Santelli’s Plea to Obama: Use TARP, ObamaCare Tactics to Drill Now and Avoid $100-Plus Oil
Green jobs to save the American economy? If you have listened to the various politicos on the left end of the spectrum, especially before and after the passage of the $787-billion stimulus package earlier, you would think that is the cure-all.
But so far it isn't working and there are other fundamental problems that lie ahead according to some energy market analysts, like much higher oil prices - despite the pledge by President Barack Obama to open up 160 million acres for future oil exploration and drilling. To avoid the price of $100-plus oil, CNBC's CME Group floor reporter suggested expediting the process, as was the case with ObamaCare and TARP.
"I think what you're hitting on is so important because the President of course talking about some of these jobs, but also talking about drilling," Santelli said on CNBC's April 1 broadcast of "Closing Bell." "You know, if the government was able to put forth health care and the government was able to do bailouts and TARP and stretch the rules, if they wanted to get jobs now and avoid the $100-plus oil you know that's coming they could drill quickly if they wanted to. And this is something that needs to be discussed, don't you think?"
And to back this up, Sharon Epperson, CNBC's New York Mercantile Exchange (NYMEX) reporter told viewers Santelli's suggestion should be taken serious. She explained it wasn't necessarily a supply and demand issue driven by consumption that would affect the price, but instead investors seeking profits in commodities that would push the price higher.
"Yeah, it certainly does," Epperson said. "They don't seem to be addressing that issue and in terms of Maria's point about where is all this coming from? This interest in commodities really is just chasing returns. You know, a lot of hedge managers I talk to say it's not about trying to find the next big area right now. They're just trying to chase what's been going on and what some of the investment firms are calling for, for this $85-95 [a barrel] oil and in chasing returns, they're driving the price right back up."
CNBC's New York Stock Exchange floor reporter Bob Pisani was skeptical of Santelli's suggestion, saying the environmental lobby wouldn't allow and as they have demonstrated, they're not going along with the President's proposal as well.
"We could drill quickly, Rick, if we get rid of the environmental permits, but I think there will be a lobby against that at this point," Pisani said.
In the meantime, the inevitable reality of higher oil looms, long before a so-called green economy can evolve Santelli said.
"Well, there would be a lobby," Santelli replied. "But the point is you need somebody to do what's right for the country and $120 or $150 oil is going to happen, before the green jobs take over. I think we all know that in this panel."