Patrick Davis Consulting

What North Dakota Could Teach California
By STEPHEN MOORE
Williston, N.D.

In his speech last week responding to high gas prices, President Barack Obama insisted that “we can’t just drill our way out of” our energy woes. Actually, we can—and if the president wants proof, he should travel to boomtown USA: Williston, North Dakota.

Williston sits atop the Bakken Shale, which will later this year be producing more oil than any other site in the country, surpassing even Alaska’s Prudhoe Bay, the longtime leader in domestic output. This once-sleepy town is what the Gold Rush might have looked like had it happened in the time of McDonald’s, Wal-Mart and Home Depot. And the oil rush is making Dakotans rich in a hurry, with farmers and other landowners becoming overnight millionaires from lucrative royalties and leases. One retired farmer tells me that, thanks to oil rigs churning on his property, he suddenly has a net worth north of $30 million.

When I ask how many people live in Williston, which had a population of 12,000 in 2005, longtime residents shrug and offer different answers: 20,000? 25,000? 30,000? Every night, hundreds of workers sleep in the hulls of their trucks or in temporary housing encampments like soldiers in a war zone. New homes are popping up at breakneck speed. McDonald’s is offering workers $18 an hour plus a “signing bonus.” In Williston, certainly, America remains the land of opportunity.

All this is thanks to the technological leap forward represented by hydraulic fracking, a process that allows drillers to blast through underground shale rock and pump out oil and natural gas. Projections of how much oil is here seem to grow every year.

In 1995, the U.S. Geological Survey estimated 150 million “technically recoverable barrels of oil” from the Bakken Shale. In April 2008 that number was up to about four billion barrels, and in 2010 geologists at Continental Resources (the major drilling operation in North Dakota) put it at eight billion. This week, given the discovery of a lower shelf of oil, they announced 24 billion barrels. Current technology allows for the extraction of only about 6% of the oil trapped one to two miles beneath the earth’s surface, so as the technology advances recoverable oil could eventually exceed 500 billion barrels.

Now contrast this bonanza with what’s going on in another energy-rich state: California. While North Dakota’s oil production has tripled since 2007 (to more than 150 million barrels in 2011), the Golden State’s oil production has fallen by a third in the past 20 years, to 201 million barrels last year from 320 million in 1990. The problem isn’t that California is running out of oil: In 2008, when the USGS estimated four billion barrels of recoverable oil from the Bakken, it estimated closer to 15 billion barrels in California’s vast Monterey Shale.

Rather, California’s problem is politicians—at the behest of their green-energy allies—deciding to wall off the state from developing evil fossil fuels. With its prohibitive environmental regulations, state cap-and-trade law, costly renewable energy mandates and 40 years of prohibitions on almost all offshore drilling, California ranks worst in the country and 91st in the world in its hostility to drilling, according to the Fraser Institute’s 2011 Global Petroleum Survey. This month, according to North Dakota’s Department of Mineral Resources, California is no longer America’s third-largest energy-producing state—leapfrogged by North Dakota.

The Census finds that North Dakota led the nation in job and income growth in 2011. It has the nation’s lowest unemployment rate, at 3.3% (California’s is 11.1%), and it saw a huge 38.5% increase in its number of millionaires between 2009 and 2010, according to state tax return data. California, by contrast, lost nearly 50,000—or almost one-third—of its high-income residents ($500,000 and above) between 2007 and 2009, according to the Sacramento Bee.

North Dakota is also flush with cash and a budget reserve of at least $1 billion, out of a $3.5 billion biennial budget. The state has already cut income taxes, and it is building thousands of miles of “shovel ready” infrastructure projects—roads, bridges, railroads, pipelines—without almost any of Uncle Sam’s funny money. Bismarck may be the only state capital in the country that debates what to do with all its tax riches.

