Parker Commentary on Oil Prices

After meeting Star Parker in April I became captivated in reading anything that she put out. I've found that she is an incredibly talented and intelligent women who is not afraid to say what she is thinking. She is one of us and does not try to tip toe around the subject to keep the guys in the suits and big offices happy.

I've found her current column particularly interesting and wanted to share it with you. I will not try and summarize it because I would probably end up sounding stupid, so read for yourself.

Also if you get a chance check out her bio at www.urbancure.org. It's amazing and incredibly inspiring.

Drive energy policy by markets, not politics

Although we import two-thirds of our oil, it comes from well over twenty countries, mostly Canada and Mexico

By: Star Parker

Energy is too important to be left to businessmen and markets, right? We need people who we really can trust to get things under control.

Like politicians.

I'm looking at Carpe Diem, the blog of Dr Mark J. Perry, an economics professor at the University of Michigan. He compares prices of gasoline from 1919 to today against price changes of a first class postage stamp.

At four dollars a gallon, today's gasoline price is sixteen times higher than its price in 1919, 25.5 cents. Over the same period, first class postage went from 2 cents to 42 cents, a 21-fold increase.

And postage prices never went down. Only up.

From 1970 to 1980 there was about a 10-fold increase in oil prices. However, by the mid-1980's prices had dropped by two-thirds and remained relatively unchanged for the next 15 years. Now prices are up by six-fold since 2001.

History, particularly near-term history, is not difficult to access. Search newspaper and magazine articles of the late '70s. The headlines were about the "energy crisis." The world was supposedly running out of oil. We were at the alleged beck and call of Arab oil producers who stood at any moment to use the "oil weapon" against us.

Oil companies were being attacked, as they are now, for the amount of money they were making. When prices sharply dropped in the mid-1980s, these same firms had to cut back, lay off folks, and oil towns like Houston went into depression.

Politicians who want to punish firms with a "windfall profits" tax when prices go up don't propose "loss subsidies" when prices go down.

Our real crises occur when we believe those who challenge what makes this country work -- people, markets, and freedom.

Back to Perry's blog. He shows that with the 10-fold increase in oil prices in the '70s, our energy consumption patterns changed dramatically. Today we consume half the energy to produce $1 of output than we did in 1970. We're now twice as energy efficient as we were.

Yes, markets work when we let them.

Think the guys who drill in 10,000 feet of water offshore looking for oil and gas earn too much?

According to a BusinessWeek survey, median compensation for the CEOs of the 12 largest oil firms in 2007 was $15.4 million. The CEO of the largest, ExxonMobil, earned $21.7 million. Top earner was the CEO of Occidental Petroleum at $33.6 million.

All chump change when we look at the Celebrity 100 list published by Forbes Magazine.

Over the last year, for example, Oprah Winfrey earned $275 million, rapper 50 Cent $150 million, Steven Spielberg $130 million, and Beyonce Knowles $80 million.

With oil prices more than doubling in the last year, we are going to get a market response both with supplies and with how much we consume if we keep politicians at bay.

The "energy independence" goal is pure political baloney. As renowned energy economist and MIT professor emeritus Morris Adelman writes, "It does not matter how much oil is produced domestically and how much is imported." It's a global market and new supplies from any source will depress prices.

Although we import two-thirds of our oil, it comes from well over twenty countries. And despite conventional wisdom, our two largest suppliers are Canada and Mexico.

Appreciate that environmentalism belongs to the Hollywood elite who make their millions and then contribute to Democrats who tell us we shouldn't invest in carbon-based fuels.

Climate change is politics, not science. As environmental scientist S. Fred Singer recently wrote in the New York Sun, 30 percent of climate scientists surveyed were "skeptical" of claims about global warming caused by human activity. "More than 31,000 scientists" have signed a petition questioning the UN's science on all this and opposing the recent "cap-and-trade" legislation in Congress.

Tens of millions of working folks need cheap fuel for their homes, their cars and their trucks.

Yes, drill offshore, drill in Alaska, mine oil shale, and build nuclear plants. Leave all options open.

But let free markets and businesspeople drive these decisions. Not politicians.

Trying to stay up on technology

So, I attended a marketing conference yesterday and attended a great session on social media. I'm going to spend the day exploring some of those that I've been afraid of so stay tuned for some exciting things!!! I know you are already pumped :)

BTW if anyone knows how I can see how many people are actually reading my blog I would appreciate some guidance.

A smile is the most attractive thing you can wear.

This is from the 2008 Love Your Body Campaign.

It was created by Emily Warwick from Danvers, Massachusetts.

I love this image because just this morning I was adding up in my head all the money I spend on "looking good". Let me warn you before you think about doing it...this may frighten you.

Between the face creams, make-up, lotions, gym memberships, cloths, and hair products I could pay for my future children's college with the money I spend each month. And for what? I still complain about my bad skin, fat thighs, and unmanageable hair.

