Gulf of Mexico Production Down, U.S. Oil Imports Up
President Obama gave a press conference today, mostly on the subject of energy.
<<First, we need to continue to boost domestic production of oil and gas.
Last year, American oil production reached its highest level since 2003. Let me repeat that: Our oil production reached its highest level in seven years. Oil production from federal waters in the Gulf of Mexico reached an all-time high. For the first time in more than a decade, imports accounted for less than half of what we consumed.
So any notion that my administration has shut down oil production might make for a good political soundbite, but it doesn't match up with reality.>>
The Institute for Energy Research puts our present petroleum output in context:
<<The President's anti-energy policies are a man-made disaster. Try as he may to deflect responsibility away from his own policies, President Obama can't escape from the simple fact that the actions of his administration have dramatically slowed down domestic energy production. As a consequence, his policies are directly responsible for increasing gas prices.
In 2007, an analysis from the federal government's Energy Information Agency (EIA) predicted that domestic offshore production would be 717.9 million barrels in 2010. As a result of the Obama Administration's policies, it was 600 million. Likewise, the projected onshore production was 132.9 million barrels. Under Obama, it was only 114 million.
Under President Obama's policies, federal land and water production in 2010 was 136.8 million barrels less than was predicted in 2007, or a 16% drop from what was expected.
Oil production on federal lands is expected to dramatically decrease as a consequence of President Obama's anti-energy policies. In 2011, EIA estimates that oil production in the federal Gulf of Mexico will fall by 15 percent. In 2012, it will fall by 26 percent from the 2010 production high water mark.>>
The Obama administration's current policies could easily see GOM production fall by a total of between 400 and 500,000 b/d over the next 2 years for those that are used to thinking about the numbers in those terms.
So the guys in the Bakken had better not let up one bit if they are to offset this loss.
Matter of fact, as total Bakken production increaes, it gets much more difficult to move the dial in those types of unconventional plays.
There will come a point soon whereby just keeping production flat in the Bakken will become a serious challenge.
And it will be impossible if Obama's EPA hounds go after the Bakken producers because of overblown risks related to fracking as they are likely to do.