Perhaps they could send it as foreign aid to Sacramento. California’s budget analysts just announced their fifth straight year of fiscal plague, with up to $6 billion of red ink for 2012-13. Budgets for schools, transportation, health care, libraries and museums are being cut, even though the state already has one of the nation’s highest income and sales taxes. Gov. Jerry Brown is sponsoring a ballot initiative this year to raise those taxes yet again.

He’d be better off leading a fact-finding delegation to North Dakota to learn how to pay bills, create tens of thousands of jobs, and balance a budget. The short answer: Drill, baby, drill. Mr. Obama might want to come on that trip too.

Weissmann says too many regulations, too few jobs

Eric Weissmann for Congress: News: March 14: Eric Weissmann, candidate for Congress in Colorado’s 2nd Congressional District, Wednesday released a white paper on federal regulatory policy that will provide the framework for his first bill in Congress. The paper details a plan to unleash private sector job growth by ending the suffocating federal regulatory policies of recent years.

Since 2009 when Obama came into office, according to the Heritage Foundation 75 new major federal regulations have been implemented costing more than $380 billion over 10 years. In addition, under the Obama administration there have been 219 more “economically significant regulations” enacted, each costing businesses – and thus American workers and consumers – $100 million or more per year.

“Voters should be furious, but part of the reason this issue flies under the radar is that Congress intentionally delegates the making of many damaging, expensive rules to government agencies so that Congressmen and Senators can’t be blamed. Since these rules come from faceless, nameless bureaucrats instead of elected representatives, most Americans are unaware of them – which is precisely what both Congress and the regulators want,” said Weissmann.

“Over-regulation is killing jobs and holding back our economy’s recovery. It is time to unleash private sector job growth by reining in onerous, duplicative and unnecessary regulations. Doing just that will be the subject of the first legislation I will introduce in Congress.

“Clearly, there is a need for some regulation. But we must find a way to weed out the many bad regulations whose costs outweigh the benefits. Requiring a true cost-benefit analysis of each proposed regulation and requiring each new regulatory cost to be offset by a reduction in regulatory costs elsewhere are just two of the ideas that will make up the Easing American Regulation Now (EARN) Act, which I plan to introduce as my first bill in Congress.

“Simply stated, it’s time for some government regulations to die, so that our economy can live. With my EARN Act’s common-sense solutions to the over-regulation problem, we can put balance back in our economy and Americans back to work.”

To read Eric’s full proposal and details on the EARN Act please click here or visit our website:www.ericweissmann.com.

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WEB VIDEO: Who Wants to Be a Billionaire – Congressional Edition

Eric Weissmann for Congress: News: March 21: Eric Weissmann, candidate for Congress in Colorado’s 2nd Congressional District, Tuesday launched a web video, “Who Wants to be a Billionaire — Congressional Edition,” calling attention to incumbent Congressman Jared Polis’ efforts to profit by making investments about which he had inside information as a Member of Congress.

Since revelations of Polis’ insider trading went public in Hoover Institute Fellow Peter Schweitzer’s book “Throw Them All Out” in January, Weissmann has asked Polis to disavow the practice in the future and to return the profits he made on his previous insider trading exploits to the taxpayers. Polis has had no response.

“This video tells a simple story: Jared Polis has used his exemption from the laws that apply to the rest of us for his own, personal profit. By exploiting his unique access to information about companies over which he had regulatory oversight to profit from investments, Congressman Polis has violated the public trust,” Weissmann said.

“Who was Congressman Polis looking out for? Might he have been more motivated by personal profit than the public interest as he shaped this bill in the Congress? Coloradans shouldn’t have to wonder.

“Coloradans deserve a Member of Congress who looks out for them, not for himself. I continue to call on Congressman Polis to disavow this practice and return his insider trading profits to the taxpayers,” concluded Weissmann.

