Mon, May 28, 2012, 9:37 AM EDT - U.S. Markets closed for Memorial Day

FACT CHECK: Obama, GOP spin recent energy stats

FACT CHECK: Dueling claims on Obama's energy record ignore production boom and reasons for it

WASHINGTON (AP) -- You wouldn't know it from the Republicans, but these are boom times for American energy.

And you wouldn't know it from President Barack Obama, but he has very little to do with that.

From the presidential campaign trail to Congress, Republicans have been hammering Obama for locking up the nation's energy resources. GOP presidential frontrunner Mitt Romney, for one, accuses Obama of pursuing policies "that keep us from using our own energy."

But such complaints don't hold up. The U.S. produced more oil in 2010 than it has since 2003, and all forms of energy production have increased.

Obama is not only hoping that simple, rock-solid statistic will silence his GOP critics, he's angling to get some credit for the trend as he navigates a tricky re-election campaign. But he oversells the government's influence on the industry and ignores the fact that many wells coming into production were planned years ago, before he was president.

"We've opened millions of new acres for oil and gas exploration," Obama bragged in recent, multiple speeches. "Right now, American oil production is the highest it's been in eight years."

Data collected by the Energy Information Administration, an independent statistical arm of the Energy Department, are on Obama's side, at least when it comes to pushing back against comments like those heard in the Republican campaign.

"We have an energy policy that doesn't take advantage of our natural resources," Romney said last month. "That makes no sense." Republican rival Newt Gingrich says Obama's "anti-American energy policies are killing jobs and making us all poorer."

Besides the upward trend for oil, more gas has been produced in each of Obama's three years in the White House than any other year since 1936, thanks in large part to a boom in the production of natural gas from shale and other hard-to-reach sources.

Mining for the radioactive ore that fuels nuclear power plants has also risen every year under Obama. And no other president has seen more energy produced from renewables, which include hydroelectric power, solar, wind and biofuels.

Coal mining is also on the rebound, after declining in 2008 and 2009 due in large part to the weak economy and milder weather reducing electricity demand.

In speeches and his first campaign ad, Obama also points to the nation's reduced dependence on foreign oil. But the energy information agency says that the decline began in 2005 and comes from a variety of factors — among them the recession, high gas prices that dampened driving and changes in efficiency and consumer behavior that pre-date the Obama administration.

Even if Obama's policies aren't the cause for these trends, the data certainly make it harder for Republicans — and the oil and gas industry — to substantiate their claim that his policies have dampened energy production.

Lynn Helms, head of the North Dakota Department of Mineral Resources, has watched oil production triple in his state in recent years thanks to new drilling methods, hydraulic fracturing and high oil prices. He says federal policies neither help nor hurt.

In fact, a recent report by the energy information agency projects oil and natural gas production in the U.S. will continue to climb over the next eight years, reducing oil imports and making the U.S. a net exporter of natural gas.

But that same report provides ammunition for Republicans, because it predicts that in the short term, oil production in the Gulf of Mexico, where the Obama administration placed a moratorium on new deep-water exploratory drilling after the Gulf oil spill, will show a decline in 2011 and this year before rebounding later.

In the face of rosy production numbers, Republicans and the oil and gas industry focus on federal lands, because that's where the government controls access and permitting to drill. There, Obama's record is mixed.

"He is implying it is because of his actions that it is happening, and frankly, nothing can be further from the truth," said Rep. Doc Hastings, R-Wash., who heads the House Natural Resources Committee. "Where is the production coming from? It is coming from state and private lands," where the government has little control.

Soon after Obama took office, the Interior Department rescinded 77 leases in Utah because of their close proximity to national parks, later reinstating 17 of them.

Then weeks before the 2010 Gulf oil spill, Obama said he would consider expanding drilling off the Virginia coast and Alaska, only to scrap or delay those plans after the spill. And just last week the Interior Department, after completing a preliminary environmental review, said it would offer up thousands fewer acres for oil shale development in three Western states than President George W. Bush had.

