oil companies

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(In case you were getting all dewey-eyed for the 70s)

Before George P. Schultz landed in the Reagan Administration as Secretary of State, he served for a while as Treasury Secretary under Richard Nixon, right during the fabled Energy Crisis of the 1970s.

Granted, we hadn't gone through this kind of thing before. It was 1973 and we were about to be distracted in a big way by Watergate, but the thought of skyrocketing gas prices, panic buying at the pumps and oil companies raking in massive profits just hadn't happened this way before or to this extent.

And so everyone, including Schultz was busy scratching their heads wondering what to do as is evidence by this exchange during his appearance on Meet The Press from December 2, 1973.

Irving R. Levine (NBC News): “Would not higher prices for gasoline favor higher income groups to the disadvantage of lower paid people?”

Schultz: “Not necessarily. The . . obviously you have a family budget with so much purchase of gasoline and fuel oil, and to the extent that lower income groups use proportionate to their income a little bit more than higher income groups, it has some of that effect. But I don’t think it’s a major problem in the family budget.”

Levine: “ But would not a lower . . .

Schultz: “It’s much more of a problem than if we don’t pay the price that is necessary and we don’t have any fuel.”

Levine: “But would not a person with a big income feel free to buy whatever amount of gas is necessary to do the driving that he wishes to do, where a lower income person would not be able to?”

Schultz: “That is true of all kinds of things that are reflected in the buying power of people at different incomes.”

Levine: “ Do You oppose rationing entirely, even as a last resort?

Schultz: “Well I said it should be the absolute last resort, and I’m not really sure that it is a genuine alternative in the sense of being really a workable type of system. Of course there are various kinds of rationing, and depending on how its designed it could work better or worse. I think it is worth remembering that toward the end of World War Two we had patriotic fervor and so on, we had six thousand people in OPA, enforcing . .getting after people in the black market, which I think gives you an idea the difficulties of a rationing system.”

Okay, no simple answer. But the disconnect associated with "well, only higher income people drive" strikes me as typical Republican response. Even during the course of the interview, Schultz offers a few snide asides about higher and lower economic brackets. And of course, he was very much in favor of letting the marketplace go insane.

Remember the definition of insanity - doing the same thing over and over expecting different results - or as a friend put it, doing the same thing over and over and knowing what the results are going to be.



Los Angeles: Breathing Optional In 1954

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(L.A. in 1954 - The convertible and the gas mask seemed at odds)

Listening to a radio documentary produced in 1954 about air pollution in Los Angeles seems a bit quaint and a little strange. For one thing, until 1954 it was okay to burn your trash, since there was no trash pickup available - so every house and every apartment building had its own incinerator which pumped out clouds of smoke in every neighborhood (I grew up in L.A. and can vouch for the smell of burning trash every night). And another, with the migration of people from the east and midwest pouring into Los Angeles, you had a huge influx of cars - not the little ones we have today, but vast traveling monoliths of chrome and steel that gulped gas and belched fumes and leaked oil everywhere. Ah, the good old days . . .

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This week only, our readers can download, free of charge, Greg Palast's film, "Big Easy to Big Empty: The Untold Story of the Drowning of New Orleans." Or donate and get a signed DVD. Watch the 1-minute trailer...

Who put out the hit on van Heerden?

Ivor van Heerden is the professor at Louisiana State University's Hurricane Center who warned the levees of New Orleans were ready to blow — months and years before Katrina did the job.

For being right, van Heerden was rewarded with ... getting fired. [See Katrina, Four Years Later: Expert Fired Who Warned Levees Would Burst]

But I've been in this investigating game long enough to know that van Heerden's job didn't die of natural causes or academic issues. This was a hit. Some very powerful folks wanted him disappeared and silenced — for good.

So who done it?

Here are the facts.

Dr. van Heerden has lots of friends, mostly the people of New Orleans, those who survived and cheered his fight to save their city. But he also has enemies, many of them, and they are powerful.

First, there is Big Oil. More than a decade ago, van Heerden pointed the finger at oil drilling as a culprit in threatening New Orleans and the Gulf Coast with flooding.

