Who's to Blame for Gas Prices?

A compilation of FACTS heard here over the years.

Hey folks,

Happy Tuesday to ya. I got two for ya. First up? BG sent this in. It was from Yesterday on the Rush Limbaugh Radio Show. None of this is new. But he put it all together like no one else could. It was a great Segment. A compilation of FACTS heard here over the years. Here he is. Ladies and Gentalmen, Rush Limbaugh.

BEGIN TRANSCRIPT

RUSH: Michael Janovsky at the New York Times, April 24th, 2006, about six years ago: "Democrats Eager to Exploit Anger Over Gas Prices." This is back in 2006. The Democrats were running for office in the midterm elections trying to talk us into a recession. This is after they had failed at trying to talk us into failure in Iraq. "Democrats running for Congress are moving quickly to use the most recent surge in oil and gasoline prices to bash Republicans over energy policy, and more broadly, the direction of the country. With oil prices hitting a high this week and prices at the pump topping $3 a gallon in many places..." We're now over $5 in California. In 2006, with "prices at the pump topping $3 a gallon in many places Amy Klobuchar, a Democratic Senate candidate in Minnesota, is making the issue the centerpiece of her campaign. Ms. Klobuchar says it 'is one of the first things people bring up' at her campaign stops. To varying degrees, Democrats around the country are following a similar script that touches on economic anxiety and populist resentment against oil companies."

Yep!

"'It's a metaphor for an economy that keeps biting people despite overall good numbers,' said Senator Charles E. Schumer of New York..." What else do we have, Chuck-U? Oh, Chuck-U is in the news today, folks. Chuck-U tells Clinton to pressure Saudi Arabia to pump more oil. Senator Chuck-U Schumer "wants Secretary of State Hillary Clinton to press..." She's got her own section in the program today for her own rampant hypocrisy. (We'll get to that in due course.) Chuck-U Schumer "wants Secretary of State Hillary Clinton to press Saudi Arabia to boost output as rising prices are hitting consumer at the gasoline pump." Whoa, whoa, whoa, whoa, whoa, whoa!

Wait a minute. More oil? Chuck-U wants more oil? Is that what asking the Saudis to do, pump more oil? Is that right? Is that what that means? Senator Schumer tells Clinton to pressure Saudis to pump more oil? He wants more oil? Then how come this regime vetoes the Keystone pipeline and has a drilling moratorium in the Gulf of Mexico and makes fun of/mocks the concept of producing more oil in the United States? So Senator Chuck-U Schumer is asking Senator Clinton to make us more dependent on foreign oil! That's what he's doing when he's asking her to pressure the Saudis, pump more oil. He wants us to be more dependent. He doesn't want to use our own oil. Obama doesn't want to use our own oil.

How come Chuck-U is not out there saying, "Everybody go buy a Volt?" How come Chuck-U's not saying, "Hey, everybody go buy a Prius, go buy a hybrid"? How come Chuck-U's not out there saying, "Get your tire gauge out and make sure the pressure is right and get a tune-up"? That's what Obama do. So the Democrats want more oil. They want the price to come down with more supply. Funny how that never works domestically. So 2006, New York Times: "Democrats Eager to Exploit Anger Over Gas Prices" -- at $3 a gallon. From BigGovernment.com Wynton Hall with the story: "Seven Gas Facts Obama Cannot Escape -- 1.

"In September 2008, Barack Obama’s 'Nobel-prize winning physicist' of an Energy Secretary, Steven Chu, told the Wall Street Journal: 'Somehow we have to figure out how to boost the price of gasoline to the levels in Europe,'" which is much higher than what we pay. Obama has said he wants high prices. Why don't these guys come out and say, "This exactly what we want"? Steven Chu, the energy secretary, Nobel-prize winning physicist has advocated for higher prices. So has Obama. Now they're getting higher prices. You know why? They want higher prices so you'll have to go out and buy a Volt or a hybrid or get on a bus or get on a subway or take mass transit and become like a number.

A robot. An interchangeable part of the system, like a Chinese citizen taking orders and dictates from the state and their command-and-control economy. The truth is, they want higher prices. The problem is it's an election year. Can't advocate for higher gas prices in an election year. "2. In 2008, then-candidate Barack Obama admitted that, like his future Energy Secretary Mr. Chu, he believed that high gas prices would be a good thing because they would force Americans to ween [sic] themselves off of oil, but that he would have 'prefered [sic] a gradual adjustment.'" We had the sound bite last week. We reminded you of it when gasoline hit four bucks and Obama said: It's okay; it's okay. I'm just a little upset how fast it got there. 3. On January 19, 2009, the day before Barack Obama [immaculated] gas prices were $1.84 a gallon. As of February 20, 2012 a gallon of gas cost $3.59," and now it's close to $5 a gallon. And don't forget, in 2006 it was $3 a gallon, and the Democrats are out exploiting it and trying to turn it into a big political issue. "4. As Senator Kay Bailey Hutchinson points out, 'Offshore drilling permits are being issued at less than half the rate of the previous administration. The average number of leases issued on public lands is less than half than during President Clinton’s term.' 5. In 2008, Barack Obama seemed perfectly comfortable with soaring energy prices if they meant curbing greenhouse gas emissions.

"As Mr. Obama confessed: 'Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.'" In their hearts and minds, Obama and the left are LOVING gas prices go up. They just can't say so. But they love it. And that's why there's not a huge effort to bring them down. There's a huge effort to make you think they want to, but how many stories have you seen where Obama says, "Ah, there's really not a whole lot the president can do"? And Jay Carney says, "Well, there's not a whole lot the president can do." In 2006, don't forget, Chuck Schumer and John F. Kerry (who, by the way, served in Vietnam) were mocking Bush for asking the Saudis to pump more oil! Arabs producing more oil makes prices go down, but somehow the US pumping more oil won't make any difference.

That's what they tell us. "Nah-nah-nah. That's the stupidest thing we ever heard of! That's a tired, worn-out cliché. 'Drill, drill, drill,' and for 30 years they've been saying that. That's what the Republicans always say. Just drill, drill. That's gonna take us two to three years!" Well, where would we be if 30 years ago we had just started drilling, drilling, drilling? Chuck-U Schumer in 2008: "Schumer to Bush: Stop 'Coddling' Big Oil, Saudis," and get on 'em and make 'em pump more. And Chuck-U wants Hillary to do the same thing now. Obama, he can lower the sea level but he can't lower the price of oil. "7. Try as he might, President Obama’s campaign will try to distance themselves from the fact that a central pillar of Mr. Obama's 2008 campaign was a pledge to reduce the 'pain at the pump' caused by high gas prices."

We can go back and we can get all of that audio that was a centerpiece of his campaign, a pillar, to reduce pain at the pump. But missing no opportunity to invoke class warfare, Obama said, "For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans they're a huge problem, bordering on a crisis. Here in Indiana gas costs $3.60 a gallon," he said in 2008. Now it's 2012, we're over $5 a gallon, and there's not much we can do about it.

And from MSNBC: "8 Reasons Why Gas Will Hit $5 a Gallon This Year." I'll just read through them. Not gonna give you details. Number one, Strait of Hormuz. Number two, Iran. Number three, refiners raising prices. Number four, other geopolitical risks. Number five, the European Union may save itself. Number six, the US economic recovery means higher oil prices. Number seven, summertime. Number eight, supply risk. In all eight of these reasons, not one of them mention Obama or his energy policies. So we have every effort in the world being made to shield Obama from any relationship to high gasoline prices, despite what the Democrats did all during '05, '06, '07, and '08. We even have some Republicans now saying, "We really don't want to try to tie the president to this, market forces no president can control."

We said back in 2006 there's nothing Bush can do about it. The president does not have a magic wand. Releasing from the strategic reserves doesn't make a significant long-term difference in the price of oil. And people who said that back then want us to say something consistent now. "Well, come on, let's not jump on Obama for this. We all know honestly that presidents can't do anything about it." Bush was not choking the supply, however. Obama is. Obama is a factor in the price of gasoline. See, that's the difference, Obama is a factor in the price of oil. Obama wants higher oil prices, his energy secretary and he have both said so. They want higher oil price. This is not making it up. They want higher oil prices. It's less freedom. It's less mobility. It forces you into alternative buying decisions when it's time to get a new car. So Obama does have something to do with high oil prices.

BREAK TRANSCRIPT

Eric in Glenn Arbor, Michigan, you're next on the Rush Limbaugh program. Hello, sir.

CALLER: Hi, Rush. Long-time listener from the early Clinton years.

RUSH: Thank you, sir.

