Democrat Martin Frost Effectively Concedes Governor Palin’s Analysis of the Oil Industry is Accurate

One of the most interesting points that Governor Palin brought up in her interview with Brett Baier last Friday was that Obama’s proposal to decrease or eliminate the $4 billion in subsidies for oil and gas companies would negatively impact independent oil producers and explorers rather than Big Oil. It was interesting because I haven’t heard any other high-profile Republican articulate that one of the reasons why we shouldn’t just go along with Obama’s proposal to end the oil subsidies is because independent and smaller oil companies, rather than Big Oil, will be hurt if these subsidies are taken away. Quite frankly, Brett Baier missed an opportunity to go deeper into this issue during his interview with the Governor as she may have just come up with the best argument our side can use to fight Obama’s proposal to take away the $4 billion in subsidies.

One of the reasons why other Republicans haven’t used Governor Palin’s argument is that they simply do not understand the oil and gas industry. They don’t have the same level of experience that Governor Palin does in dealing with oil companies and probably don’t comprehend that tax incentives and subsidies don’t impact all oil and gas companies the same way. Unlike Governor Palin, hacks like Romney and Pawlenty, con-men like Trump and Huckabee, and space cadets like Bachmann have been unable to explain how the oil industry works in a way that goes beyond trite and tired talking points.

Today, Democrat Martin Frost effectively conceded that Palin’s analysis of the oil industry was correct. Here’s the video courtesy of PalinTV (transcript included with emphasis added). Smart Republicans will start using the argument that Governor Palin introduced during her interview with Baier about the deleterious impact that eliminating such subsidies will have on independent oil and gas producers. Please help us spread the youtube video and this post as the liberal media and certain elements of the conservative media will try their best to ignore what we have presented.

[videoplayer file= width=560 height=315 /]


Palin: As for the government subsidies that we’re hearing Obama flirting with right now in wanting to decrease those or eliminate those, we’re only talking about four billion dollars. Compare that to the fourteen trillion dollar debt that he, our President, has certainly contributed to and four billion dollars is a drop in the bucket and he shouldn’t assume that the four billion dollars is going to affect Big Oil. No, it’s the independent explorers that we want out there with their entrepreneurial spirit and their manpower and their job creating ability to be out there exploring and then responsibly exploiting and extracting our god-given natural resources.

Frost: I’m a supporter of the President’s. I’m concerned that he’s going to lose credibility on this oil and gas issue because he’s not telling the truth entirely. What he is saying is that you need to eliminate four billion dollars worth of tax breaks for major oil companies because major oil companies have obscene profits. The problem with this is that one of the big tax breaks that he’s citing -intangible drilling costs- excuse me -percentage depletion- was repealed by Congress, excuse me, in 1975, 36 years ago, as it affects major oil companies. The only ones that get percentage depletion anymore are domestic independents who drill most of the wells in the United States and employ four million people. Now the press doesn’t do a very good job of covering oil and gas tax issues. They don’t understand them. But if the press ever picks up that the President is not telling the truth about the depletion allowance, that it doesn’t go the major oil companies, he’s going to have additional problems, I believe, in the polls.

Palin: Again, you have to remember that President Obama, and I’m going to say this with all due respect to the office of the Presidency, he doesn’t know what he’s doing when it comes to energy. He does not know, as I just pointed out, that the four billion dollars that he thinks he’s gonna stick it to Exxon, BP, Conaco Phillips that no, it’s going to be the independent producers, the explorers that we want out there creating jobs that are going to be hit with an end of subsidy.

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  • bamleader

    Sarah is right, Obama doesn’t know what he is doing – period. Not only on energy, but on everything else as well.

    • ripcurl2121

      just curious – whats with your name? i know you dont support maobama but that name makes it sound like you do

    • heartforthedeaf

      I agree with you 100%. Obama doesn’t know what he is doing, but on the other hand either does Trump…..LOL I just think the GOP is looking at Trump’s bank account.

  • Steph

    Yeah, if Brett Baier was any kind of journalist he wouldn’t have been looking at Sarah as if she had 2 heads when she was talking, and he would have known she was right. She needs to keep hammering on energy issues, as long as we’re not drilling in this country. The American people understand that we have to drill here, drill now.

    It is one of her strong suits, and I hope she makes it one of her campaign messages.

    • Iowa4Palin

      She is uncanny at boiling down complex issues into simple ,easy to understand, explanations.
      Here, she is on the side of the little guys again — the small independent drillers, who take the risks and employ a boatload of people, these small businessmen. If you understand business it’s common sense. But now, with Sarah on the national scene, even people who don’t understand business have an effective instructor…the world’s greatest SUBSTITUTE TEACHER !!

