John Felmy, Chief Economist for API had a good point.
Hey folks,
There is a lot of information that we learned during the API / Blogger Conference call that I attended on Thursday 011509. I want to touch on a couple of things. First, I want to talk about their view of the in coming Obama Administration. Then I have some GREAT news. YOUR voices were heard. More on that in a second.
First, you all pretty much know where I stand. I have doubts, to say the least, that Obama and his Administration is going to accomplish anything more than attempt to bring this country to the FAR left and create a Socialistic Society. I want to give him a chance. But I have EXTREME reservations based on what he has come right out and said.
So during a lull in the conversation, I decided that I would just come out and ask. I said this.
"I guess if there’s not another question right this second, I do have a quick question about – you know, I’d be remiss if I didn’t ask, with the new presidency taking place and Obama making some questionable comments in the past, such as he’s going to bankrupt the coal industry and so on and so forth, I’m sure that you guys are keeping a close eye on not just the moratoria but different things that this new administration may be looking to do – oppressive taxation, really unreasonable regulations – somebody brought up the environmental issues.
Now, I know that if you look at the history of the rigs that are out there right now, we really have a pretty good, you know, history of being environmentally safe. So some of these new regulations that they’re talking about may be a little bit over the top, and I’m just wondering if you guys are looking at it and coming up with, you know, different things that you may be able to do in the future?"
John Felmy, Chief Economist for API responded
"This is John. You know, we’re looking forward to working with the new administration and Congress. We think that this is an excellent opportunity to have a thoughtful debate about energy. You know, this is the sixth administration that I’ve seen since I’ve been living in Washington – since 1978. You know, each new administration really comes with a clean slate. They basically don’t have baggage and areas that they’ve committed themselves to, and I think they can take an opportunity to step back and really assess, what are the facts of the situation, what do consumers and voters need to be able to have a proper course for their first months and years in the office.
And so what we would suggest is that the debate focus on what is really needed. And our thoughts on that have been pretty consistent for quite a while. It’s basically – with population growth of about 24 percent by 2030, with GDP growth of 75 percent, we’re going to need more energy, even if we do dramatically improve energy efficiency in the economy – and it’s projected to improve by roughly a third. And so we’re going to need conventional oil and gas, we’re going to need alternatives and we’re going to need improved energy efficiency. So what we would say is, look at what we need to do in the oil and gas industry, because we’ve heard discussions about wanting to improve renewables, and we think that’s clearly needed, but as long as we have 250 million cars out there that run on gasoline and diesel fuel and airplanes that run on jet fuel and diesels on diesel fuel for those railroads and so on, we’re going to need more oil and gas.
And while it is a situation that oil and gas is about 63 percent of our energy supplies right now, even with those changes that I talked about, it’s still going to be, by 2030, 59 percent. And petroleum, in particular, will grow, even with improved fuel economy of roughly 40 percent in the auto sector and so on. So we’re going to need more oil and gas, and to meet the needs of more oil and gas, we’re going to, first, have to replace the decline rates that wells have, and then we’re going to have to do more exploration and production to be able to meet those needs. We clearly think that we have, as you mentioned, been good stewards. We’ve been environmentally sound and we would say that let’s look at our record versus the rhetoric.
Now, going forward, the administration will have to do a lot of things to be able to advance the four lease sales that are on the schedule right now for this year, along with the ones that are going on after that. They’re going to have to continue work with the five-year program to be able to line these things up. And that takes a considerable amount of time and resources, and so we would hope that those resources are properly in place to be able to move forward, because you know, after all, the oil and gas industry is 5.8 million Americans working 24 hours a day, seven days a week trying to supply our consumers. It’s an industry that’s owned by tens of millions of Americans who have their hard-earned pensions and savings invested in that. And so we feel that we’re making a fundamental contribution in this area.
We’ve also learned that the public strongly supports developing our own oil and gas resources and that this should continue to be developed – that it can help in terms of more employment, reduced imports – a better balance of trade – and good-paying jobs for our economy. And so for all of these reasons, we’re going to try to get that message out so that all the stakeholders and so on approach this and thoughtfully debate the energy situation right now."
