Tag Archives: Oil Drilling

Ten ways that the Obama administration could lower gas prices right now

From the Heritage Foundation.

Here’s the list:

  1. Lift offshore and onshore exploration and drilling bans
  2. Approve Keystone XL
  3. Require timely environmental review
  4. Permitting process
  5. Issue leases on time
  6. Allow development of oil shale
  7. Stop the land grab
  8. Implement 50/50 revenue sharing
  9. Prohibit greenhouse gas and Tier 3 gas regulations
  10. Repeal the Renewable Fuel Standard (RFS)

Here’s the detail on #3 and #6 and #9:

3. Require timely environmental review: Environmental review requirements for oil and gas projects to commence on federal lands under the National Environmental Policy Act (NEPA) take too long. Congress should place a reasonable 270-day time limit on NEPA reviews.

6. Allow development of oil shale: Oil shale production in the U.S. could be a global game changer since we hold the largest known reserves in the world. However, 70 percent of those reserves lie beneath federal lands. The Obama Administration has introduced new regulations, time frames, and significantly reduced the land available for leases. Congress should make permanent the 2008 guidelines for oil shale development in order to provide regulatory certainty.

9. Prohibit greenhouse gas and Tier 3 gas regulations: In 2010, Interior suspended 61 leases in Montana alone because environmental groups charged that the energy production would contribute to climate change, demonstrating the need to permanently prohibit any federal agency from unilaterally regulating greenhouse gas emissions. Additionally, the proposed Tier 3 gas regulations to lower the amount of sulfur in gasoline are costly with no measurable benefits. Congress should prohibit the implementation of these regulations. Unelected bureaucrats should not hold such power over the economy.

Are these steps unreasonable?

Well, Canada already streamlined their environmental review process. Canada also doesn’t let global warming socialism block job creation in the energy sector. Canada’s government strongly opposes global warming socialism. They’ve even pulled out of the Kyoto treaty. Their energy industry is booming, and taking their economy with it. Can’t we do the same? Why is the Democrat Party’s energy policy all about giving money to green energy firms and imposing burdensome regulations on energy companies who do create jobs?

Obama imposes 5-year oil drilling moratorium on Atlantic coast

From Breitbart.

Excerpt:

Yesterday the Obama administration announced a delaying tactic which will put off the possibility of new offshore oil drilling on the Atlantic coast for at least five years:

The announcement by the Interior Department sets into motion what will be at least a five year environmental survey to determine whether and where oil production might occur.

Virginia Gov. Bob McDonnell notes that a planned lease sale, which the administration cancelled last year, will now be put off until at least 2018. As you might expect, Republicans were not impressed with the decision:

“The president’s actions have closed an entire new area to drilling on his watch and cheats Virginians out of thousands of jobs,” said Rep. Doc Hastings, R-Wash., who chairs the House Natural Resources Committee. The announcement “continues the president’s election-year political ploy of giving speeches and talking about drilling after having spent the first three years in office blocking, delaying and driving up the cost of producing energy in America,” he said.

This is in addition to the moratorium on drilling in the Gulf that Obama imposed before.

Excerpt:

A moratorium on drilling in the Gulf of Mexico after the 2010 Deepwater Horizon oil spill plus a longer offshore oil and natural gas permitting processes will cost the U.S. more than $24 billion in lost oil and natural gas investment over the next several years, according to a report commissioned by the American Petroleum Institute.

The study by the energy industry trade group also found that, because of the moratorium and longer permitting process, capital and operating expenditures fell over the last two years by $18.3 billion.

The region saw $8.9 billion and $146 billion in investments in crude oil and natural gas, respectively — about 6 percent of global investment dollars. But that figure would have been closer to 12 percent for 2011 had the drilling moratorium not been put in place, the report said.

“As a result of decreases in investment due to the moratorium, total U.S. employment is estimated to have been reduced by 72,000 jobs in 2010 and approximately 90,000 jobs in 2011,” the report said.

In addition to closing an entire new area to drilling, Obama is also using environmental regulations to destroy jobs and raise energy prices.

Excerpt:

Despite rhetoric to the contrary, the Obama administration is poised to deal a major blow to U.S. oil and natural gas, a leading industry group charged Thursday.

Domestic production of both fuels could plummet if proposed Environmental Protection Agency regulations, designed to limit emissions from well sites, go into effect later this year, according to an extensive new study commissioned by the American Petroleum Institute.

The natural gas extraction technique known as “fracking” would be hardest hit, and fuel extracted via the popular process would drop by about 52 percent, according to a new study commissioned by API. Total gas production would decrease by about 11 percent, while domestic oil production could fall by as much as 37 percent, the report says.

Make no mistake – this Democrat administration is opposed to job creation in the energy sector and opposed to lowering gas prices.

Is Obama telling the truth about U.S. oil reserves?

The Department of Energy's own figures

The Department of Energy’s own figures

Investors Business Daily explains. (H/T Master Resource)

Excerpt:

When he was running for the Oval Office four years ago amid $4-a-gallon gasoline prices, then-Sen. Barack Obama dismissed the idea of expanded oil production as a way to relieve the pain at the pump.

“Even if you opened up every square inch of our land and our coasts to drilling,” he said. “America still has only 3% of the world’s oil reserves.” Which meant, he said, that the U.S. couldn’t affect global oil prices.

It’s the same rhetoric President Obama is using now, as gas prices hit $4 again, except now he puts the figure at 2%.

“With only 2% of the world’s oil reserves, we can’t just drill our way to lower gas prices,” he said. “Not when we consume 20% of the world’s oil.”

The claim makes it appear as though the U.S. is an oil-barren nation, perpetually dependent on foreign oil and high prices unless we can cut our own use and develop alternative energy sources like algae.

But the figure Obama uses — proved oil reserves — vastly undercounts how much oil the U.S. actually contains. In fact, far from being oil-poor, the country is awash in vast quantities — enough to meet all the country’s oil needs for hundreds of years.

The U.S. has 22.3 billion barrels of proved reserves, a little less than 2% of the entire world’s proved reserves, according to the Energy Information Administration. But as the EIA explains, proved reserves “are a small subset of recoverable resources,” because they only count oil that companies are currently drilling for in existing fields.

When you look at the whole picture, it turns out that there are vast supplies of oil in the U.S., according to various government reports. Among them:

At least 86 billion barrels of oil in the Outer Continental Shelf yet to be discovered, according to the government’s Bureau of Ocean Energy Management.

About 24 billion barrels in shale deposits in the lower 48 states, according to EIA.

Up to 2 billion barrels of oil in shale deposits in Alaska’s North Slope, says the U.S. Geological Survey.

Up to 12 billion barrels in ANWR, according to the USGS.

As much as 19 billion barrels in the Utah tar sands, according to the Bureau of Land Management.

Then, there’s the massive Green River Formation in Wyoming, which according to the USGS contains a stunning 1.4 trillion barrels of oil shale — a type of oil released from sedimentary rock after it’s heated.

[…]All told, the U.S. has access to 400 billion barrels of crude that could be recovered using existing drilling technologies, according to a 2006 Energy Department report.

When you include oil shale, the U.S. has 1.4 trillion barrels of technically recoverable oil, according to the Institute for Energy Research, enough to meet all U.S. oil needs for about the next 200 years, without any imports.

Please share this article, because it is unlikely that Obama’s Solyndra-supporting buddies in the mainstream media will report the facts on domestic energy production.