CALLER: The reason why I'm calling is about the oil prices and what we're paying at the pump. Lots of news about it, and if we go to five, six-dollar-a-gallon oil, that's gonna sink the economy, and I think it's time to fight back, and I think we can fight back by several perspectives. One, we as a consumer can cut back slightly on our fuel usage. And, two, instead of just releasing 30 million barrels of oil from the strategic energy reserves, we need to do it in a strategic manner. For example, release seven million barrels of oil at, say, $89 a barrel. It's about 109 bucks a barrel today. Release it at below the market price and then make several subsequent releases without telling anybody --

RUSH: There's not enough oil there to make any difference. The real question is what is the rice of algae by the gallon because Obama has suggested pond scum as the next alternative fuel for oil. We cannot, by the way, and I appreciate the big-heartedness here in wanting to conserve, but there's gonna be forced conservation at five dollars a gallon. There was a four. People will drive less because they can't afford it. By the way, the economy's already sinking. But you get to five or six dollars a gallon, the choice to conserve will not be something you have to force on people, it'll be happening naturally. But even at that, conserving is not growth, and growth is what our economy needs. Growth and supply, growth in expansion, demand, all these things, that's what this country and this economy needs. We can't conserve our way to growth of anything.

END TRANSCRIPT

That was from the Rush Limbaugh Show yesterday. Be right back with Obama's NEW answer for Energy.
Peter

Sources:
Rush Limbaugh Radio - The Democrat Gas Hypocrisy
New York Times: Democrats Eager to Exploit Anger Over Gas Prices - Michael Janovsky - 04.24.2006
The Hill: Sen. Schumer Tells Clinton to Pressure Saudi Arabia to Pump More Oil
BigGovernment: 7 Gas Facts Obama Cannot Escape

REAL American Jobs / Real Answers to Our Energy Crisis

These are REAL Jobs for REAL American People. RIGHT NOW!

Hey folks,

I just simply want you to read this piece from the Wall Street Journal - Energy Boom Fuels Hiring By RYAN DEZEMBER

Oilfield services companies are doing a booming business amid the rush to tap North America's newfound troves of crude oil and natural gas. The discoveries are pushing U.S. energy employment to its highest level in two decades.

Baker Hughes Inc. on Monday said its income in North America doubled last quarter from a year-ago to $440 million, despite weather-related disruptions in Canada that weighed on results. Last week, Halliburton Co. said its second quarter North American profit more than doubled from a year earlier. Schlumberger Ltd. on Friday said its North American profit jumped six-fold to $673 million, from $116 million a year ago.

Those gains translated into at least 17,200 new U.S. oilfield jobs during the quarter, according to federal employment data. In May, the Bureau of Labor Statistics reported there were 413,500 jobs in the oil and gas extraction and support businesses in positions ranging from roustabout to tax accountant. Oil and gas extraction added jobs in June; corresponding data is not yet available for support positions. All the hiring, however, hasn't moved the needle on the nation's unemployment rate, now at 9.2%, due to weakness in construction and other industries.

Schlumberger Chief Executive Andrew Gould worries that a shortage of skilled workers will become a pinch point as the company responds to global demand for its services."The ability to provide both North American and international markets with required people in a continued growth phase will be a challenge," Mr. Gould said.

Schlumberger, Halliburton as well as smaller rivals Baker Hughes and Weatherford International Ltd., are watched closely because of their global reach and their linchpin position between equipment makers, rig owners and energy producers. Their profits are a good barometer of the industry's job growth. On Tuesday, Weatherford is expected to report profit rose 36% from a year ago, according to Thomson Reuters.

Baker Hughes has been on a hiring spree, adding 2,200 employees in the U.S. in the last 12 month, said Vice President Adam Anderson. "We plan to continue to do so this year," he said. Oklahoma City-based Devon Energy Corp. hopes to add as many as 450 workers this year to a U.S. payroll that tops 3,300 and could repeat that level of hiring in 2012, said Frank Rudolph, the company's top human resources executive. "These are typically well-paid people," he said in an interview.

After shedding jobs for much of the previous two decades, steady job growth returned to the U.S. industry in 2004, about the same time that U.S. energy producers began extracting natural gas from shale-rock formations. The industry combined horizontal drilling with a rock-cracking process called hydraulic fracturing to release huge quantities of gas once thought to be out of reach.

U.S. oil and gas explorer Anadarko Petroleum Corp. on Monday posted net of $562 million compared to a year-ago loss of $28 million.

The ensuing drilling frenzy fed a flurry of hiring. The run was curtailed by recession in 2009, but recovery has come swiftly. The sector has added an average of 5,920 jobs a month this year through May and preliminary data suggest that trend continued in June. Through May, there are 13.6% more jobs tied to drilling than at the end of last year. By contrast the number of construction jobs in the U.S. has only grown 0.8% in that span.

Now all we keep hearing from Obama and Crew on how this Utopia of "Green Dreams," will Create Jobs and save us from our Energy Crisis. Most estimate that in best case scenarios, ten to fifteen years from now, we may make a bit of a dent on our Energy Independence of Oil and Natural Gas. It MAY create a few thousand Jobs, {GM has their Batteries being made overseas. Solar Panels are being made overseas, Wind Turbines? Yup. Accept for those being funded by YOU the Tax Payer} But it MAY help us reduce our needs on Oil, MAYBE, sometime in the distant future.

HERE is what is happening NOW. Just one industry. TODAY! In the Economic Mess that this Administration and Liberal Policies have put us in. These are REAL Jobs for REAL American People. RIGHT NOW! Now after reading this. I want you to think about something. Imagine if the Government would just get out of the way. Imagine the Increased Production. Imagine the Increase Jobs that would HAVE to be created to support that Production. Imagine the Increased Revenue to our Government. Imagine the Increase Product added to the supply. Increased American Security. Increase Revenue. Increase Jobs. Lower costs for all.

Dreams vs Reality. Which do you think will help our Economic Situation? Dreams vs Reality. What do you think will increase Jobs? Dreams vs Reality. Which do you prefer?
Peter

Sources:
Wall Street Journal - Energy Boom Fuels Hiring

Response to Obama's Idiotic Oil Claims

He completely lied through his teeth.

Hey folks,

I really didn't want to start off with this, but we have to. Obama comes out Friday and completely lied through his teeth. He said that he was not blocking Drilling. He shut it down. He cost Americans over 50,000 Jobs. He forced Companies to leave town. He is STILL preventing exploration and Drilling.

I have the transcript, but it is nonsense. It's a bunch of bunk. It matters not what he said on Friday, what matters is REALITY. What he has done and what he continues to do. It's so far out there from Reality, that it's almost hard to stomach.

So what is the Industries response? According to the President of API, Jack Gerard, Obama is not addressing the real issues. Who is API?

API represents more than 450 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports more than 9.2 million U.S. jobs and 7.5 percent of the U.S. economy, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

So they KNOW Energy. According to the President, Jack Gerard,

"Long-term problems call for short-term leadership. Suggesting that we rely on other nations to solve our energy challenges is irresponsible and will not increase our energy security. The Obama administration continues to delay or defer action on developing our domestic resources of oil and natural gas at every turn.

The trend is alarming. The administration has postponed lease sales in offshore areas. It has cancelled lease sales in onshore federal lands. It has extended permitting timelines for current leases and added unnecessary regulatory burdens. It has chosen inaction on essential energy projects that would create jobs, drive economic growth, and boost federal revenues.

The administration is well on its way toward creating higher gasoline prices for Americans.

To get more oil and gas, we need more access. Placing more government lands and waters off-limits and forcing companies to focus on areas that may show little promise even if already under lease will not solve our energy challenges.

The best thing the administration can do on gasoline prices is to encourage greater oil production and greater fuel efficiency here at home. Launching another gasoline price investigation, when it's obvious strong demand and world events are driving today's markets, is pointless."

It's POINTLESS especially when you add into the equation the inability to ADD and USE our OWN resources. Remember, we talked about this in the past. We can go from NOTHING, bring in a Drilling platform that weighs more than Ten Thousand Cars, higher than the Eiffel Tower, retrieve the Oil and ship, refine, and get to market in under two years. When done? You will never know it was there.

But you all know this. You all know that we have more Oil and Natural Gas than the entire Middle East combined. And so do they. Why else do you think that just the mere mention of us Drilling by Bush caused the price to plummet. Now they KNOW we are not doing anything about it, the Price is rising again.

Yes, World Demand and what is happening in the Middle East IS affecting the Price of Crude. But we are not going to be adding to the Supply with our own anytime soon. Not if Obama has his way.

