed.  But, as is usually the case with government involvement, they went too far the other direction.  And if the federal government is involved, they will go waaaaaaaaaaaay too far.  And then go further.  And take a minute's break and go a little further.  Eventually they go so far that the producers do not make enough money to stay in business.  The Democrat/Progressive side seems to forget that the reason oil companies exist is to make a profit.  And in most cases, they will do it the right way, both for their profit margin and for the environment.  

Eighteen governors, two of them Democrats, have asked Congress to clamp down on the EPA.  They say that the EPA doesn't take the economic impact of their rulings into consideration when they impose new restrictions.  They have reached the point in some cases, where it is no longer profitable to stay in business.  As I mentioned in yesterday's post about the Grand Junction area, trickle down works in both directions.  When business is booming for the oil company, it is booming for the construction industry, the fast food industry, grocery stores, retailers, and yes, the government through sales, income, and property taxes.  Ever notice all the new schools, libraries, and jails get built during the boom years?  Then the EPA steps in with new regulations, and end the boom.  For everyone.  Including the government.  

I don't know if the current Congress has the spine, or even the inclination to stand up to the President and his anti-business policies.  But it is nice to see that the states are starting to push back.  Over the past 100 plus years, the states have let the federal government take too many of the powers the Constitution relegated to the states.  It will be very hard to get those powers back.  But it sure is good to see the process start.  Not only in the case of the EPA, but Utah has filed suit to prevent the federal government from taking more land and to try to take back the area that President Clinton took by executive action in his last days in office (southern Utah, rich with uranium, imagine that).  Montana, Texas, and others have filed or threatened to file suit over federal gun control laws.  Texas, Virginia, and others have started the process of challenging federal takeover of healthcare.  And with the recent verbal jabs by Supreme Court Chief Justice John Roberts at the president, I think the Supreme Court is signaling that it is ready to reign in some of the federal power grabs.  

Maybe the Supreme Court is that seven year old watching money spray out onto the ground.  It's time to shut off the valve.