Weekly Opinion/Editorial

AMERICA NEEDS AN ENERGY POLICY!
by Steve Fair

Retail gasoline prices reached a record high of $4 per gallon this week. Part of the reason is because Congress under the leadership of U.S. House Speaker Nancy Pelosi has been unwilling to bring to the floor a bill that would open domestic drilling and increase refining capacity.

On reaching the historical high of $4 gasoline, House Minority Leader John Boehner, R- Ohio said, “Today marks another dubious day for this Do-Nothing Democratic Congress,” “On their watch, gas prices have soared to new heights, and by refusing to schedule a vote on a plan to increase American-made energy to help lower gas prices, congressional Democrats are complicit in this unprecedented surge in fuel costs.”

On April 24th, Pelosi stated on Larry King Live the average price of a gallon of gas was $2.59 when in fact it was $3.50 a gallon. King corrected her, but her misstep received little mainstream media attention. Pelosi’s wrong answer revealed how out of touch she is with the average American. Being out of touch is common with politicians- no matter their party affiliation, but Pelosi’s lack of knowledge on this critical commodity is frightening.

When you pay $4 a gallon at the pump, what are the components that contribute to that price?

Forty five percent of the price of a gallon of gas is tied directly to the price of crude oil. Crude oil pricing is over $130 a barrel and continues to rise. That is because worldwide supply is tight and gasoline demand in the US and the world is up despite high prices. U.S. consumers use 20 million barrels of crude a day and we are importing 55% of the crude oil we use. When you consider that America has only 5% of the world’s population yet consume 45% of the gasoline produced in the world; it’s apparent we are the market that controls the price.

Twenty five percent of the price of a gallon of gas is federal and state taxes. In Oklahoma, our state gasoline tax is seventeen cents and ranks 5th lowest nationally. The federal gasoline tax is 18.4 cents per gallon. Senator McCain has suggested the federal tax on gasoline be suspended for the summer to give consumers a break, but Congressional Democrats and Senator Obama have balked at the idea, saying it would not make that big of dent in the overall price.

Fifteen percent of the price of a gallon of gas is refining and profits. Refinery capacity in the US is near peak capacity. Hurricanes Katrina and Rita impacted some refineries and reduced our capacity by about ten percent. We have not built a refinery in the United States in 29 years. Over the last quarter-century, the number of refineries in the United States dropped to 149, less than half the number in 1981. Any comprehensive energy policy in the United States must address refining capacity.

Fifteen percent of the price of a gallon of gas is marketing and distribution. Since most gasoline is trucked to it’s final destination, the price of diesel fuel also impacts the price at the pump. Over 50% of gasoline is refined in the Gulf Coast, so transportation costs become a major factor.

Other factors that impact the price at the pump are the US deficit, which has caused the value of the dollar to decline. Because oil is priced in dollars, no matter where in the world it comes from, producers want higher prices in order to maintain their income.

Another factor is the Energy Policy Act of 2005, which mandated the incorporation of 7 billion gallons of corn-based ethanol into the American fuel supply in an effort to reduce gasoline consumption. Ethanol production, suddenly buttressed by a federally guaranteed demand for its product, overnight became an extraordinarily profitable venture.

Even as we reach the milestone of $4 per gallon gasoline, the true price of gasoline has fallen more than 40% from its inflation- adjusted price of $3.11 per gallon in 1980-81. Americans pay about one half to one third of the price western Europeans and others have paid for many years. According to John S. Herold, Inc. the price of gasoline is cheaper by volume than many other household products, and the cost has not risen as quickly over the years. "On a per-barrel basis, gasoline is America's bargain liquid: 10 percent cheaper than bottled water, a third the cost of milk, a fifth the cost of beer, and less than 2 percent the cost of a bottle of Jack Daniel's," the study said. While that information is of little comfort to those with gas guzzling SUVs, the long-term solution to high gas prices is a comprehensive energy policy that includes domestic drilling and the building of refineries.

Leaving office early?

by Steve Fair

“How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and strong. Because someday in life, you will have been all of these.”
~George Washington Carver

Why are so many Oklahoma GOP House members leaving office before they are termed out? There are a variety of reasons, but here is my "spin" on why a record number of Republican members are bailing in 2008.

Some Oklahoma House Republican members are leaving because they are young and ambitious. They are chasing the dollar or the next rung on the political ladder. Those members have never been dedicated to helping Oklahoma move forward and their departure will not leave a ripple in the political pond. Their selfishness and “me first” attitudes have not endeared them to the GOP grassroots or to Oklahoma voters as a whole. That may partially account for their early departures, but a more likely factor will be their own selfish interests. Twenty years from now their impact in the legislature will be little more than a notation in the Oklahoma Political Almanac. They ran for office because it looks good on their resume. They could care less about the issues or the average Oklahoman- it's all about them.

Other members are leaving because they have become disgusted with the process. After serving in the minority for the early part of their tenure in the House, optimism was high in 2004 when the GOP gained a majority. These “gray hairs” thought they would be called upon for advice and counsel, but instead many were passed over for newly elected, younger, more aggressive members. The new leadership rebuffed their experience and ability to work across the aisle with their Democrat counterparts in a gracious manner.