You want the REAL facts on this, The Canadian Oil Sands, The REAL Facts on Fracking, or the reality of why we need Oil and Natural Gas, Visit our friends over at Energy Tomorrow, and the API itself.

Do not be misled folks. Obama IS causing the Price to Skyrocket. But this is no surprise. He said he would. He said he likes it too.
Peter

Sources:
Energy Tomorrow - API to White House: Long Term Solutions Require Short Term Leadership

Obama Administration Appealing Judge Order on Drilling

Obama Administration Ignoring another Judge.

Hey folks,

Remember when I to you that there was a "De Facto" Moratorium Still In Place? Well there is. As I said before.

Obama doesn't have to put in place an actual Ban, just make it cost preventive to do it. Create too many hoops to jump through right from the get go.

So the official Moratorium is appearing to be gone, the Administration STILL refuses to OK several Drilling Permits. So some of these companies took their cases to court and a Judge ordered the Obama Administration to either OK, or Deny them. Basically, he said, "Do your job."

Well, the Obama Administration will not be told to do their Job. They have agendas and they are sticking to them. They do not care if they are Unconstitutional, immoral, or outright illegal. They really do not care what the Law or any Judge, unless the Judge agrees with them, says. We have seen this before. They ignore the Judge that said Stay out of Arizona. They ignore the Judge that ruled Obamacare Unconstitutional. And now they will appeal this Judge. According to Politico - Interior appeals oil drilling ruling By DAN BERMAN & DARREN GOODE

The Obama administration late Friday appealed a judge's orders directing the Interior Department to act on several Gulf of Mexico deepwater drilling permits.

The appeal is the latest salvo in the ongoing fight over the speed with which Interior is – or isn't – letting oil drillers get back to work after last year's BP oil spill.

Gulf state lawmakers and the oil industry have accused the department of enacting a "de facto" moratorium against new drilling, while Interior says it needs to ensure safety and environmental protections are in place.

Which IS what they are doing. They do not care about $4 or $5 dollar a gallon gas. Higher Heating Oil. Higher Food Prices. They do not care that there are Food Riots due to the cost of Energy and the LACK of Food being produced due to the Farmers being paid BY Obama and Crew to grow Corn and Other Products for Ethanol instead of Food. They do not care how volatile the Mid East gets, which IS effecting the price of Energy, and American Security. They would rather play games in Court.

Friday's appeal challenges rulings by Judge Martin Feldman of the U.S. District Court for the Eastern District of Louisiana, who on Feb. 17 gave Interior 30 days to make a verdict on five pending deepwater drilling permits applications. He later added two additional permits to that order.

Interior Secretary Ken Salazar had hinted the appeal was coming at a Senate hearing Wednesday.

“The judge in this particular case in my view is wrong," Salazar said. “And we will argue the case because I don’t believe that the court has the jurisdiction to basically tell the Department of Interior what my administrative responsibilities are.”

This is pretty standard with this Administration. "We feel the Judge is wrong, so we just do not care what they say. We will do whatever we want anyway."

He added, “the policy we have in mind is unmistakingly clear: We are moving forward with the development of oil and gas” production."

NO YOU ARE NOT! You are BLOCKING it.

Earlier in February, the judge held Interior in contempt, citing "dismissive conduct" by blocking offshore drilling during last year's spill.

The delay in issuing permits since last year’s Gulf of Mexico oil spill is “increasingly inexcusable," Feldman wrote.

Interior on Monday announced the approval of the first deepwater drilling permit held up since last year’s spill. The permit, issued to Noble Energy for a well partially owned by BP, was not one of those that Feldman’s ruling addressed.

I know that we will not find out WHY this one was approved. The Media will NEVER look into this. Is there someone in the Administration that stands something to gain from THIS one? Is there a Relative to someone working there? Why this one?

Remember when Gas was hitting $4.00? Bush was blamed. There were all kinds of hearings? Where is the Media now? Where are those that wanted Bush Impeached, and VP Dick Cheney thrown in Jail. Obama SAID he likes high Gas Prices. He SAID he would Bankrupt the Coal Industry. He IS blocking Drilling. He IS ignoring Courts all over the place. Where are the Protesters? Oh I know some are out there, Like Sheehan, Code Pink, ETC, that where Daily News, are still out there. But now, the Media wants NOTHING to do with them. They want NOTHING to do with Grandma dying in the north because she froze to death unable to pay to heat her home. They want NOTHING to do with placing the blame now. Because the blame now lays at Obama's feet.
Peter

Sources:
Politico - Interior appeals oil drilling ruling

Study lists Alaska Arctic OCS development's potential benefits

From the Energy Front 030111

Hey folks,

Just this past Sunday, I posted OPNTalk - Rising Fuel Costs, Causes Rising EVERYTHING Costs in which I briefly commented on a article I saw, CNS NEWS - New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria Which said this.

(CNSNews.com) – A new study says drilling on Alaska’s Outer Continental Shelf (OCS) could make Alaska the eighth largest oil resource province in the world -- ahead of Nigeria, Libya, Russia and Norway.

Well? Some of you just accept the Liberal, Environmental, argument that is false, that we do not have enough Oil to worry about it. Even if we Drill, there is not enough to dent the market, change the prices, and so there is sure not enough to justify the risk to Nature. This is simply not true.

As I have said many times in the past, we have more Oil and Natural Gas possibilities that the entire Middle East combined. Here is a bit more on Alaska. According to O&G Journal - Study lists Alaska Arctic OCS development's potential benefits Feb 24, 2011 Nick Snow OGJ Washington Editor

WASHINGTON, DC, Feb. 24 -- Development of resources in the Chukchi and Beaufort seas off Alaska’s Arctic coast would create an average 54,700 jobs/year nationwide with a $145 billion total payroll and generate $193 billion in federal, state, and local revenue over 50 years, according to a study by Northern Economics Inc., Alaska’s largest private economic consulting firm, and the University of Alaska at Anchorage’s Institute of Social and Economic Research.

Commercial production of Arctic Alaska offshore oil and gas resources would generate government revenue estimated at $97 billion (in 2010 dollars) in the Beaufort Sea and $96 billion in the Chukchi Sea over 50 years, said the Feb. 18 study, which was commissioned by Shell Exploration & Production Co. Of the $193 billion of total revenue, the federal government would receive $167 billion, Alaska’s state government would get $15 billion, local governments in the state would get $4 billion, and other state governments would receive $6.5 billion, it said.

It estimated about 30,100 jobs would be generated from Beaufort Sea Outer Continental Shelf development and 24,600 jobs would come from Chukchi Sea OCS development. Production could reach almost 10 billion bbl of oil and 15 tcf of natural gas, the study said.

The study shows thousands of new jobs and billions of dollars in government revenue are locked up off Alaska’s Arctic coast, National Ocean Industries Association Pres. Randall L. Luthi said on Feb. 24. “In these times of economic hardship and global uncertainty, we should take full advantage of the untapped and unexplored oil and natural gas supplies off our own shores,” he maintained. “Responsible and safe development of these resources would not only provide increased domestic energy security, but also needed jobs, income, and government revenue.”

David Holt, president of the Consumer Energy Alliance in Houston, said the study also showed the US could cut its imports of foreign crude, which now represent some 60% of its total supply, by about 9% over 35 years. It also noted approximately 77% of the world’s crude reserves are owned or controlled by national governments, he said.

“Impediments to more American energy continue to be found above ground, not below,” Holt declared. “We know we have the resources to generate these jobs, revenue, and economic growth—as demonstrated by the billions of dollars already invested in the Alaska OCS. Yet companies are being prevented from acting on these investments by permitting delays, frivolous litigation, and other makeshift roadblocks.”

“America will need all forms of energy to get our economy back on track, and that includes oil: We can either produce it here and create more American jobs or import it and create jobs elsewhere,” said Richard Ranger, a senior policy advisor at the American Petroleum Institute. “The administration and Congress need to adopt an ‘all of the above’ energy approach that leverages our offshore resources in Alaska to create an energy plan for America that boosts, rather than inhibits, our economy.”

So lets recap a bit. Option One, No drilling = Less Supply, Higher Demand, Higher Prices. Higher Energy Prices = Higher EVERYTHING Prices. No Drilling = Loss of Jobs, No New Jobs. No Revenue. Nothing to switch too. No alternatives at this time.

Option Two, Drilling just in Alaska? 54,700 jobs, NATION WIDE. $145 Billion total Payroll and generate $193 Billion in Federal, State, and local Revenue. Of the $193 Billion of total Revenue, the Federal Government would receive $167 Billion, Alaska’s State Government would get $15 Billion, local Governments in the State would get $4 Billion, and other State Governments would receive $6.5 Billion. This would ADD to the Supply = Lower Demand = Lower Prices. Lower Energy Prices = Lower EVERYTHING Prices.

