Kudlow's Corner

Will Drill, Drill, Drill Pass This Congress?


We asked our panel:

Will Drill, Drill, Drill Pass This Congress?

Yes 1
No 11

The Kudlow Caucus Breakdown

Stefan AbramsManaging Partner, Bryden-Abrams Investment Management
Despite any efforts at a compromise by the group of ten, the contentious issues are too many and too great. Moreover, time is too short before Congress recesses and the focus of all members from now until November will be on the Presidential and Congressional elections.

Joe Battipaglia
Market Strategist, Stifel Nicolaus
The Democrats are looking to keep the status quo until the election where they hope to add to congressional control and, possibly, to take the White House.

Jared Bernstein
Senior Economist, Economic Policy Institute
The democrats will stick to their argument that the oil companies already have access to 68 million acres of leased but untapped federal land and waters that could produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day. It’s an argument that, as Kissinger put it, “has the added advantage of being true.”

Jerry BowyerChief Economist, Benchmark Financial Network
Environmentalism has transformed itself from a sensible reform movement into a fanatical religion. They would no more modify their position in response to higher oil prices than any other zealot would.

Still, there a few moderates left in the party of Jefferson, and some drilling mini-me proposal may get through.

Vince FarrellScotsman Capital Management
The Democrat controlled Congress will not give such a political victory to President Bush. He called for Drill, Drill, Drill first so it's dead on arrival.

Jim LaCampPortfolio Manager, Portfolio Focus, RBC Wealth Management
Co-Host, Opening Bell Radio Show, Biz Radio Network
This is one that I really hope I am wrong on. Oil prices have been falling though and I am afraid that congress will use falling oil prices as an excuse to ignore the problem. The longer it gets ignored though.....the greater the long term problem. I do think they will pass some watered down, optical illusion type bill. So instead of drill drill drill....it will be drill in the singular.

Art Laffer
Fmr. Reagan Economic Advisor
Chief Investment Officer, Laffer Investments
The liberals’ penchant for self-destruction and wobbly conservatives’ fear of disapprobation will raise their arrogant heads and prevent drill, drill, drill.

Donald L. Luskin Chief Investment Officer, Trend Macrolytics LLC
Offshore drilling, yes, including provisions that exploration companies pay bribes to extreme left-wing environmental groups.

ANWR, sadly, no.

Steve MooreSr. Economics Writer, The Wall Street Journal Editorial Board
Democrats will not allow more than token drilling. They have a religious opposition to drilling.

James Pethokoukis
Sr. Writer, U.S. News & World Report (Money & Business)
I dont think we'll get anything on energy before Congress breaks for its August recess. Now once Congress comes back in September, the issue will certainly be in the spotlight. But even after a month of hearing constituents complain about high gas prices, my guess is that the drilling moratorium still won't be lifted because of the sway of green activists in the party. This issue is about ideology not economics for Democrats, keeping the ban is like a sacrament for these folks. Plus they think November is going to be a landslide for Dems anyway.

Robert Reich
Former Labor Secretary
Professor of Public Policy, UC Berkeley

Oil prices are trending downward right now given the weakness of the world economy, so there’s less political urgency to take this utterly stupid step.

Gary Shilling
A. Gary Shilling & Co. President
We're too close to both the election and the end of the congressional term for legislation this substantial and on which the two parties differ so widely.

What do you think?