Jared Polis hypocritically threw his support behind the STOCK Act (H.R. 1148) just days after revelations were made public by Stanford University’s Hoover Institute Fellow Peter Schweitzer’s book in January. The book, which called Polis’ investments “creative and cynical,” documents how Polis used his congressional perch to obtain information, unavailable to the general public, to profit from the adoption of certain provisions of Obamacare as the bill moved through Congress. According to the book, Polis profited handsomely by using the inside information to make multi-million dollar investments in a private medical tourism company and in biotech ETF shares, each well positioned to profit from legislative action.

Eric Weissmann for Congress

Eric Weissmann Statement on the Passage of the STOCK Act

Eric Weissmann for Congress: News: February 9: On Thursday Eric Weissmann, candidate for Congress in Colorado’s 2nd Congressional District, made the follow statement regarding the passage of the STOCK Act (H.R. 1148) to put an end to congressional insider trading.

“It is unfortunate that we cannot rely on members of Congress to do what’s right without having to pass legislation. The reports of members of Congress, including Congressman Polis, using inside information to invest in public and private companies that stand to benefit from Congressional activities is shameful and needs to be handled seriously if we are going to restore faith in our government.

“The passage of the STOCK Act by both the House and Senate is a good first step in deterring these abusive practices, but doesn’t go far enough to protect the American people from members of Congress who chose to act with self-interest over public good.

“I hope that in the conference process, members of the House and Senate will incorporate some of the provisions proposed in the RESTRICT Act (H.R. 3550) that would have every member of Congress invest their money in a blind trust or publish their investments publicly in real time, leaving no question about the investments they make. The RESTRICT Act also covers both public and private companies and leaves no loopholes for members to do the wrong thing.

“Members of Congress fail to realize they’ve been elected to serve their constituents and work to make their lives better, not the other way around. If elected, I will demand higher standards for members of Congress and work to restore faith in our government at a time when we desperately need it.”

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ERIC WEISSMANN SIGNS NO-EARMARK PLEDGE

Eric Weissmann for Congress: News: February 17: Eric Weissmann, candidate for Colorado’s 2nd Congressional District, today pledged not to seek any earmarks in the next Congress. Weissmann is the only candidate in the race to sign the pledge, drawing a sharp distinction between himself and his opponent, incumbent Congressman Jared Polis.

As described by the pledge’s sponsor, Americans for Prosperity, “earmarking” is the process used by members of Congress to redirect taxpayer funds to identified projects without going through a rigorous merit review process.

“Spending ‘earmarks’ are among the most odious and corrupting of congressional practices,” observed Weissmann. “Members of Congress use earmarks to direct money toward politically-connected donors and supporters. In some cases, Members of Congress have even earmarked federal monies to entities in which they have a personal financial interest. This is just wrong. Any real reform of Washington has to start with ending earmarks.

“Not only has Jared Polis refused to sign the pledge against seeking earmarks for even a single term, but he has personally sought millions of dollars in earmarks. On the issue of spending, there is a clear difference between Jared Polis and me. Instead of leaving in place a mechanism that incentivizes Members of Congress to spend more money, I want to pursue reforms that reduce government spending.

“From the stimulus, to Obamacare to earmarking, Washington’s spending binge continues unchecked under Jared Polis,” concluded Weissmann. “We have to do better.”

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In Case You Missed It: Republican hopes to give Polis a run for his money

Eric Weissmann for Congress: News: February 21: From the Colorado Statesman…

Weissmann announces GOP candidacy in CD 2
Republican hopes to give Polis a run for his money
2/20/2012
By Ben Conarck

Republican businessman Eric Weissmann’s candidacy for CD 2 against popular and well-funded Democratic incumbent Rep. Jared Polis is, by many accounts, a longshot. But recent voter registration numbers from the Colorado secretary of state show that the race — at least on paper — may be closer than originally anticipated.

Initially, when borders were finalized after redistricting last year, Democrats enjoyed a 4-point advantage over Republicans among active voters, but that lead has dwindled to just two points, according to registration numbers released in February.