The World RUNS on Oil and Natural Gas. It just does. We have more than anyone else. Yet we have a President that HAS Chosen Option One. Which one makes more sense to you?
Peter

Sources:
OPNTalk - Rising Fuel Costs, Causes Rising EVERYTHING Costs
CNS NEWS - New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria
O&G Journal - Study lists Alaska Arctic OCS development's potential benefits

Rising Fuel Costs, Causes Rising EVERYTHING Costs

Companies concerned

Hey folks,

As we keep talking about in the Tuesday "From the Energy Front" Segment, the rising Energy costs will cause EVERYTHING to go up. The Cost of EVERYTHING will increase to match, or offset if you will, the rising cost to:

Power the Plant
Run the Machines
Transport the Product
SELL the Product

So that $5.00 item becomes $7.00. The higher the cost of Energy, Gas, and Diesel, goes, so does the cost of that Item. $7.00 then $8.00, you get the point. Remember that piece about the bitter cold, and repeated heavy Snowstorms, the Obama caused Skyrocketing prices for Heating Oil, that are likely to be the highest on record? Who is the hardest hit? The Poor and the Elderly. Those on fixed incomes.

We are not the only ones concerned about this. According to the Financial Times - Companies concerned about rising fuel costs By Ed Crooks in New York Published: February 25 2011 19:24 Last updated: February 25 2011 19:24

Companies around the world have begun to warn about the impact of higher fuel costs on their businesses, raising fears about profits and inflation.

Companies in the most energy-intensive sectors, such as airlines, have been the first to raise the alarm, but analysts warned that a sustained period of high oil prices would have a widespread effect on earnings.

On Friday, Thai Airways, the state-controlled carrier, said that it would have to review its revenue targets to assess the impact of the rise in oil prices.

International Airlines Group, the owner of British Airways and Iberia, said it was “likely” that fares would rise again, following fuel surcharges already imposed, if the volatility in oil markets continued.

US airlines have already been raising fares. At the start of the year, analysts at Bank of America Merrill Lynch calculated that US airlines could still achieve the same operating margins this year as in 2010, even if oil prices averaged about $102 per barrel. US crude briefly exceeded that level on Thursday.

However, the Airlines are not the only ones worried.

FedEx, the transport and delivery company, said last week that its third-quarter earnings, to be reported on March 17, were likely to be lower than previously indicated because of higher fuel costs and bad weather.

The car industry is also likely to be feel the impact of higher oil prices, particularly in the US.

Now WHY is that? Because we are not Drilling. Everyone else is. Foreign Companies are buying up US Companies rights and assets. All for a Political Stunt by Obama.

General Motors and Ford, the US car manufacturers, reported fourth-quarter earnings hit by higher costs for materials, including metals and rubber, and now face a further blow.

The US companies remain heavily dependent on pick-up trucks and SUVs, by far their most profitable vehicles, leaving them exposed when fuel costs rise and consumers look for more economical vehicles.

Daniel Akerson, GM’s chief executive, said on Thursday: “Energy is going to be more expensive, so we’ve got to prepare for that and it’s come a little bit earlier maybe than the industry or the economy  . . . expected or wanted, so we’re going to have to react.”

And HERE it is folks. That unspoken business secret, actually SPOKEN. Get this.

Not every company is yet being squeezed by the higher oil price. Jürgen Hambrecht, chief executive of BASF, the world’s largest chemicals company by market capitalisation, said on Thursday the group had been able to pass on most of the price hikes to its customers in the past year, and it was expecting to do so again.

The Truth is folks, Businesses and Corporations do not pay tax. YOU do. You want their goods and services, YOU will pay. I'll give Jürgen Hambrecht an A for Honesty. "How do you feel about the rising Energy costs?" Hambrecht, "We don't care. We just pass on most of the price hikes to its Customers. So who cares?" However, there is a limit. Someone may pay $7.00 for something that was $5.00. However, they are NOT going to pay $10.00. There is a limit as to what a product or service is worth. THAT is what they are afraid of.

Dow Chemical of the US similarly talked about “pricing momentum”, and only a “slight, and temporary” squeeze on margins, when it reported full-year results earlier this month.

However, the damping effect of higher fuel prices on economic growth in oil-importing countries is likely to mean that the impact will in time be felt across most industries.

Martin Regalia, chief economist at the US Chamber of Commerce, the business lobby group, said high oil prices had a “double whammy” effect.

“They raise costs for all companies, particularly those that use a lot of oil to move stuff around in trucks or aircraft, and they slow down growth because they take spending power away from consumers. And both of those factors work together to reduce profitability.”

Additional reporting by Bernard Simon in Toronto, Daniel Schäfer in Frankfurt and Jeremy Lemer in New York

Folks, there is no reason for any of this. NONE. I just saw an article that, let me see if I can find it, yeah, here it is, it's from CNS NEWS - New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria

(CNSNews.com) – A new study says drilling on Alaska’s Outer Continental Shelf (OCS) could make Alaska the eighth largest oil resource province in the world -- ahead of Nigeria, Libya, Russia and Norway.

But we are not Drilling. Why? There can be only one real reason. Obama and Crew are preventing us from doing so, INTENTIONALY, bringing about what we have here today. It's being done ON PURPOSE. The answer is so simple folks. It really is.
Peter

Sources:
Financial Times - Companies concerned about rising fuel costs
CNS NEWS - New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria

Egypt, Iran, Oil Moratorium, Winter, Economic Chaos

All this could be avoided by US Drilling.

Hey folks,

As we sit on our, uh, hands, things are adding up World Wide. They are coming together and WE are left paying the Price. According to Benzigna - A Tale of Crudes: Anybody Got A Big Rig? By Dian L. Chu Economic Forecasts & Opinions February 20, 2011 5:00 PM

On Wednesday, Feb. 16 Israel said Iran is sending two warships into the Suez Canal on way to Syria, and that the action is considered a “provocation.” Due to the long history of bad blood between Israel and Iran, this very possible scenario was enough to even send the bear-infested NYMEX crude oil futures volume surging midday.

West Texas Intermediate (WTI) on Nymex rose to just below $85, while Brent crude on the ICE futures exchange spiked $2.17 higher to $103.81 a barrel—a 29-month high-- widening the WTI-Brent spread to a new record near $19.

High Middle East Tension

Then on Friday, Feb. 18, AFP reported that permission has been granted for Iranian warships to transit the Suez Canal into the Mediterranean. Canal officials say it would be the first time Iranian warships have made the passage since the 1979 Islamic revolution, while Israel has labeled the Iranian action as "hostile' and said Israel was closely monitoring the situation.

As the worst Israel-Iran conflict scenario failed to materialize, at the close Friday Feb. 18, Brent crude oil for April settled at $102.79 while WTI for April delivery rose to $89.71, narrowing the spread to $13.11.

Now along with this tension that is building, uncertainty is rising, We are feeling it. We are paying for it. WE are losing this. According to Daily Finance - High Heating Oil Prices Continue to Drain Wallets in the Northeast U.S. - DailyFinance:

"Bitter cold and repeated heavy snowstorms helped make winter in the Northeastern U.S. particularly brutal this year. Adding to the chills were soaring prices for heating oil that are likely to be the highest on record.

By the time the six-month-long winter heating season is over, the average homeowner in the Northeast will have laid out $2,431 for fuel to fire boilers and furnaces, Reuters reported, citing data from the U.S. Energy Information Administration, which provides forecasts of energy costs.

The amount is about $200 more than the Energy Department predicted in October -- and almost $500 more than the average just a year ago.

Temperatures were indeed colder than average in December and January, but that's not the source of the high price for heating oil. '[R]ising oil prices, not colder weather, have been the primary cause of the increase in forecasts of average winter season heating expenditures for households heating with oil,' the EIA said in its statement.

The price of heating oil rose to $90 a barrel this month, up from $78 in October, Reuters noted. That rise pushed the average retail price for residential heating oil to $3.59 a gallon this week, up 73 cents from a year earlier, the EIA said"

Then you have the other trend that we are following closely. I told you about China buying Chesapeake Energy, Now we learn that India, yes, India, Essar Energy to provide $1b bank guarantee

MUMBAI: Essar Energy will provide a bank guarantee of $1 billion to close the offer it made to acquire Shell's Stanlow refinery in the UK, according to a person who is part of ongoing negotiations with banks. This bank guarantee would be over and above the $350 million that Essar Energy agreed to offer for the assets of Stanlow refinery.