The situational ethics practiced by the new “principled” leadership was inconsistent with what was being press released to the public. The older members concerns on how business was being conducted was ignored and berated. The new GOP mandate was not working for the benefit of Oklahoma, but staying in power and increasing the number of “R”s. Any and all campaign methods- right or wrong- was on the table, if it won elections. Seeing no real difference in the policies and actions of the new GOP leadership and the old Democrat leadership, these members opted to leave early. Their departure is not a positive one and their experience will be missed.

Some legislators have more personal reasons for leaving. They have sacrificed time with their family to serve and it’s time to mend that fence and get their priorities straight Others have health issues or business concerns. That happens every election cycle and their departure is not out of the ordinary.

But there is hope. Some of the newly elected GOP House members are older, seasoned people with more life experience than those departing. That doesn’t mean young people don’t ever have good innovative ideas. In fact, some of the best ideas come from sharp young minds, but ignoring the older members because of age is a mistake that reveals arrogance. Some of the newly elected members with some years on them have a “point of reference” that gives them a different perspective than their younger counterparts. All of us can look to our youth and regret some of the decisions we made. The same can be applied to public service. Some of these members have lived longer and can help their younger counterparts avoid those mistakes they made.

House Democratic leader Danny Morgan, D- Prague has been quoted as saying Democrats will make gains this election cycle. “We’re going to be very pleased when this election cycle is over with the gains that we make,” Morgan confidently states. But if that is the case, it will certainly go against conventional political wisdom. Oklahoma Republicans do well in Presidential years. Oklahoma has not gone for a Democrat presidential nominee since 1968, so it’s a safe bet that John McCain will carry the state. I predict we will gain three seats in the House and take the Senate for the first time in state history.

But what Oklahoma Republicans in the state legislature do with that power depends on how well they learned their Sunday school lesson on the subject of respecting their elders. The leadership should listen to those who have traveled the road before.

Two passages of scripture the young leadership should study and commit to memory:

With the ancient is wisdom; and in length of days understanding.
Job 12:12
Thou shalt rise up before the hoary head, and honour the face of the old man, and fear thy God: I am the LORD.
Leviticus 19:32

BLACKJACK HENRY DID THE RIGHT THING!

Governor Blackjack Henry today vetoed Senate Bill 1865, by Senate Co-President Pro Tem Glenn Coffee- R, OKC, that would have created an Office of Accountability and Innovation at the Legislative Service Bureau.

In vetoing the bill, Governor Blackjack said, "While it is critical for the state to conduct regular performance reviews of state agencies and programs, state law already assigns those responsibilities to the Oklahoma Legislature, the Office of State Finance and the State Auditor and Inspector. Creating a new layer of bureaucracy to perform the same duties is duplicative and unnecessarily increases the size and cost of government. In 2003, the Legislature established a joint zero-based budgeting committee, also known as the Legislative Oversight Committee on State Budget and Performance, to conduct state performance reviews. State law specifically charged it with reviewing a specified number of agencies and programs each year. Rather than establish a new state entity, the Legislature should use the existing zero-based budgeting committee to conduct performance reviews and accountability assessments not already duplicated by other state entities." Read more at http://wwwtmrcom.blogspot.com/

I wrote an article that was posted May 26th entitled CREATION OF A NEW STATE AGENCY A MISTAKE. It addressed the foolishness of our creating a new state agency to police the agency charged with policing other government agencies. I seldom agree with Blackjack, but in this case, he was right.- Steve

NEW LINK- PRAYER FORCE ONE!

If you are not familar with Rev. Ed Moore and his ministry, click on the link. Ed believes God has called him to call America back to prayer and he is doing it in a creative way. Check out his website at: http://www.prayerforceone.com/

NOW SOLICITING SPONSORSHIPS!

I was the first Oklahoma GOP National Delegate elected in 2008! I was first delegate elected at the first district convention held. After reading Tim Arbaugh's testimony about Jeff McMahan's solicitation of money from Steve Phipps to go to the Democratic National Convention, I thought if its good enough for the Dems, it would work for me. I am now soliciting NATIONAL DELEGATE sponsorships for myself and my wife (also a delegate). But instead of political favors, I am selling space on our official blue blazers at a very affordable rate. Email me for the economical cost effective rates. Want to increase your brand awareness? Are you introducing a new product or service? This is the marketing vehicle to consider. The Gross Rating Points and impressions you or your business will generate by being a FAIR sponsor could potentially exceed NASCAR. Political candidates will be given preferential consideration in placement of patches on blazers.

Read about Arbaugh's testimony at the McMahon trial at fellow blogger Mike McCarville's site- http://wwwtmrcom.blogspot.com/

Read

OBAMA'S TALL TALES

at

http://thatsjustbob.blogspot.com/

Fellow blogger and political activist Bob Cleveland has an interesting post outlining some "inconsistencies" about Senator Barrick Obama. Take time to read because the information reveals a lack of character in Obama that disqualifies him from being the leader of the free world. That lacking characteristic is integrity. Steve

In February 2005, I wrote the following article for THE DUNCAN BANNER. After it appeared, State Auditor Jeff McMahan wrote a full page response that appeared in a Sunday edition. In his rebuttal, he falsely claimed he didn't know Steve Phipps. He has since said that he did know him and took campaign contributions from him. Jeff said I was the mouthpiece for the State GOP. He was right about the MOUTHPIECE part, but not for the State GOP. By special request, here is the BIG DADDY article. Enjoy!