Now this exchange prompted a couple more questions that will bring me to the great news I mentioned. In just a few minutes. So Do I agree with Mr. Felmy in reference to Obama? Yes.
You see folks, I know that this is not a popular opinion amongst the Big Time Conservatives out there. I have and will continue to say I want Obama to Succeed. So allow me to clarify a bit.
I want Obama, just like any other President, to make this country BETTER. I want them to pretty much, leave what is GOOD in place, and fix what is not working. I want them to work FOR the American People. To work toward making the American Dream sound, keep this country safe, and better the economy.
I do not want Socialism. I do not want a Centralized Controlling Government. I want freedom. If Obama's main or only goal is Socialism, then OF COURSE I want him to fail. Of course I want his to be thrown out of office. That is not the point. But as John Felmy said, Obama and his Administration is starting off with a clean slate.
Campaign rhetoric is that. He won. He will take his place at the Big Desk is just a matter of days. REALITY is about to hit him right between the eyes. NOW is the time that President Obama starts working for the American People. All the American people. Not just the Kooks.
One of the things that were talked about is reinstating the Ban on Off Shore Drilling. Another is bankrupting the Coal industries. Another is oppressive taxation. But none of this has taken place yet. It would be devastating if it was to.
Like we just saw, school buses FROZE in the bitter weather in the mid west. The "Alternative Energy" turned to gel. It killed the whole fleet. We have all this talk about Renewable clean energy, yet we have NONE. Obama said we will double our renewables. How do you double that of which we have NONE of? We are YEARS away from even that possibility.
Yet as Mr Felmy pointed out, we do, and will continue, to have great need of oil. That is what our economy runs on. We are seeing this right now. The effects of supply and demand. When we saw the price of gas go up, we saw the price on EVERYTHING go up. Price goes down, prices fall all around. It really is pretty simple to understand.
So let's hope that Obama will take the "clean slate" that he has, drop the insane rhetoric, and do what is RIGHT for America. Work WITH the Energy Companies and allow us to become more energy independence in the future.
Be right back with the great news.
Peter
Hey folks,
There is a lot of information that we learned during the API / Blogger Conference call that I attended on Thursday 011509. I want to touch on a couple of things. First, I want to talk about their view of the in coming Obama Administration. Then I have some GREAT news. YOUR voices were heard. More on that in a second.First, you all pretty much know where I stand. I have doubts, to say the least, that Obama and his Administration is going to accomplish anything more than attempt to bring this country to the FAR left and create a Socialistic Society. I want to give him a chance. But I have EXTREME reservations based on what he has come right out and said.
So during a lull in the conversation, I decided that I would just come out and ask. I said this.
"I guess if there’s not another question right this second, I do have a quick question about – you know, I’d be remiss if I didn’t ask, with the new presidency taking place and Obama making some questionable comments in the past, such as he’s going to bankrupt the coal industry and so on and so forth, I’m sure that you guys are keeping a close eye on not just the moratoria but different things that this new administration may be looking to do – oppressive taxation, really unreasonable regulations – somebody brought up the environmental issues.
Now, I know that if you look at the history of the rigs that are out there right now, we really have a pretty good, you know, history of being environmentally safe. So some of these new regulations that they’re talking about may be a little bit over the top, and I’m just wondering if you guys are looking at it and coming up with, you know, different things that you may be able to do in the future?"
John Felmy, Chief Economist for API responded"This is John. You know, we’re looking forward to working with the new administration and Congress. We think that this is an excellent opportunity to have a thoughtful debate about energy. You know, this is the sixth administration that I’ve seen since I’ve been living in Washington – since 1978. You know, each new administration really comes with a clean slate. They basically don’t have baggage and areas that they’ve committed themselves to, and I think they can take an opportunity to step back and really assess, what are the facts of the situation, what do consumers and voters need to be able to have a proper course for their first months and years in the office.
