Gas prices continue to increase and the federal government does nothing to increase the supply of oil. The United States is the third largest oil producer in the world and we can increase our oil production even further. We have enough oil to last 200 years, but much of it is on federal lands. Unfortunately, the federal government only leases 3 percent of taxpayer-owned lands for oil and natural gas development. Sign up BELOW!
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Administration Making It Difficult to Explore and Produce Energy
Gas prices continue to increase and the federal government does nothing to increase the supply of oil. The United States is the third largest oil producer in the world and we can increase our oil production even further. We have enough oil to last 200 years, but much of it is on federal lands. Unfortunately, the federal government only leases 3 percent of taxpayer-owned lands for oil and natural gas development. Sign up BELOW!
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Obama appears to have the interests of the Middle Easterners uppermost in his mind. Has the media investigated the sources of his campaign contributions? Are they greatly coming from the Muslim countries and peoples that supply our oil?
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Obama Lies about American Oil Production
A new report suggests that Barack Obama’s claim to have overseen an increase in production of domestic oil and natural gas is actually is backed up by the facts. But when you look at the rest of the story, Obama has seen the energy sun rise and is crowing like a rooster that he made it happen.
House Natural Resources Committee unveiled figures showing under Obama, there were the fewest onshore oil and gas leases issued since 1984. That oil and gas production on federal land, over which Obama and his appointees have jurisdiction, is down 40%. The House committee noted that the energy production is coming from private projects on private lands, and those are the driving force behind the hottest spots in the American economy right now, North Dakota with a 3.4% unemployment rate, Alaska with its perennially low unemployment and Texas, which has by the numbers created more jobs in recent years than the rest of the country.
And so far in 2012, an average of 23% of all drilling plans have been approved, compared to the average of 73.4% under Bush. Mr. Obama sneered at expanded drilling as a candidate in 2008 and for most of his term has done little to expand it.
Another suspect is U.S. monetary policy. Oil is traded in dollars, and its price therefore rises when the value of the dollar falls, all else being equal. The Federal Reserve throughout Mr. Obama’s term has pursued the easiest monetary policy in modern times, expressly to revive the housing market. It has done so with the private support and urging of the White House and through Mr. Obama’s appointees who are now a majority on the Fed’s Board of Governors.
Oil staged its last price surge along with other commodity prices when the Fed revved up its second burst of “quantitative easing” in 2010-2011. Prices stabilized when QE2 ended. But in recent months the Fed has again signaled its commitment to near-zero interest rates first through 2013, and recently through 2014. Commodity prices, including oil, have since begun another surge, and hedge funds have begun to bet on commodity plays again. John Paulson says he’s betting on gold, the ultimate hedge against a falling dollar.
Recently, Obama said: “But here’s the thing about oil. We have about 2, maybe 3% of the world’s proven oil reserves. We use 25% of the world’s oil. So think about it. Even if we doubled the amount of oil that we produce, we’d still be short by a factor of 5.”
The United States has some 20 billion barrels of oil in reserves, “proven” reserves that are certain to be recoverable in future years from known reservoirs under existing economic and operating conditions. That definition excludes many oil reserves Obama has declared off-limits. According to the Institute for Energy Research, we have more than 1.4 trillion barrels of oil that is technically recoverable in the United States with existing technology. The largest deposits are located offshore, in portions of Alaska and in shale deposits in the Rocky Mountain states. So the United States has more recoverable oil than the rest of the non-North American world combined, enough to fuel every passenger car in the nation for 430 years.
When you add in recoverable resources from Canada and Mexico, the total recoverable oil in North America exceeds 1.7 trillion barrels against Saudi Arabia with about 260 billion barrels of oil in proved reserves.” The institute tells us that in 1980 the United States had 30 billion barrels of oil in reserves. But over the next 30 years, through 2010, the US produced 77 billion barrels. How can it be that we produced almost 2.5 times more oil than we had available 30 years prior?
Obama crows the numbers that suite his re-election run, not the reality of what’s happening under the sun. And he does the same for green energy factoids.