Is Big Daddy McMahan’s Sugar Daddy?

by Steve Fair

In the 1970s, a popular television show was The Dukes of Hazard. In every episode, Bo and Luke Duke battled the local political boss- appropriately named Boss Hogg. It was not your classic case of good vs. evil, because sometimes the Duke boys bent the law a little to suit their taste, but fundamentally they were the good guys. Boss Hogg had his dirty work done by Roscoe the dim-witted sheriff and Cletus, the Deputy. Roscoe never worried about re-election so long as the Boss was happy. The Boss reigned sovereign in Hazard County! It was good entertainment because we knew that in every episode, the Dukes would win out over Boss Hogg. It wasn’t set in Oklahoma because in the Sooner state unfortunately, the good guys don’t always win.

For decades when one thought of sleazy, backroom politics in Oklahoma, Gene Stipe instantly came to mind. Stipe was at one time the longest serving elected official in America. Serving over 50 years in the Oklahoma state legislature, he was the poster boy for term limits. During his reign, Stipe abused his office as State Senator by using his power to build what can only be described as an empire in Southeast Oklahoma. Senator Stipe was so notorious that he earned the nickname “The Prince of Darkness”- a real-life Boss Hogg. It seems the Prince has left his mark on many associates and partners that will perpetuate the Good Ole Boy network for decades to come in Oklahoma. Stipe followers have watched their idol rule over the State in a way that only a mafia boss could appreciate. The good Senator manipulated and abused the system so effectively that his personal wealth is estimated to be over 26 million dollars. Many Oklahomans were hopeful that the day of Good Ole Boy politics in Oklahoma had come to an end when Stipe was forced to resign in shame. He pled guilty of violating federal campaign laws by illegally funneling $50,000 into Walt Roberts failed Congressional campaign, but it appears he hasn’t learned his lesson yet.

Now, one of Stipe’s minions, Steve Phipps along with the former Senator are being investigated for what appears to be a scam to open a dog food plant in McAlester. The plant, which was financed by state and city tax dollars, has not produced a single can or bag of dog food. It has not created the 25 jobs that were promised. However: the facility has been utilized to service Indian gaming machines. Phipps owns a business that provides that service to the tribes and he evidently, is using the facility to work on one arm bandits, but not to make pet food.Who is Steve Phipps? His nickname is “Big Daddy.”

It seems that the dog food factory isn’t the only connection Big Daddy has to the Prince. Phipps and Stipe are partners in abstract companies across Southeast Oklahoma. Anyone selling or refinancing property in Oklahoma are required to have titles brought up to date within a 90 day period. Abstract companies are the only place to get that done in the state. In many counties, Phipps and Stipe own the only abstract office in town. To add insult to injury, abstractors set their own rates. What an industry-to have customers that have to do business with you- on your terms- at your price?One has to ask how such a system could be allowed to exist in Oklahoma? Who is responsible for watching the abstractors? That responsibility falls to the Oklahoma State Auditor and Inspector.

The author of the bill that gave the Auditor’s office that job? That’s right- Senator Gene Stipe.The Bellamy Brothers sang, What you need is a Sugar Daddy. It looks like Jeff McMahan has found one- maybe two. Now we learn that Big Daddy, The Prince and many of their employees and associates contributed to the 2002 campaign war chest of State Auditor Jeff McMahan. When asked about the contributions McMahan stated that he would take any “legal campaign contribution.” He went on to say that anyone contributing to him was doing so because they “believed in good government.”

The average Oklahoma taxpayer’s idea of good government and Phipps’ and Stipe’s idea might be a much different. To accept campaign contributions from any and everyone shows a serious lack of judgment on McMahan’s part.Who says that contributing to campaigns doesn’t pay dividends? It has paid excellent dividends for Phipps and Stipe. McMahan has refused to audit the Private Economic Authority that gave the money to Phipps to build the phantom pet food plant. The land the authority gave to Phipps was purchased from Gene Stipe at more than 2 ½ times the assessed value. This whole multi-pronged transaction doesn’t pass the “smell” test. And when Steve Phipps-aka- Big Daddy- feels the need to meet with someone at the State Capital to try to get laws passed, who does he call?. He calls his good buddy Jeff McMahan. Evidently, Steve Phipps has used the State Auditor’s office to meet with legislators and others on numerous occasions while trying to influence legislation. He may have gotten some wording inserted into a bill that gave him a competitive advantage to produce Indian Gaming machines. As private citizens and taxpayers, we may not be able to do much about Stipe and Phipps and their shady dealings. That will be left to the investigators and prosecutors, but McMahan is another matter. His ties to Stipe and Phipps are troubling. We need to change our image in Oklahoma. McMahan is up for re-election in 2006 and we need to McFIRE him.