I'm ashamed to admit it but it's because I am one of those girls who relies on looks to make myself happy. But I'm working on it.

So what does make a women beautiful? Let me tell you after attending my husband's work fund raiser last week it's not a tanning bed, plastic surgery, or tight cloths. I've never seen so many tucked and sucked women in my life and not a one of them were 'beautiful' to me.

I feel a cliche coming on......wait for it! True Beauty Comes From Within! There is a reason this statement has been repeated over the years. BECAUSE ITS TRUE. True beauty is not being a size 6. True beauty is...

• Committing an unselfish act to benefit a stranger
• Getting an education
• Excelling at work
• Becoming a mother

These are things that you can't wear around but that shouldn't stop them from making you feel like a beautiful person.

True to My Life

So many of you have no idea how this cartoon reflects what my husband and I have gone through in the past year and a half. If you do know then you can understand why I LOVE this cartoon.

I Am Thankful...

I've spent most of my weekend hanging out with my girlfriends and it has really made me think of how thankful I am.  I have such a wonderful group of girl friends who I consider to be my sisters.  How many people are lucky enough to have a dozen sisters.  Really?  When you think of what you want in a sister you think, I want someone who...

• I can look up to 
• someone who encourages me 
• someone who is patient
• listens to me and never judges
  
• is always there for more
• understands my faults; and
• put my feelings before hers

Those of you who know me know that my best friend happens to be my baby sister and I hope that I am all of these things to her.   I know that all of my girlfriends are this to me.  I love each and everyone one of you!!!

Women Who Change the World

There are women who make things better simply by showing up.

There are women who make things happen.

There are women who make their way.

There are women who make a difference.

And women who make us smile!

There are women of wit and wisdom who through strength and courage make it through.

There are women who change the world everyday…women like you.

-Ashley Rice

I know while reading this you began thinking of someone you know who can be described with these words. Perhaps it was yourself.

Last week at my graduation a professor spoke and I first I thought "This lady is crazy and on drugs." But afterwards I began to really understand what she was trying to communicate. She was telling us to go out and do something to make the world a better place.

So I've made it a goal to once a week do something to make someone feel special. I know that once a week is not a lot but you don't realize how much focus it takes until you really set out a goal to do it. I accomplished this goal last night by inviting a new Junior League member to come sit with my friend Kate and I during our meeting. Next thing I know there are four more new members sitting with us and making friends. Now I'm not trying to say "Look at how wonderful I am." All I did was let a girl sit by me. But imagine how you can make someone feel included or more comfortable in a situation just by introducing yourself and inviting them to join you.

Marketing Lesson

How effective are you at marketing your personality?

WHHAAATT?

You're thinking, "He's got to be kidding, right?"

Talk about opening up a Pandora's Box.

But I'm dead serious.

How effective are you at marketing your personality?

Just this morning I emailed Tyler Cowen to ask him how important he felt this point was. As you may know, Tyler is a columnist for the New York Times, chairman of the Mercatus Center at George Mason University, and author of last year's best-selling book, Discover Your Inner Economist. This is what Tyler emailed back:

What people remember, and relate to, quite simply, is other people. There are few truths in marketing more important than that.

Renowned social psychologist Robert Cialdini suggests people are easily persuaded by other people they like. To illustrate this point, in his business best-seller, Influence, Cialdini introduces his chapter on "Liking" with a quote from Clarence Darrow:

The main work of a trial attorney is to make a jury like his client.

So how important is personality to all of this?

Just consider for a moment how you respond to personalities. We frequently find ourselves drawn to people who are interesting, good-humored, attractive -- even offbeat.

Think about the importance of effective character development in entertainment. What films and television shows, and even entertainment personalities, are the most popular? Think about Seinfeld. Or Friends. Or even American Idol. The same is also the case very frequently in sports and in politics. And it fits for our daily lives, also.

Allow me, if you will, to illustrate my point with something that happened to my wife and me last evening. (Thus, the inspiration for this week's Fundraising Tip.)

For years, my wife and I enjoyed a very special fine dining restaurant in Northern Virginia, and we went to dinner there once or twice a year on special occasions. The food was spectacular, as was the service. But what we liked most of all was that the staff was very warm and friendly -- and unpretentious. Indeed, I would argue, the lack of pretention was part of the restaurant's shtick -- their marketing personality.

In particular, the sommelier, Vincent, was always helpful, gracious and instructive. He spoke with a very thick French accent, which of course added to the charm, but dare I say running against form, he was also down-to-earth and good-humored.

Much to our disappointment, this favorite restaurant closed last year when the chef moved to Manhattan. Oh, no! This was like a dear friend moving away. And what would happen to Vincent?

Well, Vincent emailed us a couple months ago and said that he had arranged with the restaurant to sponsor periodic wine tastings. Would we be interested? Of course! And our first foray into this was last evening.

It was spectacular.

Why?

It wasn't just the wine, which was very nice.