"The company (Essar) will finalise the bankers who will furnish the guarantee in the next three to four months," said the person who requested anonymity as the transaction is still underway.

Typically, the purchase price of a functional refinery consists of the asset cost plus an amount for working capital which includes inventory. The value of the inventory, in the case of a refinery, is determined at the close of the deal to reflect the latest price of crude.

On February 18, Essar Energy made the offer to buy Shell's 272,000 barrel-a-day refinery and the associated local marketing businesses for a total expected consideration of about $1.3 billion. Essar Energy's deal value of $1.13 billion includes $780 million for the inventory with the UK refinery. Shell agreed in principle to the offer made by Essar Energy and has granted exclusivity to the offer until April 1, 2011.

So China will control a third of Chesapeake Energy, India is buying up a Shell Refinery that produces 272,000 barrels a day. Grandma in upstate NY can no longer afford to heat her Home. Gas prices continue to rise. People on Fixed Incomes, the Poor and Elderly hardest hit. We? What are WE doing here in this country? Reducing our Energy Production. Dreaming the Green Dream. Obama said that Oil is the Energy of the Past. OK. What do we switch to? There is NOTHING.

The answer is CLEAR. California went to the line, before the Left Loons got involved. They saw the way out. But they let Politics get in the way of Progress. How do we alleviate concerns of Mid East Instability? How do we guarantee the Creation of TENS OF THOUSANDS of new and REAL US Jobs? How do we INCREASE revenue into our Local, State, and Federal Governments? How do we alleviate the pressure and hardship one has in attempting to PAY to Heat their Homes? Reduce the Price at the Pump? How do we INCREASE American Safety and Security? There is one answer to all this. Dill. Drill HERE. Drill NOW.

In a Year and a half, we could be well on our way to stability in our energy Costs, A safer and more secure Energy Policy. A Better Economic Outlook, and just plain Sanity. Lift the pointless and useless Moratorium. Remove Pointless and purely Political, oppressive Regulations and Controls. Let the Energy Companies do their thing. All the President and Congress need to do is get the Hell out of the Way, and let Americans DO way Americans do best. And YES! It really is, just that simple.
Peter

Sources:

Benzigna - A Tale of Crudes: Anybody Got A Big Rig?

Daily Finance - High Heating Oil Prices Continue to Drain Wallets in the Northeast U.S. - DailyFinance:

The Economic Times - Essar Energy to provide $1b bank guarantee

Liberals Upset At Pace, But KNOW Obama Is Lying

What he did not say is he would lift the Moratorium.

Hey folks,

So Obama goes to the Camber of Commerce to attempt to make nice. Even with a joke or two about "Being a good Neighbor" and "Bringing a Fruit Cake." He thought he was saying all the right things. He even shocked and maddened some Liberals.

Now he said a lot of things that on the surface may SOUND good, but if you scratch the surface, you see more of the same old Obama. "Share the Wealth. "Spread the Wealth around." ETC. He wants to eliminate the Incentives to Borrow, in order to reduce taxes. ETC. Smoke and mirrors folks. If you had to pay cash for your house, would you? Business works in similar ways. They need to borrow and grow. But that's not what I want to talk about.

The one thing that he said that has send some Liberals into the stratosphere, with the Environmentalist in tow, he will not enforce the ridiculous Green House Gas Regulations. AKA, the Clean Air Act. He said that he understands how burdensome this can be to business. Now is not the time.

Well, well, well. THIS did not sit well with the Left at all. So there are many that are attempting to reassure them, that Obama cares. In the process, they are also admitting that he is LYING. Here is an example. According to Salon.com - Proof Obama is not caving on regulation: The EPA

Never mind healthcare or bank reform. The prospect that President Obama might gut environmental protection while eliminating unnecessary "burdensome" regulations is where some liberals get most nervous. The president put very little effort into getting any climate legislation passed, leading environmentalists to wonder: Does he actually care?

On the surface, the concern is justified. House Republicans have made the crusade to cripple the EPA's ability to enforce limits on greenhouse gas emissions a top priority. Last week, Rep. Fred Upton, R-Mich., the chairman of the House Energy and Commerce Committee, and Sen. James Inhofe, R-Okla., announced plans to introduce legislation that would explicitly prohibit the EPA from considering "greenhouse gases" a pollutant under the terms of the Clean Air Act. Sen. Jay Rockefeller, a West Virginian Democrat, recently reintroduced a bill that would delay any EPA greenhouse gas limit enforcement for two years.

In response, the White House has been quiet. The president did not mention the words "climate change" in either his State of the Union speech or his address to the Chamber of Commerce. Quite the opposite: His only reference to the EPA at the Chamber was to cite a decision by the agency to delay, for three years, the setting of any limits for greenhouse gases generated from the burning of biomass, as an example of how accommodating his administration was willing to be on the regulatory front.

But FRET not my Liberal Environmentalist. This is just the way the World Works. He HAS to say these things. He no longer controls the House, with controls the Purse Strings of all the things Obama wants to do. But FRET not my Tree Hugging Friends, HE IS LYING.

I'm guessing Obama included that line because he or his advisers thought it would go over well with Chamber conservatives. But by pointing out an instance of EPA inaction, the president carefully avoided dwelling on the fact that the agency has already taken the much more significant step of beginning the process of regulating greenhouse gas emissions at power plants, oil refineries, and other major sources of greenhouse gas emissions. As of Jan. 2, the EPA is requiring that the operators of new, or substantially modified, facilities must get permits that will limit their future greenhouse gas emissions and require upgraded technology.

In other words, it's already happening. The pace is excruciatingly slow, and there are legal challenges that must be parried every every step of the way, and both states and plant operators have a lot of leeway in how to deal with the proposed changes, but the machinery of greenhouse gas regulation is proceeding. And this is entirely due to the fact that the current occupant of the White House is a Democrat who appointed a strong director -- Lisa Jackson -- to run the EPA.

The rest blames Bush, Blah, blah, blah. But as we see all the time from Obama, what he says and what he does, not always the same. {Smile}

What he COULD do to jump start the Economy? END THIS POINTLESS and STRICTLY POLITICAL Drilling Moratorium. Create Tens of Thousands Jobs in the industry, MILLIONS of Jobs related to Oil. Drivers, Mini Marts, Factory Workers, {Make Up, ETC} ETC. BILLIONS in Revenue. As Jack Gerard, President of API recently pointed out..

Earnings are also good news for services provided by the government: oil and natural gas companies provide the U.S. Treasury, on average, with well over $95 million each day through taxes, royalties, rents and other fees that can then be used for such things as schools, roads and parks.

Can you name me another business that pays $95 million each day? Not to mention, yes, I know some hate this, but the WORLD RUNS ON OIL AND NATURAL GAS! So if Obama was serious about jump starting the Economy, and setting the minds at easy of Business, lifting the Moratorium, get out of the way, and LET Oil and Natural Gas do their thing. What he SHOULD do, is get out of the way of ALL business and let AMERICA bring AMERICA back. But I really just do not think he gets it.
Peter.

Sources:
Salon.com - Proof Obama is not caving on regulation: The EPA
Energy Tomorrow - The Economics of Oil Company Earnings

Tighter Federal Rules, New Fees for Drilling, New Government Bureaucracy

The Economy in shambles. Record High Unemployment, Foreclosures, and Oil Prices going up. What do we need? According to Obama's Oil Spill Commission, MORE GOVERNMENT.

Hey folks,

Notice the Oil Prices? Have ya? I bet you've noticed the price at the Pump. We already discussed the pointless Moratorium. It's not making us safer, cleaner, nor more Independent. Other continue to Drill unabated by anything Obama and this Administration says. They are NOT American Companies, and do not have to listen to anything this Administration says or does. The only ones NOT Drilling is us.

So now that many have been driven out, and Obama says "No new Drilling for {a fictitious} seven years," taking American Jobs and resources with them, after sluggish Permit process has been put into place, AFTER we are starting to see the effects at the Pumps, and AFTER more and more rhetoric, what is the Solution for those that have stayed behind? Tighter Federal Rules, new fees for Drilling, and MORE Government Bureaucracy.

Look, we all know that the Price at the Pump, is based on Supply and Demand. As we have discussed many times. We are not going to be adding to that Supply. The World knows this. We are however, helping to add to the Demand. Those hit the hardest are the Poor and Middle Class. Those on a Fixed Income. When the price of Fuel goes up, so does the price of everything else.

So According to The Washington Post - Oil spill panel calls for tighter federal rules, new fees for drilling By Juliet Eilperin and David S. Hilzenrath

The presidential oil spill commission said Tuesday that the federal government should require tougher regulation, stiffer fines and a new industry-run safety organization, recommendations that face an uncertain future in the new Congress.