    • myfairlady

      Well, remember Martin Frost correctly stated that the media don’t understand this issue.

  • Steven

    Surprise, surprise, Sarah Palin ahead and right on another issue. Yeah, she’s dumb (sarc).

  • c4pfan

    Excellent point. Thanks for posting.

  • OldDude111

    WOW! Talk about a "no contest" smackdown. Naturally, I haven’t heard this anywhere else nor do I expect to…great job, Sarah. That’s what happens when someone who throws like the Prez puts one into her wheelhouse…it’s outta here!

    • tingale12

      My oh my, BO menion’s must have scribbled notes for him to study up on the Energy topic before that first debate with the gov.

      Dumbo’s ears will be flapping, and he will be stuttering, pretending he knows the answer by giving a long protracted and convoluted answer. He happens to be a master on this.

      Just picture how he answered the question about energy. Can’t remember where it was. Instead of answering the question, he asked the person how many kids he had and suggested the man buy a volt or a hybrid car. In fact after hearing the man had 10 kids, he was so condescinding and was smirking. Total asshole.

      I could see him motion not to worry, he’s got it. Don’t you people know of his brilliance?

  • crunchingk

    ian,this is why your the best contributer,hack romney con men chump and huck and space cadet bauchmann!!thanks for stating the factsabout these losers!!!!!!!!!!

    • N.A.C.

      PalinTV put together the video. Great job.

  • Benthoven

    Good evening, fellow barbarians and bitter clingers! Another beautiful night in Las Vegas.. I was just thinking about these incredible interviews Sarah has been giving lately – an unbroken string of powerful, assertive appearances, scoring point after point on subject after subject with unassailable facts, logic and clarity. She also speaks with a proper, and essential sternness of tone that she delivers with wit, charm and impeccable timing -… (gee, who does that remind me of…?)

    Well anyway, even some libs are starting to realize there is no force on earth that can stop the truth, and my friends, Sarah Palin IS The truth! No wonder they are all so terrified.

  • danielvito

    Fantastic, effective post, Ian. Where is the entire republican party on this, crickets! Sarah will be elected president because of her knowledge on energy. Her critics overlook the fact that her family has been involved in the oil industry for 20 years. Further, that she was an oil/gas comissioner and governor of an energy state. She knows this issue inside and out, Now let’s look at her competitors;

    Trump- isn’t gas what goes in my limo- no understanding
    Romney- Yeah, Ma. has alot of oil fields
    Huckabee- He did raise the gas tax- energy knowledge not so much
    Pawlenty- doesn’t understand energy, but wanted to support cap & tax
    Gingrich- he was in alaska once
    Daniels- Is energy a social issue, it isn’t, oh then I can say, I have no clue

    Sarah 2012!

    • $8196935

      Huckabee – Gas is what he gets eating Grits

      Gingrich – Gas is what he gets talking without taking a breath

      • danielvito

        Yankee4Palin, ha, ha, you should have been at correspondence dinner as emcee. I would love to hear your obama jokes.

        • $8196935

          danielvito, sometimes these people make it too easy

  • Guest

    Ohemgee! The dumb chillbilly knows oil and gas!!! How did that happen!?!?! She’s not Obama. She didn’t go Ivy. What happened? The GOP will be using her arguments? Again? (Hello TPaw!) A Democrat says the chillbilly is right? Again!?! Ohemgee, the sky is falling, the sky is falling, the world is coming to an end!!!

    • Benthoven

      *Snort* Now that right there was funny

  • Buddahfan

    It should be obvious to anyone with half a brain or even less that Gov Palin knows more about energy and what America’s energy policy should be than Obama or any potential GOP candidate for POTUS in 2012.

    This is as they say is a "A No Brainer"

  • Don B

    Folks say that Obama doesn’t know what he is doing. I only wish that were true. It would be the far lesser of two alternatives.

    Are we to believe that Obama doesn’t know what he is doing when he has presided over the following:

    1. $800 billion in a failed stimulus. They can’t, despite promising Sheriff Biden’s oversight, tell us where or in whose pockets that money ended up.

    2. Government control of auto manufacturers, banks, Wall Street firms and student loans with a resultant 50% control of the economy.

    3. Unemployment consistently over 9%, and closer to 10%. Underemployment near 20%. No real effort to change that but rather a seeming willingness to bring more people under food stamps, government handouts, and low paying jobs.