"Certainly he was critical of what the oil companies did to the coast," Louisiana engineer HJ Bosworth told me. "Seeing what kind of bad citizens they were. Dozens and dozens of pipeline canals just carved the living daylights out of the coast just to find some oil."

Well, we need oil, don't we?

True, but Bosworth, who advises Levees.org, a non-profit group that birddogs hurricane safety work, explained the connection between flooding New Orleans and oil drilling quantified by van Heerden's research. "Takes a million years to build (the protective coastal marsh); once you carve it up, it's just like bleeding a wild animal, hang it up, carve some holes in it, and the juice just drains out of it. Saltwater and tide invade. You make [the state] susceptible to flooding from coastal and tidal surges."

So I was amazed to learn that, shortly after van Heerden, wetlands protector, was given the heave-ho by LSU, a group calling itself "America's Wetland" gave the university a fat check for $300,000.

After a little digging, I found that it wasn't really "America's Wetland," the group with the oh-so-green name and love-Mother-Nature website, that provided the money. One-hundred percent of the loot, in fact, came from Chevron Oil Corporation. Chevron had merely "green-washed" the money through "Wetlands."

Was this Big Oil's "thank you" to LSU for canning van Heerden? The University refuses to talk to me about van Heerden's firing ("It's a confidential personnel matter").

Bosworth notes such a grant to the University "doesn't come without strings attached." And this "Wetland" grant appears to have some tangled threads. LSU will monitor the coast's environment, guided by a committee of what the school's PR office describes as "experts" in coastal infrastructure and hurricane research. But the school is pointedly excluding its own expert, van Heerden. Instead of van Heerden, LSU announced it will rely on representatives from Chevron — and Shell Oil.

You can't challenge Shell's expertise on coastal erosion. The Gulf Restoration Network has calculated that the oil giant, "has dredged 8.8 million cubic yards material while laying pipelines since 1983 causing the loss of 22,624 acres."

Shell too is a sponsor of "America's Wetland."

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The Rachel Maddow Show: Stealth Campaigning

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Rachel reports on more astroturf groups, this time from the petroleum industry, and their efforts to affect health care and energy policy.

From The Houston Chronicle-- Energy workers rally against climate plan:

Local energy workers jammed a downtown Houston theater today to protest climate change legislation that the U.S. Senate will take up in the coming weeks.

The Energy Citizens rally, promoted by some major energy companies and business organizations as well as the Greater Houston Partnership, is the first of several such events planned in 19 states in the coming weeks.

About 3,500 people, or 1,500 more than expected, filed into the facility, many donning yellow T-shirts that were being handed out that read "I'm an energy citizen." Houston Astros owner Drayton McLane Jr. was the keynote speaker.

And TPM has more: "Sensitive" Oil Industry Memo Lays Out Plan For Astroturf Rallies Against Climate Change Bill:

A leaked memo sent by an oil industry group reveals a plan to create astroturf rallies at which industry employees posing as "citizens" will urge Congress to oppose climate change legislation.

The memo -- sent by the American Petroleum Institute and obtained by Greenpeace, which sent it to reporters -- urges oil companies to recruit their employees for events that will "put a human face on the impacts of unsound energy policy," and will urge senators to "avoid the mistakes embodied in the House climate bill."

API tells TPMmuckraker that the campaign is being funded by a coalition of corporate and conservative groups that includes the anti-health-care-reform group 60 Plus, FreedomWorks, and Grover Norquist's Americans For Tax Reform.

The memo, signed by API president Jack Gerard, asks recipients to give API "the name of one central coordinator for your company's involvement in the rallies."

And it warns: "Please treat this information as sensitive ... we don't want critics to know our game plan."

Aside from the astroturf nature of the planned events, which appear aimed at passing off industry employees as independent citizens, the memo also raises questions about the positions of several major oil companies on the issue of climate change. BP and Shell both are members of API, and also of the U.S. Climate Action Partnership, a coalition of groups that supports Waxman-Markey, the very climate change legislation the memo criticizes.

API has spent over $3 million lobbying against that bill this year.

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