Yeah, I hope it all DIES in the New Congress. But this is the answer for those on the Left. More Government. More Government interference, oppression of Freedom, and THEFT of both property and profit. According to this Obama hand picked group:

The panel proposed several safeguards aimed at strengthening regulators’ control over the oil and gas industry, including establishing an independent safety agency within the Interior Department that would be headed by someone for a fixed term in order to insulate the appointee from political interference. Graham said such a person should have “a background of both science and management.”

A fixed term means three things. One, the Administration can wave off ANY responsibility, and or blame. "Hey they did it not us." Two, the person can not be fired easily. Even if a NEW Administration gets Voted in, it will be difficult to get this person out. Three, ONLY the person appointing them, have a say on who they are. No elections, no consequences for the Choice. No Debate. Just Bam! Here they are.

It also called for funding the regulatory agency that oversees offshore drilling, the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), with fees from the companies who are tapping into the nation’s petroleum resource.

Yeah, good luck with that one. Not to mention this is a sad statement in of itself. "with fees from the companies who are tapping into the nation’s petroleum resource," Too bad it's not AMERICAN Companies tapping into AMERICAN Resources. As far as hitting foreign companies with new fees and "regulations?" They really will not do much. We are not going to get our own, which means we have to rely on OTHERS for our Energy needs. Not to mention also, they really do not care what the OTHER Countries Companies do. They really don't. If one of them have a Spill, we just blame THEM. Not Government's fault. They were not following our Rules. Meanwhile they will reap the benefits from them Drilling. While talking about chasing the "Green Dream" here.

I agree whole heartily with Karen Harbert of the U.S. Chamber who said this.

“It is now time for our government to let these companies get back to work and supply our nation with needed energy, jobs and revenue. There is no valid reason to continue the delay.”

I don't know. Logic, commonsense, and reason. I do not have too much faith that this Administration will follow her advice.
Peter

Sources:
The Washington Post - Oil spill panel calls for tighter federal rules, new fees for drilling

The Oil and Natrual Gas Industry, By The Numbers

Talk about numbers.

Hey folks,

Just yesterday, I talked about the Obama Administration, by the numbers. A lot of numbers, things are worse in this Country as a result. Oh, Obama and Crew are HAPPY with most of what they have achieved. However, America is far worse off for it.

Yesterday, the President of API, Jack Gerard, gave a Speech at the Newseum in Washington, D.C. Talk about numbers.

57,000 new jobs in Pennsylvania and West Virginia alone,

$95 million each day in taxes,

9.2 million American jobs.

That includes 2.1 million workers directly employed exploring, producing, refining, transporting and marketing oil and natural gas.

7.1 million workers whose jobs support the oil and natural gas industry.

A POSSIBLE $1.7 trillion in Government Revenue

A POSSIBLE 340,000 new American jobs and economic benefits that could add up to $34 billion to our GDP by 2015 in greater Canadian Oil Sands production.

A POSSIBLE 100,000 new jobs, millions in tax revenues, and royalties and lease payments topping $2 billion a year in increased Oil Shale Production.

How can we get there? How can we tap into these numbers? We can get there in two steps. First is access.

For starters, there are vast reserves of domestic resources that are currently off limits to exploration and production: billions of barrels of oil and trillions of cubic feet of natural gas … onshore and off. And those estimates are most likely conservative given our past experience and new advanced technologies.

Basically, the Federal Government needs to get out of the way. With this Administration's Policies, we have seen the exact OPPOSITE effect.

We’ve already seen some companies send their idled Gulf rigs to waters off the coast of Africa and South America—and other companies are discussing plans to relocate their Gulf rigs to places where exploration and production continue.

And as these rigs leave us, so do the jobs and revenue they create.

A policy environment that creates and sustains a level playing field for all energy sources will help drive us to recovery. Anything else will idle it, taking revenue lower and leaving policymakers with fewer options.

So the way I see it, our policymakers are at a crossroads. They face two choices: One leads us forward and promotes jobs, investments, revenue and growth… or one that takes us backward, threatening the progress we’ve made and closing the door on future opportunities.

Look, even with all the "Green Dream" talk, ALL the projections show that Oil and Natural Gas will STILL fuel over 50 percent of all Energy Needs World Wide all the way up to 2035 and beyond. Second is Taxes.

Our industry pays an effective tax rate of 48.4 percent of pre‐tax, net income – nearly double what other industries pay. In 2008, it paid more than $95 billion in income taxes alone.

In the long run, the negative economic consequences of higher taxes more than offset any short‐term tax revenue gains … an additional $5 billion in new, annual taxes—similar to what’s been proposed by the administration, or some in Congress—could actually decrease cumulative government revenue by $128 billion by 2025.

And even worse, higher taxes could result in the loss of tens of thousands of jobs between now and 2025. Right around the corner, in 2014 alone, we’d lose 170,000 of these jobs.

Contrary to standard Liberal Ideology, More Taxes DECREASE Revenue. Over tax a Company, or Individual, they will find ways around it, causing less Revenue. That's just Reality.

Economy 101. Oppressive Taxation and Regulation MAKES the powers to be in Industry, Corporations, and or Individuals, go into self preservation mode. If that means cutting Jobs, to keep the Bottom Line Profitable, then Jobs get cut. Companies, and entire Industries go elsewhere. The Poor and Middle Class are left holding the Bag.

If you DECREASE Taxation and Regulation, Companies, Industries, and Individuals, have MORE money. They expand, create more Jobs, and give Raises and Bonuses. They Produce more and better Products and those Goods and Services cost LESS. The Poor and Middle Class profit and benefit the MOST from this type of policy.

If it costs me, $5.00 to create ABC. I sell it for $10. I sell a hundred. The Gov. gets $2.00 a piece. They just made $200.00. I made $300.00. Now someone in Government says. OK, We are going to reduce your Regulations Cost and Permit, Inspections, ETC. Now it cost me $3.00 to make. Then they say. OK, we will cut your Taxation by 50 percent. Now I can sell it for $6.00. I now sell 1000. Because it only cost people who want it $6.00. Government gets $1000.00 I make $2000.00, I expand and have to hire more people to make more. If Millions are buying ABC, then I may even lower the cost to $5.00, causing even MORE to sell. Making more for EVERYONE involved including the Government.

But if the Government comes in and says It wants $6.00, and another $2.00 in tax. I no longer can afford to produce ABC. Someone else elsewhere says "Oh, come over here. We will only cost you $2.00 to make, and WE only want .50 cents in Tax." You get the point. The Government and the American Worker lose out.

If we open areas that are currently off‐limits to development, we could create more than 500,000 jobs throughout the economy and generate an additional $150 billion in government revenue by 2025.

Get out of the way Government. I agree whole heartily with him on this one.

The American people sent a message last November. They want lawmakers focused on an agenda that promotes growth. And they want job creation at the forefront.

We want the same things. And we’re committed to working with the administration and the new, 112th Congress to make them happen.

Let me be clear: the role of federal regulators is an important one. But it is Congress’s ultimate responsibility to pass comprehensive legislation that will enhance our nation’s energy and climate security.

And it is the regulators’ responsibility to implement these laws consistent with congressional intent.

Just scroll down, or if you are reading this elsewhere, click HERE to see Mr. Gerard's Statement in full.

Like I said before, this new House has an opportunity, and an obligation. They MUST do the right things here. They have to UNDO the Damage that has been done by this last Congress, and the foolish agenda driven decisions by this current Administration. Energy, more specifically AFFORDABLE Energy HAS to be included in ANY plan to help the Economy back. Energy costs go up. EVERYTHING goes up. Energy costs go down to affordable for all levels, so does most everything else. It's really NOT an hard concept to understand. It will even INCREASE Revenue to the Government at the same time. Like I said, talk about numbers.
Peter

Sources:
OPNTalk - The State of American Energy Speech

The State of American Energy Speech

The State of American Energy

Jack Gerard – President and CEO, American Petroleum Institute
The State of American Energy Speech Tuesday, January 4, 2011 – Newseum – Washington, D.C.

Thank you very much, Shelby, and thank you, ladies and gentlemen, for joining us here early in the New Year.

I am particularly glad to be talking about something as important as “The State of American Energy” at the Newseum. This building is devoted to the chronicling of events in the world’s history—events that in some cases defined generations, or moments that are part of our identity as Americans. The greatest moments in our history occur when we overcome challenges, or when we recognize and take advantage of opportunities.

In my remarks today, I want to focus on the challenges and opportunities before our country related to energy—and how what we do this year could have a profound impact on our country’s energy future … and with it, our economic prosperity.