    4. Obamacare, at the expense of everything else. Places 6% of the U.S. economy under control of the government.

    5. Systematic shutting down of all sources of traditional energy supply. Wasting billions on pipe dream non-starting green energy and really fast trains. Ignores the lessons from Spain on green energy and China’s disastrous bullet trains.

    6. Failing to intervene in any middle east uprising unless it would potentially benefit the Muslim Brotherhood.

    7. Lessening of American’s influence in the world and equating us with every other country, even tin-horn dictatorships.

    8. Attacks on free speech, the internet, the press.

    9. Concerted effort to bring or increase union influence to each and every aspect of the business community, as well as local and state governments.

    This isn’t all that he’s done, but it’s a few of the bigger steps he’s taken.

    Do you really think he doesn’t know what he’s doing? I think he knows exactly.

    • $8196935

      Thank you, you get it.

      Obama is in direct mode of imploding the U.S. and doing this knowingly

    • Polarbearpapa

      He knows what he is doing….

      "Obama learned his lesson well. I am proud to see that my father’s model for organizing is being applied successfully beyond local community organizing to affect the Democratic campaign in 2008. It is a fine tribute to Saul Alinsky as we approach his 100th birthday." –Letter from L. DAVID ALINSKY, son of Neo-Marxist Saul Alinsky

      Obama helped fund ‘Alinsky Academy': "The Woods Fund, a nonprofit on which Obama served as paid director from 1999 to December 2002, provided startup funding and later capital to the Midwest Academy…. Obama sat on the Woods Fund board alongside William Ayers, founder of the Weather Underground domestic terrorist organization…. ‘Midwest describes itself as ‘one of the nation’s oldest and best-known schools for community organizations, citizen organizations and individuals committed to progressive social change.’… Midwest teaches Alinsky tactics of community organizing."

      Hillary, Obama and the Cult of Alinsky: "True revolutionaries do not flaunt their radicalism, Alinsky taught. They cut their hair, put on suits and infiltrate the system from within. Alinsky viewed revolution as a slow, patient process. The trick was to penetrate existing institutions such as churches, unions and political parties…. Many leftists view Hillary as a sell-out because she claims to hold moderate views on some issues. However, Hillary is simply following Alinsky’s counsel to do and say whatever it takes to gain power.

      "Obama is also an Alinskyite…. Obama spent years teaching workshops on the Alinsky method. In 1985 he began a four-year stint as a community organizer in Chicago, working for an Alinskyite group called the Developing Communities Project…. Camouflage is key to Alinsky-style organizing. While trying to build coalitions of black churches in Chicago, Obama caught flak for not attending church himself. He became an instant churchgoer." (By Richard Poe, 11-27-07)

    • sarahpalinrocks2

      Stellar comments, Don B! I’ve heard Sarah and others refer to ObamaCare talking over 1/6 of our US economy so that number would be at least 17% in addition to the other takeovers you highlighted.

      Scary. That’s what Mussolini did. I have been reading up on his history. He eventually controlled every aspect of the Italian economy even though he did it in increments.

    • Guest

      #6 is excessively troubling. It’s almost like he’s helping them to establish the islamic caliphate.

  • unseen1

    Bret didn’t follow up on the point because he thinks Palin isn’t smart and therefore he didn’t know nor respect the GOV enough to give her point a follow up.

    I’ve come to the conclusion over the last several days that the Palin detractors are too stupid to understand Palin and therefore call her stupid in the mistaken belief it is her and not them that don’t get it…

    • Quiet_Righty

      Bret didn’t follow up on the point because he thinks Palin isn’t smart and therefore he didn’t know nor respect the GOV enough to give her point a follow up.

      You’re jumping to conclusions. There might have been follow up if time allowed. You don’t have to assume the worst about Bret Baier.

      • Laddie_Blah_Blah

        Yeah. I thought Baier did what journalists are supposed to do. He asked good questions and let her respond with her answers. He didn’t try to get her to parrot his own opinions, like insufferable BOR does, nor did he argue with her. You cannot expect him to know as much about these issues as the governor does, nor to share her more informed opinions. That’s not his job. He was fair and respectful without being either contentious or a sycophant.

        I don’t think the governor will hesitate to give more interviews to Bret Baier, based on how this one went. Sarah scored many good points, whether or not Baier fully understood all of them. He did his job very well, and Sarah made her points forthrightly and authoritatively.

    • Don B

      I disagree with you about Bret. He was aggressive in his questioning, but I never got the feeling he felt she was stupid. In fact, a couple of times I felt he was impressed with how succinct she was.

