Who needs domestic oil production? We can just get more from OPEC Oil

Posted December 10, 2010 | folder icon Print this page

One of the sad truths about the Obama administration is the indifference they have for producing energy domestically.

The administration has given us another piece of evidence of their hostility toward energy production. On page 69 of a new proposed drilling rule, the administration argues that we don’t need to worry that their permitorium will reduce oil production in the Gulf (and destroy good paying jobs) because we can always get more oil from the oil dictators at OPEC:

It’s a sad state of affairs when our government halts domestic oil production and tells us to just buy oil from OPEC. Will the Obama administration ever get serious about creating jobs in America?

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Author:
Daniel Simmons

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  • Anonymous

    “Fatmouses is correct.”

    Thanks IER! Fatmouses takes a bow… In response, most of your comments are also correct. However, the fact is that the assertions that the “government halts domestic oil production” or that the administration is “stopping exploration and new production from moving forward” are absurd. The claim that they have stopped the seed corn is also absurd. According to Baker Hughes, there are 1,739 rigs poking holes in the U.S. today, UP 404 since last year at this time (30% increase in one year). There are nearly as many drilling rigs operating in the U.S. than in all other nations combined. We had higher rig counts in 2010 than any year since 1987 except 206, 2007 and 2008. Considering that the new rigs cover broader areas with advanced horizontal abilities, each rig now does the work that we used to get from many. Compared to the early 1990s, when we had a big jump due to the first Iraq war, we now have twice as many rigs active and those rigs cover a much broader area.

    When you take the politics and rhetoric out of the equation, the facts are just the facts. There has been little or no impact on drilling or production in the U.S. based on politics over the past 30 years. It is all price driven.

  • Anonymous

    Since the discussion had everything to do with leasing on federal lands….the roughly 2.5 billion acres of subsurface mineral estate in the US (an area larger than the land mass of the US itself), it should be apparent to Fatmouse that it was the administration’s virtual shutdown of leasing for exploration and possible development and production that was being referenced. Obviously it was not.
    The Obama Administration has leased less federal land and waters for exploration and production than any in the last 30 years. Despite holding enormous resource potential in unsearched areas, about 98% of the federal offshore lands remain unleased. For the onshore, it is 96+%. That means that when it comes to providing energy for American consumers, the US offers up 2% of its waters, and 4% of its land. Any success in increased production in the US is happening not because of the Administration, but despite it. That is why all the natural gas discoveries that have produced a gas “miracle” in the US are occurring on private and state lands. The federal government has contributed virtually nothing to the new gas discoveries, and is in fact (via the EPA as well as the Department of Interior) attempting to federalize state control of water in order to stop hydraulic fracturing, which would kill the Bakken, Eagle Ford, and all of the new shale gas discoveries. While economics does indeed drive energy production, artificial government restraints on access to lands owned by US taxpayers plays a huge part in US energy policy. Withholding supplies of energy makes other supplies more economic.

  • Anonymous

    “about 98% of the federal offshore lands remain unleased. For the onshore, it is 96+%.”

    Interesting stat. I had not seen that before. How different are those numbers in relation to previous years?

    Outside of the gulf, most of the off-shore areas have been off-limits for decades. I don’t think you can pin that to any political ideology. The most vehement protesters of off-shore drilling on my coast are the beach landowners, fishing companies, and tourist companies. And nobody would ever call them a bunch of liberals (except when they are pushing for taxpayers to pay for beach nourishment).

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