The new data paints a more competitive picture of the 2nd CD, with 34 percent of active voters registered listed as Democrats, 32 percent registered as Republicans, and 33 percent unaffiliated…

Last Wednesday, Weissmann issued a press release rolling out a series of endorsements from other Republicans.

The release listed endorsements from Bob Greenlee, former Boulder mayor and a former candidate for the CD 2 seat before Polis took office; Aislinn Kottwitz, Fort Collins City Councilwoman; Josh Penry, former Senate Republican leader; Steve Schuck, Colorado Springs businessman and former candidate for governor; Katie Witt, Longmont City Councilwoman; and Rob Witwer, former state Representative from Jefferson County…

Weissmann said he is the only candidate in the district race who offers a “pro-liberty, pro free-market” approach.

“I focus on reducing the interference of government in our lives and in our businesses,” he said…

» Continue reading here

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Weissmann announces GOP candidacy in CD 2

Colorado Statesman: February 20: Republican businessman Eric Weissmann’s candidacy for CD 2 against popular and well-funded Democratic incumbent Rep. Jared Polis is, by many accounts, a longshot. But recent voter registration numbers from the Colorado secretary of state show that the race — at least on paper — may be closer than originally anticipated.

Initially, when borders were finalized after redistricting last year, Democrats enjoyed a 4-point advantage over Republicans among active voters, but that lead has dwindled to just two points, according to registration numbers released in February.

The new data paints a more competitive picture of the 2nd CD, with 34 percent of active voters registered listed as Democrats, 32 percent registered as Republicans, and 33 percent unaffiliated. The remaining voters belong to either the Green or Libertarian parties.

Eric Weissmann

The 2nd CD gained Larimer County and parts of Jefferson County after redistricting last December. The district lost some northern Denver suburbs as well as portions of “ski country” counties along the I-70 corridor.

Weissmann, a 47 year-old resident of Boulder, sets up a potential primary battle between himself and state Sen. Kevin Lundberg, R-Berthoud, with his entrance into the race earlier this month.

On Feb. 4, Weissmann announced his candidacy to a crowd of about 70 people in Louisville. He told supporters that he wants Polis to refund the $1,000 donation he made to him in the 2008 Democratic primary.

“Congressman — when you watch this on Youtube — pay attention to this: you have let me down,” Weissmann said. “You broke your promise to be pro-market, and you do not embody the pro-liberty values you led me to believe we shared. You have put the interests of your political party first. Jared, I want my money back.”

Weissmann said he primarily plans to self-fund his campaign, but declined to say how much he’d be willing to spend. He emphasized, however, that there is “no way” he can “out-Jared Jared,” who he described as the “richest Democrat in the House.”

In the 2008 election, Polis contributed $5,992,550 to his own campaign, which amounted to 81 percent of the money he raised that year. In 2010, Polis spent $834,917 of his own money, more than doubling what he raised from outside donations.

Like Polis, Weissmann comes from a business background, although his path to success was considerably less traditional.

When he was 15 years old, Weissmann dropped out of Fairview High School in Boulder to start his own business designing computer software for research and polling, as well as software for the management of dental and chiropractic clinics.

Weissmann went on to earn his GEP degree and enroll in a program for non-traditional students run by the University of the State of New York. The program was based on written examinations, which allowed him to stay in Colorado while he earned his degree.

He later earned his MBA from the University of Colorado in Boulder. In 2000, Weissmann left Decisioneering — the software company he founded at age 21 — to focus on acquiring and investing in small companies.

Weissmann doesn’t see much similarity between his entrepreneurship and the business experience of Polis.

“I started closer to nothing than he did,” Weissmann said. “He describes himself as self-made, but he started from a pretty prosperous family.”

According to Weissmann, however, the lessons he learned from his business experience were more instructive than the path he took to get there.

“I look at the challenges that I’ve faced with regulation and healthcare, and all those things have gotten worse with the policies that Polis has voted for,” Weissmann said.  More…