Kinsley flunks Oilnomics 101
Michael Kinsley’s Sunday op-ed column, ” Tax the windfall profits on oil ” (May 7 and TribLIVE.com), has to be one of the most idiotic ramblings I have read in a long time.
I cannot cover all of the inane statements he made, so I will hit the wackiest:
That’s right, Michael, just go right out in your backyard and gather some up! What do you suppose those $150 million offshore platforms cost to build and operate in the Gulf of Mexicoâ¢ (Oops, I gave away the answer, didn’t I?)
Michael, do you think there will be any more efforts made with today’s higher prices to “extract” oil that is unprofitable to produce at $46 a barrel?
Much of the reason that we import so much oil is that America is a mature, high-cost, producing region. A portion of our continuing domestic decline is due to the plugging and abandonment of uneconomic production — which may be reactivated at higher oil prices.
Finally, Kinsley goes into a mind-numbing ramble in the last half of his article about tax breaks and Republicans. Hey, Mike, you know the $9 billion profit that greedy Exxon Mobil made in the first quarterâ¢ How does that compare to the total government tax of over $15 billion Exxon Mobil paid in the first quarterâ¢ (Oops, I gave the answer again! Hey, I guess we don’t need more taxes from Exxon Mobil.)
Michael, the best cure for the high oil price is … the high oil price! It will encourage conservation by consumers and increased production by producers, which leads to … lower prices!! My ninth-grader could write a better article than Kinsley’s. Trib editors, in the future, please use contributing columnists who at least can string together a coherent argument for a salient point.
The writer has worked in the oil and gas business for 25 years.