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Monday, October 11, 2010

Backdoor Moratorium On Oil and Natural Gas Shale Projects

This is how they are doing it.

Hey folks,

We have talked in length about the Off Shore Drilling Moratorium. We have talked about how some of the Rigs have already left, and how some more are getting ready to follow taking American Jobs with them. We have already talked about the financial impact of this completely pointless move by this Administration.

Again, this will not stop Drilling, nor protect ANYTHING. Other Countries are still Drilling and INCREASING their productivity and Profit, at the expense of ALL Americans.

What about shallow water? Well, there is a Moratorium on that as well. Not a stated one, but due to the hurdles and the obscene Regulations and Taxation, new Permits have all but ceased.

Well, what about Coal and Shale? They are not effected right? Wrong. This Administration, so beholden to the "Green Energy" Special Interests, and the Environuts, they will stand in the way of this as well. Why, because they are quick to dream, yet slow to think. Some of these Kooks actually BELIEVE that we can get off of Oil and Natural Gas overnight and become "Green" tomorrow. But we have talked about that as well. It simply is not possible, there is nothing to switch to. However, this is not stopping them from imagining, falsely, that if they reduce American produced Oil and Natural Gas Energy, increasing the cost, it will motivate others to come up with a viable solution quicker.

Here is one of their problems. They can not come right out and Ban Shale Projects. There has been no "Man-Made Disasters" Accidents, nor any reasons real or imaginary, that they can point to and say, "See, this is why we must regulate it, or Ban the practice all together." So what do they do? They make it unaffordable for US companies to go into this endeavor to begin with.

Remember what Obama said about the Coal Industry?




That's right. He was BRAGGING about Bankrupting the Coal Industry. Put them out of business through Tax and Regulation. It's like saying, "Yeah, you can do this or that, just give me your First Born." No one is going to be able to do that. So it matters NOT that Obama is "allowing" something, if he is making it impossible for you to do it.

So what do we have NOW? The DREAM that is Alternative Energy. A "Greener Planet" that will be a Utopia. No Oil. Just Wind, uh, I mean Solar,,Uh, no wait, Uh, I mean Electric, no, uh, PEANUT BUTTER!!!! Oh never mind. Just trust us. We need to stop using Oil. We need Alternatives. So we stop using Oil, we can start using Alternatives sooner. IF no one can get around, heat their homes, and well, do much of anything, then they will be forced to find another way fast. {Sigh}

Here is a CRYSTAL CLEAR, real life example of what Obama is talking about. I know, I know, this piece in the Washington Post is a little Wonky for some out there, but there is one line that brings it to clear understanding of the type of tactic that Obama TOLD us he would use.

This is talking about how Chesapeake Energy entered a deal for a Shale Project in Texas with a Chinese oil company.

The China National Offshore Oil Corp. will pay Chesapeake Energy $2.2 billion for a one-third interest in a South Texas oil and natural gas shale project and will pay billions of dollars more for its share of development costs over the next several years.
So this means this. One third less AMERICAN Jobs. One third less Profit. One third less PRODUCT. That means, one third MORE Product that we have to pay for to a foreign Government, for something that should be ours to begin with. Why?

There is one sentence that brings this whole thing into simplistic understanding.

Given the cost of development, many independent companies such as Chesapeake have been looking overseas for investors.
Translation, the hoops that companies have to jump through to produce is becoming unaffordable.

Chesapeake has been seeking to raise money to help develop its extensive inventory of oil and gas acreage. The company has also been trying to pare its debt, which peaked at about 60 percent of the company's book value and which on Sept. 30 stood at about 42 percent. McClendon said the company's target was in the 30s.
Now this is a good deal for them and us, to a point. It WILL create 20,000 jobs and Tax Revenues for all levels of Government,. However, CHINA will control one third of the project. Imagine if we were allowed to do this without Foreign Investors? Imagine if we let the Energy Companies DO what they do best. Produce that of which we need, at a cost that is affordable to all. Without this foreign investment, this AMERICAN Company would have to close up or go elsewhere.

What we need in this country, are policies that REWARD American Companies that do what they do best. We need AMERICAN Companies producing Jobs, Affordable Energy for all, and Tax Revenue to our Governments, both Local and Federal.

Dream the Dream, but live in Reality. Work towards "Green" while producing what we NEED now. Stop the NEED of American Companies from going elsewhere to offset their costs to do what they do. Produce FOR America. Produce for AMERICANS, everywhere.
Peter

Sources:
The Washington Post - Chinese oil company, Chesapeake Energy enter deal for shale project in Texas

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