And while this particular story has yet to be written for the Newseum, at this moment in time, our options for the future are quickly coming into focus.

Today we’re issuing The State of American Energy. A report that provides our industry’s perspective on energy and economic issues and the way the two are inextricably linked. This report captures the challenges and opportunities ahead of us.

On the one hand, even in this challenging economic climate – one where people are looking for ways to create jobs, boost revenue and spur investment – our industry has a great story to tell. Consider just a few highlights from the last year.

In 2010, oil and natural gas companies created 57,000 new jobs in Pennsylvania and West Virginia alone as part of the Marcellus Shale natural gas development. These are good‐paying, stable jobs that are in high demand right now.

The number‐one ranking in Gallup’s “Job Creation Index” belongs to North Dakota, thanks to its record‐breaking oil production numbers.

Last year, oil and natural gas companies’ investments in U.S. capital projects for this decade hit the two trillion dollar mark.

Finally, this industry provides the U.S. Treasury, on average, with well over $95 million each day in taxes, rent, royalties and bonus payments.

But on the other hand, without policies that encourage the continued safe and reliable production of our domestic oil and natural gas resources, the story will get much gloomier.

Our report contains a wealth of facts and figures about the state of American energy. But its conclusion is this: Energy growth is economic growth. Energy security is economic security. And when we invest in energy, we invest in America.

And today … after a year in which we faced and ultimately met unprecedented challenges … I’m glad to say that the state of American energy has been strong… but it will remain strong only if policymakers chart a course of opportunity and certainty.

With the right policies in place at all levels of government, our industry stands ready to be the engine of economic growth and recovery this country needs in 2011 – and for decades to come.

With a rising world population and developing economies demanding more resources, we will see the global demand for energy rise significantly. But rising energy demand means that economies are growing and that billions of people around the world are ascending out of poverty and gaining access to a better quality of life.

The International Energy Outlook 2010 projects that world energy consumption will grow nearly 50 percent between 2007 and 2035. And based on government projections, oil and natural gas will continue to provide more than half of total U.S. and global energy needs until 2035 and beyond.

These numbers clearly demonstrate that meeting this growing demand for energy of all types—including oil and natural gas—will require more safe and reliable exploration and production … including right here in the U.S.

Our industry supports 9.2 million American jobs. That includes 2.1 million workers directly employed exploring, producing, refining, transporting and marketing oil and natural gas.

The number also includes 7.1 million workers whose jobs support the oil and natural gas industry. Equipment suppliers, construction companies, management specialists and food service businesses are all tied to the industry, and many of them are small to medium‐sized businesses.

Every sector of the economy depends on affordable energy … every business owner, every worker … every household and family member … every consumer depends on affordable, reliable supplies of oil and natural gas.

Who are these 9.2 million workers … and the millions of Americans who benefit from oil and natural gas? You can see some of them if you look around the room. These are images of real people whom we have featured in our new “I’m One” advertising campaign, which launches this week on Capitol Hill—in the Capitol South metro station—and then rolls out as a national campaign to further educate and engage the public on important energy policy issues. The ads feature the workers, the consumers, the homeowners and others who are part of the American story of the oil and natural gas industry.

This is why I mentioned earlier that American energy and the American economy are inextricably linked.

The state of American energy must be strong in order for the American economy to thrive.

How then do we strengthen the state of American energy? For starters, there are vast reserves of domestic resources that are currently off limits to exploration and production: billions of barrels of oil and trillions of cubic feet of natural gas … onshore and off. And those estimates are most likely conservative given our past experience and new advanced technologies.

Accessing these U.S. resources could improve our energy security by making us less reliant on others, generate an additional $1.7 trillion in government revenue over the life of the resources and create hundreds of thousands of new jobs.

In areas where we do have access, we need to responsibly expand production. Natural gas is a good example.

I mentioned earlier that last year our industry created 57,000 jobs in Pennsylvania and West Virginia alone as part of the Marcellus Shale development. That’s good news, to be sure, but it’s just the tip of the opportunity iceberg, since expanding the Marcellus natural gas development could create 280,000 additional jobs and an additional $6 billion in government revenue over the next decade.

Similar success stories are playing out in other parts of the country like Northern Louisiana, Texas, Arkansas and Colorado, where our companies are unlocking huge, new discoveries of natural gas.

We can build and maintain an even more vibrant natural gas sector. With a clean burning, abundant and affordable resource, the political will must be there to make it a reality.

Two more energy sources deserve mentioning. The first is Canadian oil sands. Greater oil sands production, from a friendly, nearby neighbor like Canada, could create more than 340,000 new American jobs and economic benefits that could add up to $34 billion to our GDP by 2015.

The second is oil shale. Increased oil shale production could add as many as 100,000 new jobs, millions in tax revenues, and royalties and lease payments topping $2 billion a year.

And our industry is also researching, developing and marketing alternative and renewable sources of energy, including solar, geothermal, biofuels, fuel cells, hydrogen power and wind energy. We invested $58.4 billion in low‐ and zero‐carbon emissions technologies from 2000 to 2008. That’s more than either the federal government or all other U.S.‐based private industries combined.

We can and should be doing all of these things to improve the state of American energy, and our economy. And we can and are doing them safely.

Last year’s tragedy in the Gulf brought new attention to the risks associated with doing what the men and women in our industry do every day.

In the days and weeks after the incident, I’m proud of the way the industry responded. The industry responded quickly, moving vessels, materials and manpower to the area.

We immediately brought together industry experts from around the world and created task forces to identify ways we could enhance the focus on safety, even before we knew the cause of this disaster.

The task forces’ recommendations are already helping to improve safety through development of new industry standards and through incorporation in new government regulations.

We redoubled our commitment to safety – something we’ve been focused on for the more than 60 years we’ve been in the Gulf—with more than 42,000 wells. We’ve developed the technologies, standards and best practices that have helped ensure that workplace safety and environmental stewardship remain at the forefront of the offshore development process.

And while the strength of our existing system is precisely why incidents like the one last year are rare, there is always room for improvement. That’s why work on advancing safety will never be “done”; we will continually strive to improve our performance.

The commitment to improve safety while we continue to explore and develop our resources must be paramount—for both industry and government—because more domestic production of oil and natural gas both onshore and offshore is critical to jobs for Americans, a stronger economy, enhanced energy security, and will help solve a pressing problem: the federal budget deficit.

On the economic front, the progress we have made and the opportunity for future growth depends, in part, on the policy choices we make now. The right policies … those that create a clear, positive climate for investment … will help us realize gains in job creation and economic growth, generating increased revenues to government. But the wrong policies will put these gains at risk.

Over the past few years, revenues to the U.S. Treasury from lease sales have decreased, due in part to a lack of opportunities.

Our industry is eager to initiate new projects. But without an adequate level of business certainty, with concerns about policies that might curtail this industry’s ability to access new resources, those projects might never get off the drawing board.

Companies need to know they can get access to the domestic resources where oil and natural gas can be developed. They need clear guidelines from policymakers on what is required to gain permits and on the rules for safe and reliable operations. They need a sure process timeline before they can commit the resources, line up equipment and hire the workers they need to get started. But we also cannot keep the industry on indefinite “hold” while the regulatory process is improved.

When questions linger about whether new projects can move forward, where U.S. regulatory certainty is lacking, those projects move elsewhere.

We’ve already seen some companies send their idled Gulf rigs to waters off the coast of Africa and South America—and other companies are discussing plans to relocate their Gulf rigs to places where exploration and production continue.

And as these rigs leave us, so do the jobs and revenue they create.

A policy environment that creates and sustains a level playing field for all energy sources will help drive us to recovery. Anything else will idle it, taking revenue lower and leaving policymakers with fewer options.

So the way I see it, our policymakers are at a crossroads. They face two choices: One leads us forward and promotes jobs, investments, revenue and growth… or one that takes us backward, threatening the progress we’ve made and closing the door on future opportunities.

Choosing the right path requires making the right choices in two critical areas.

The first is access.

I’ve discussed what greater access to our domestic energy reserves would mean for America’s economy. Our nation will require more oil and natural gas for decades to come. A lot of it will come from deep sea wells – and if it doesn’t come from here, then we’ll import it.

This is why we oppose the recent decision by the Department of the Interior to delay the next Five‐Year Plan for offshore leasing, the placing of large areas of domestic oil and natural gas off‐limits, and the slow pace of permitting—both onshore and off—in areas where exploration and production are allowed.

The American people have consistently supported increasing access to domestic oil and natural gas, including resources offshore.