And so what we would suggest is that the debate focus on what is really needed. And our thoughts on that have been pretty consistent for quite a while. It’s basically – with population growth of about 24 percent by 2030, with GDP growth of 75 percent, we’re going to need more energy, even if we do dramatically improve energy efficiency in the economy – and it’s projected to improve by roughly a third. And so we’re going to need conventional oil and gas, we’re going to need alternatives and we’re going to need improved energy efficiency. So what we would say is, look at what we need to do in the oil and gas industry, because we’ve heard discussions about wanting to improve renewables, and we think that’s clearly needed, but as long as we have 250 million cars out there that run on gasoline and diesel fuel and airplanes that run on jet fuel and diesels on diesel fuel for those railroads and so on, we’re going to need more oil and gas.
And while it is a situation that oil and gas is about 63 percent of our energy supplies right now, even with those changes that I talked about, it’s still going to be, by 2030, 59 percent. And petroleum, in particular, will grow, even with improved fuel economy of roughly 40 percent in the auto sector and so on. So we’re going to need more oil and gas, and to meet the needs of more oil and gas, we’re going to, first, have to replace the decline rates that wells have, and then we’re going to have to do more exploration and production to be able to meet those needs. We clearly think that we have, as you mentioned, been good stewards. We’ve been environmentally sound and we would say that let’s look at our record versus the rhetoric.
Now, going forward, the administration will have to do a lot of things to be able to advance the four lease sales that are on the schedule right now for this year, along with the ones that are going on after that. They’re going to have to continue work with the five-year program to be able to line these things up. And that takes a considerable amount of time and resources, and so we would hope that those resources are properly in place to be able to move forward, because you know, after all, the oil and gas industry is 5.8 million Americans working 24 hours a day, seven days a week trying to supply our consumers. It’s an industry that’s owned by tens of millions of Americans who have their hard-earned pensions and savings invested in that. And so we feel that we’re making a fundamental contribution in this area.
We’ve also learned that the public strongly supports developing our own oil and gas resources and that this should continue to be developed – that it can help in terms of more employment, reduced imports – a better balance of trade – and good-paying jobs for our economy. And so for all of these reasons, we’re going to try to get that message out so that all the stakeholders and so on approach this and thoughtfully debate the energy situation right now."
Now this exchange prompted a couple more questions that will bring me to the great news I mentioned. In just a few minutes. So Do I agree with Mr. Felmy in reference to Obama? Yes.
You see folks, I know that this is not a popular opinion amongst the Big Time Conservatives out there. I have and will continue to say I want Obama to Succeed. So allow me to clarify a bit.
I want Obama, just like any other President, to make this country BETTER. I want them to pretty much, leave what is GOOD in place, and fix what is not working. I want them to work FOR the American People. To work toward making the American Dream sound, keep this country safe, and better the economy.
I do not want Socialism. I do not want a Centralized Controlling Government. I want freedom. If Obama's main or only goal is Socialism, then OF COURSE I want him to fail. Of course I want his to be thrown out of office. That is not the point. But as John Felmy said, Obama and his Administration is starting off with a clean slate.
Campaign rhetoric is that. He won. He will take his place at the Big Desk is just a matter of days. REALITY is about to hit him right between the eyes. NOW is the time that President Obama starts working for the American People. All the American people. Not just the Kooks.
One of the things that were talked about is reinstating the Ban on Off Shore Drilling. Another is bankrupting the Coal industries. Another is oppressive taxation. But none of this has taken place yet. It would be devastating if it was to.
Like we just saw, school buses FROZE in the bitter weather in the mid west. The "Alternative Energy" turned to gel. It killed the whole fleet. We have all this talk about Renewable clean energy, yet we have NONE. Obama said we will double our renewables. How do you double that of which we have NONE of? We are YEARS away from even that possibility.
Yet as Mr Felmy pointed out, we do, and will continue, to have great need of oil. That is what our economy runs on. We are seeing this right now. The effects of supply and demand. When we saw the price of gas go up, we saw the price on EVERYTHING go up. Price goes down, prices fall all around. It really is pretty simple to understand.
So let's hope that Obama will take the "clean slate" that he has, drop the insane rhetoric, and do what is RIGHT for America. Work WITH the Energy Companies and allow us to become more energy independence in the future.
Be right back with the great news.
Peter
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