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  • ilap2004 ilap2004 Mar 12, 2011 11:12 AM Flag

    Gulf of Mexico Production Down, U.S. Oil Imports Up


    Of the more than 30 rigs that were operating in the Gulf of Mexico at the time of the Deepwater Horizon spill, at least 7 have left due to lack of permits. Seahawk Drilling declared bankruptcy due to the inability to obtain permits from the Obama administration.

    But Obama's biggest untruth related to America's potential to develop our own energy resources. Instead of leveling with the American people, Obama repeated a long-discredited canard that is a favorite on the Left:

    "All these actions can increase domestic oil production in the short and medium term. But let's be clear: It is not a long-term solution. Even if we started drilling new wells tomorrow, that oil isn't coming on-line overnight. And even if we tap every single reserve available to us, we can't escape the fact that we only control 2 percent of the world's oil, but we consume over a quarter of the world's oil."

    This is Obama's argument for wasting money on subsidies for inefficient sources of energy like wind and solar. But the argument rests on a blatant misrepresentation.

    That two percent figure is one that you hear all the time from liberals. It refers to the fact that the United States has only two percent of the world's "proven reserves" of petroleum. This is what a character in a Nabokov novel called a "doughnut truth"--the truth, the whole truth, with a hole in the truth. Here is the hole: there is no universal definition of "proven reserves," and "proven reserves" do not represent what Obama called "every single reserve available to us."

    In most countries, Saudi Arabia for example, proven reserves are whatever the government ministry says they are. But in the United States, "proven reserves" is a term of art, defined by the Securities and Exchange Commission. America's "proven reserves" are the sum of the "proven reserves" that our oil companies report, following the SEC's definition, with respect to petroleum located in the United States. Here is the U.S. definition of "proven reserves:"

    PROVED RESERVES. The quantities of hydrocarbons estimated with reasonable certainty to be commercially recoverable from known accumulations under current economic conditions, operating methods, AND GOVERNMENT REGULATIONS. Current economic conditions include prices and costs prevailing at the time of the estimate. Estimates of proved reserves do not include reserves appreciation.

    Emphasis added, for obvious reasons. Liberals like Barack Obama imply that America only has two percent of the world's petroleum, but that is completely false. We only have two percent of the "proven reserves" that are recoverable under current "government regulations" and at current petroleum prices. We could increase our proven reserves overnight by opening up new areas to exploration and development; ANWR is just one of many examples. And our proven reserves increase every time the price of oil rises.

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    • Ilap, the dumbest Republican party line of all time was drill, baby, drill. Anyone who thinks we can drill enough to be self sufficient in oil is dreaming. The most the U.S. lost with the drilling ban per one estimate is 0.2 mbpd which is jack squat.

      Party hacks like you just want to blame Obama for everything and not solve anything.

      The easiest and cheapest solution to our energy problem is increased use of natural gas in our vehicles. It costs $10,000 to convert our vehicles so they can accept natural gas versus $800 in Brazil and Mexico, and the difference in the cost of conversion is completely due to red tape.

      If the politicians weren't slaves to the oil companies, this would have been done already. It is monumental stupid that this has not happened.

      So once more you are blaming Obama and the Dems, when in fact, our energy problems have been created by ALL politicians.

      The offshore drilling ban and ANWAR are just such fake issues, and anyone bringing them up is stupid as is anyone dumb enough to listen. The U.S. is producing more oil than 2003 and more oil and natural gas than at any time in the last 20 years.

      We need to be using natural gas for our vehicles and wind for electricity. This country produces the equivalent of 5.5 mbpd of natural gas and could do even more if need be. OTOH, we import around 8 mbpd. There is no way that we can drill enough to come up with 8 mbpd. Anyone arguing for drill, baby, drill is a pathetic Republican hack.

      • 4 Replies to docjoe999
      • <<So once more you are blaming Obama and the Dems, when in fact, our energy problems have been created by ALL politicians.>>

        the Obama administration alone owns the policy that is currently in place in the GOM..Including appealing judge's decisions that found the moratorium to be "capricious".

        Similarly, it is the Obama administration that has singularly set the EPA hounds after just about anything hydrocarbon related.

        An agenda?

        Sure, it's about justifying a green agenda.

        I'll let you take it from there.

        Just keep in mind how the Green agenda has political strings and favors certain projects in terms of who is politically connected rather than in an objective and competitive manner.

        Not exactly a great way to get the best bang for your green energy buck.

        Instead it should be tax credits for R&D and less govt deciding how money is spent and let the market allocate the spending.

      • Doc - How do you think you produce natural gas? Yes, you have to drill wells.

        I'm not promoting or knocking either political faction; we're all equally responsible for our energy dependency.

        But, 'drill baby drill' was espousing the utilization of all our hydrocarbon resources, not just oil.

        Further, evolution in seismic, drilling and production capabilities have given real evidence that we're sitting on immense and recoverable hydrocarbon resources.

        So the hack is anyone that doesn't understand that there are enough untapped resources that drilling can produce.

    • Huh?

      Just what actions has Obama taken to encourage domestic oil production?

      That's a bald -faced lie if I've ever heard one.



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