Closing the eastern Gulf and the Atlantic and Pacific coasts to offshore drilling and exploration—and delaying development in Alaska—sends job creation elsewhere … and it closes the door on economic growth.

It lets other countries open – and then widen – a gap in technological expertise, equipment and infrastructure.

Countries around the world understand this. Some are creating the right climate for energy investment – both within their borders and off their coasts – while others are securing global oil and natural gas resources.

We hear much about China and how they’re securing their own energy future.

We can look at Brazil, home to some of the largest offshore oil finds in the last decade, finds that are believed to hold as much as 100 billion barrels of oil.

Brazil recently announced that between now and 2014 it will invest $224 billion to double production by 2020. About 95 percent of that investment will stay in Brazil.

U.S. oil and natural gas companies stand to benefit from this development and could play a role in helping Brazil meet its target. But that shouldn’t be the total extent to which America benefits from increased global energy production.

We should be increasing production here at home; we should welcome new investments; we should be creating jobs and revenue here.

At a time when we are attempting to reduce the deficit and put more Americans back to work, closing off Outer Continental Shelf development opportunities is the wrong choice. And it’s one we will be feeling the effects of for years.

The second area where making the right decision is critical: taxes.

There’s been significant political debate about federal spending levels and government revenues … particularly how to cut spending and increase revenues to pay for important programs.

One suggestion has been to increase taxes on the oil and natural gas sector, or to make oil and natural companies ineligible for certain standard business tax deductions—deductions meant to spur domestic job creation.

U.S. oil and natural gas companies are already an important source of government tax revenues; they pay their share—and more. Our industry pays an effective tax rate of 48.4 percent of pre‐tax, net income – nearly double what other industries pay. In 2008, it paid more than $95 billion in income taxes alone.

Still, some believe that more taxes on the industry equals more money for federal programs.

But today we’re releasing a new economic analysis by Wood Mackenzie that shows why that’s not the case. We’ve provided copies of this analysis on your table.

Here’s what this study shows ‐‐ increasing taxes on the oil and gas industry actually decreases government revenue.

In the long run, the negative economic consequences of higher taxes more than offset any short‐term tax revenue gains … an additional $5 billion in new, annual taxes—similar to what’s been proposed by the administration, or some in Congress—could actually decrease cumulative government revenue by $128 billion by 2025.

And even worse, higher taxes could result in the loss of tens of thousands of jobs between now and 2025. Right around the corner, in 2014 alone, we’d lose 170,000 of these jobs.

However, the oil and natural gas industry can still provide the answer the government is looking for.

If we open areas that are currently off‐limits to development, we could create more than 500,000 jobs throughout the economy and generate an additional $150 billion in government revenue by 2025.

What that says to me is this: We can either take momentum away from recovery or put it behind American prosperity.

We can watch jobs and billions of dollars in federal revenue disappear, or we can welcome 500,000 new jobs and $150 billion in new money.

On election night this fall, one poll showed that 60 percent of voters oppose an increase in taxes on the oil and natural gas industry; 54 percent said an increase could destroy jobs. They were right.

The President’s debt commission will turn a year old next month. It was created to identify ways to improve the country’s financial standing and build a healthier economic future.

Well, there is a way. And here we are.

We are ready, as an industry, to help this country achieve the energy and economic security it needs. But to reach our fullest potential, we must be clear on the kinds of policies that will shape the American economy of the future, and Congress and policymakers at all levels of government make the decisions that will get us there.

The American people sent a message last November. They want lawmakers focused on an agenda that promotes growth. And they want job creation at the forefront.

We want the same things. And we’re committed to working with the administration and the new, 112th Congress to make them happen.

But there is growing, bipartisan concern that regulatory overreach from burgeoning federal agencies will decrease America’s competitiveness and increase the kind of uncertainty that can stall new energy projects … or in some cases, kill them altogether.

Regulators are moving forward with a number of proposals that will impact our industry’s ability to deliver energy resources, could cost millions of jobs, hurt consumers and put U.S. businesses at a competitive disadvantage globally.

Let me be clear: the role of federal regulators is an important one. But it is Congress’s ultimate responsibility to pass comprehensive legislation that will enhance our nation’s energy and climate security.

And it is the regulators’ responsibility to implement these laws consistent with congressional intent.

I’ve spent a lot of time today talking about what could be, or how the oil and natural gas industry is poised to do more for our energy and economic future.

But imagine we were instead looking back at a time when we got energy policy right.

Imagine looking back and pointing to new energy projects and increased production, resulting in new jobs, increased corporate investment and government revenue while continuing to improve efficiency and environmental performance.

Imagine looking back and seeing a policy climate that allowed us to improve our energy security here at home and enhance America’s competitiveness abroad.

The Newseum is dedicated to chronicling the most seminal moments in American history … the way we overcame challenges … or defined greatness.

The story of how we overcome this challenge has yet to be written. But other countries are writing theirs. And the development of new and additional energy sources, both at home and around the world, plays a leading role in their narratives.

Right now we sit at a crossroads.

What we’re faced with today is choosing between the future we want to see – with jobs and economic growth and revenue generation as part of it all.

Or the future that will be handed to us if we continue on the current course – one that involves more imports, more expensive energy, more deficits.

Let’s make the right choice and set the right agenda. And then, let’s get right to work on a story we can all be proud of … and one that will be chronicled here in this wonderful building as an American success story.

I believe that we can and I’m confident we will.

Thank you very much.

Sources:
API Newsroom - The State of American Energy Speech, PDF

Bad Economy, High Energy Costs, Losing Jobs,

What to do what to do?

Hey folks,

Happy Tuesday to you. Seriously, Bad Economy, high Energy Costs and growing higher, losing more and more Jobs? The "Official" number of Unemployment is 9.8 percent, which EVERYONE knows and ADMITS to the fact, it is actually 17 percent. Even some in the Obama Administration. So what to do, what to do?

Well, the LOGICAL and REASONABLE, some would even say the INTELLIGENT thing to do, would be to use our resources and increase Jobs and Supply of Energy to DECREASE Costs and HELP the Economy in the process.

Think about that. It's amazing. Is it not? ONE thing. ONE. Bring down the cost of Energy. Bring down the unemployment number. Or at least ADD somewhere around 57,000 high paying, long lasting, REAL Jobs. Add Billions if not TRILLIONS to the Local and Federal Government Revenue stream. Which would decrease the Deficit? ONE thing. Just ONE could and WOULD do all these things.

So what does the Obama Administration do? The EXACT OPPOSITE! December 1st, 2010, Obama and Crew came out and said NO NEW Drilling. Period. For some fictitious 7 year period. According to Boston.com - White House won’t expand offshore drilling

WASHINGTON — The Obama administration announced yesterday that it had rescinded its decision to expand offshore oil exploration into the eastern Gulf of Mexico and along the Atlantic Coast because of weaknesses in federal regulation revealed by the BP oil spill.

Interior Secretary Ken Salazar said that a moratorium on drilling would be in force in those areas for at least seven years, until stronger safety and environmental standards were in place. The move puts off limits millions of acres of the Outer Continental Shelf that hold potentially billions of barrels of oil and trillions of cubic feet of natural gas.

And what happened right after this announcement? That's right, the price of Gas started to climb. Now $3.00 a gallon MANY places here in Sunny Florida.

The rest of this story is Gobbledygook. "We are thinking." No they are not. That is part of the problem. "We need to learn." No they are not even interested. They have an Agenda and they are sticking to it. "But we are looking at another potential sites." Complete and Utter BS. They are SAYING they are, but TALK is not going to do much. They will delay ANY new Drilling, or Production, by simply saying that they need to make sure it's safe with this and that study that could tie EVERYTHING up for YEARS to come. Meanwhile YOU will be losing YOUR Job. Paying $4.00 plus a Gallon of Gas. Skyrocketing Electric, Heating Bills, Food Costs, ETC.

Meanwhile China, and OTHER Foreign Government will be Drilling just fine off our shores. No problem with them using OUR resources to create Jobs for THEIR People and Increase THEIR Supply, and lower THEIR Costs. Drilling without falling under the insane Obama Regulations and Controls I might add. Meanwhile WE will have to PAY THEM more to use what WE should be getting for ourselves.

Like $4.00 a gallon? Like Sky High Energy Costs. LIKE Sky High Food Costs? Like High Unemployment? Thank Obama and Vote for him in 2012. This COMPLETELY Asinine decision is just another in a long line of Asinine decisions that depict EXACTLY why he is not fit for the Office of the President of the United States. Either he is completely incompetent, or he is doing this on purpose. Which one do you see as worse?
Peter

Sources:
Boston.com - White House won’t expand offshore drilling