And it wasn't just the food accompaniments, which were superb.

It was Vincent's performance.

Vincent greeted my wife and me warmly when we arrived, remembering us by name. He asked if I would be using the same credit card. I said, "Yes, of course, so nice of you to ask, that would be fine." (And I thought to myself, how does he know? Does he remember that from last year somehow? Duh. I had given him the information when I had made the reservation. But I admit I found myself quickly falling into the trap of wanting to believe his implied familiarity...)

As we waited to begin -- there were about 80 people seated and waiting -- Vincent came to chat with each of us. He was, as usual, very funny, and of course, his heavy accent played to, dare I say again, his shtick.

The lessons about the wines he imparted to us -- the best, precise growing conditions; the special irrigation of the land; the grape-harvesting by hand in very small buckets; quickly burning the oak barrels to add to the flavor; the perfect tannins, the balance of sugars -- were all very interesting and helpful, and were often laced with interesting anecdotes about some journey he had made to find some spectacular, hidden vineyard. My wife turned to me, "He's really good, you know. But is he making this stuff up? And how would we know if he was?"

And then we concluded, "But does it matter? Why spoil the fun? The bottom line, he's really entertaining."

An example. From the audience: "Vincent, where do you buy your own personal wine?"

Vincent's response, "Ah, mon ami, I cannot afford expensive wine such as this for myself. My favorite is the Rosemount, a nice shiraz I buy from...Costco. Do you know Costco?," he asks quite innocently, as if we would not know Costco. Yet, that was more of his shtick! That personalized it! And, again, it took away the grotesque pretention that is the negative of oenophilia, I might argue. But, Vincent, with his French accent, his complete sommelier's attire, his requisite references to Mr. Parker and his "name-dropping" side references about teaching wine-tasting in Aspen and Jackson Hole, still commanded authority.

All the while, keeping himself quite likable.

By the end, we gave him a standing ovation. No doubt there was an air of at least some mild intoxication, but couples were readily signing up for his next event. "Email me," he said, "Or call me. I want to talk with you about wine anytime."

So, do you recognize the power of the marketing here?

What lessons -- and applications -- do you see in this for yourself and for your work?

I'll continue this next week -- on how you can specifically utilize these influences in your organization, especially in your communications.

Until then, all the very best to you and yours.

Kevin Gentry

Charles G. Koch Charitable Foundation

The Case Against Hillary Clinton

(I know what you are thinking, "Two blogs in one day! Is something wrong?" Just don't get used to it)

I recently finished reading the book, The Case Against Hillary Clinton by Peggy Noonan. I began reading it in anticipation of Ms. Noonan’s visit to Oklahoma and speaking engagement at my company’s annual dinner. As I began reading the first chapter I become engrossed in the stories Ms. Noonan was telling and intrigued by the points she was making. Needless to say the next thing I knew I was almost half way through the book. I didn’t want to put it down!!

One of the best points that she made involved Hillary’s obsession with Eleanor Roosevelt. For those of you who aren’t familiar, Mrs. Roosevelt was the wife of President Franklin Roosevelt. She was probably the earliest first lady to see her role as more than an entertainer for White House guests. She took her job very seriously and become a strong advocate for social issues. But she never did it for recognition; in fact, most biographers will tell you that she was the exact opposite, avoiding the spotlight at all costs. Mrs. Roosevelt did not think that it was all about her. She thought it was about coal miners, immigrants, and African Americans.

Hillary Clinton thinks she is Eleanor Roosevelt. However, Hillary doesn’t want to make the sacrifices that Eleanor Roosevelt made; she doesn’t want to put her reputation on the line to fight for social change; and she certainly would never do something notable without a camera crew there to document her every move. No, Hillary Clinton wants to be known as historic, but she doesn’t want to be historic.

Endings Only Mean New Beginings

I've reached an epic moment in my life. Tonight I will take my LAST exam as a collegiate student. It's hard to believe that this day is here. Unlike my undergraduate degree, my masters has flown by so fast. In just a week in a half I will be walking across to stage to have my peach (yes peach!) robe placed over my head signifying that I have received my Master in Business. I still remember watching these students with great jealousy during my undergraduate ceremony. All I could think of was, "Man I am never going to make it there!" But I did!! Of course Myles is already starting to talk to me about a Doctorate or my law degree. Even though I am not counting those out I just don't think I am ready to start hitting the books again.

Now I face the decision of what challenge I am going to take on next. The most likely is going to be flight school, but not until after the mandatory rest period I have established. I plan on spending the summer relaxing and enjoying my husband, home, friends, and of course dogs. So please keep me in mind when planning lake trips, nights out, and of course porch parties. All I can say is....BRING ON THE MARGARITAS!!!

Blah

I haven't forgotten about my blog. As soon as I finish my marketing project and get this fundraiser out of the way I will be back.

In fact I'm reading a book by Peggy Noonan about Hillary Clinton that i can't wait to review.