      I do agree that many of her detractors are incapable of understanding what she is talking about, even though she puts it in very simple terms. Either they are dumb as dirt, or they are playing silly games. Terriewhatsherface at HotAir is a prime example of this.

  • jerseymark

    And people think that Obama would destroy Sarah in the debates. They are in for a very rude awakening. Obama might need help getting off the stage when she is done with him.

    • Don B

      Actually, I think they know very well what Sarah would do to him in a debate. That’s one of the reasons they are so relentless in their attack on her.

      • HuntingMoose

        and that is why it is so important that more GOP candidates stay in the race because that will make it more difficult for Obama’s attack machine to focus.

      • blerch

        Agreed. They saw what she did to Biden. She had never participated in a national debate, had about 5 days to prepare, and beat a 36 year senator who had also ran for President twice. Even deranged Palin hater Peggy Noonan said after the debate that she killed. She’ll clean Obama’s clock in a debate, and they know it.

  • HuntingMoose

    10 steps ahead of the pack.

    • Don B

      And pulling away.

  • Guest


    Hopey changey my ASS
    We must drill for our GAS

    Palin 2012 !!!!

    • Guest

      Not bad…lt’s a little…. unseemly to introduce your own quote as QOTD.

  • Guest

    Sarah has a very clear understanding of the oil & gas business, it funds 80% + of the Ak budget for pete’s sake! She has worked closely on oil industry issues for a long time. As they say in the SW "it ain’t her first rodeo". You would think that a real news reporter, on Fox, (not BOR) would like the facts, but sadly, no, they are trying to score got-you points.

    No wonder the regular "joe" who doesn’t spend hours reading falls for all the LSM crap.

    If you ever saw the movie "Texasville" which was the "Last Picture Show" 25-30 yrs later, Duane’s company are the kind of drillers we are talking about.

    The highest pure profit from each gallon of gas is state & federal taxes! Ranging from a high in Cal. of $0.66 to Alaska at $0.26 (01/11). ExxonMobil earns 2-3 cents per gal. From 2006 to 2010 exxon’s U.S. earning were 40.5B and paid taxes of 59B. GE paid nothing last year.

  • illegalpointofview

    Danm that was perfect ! Once again the complex made simple by Sarah.

  • Ric

    Great Post,

    Was this another UNSCRIPTED interview, or did Cristie say he knows the OIL industry backwards and forwards and inside out?

    Obama-Chu-Salazar = The Three Blind Mice

    I used to think these guys were somewhat intelligent… But there’s too much contradictory evidence.

    Salazar is just a reactionary anti-oil… not a clue why!

    Chu has a PhD. and a Nobel so that makes him all knowing… like he managed to screw up the BP blowout far worse than it had to be – and he is absolutely convinced that Global Warming is real – even though all of the evidence points to global cooling!

    Obama = Liar, Cheat, Hypocrite, Puppet, Marxist? – knows Community Organizing, bowing, etc..

    Together these men are screwing us, big time!

    Please SARAH, expose the whole lot of them via facebook, so the world knows that you know and everyone knows whom to vote for when the time comes.

    PALIN 2012

  • illegalpointofview

    Just a side note Obama should fire the person who suggested he take on a issue that Sarah has forgotten more than he knows.

    The art of war is being played out in real time. You are watching history in the making and soon you will be asked to participate. 20 years from now what will you remember about this time.

  • Jules

    The GOP establishment could make Obama look very inexperienced and Democrats look like the fraud they are on the issues voters care about most (energy, deficit, foreign policies) by USING SARAH PALIN as their front, the ONLY Republican that has been right about all these issues for months now; the ONLY republican knowledgeable about the oil industry….But they won’t because they dislike and fear Sarah as much as liberals do. The GOP could have another ROUT in 2012 if they rally behind Sarah Palin. If the entire conservative media and politicians started to refer to Sarah Palin while discussing these issues, it would present a very different picture the MSM has been portrayed for over 2 years now…and make her the clear favorite to beat Obama in 2012.
    But I have a feeling the GOP establishment would rather lose with a guy like Romney than win with Palin…which is really sad. The Tea Party should stop messing around with 3rd tiered candidates like Cain, Santoro, Bachmann and endorse Palin RIGHT NOW, even before she officially enter the race. That will go a long way toward toppling Obama next year.

    • ellebb

      "But I have a feeling the GOP establishment would rather lose with a guy like Romney than win with Palin" -Jules

      …ding, ding, ding… we have a winner !!! Yep they’d rather bunt in 2012 and wait for Jebbie.
      How sick is that?

      • conservativemama


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