Partly to respond to Republican criticism and higher gasoline prices, Obama extended leases impacted by the post-spill moratorium, called for annual lease sales in the National Petroleum Reserve in Alaska, and has offered or plans to offer up much of the Western and Central Gulf, and some waters off the Alaskan coast, to oil and gas companies. These steps could help boost production. And the president also has struck deals with automakers to boost fuel efficiency, which will help reduce future gas consumption.

___

Follow Dina Cappiello on Twitter (at)dinacappiello

 

14 comments

  • BlueTea  •  Newark, Delaware  •  3 months ago
    Because far too many Americans lack the intellectual curiousity to understand issues and prefer their "news" in dumbed down 30 second sound bites, the level of discourse on energy and oil prices is a sham.

    FACT : The US cannot significantly impact the price of oil and by extension gasoline. We can do far more the lower our gluttunous demand ( 19 million barrels a day --- 22% of global prodcution) than we can to incrementally domestic supply ( 8 mbd including crude and related liquids).

    The US last had the ability to impact the price of oil way back in 1970 when we had enough supply capacity to cover our domestic demand AND hvae enouch excess capacity of cheaply proudced oil to dump on world markets to exert downward pressure on price. Interestingly, while we had thiat ability in the 50's , Iran nationalized its oil and tried to sell at a higher price. Back then, our companies cooperated sort of like a cartel and dumped oil on the global market at lower prices and Iran could not sell theirs at a higher price.

    Today, we struggle to produce 8 million barrels a day (MBD) while we consume about 19 MBD. For the first time in over 20 years, we have increased our daily output the past 2 years because there have been about 200 new wells drilled in The Bakken formation every month in Northe Dakota and Montana. There has also been an explosion of drilling in Texas. At the same time, we have lowered our daily demand down from 22MBD that existed before the great recession.

    Simply supply and demand you think ? Well we have lessened our demand while increasing our supply and prices have STILL gone up. You really need to think of this as a global commodity.

    People sound foolish when they say we have "plenty" of oil. We do not. You must try to understand the technical and economic limitations of incrementally increasing our DAILY output. It is impossible for us to come close to producing 19 MBD - let alone the 88MBD that the wrold consumes.

    We really can't. GIve this a negative review becasue you don't like it - but it is 100% true.

    Other are right in noting commodity speculators have gummed up the whole picture and oil prices are largey out of anyone's control.
    • GodMan101 3 months ago
      There's no way to drill 200 wells in The Bakken formation every month in North Dakota and Montana.
  • TooTall  •  Peoria, Illinois  •  3 months ago
    Spin ? How do you Spin the fact ,that he loaned BILLIONS to wind energy company's now broke ? Spin ?
    • Saxon 3 months ago
      Which wind company are you talking about? Never heard such a thing!
    • stan 3 months ago
      see the spin worked
  • American Patriot  •  Chicago, Illinois  •  3 months ago
    Lying sack of you know what! You are nothing but shameless hacks propping up a failure in the WH.
    Oil production only went up because of drilling with new techniques in N.D., WY, etc. No new fields have been opened of our coasts or in AK.
    Coal sector is dying thanks to EPA. Any idea how many mines went under just in the past couple of years?
  • Jaes  •  3 months ago
    Wow we produced more oil in 2010 than 2003. We still produce 40% less than we did in 1985.
    • stan 3 months ago
      actually its 1970 was the highest year of production the problem with oil is that it runs out we also use about 25 mill a day so its kind of hard to keep up.
  • Ray  •  3 months ago
    "FACT CHECK" Really!? The obama truth squads are contempary versions of the firemen in Ray Bradbury's "Fahrenheit 451"!!!!!!
    • CougarMan 3 months ago
      LOL...nice comparison, and completely TRUE!!!!!!!!!!!!
  • Ray  •  3 months ago
    When obama reads this article he is going to be pizzed off. With him doing all he can to cut domestic energy production, somehow someone managed to eke out a slight increase. How is he going to get the $5.00/gallon gas that HE SAID THAT HE WANTED if this continues!
    • GodMan101 3 months ago
      When did Obama say he wanted $5.00/gallon?Where's the report?
  • 101 viper 1  •  3 months ago
    he's counting on the welfare people and srcew balls to bail him out.
  • Al Gore's Robot  •  3 months ago
    He can no longer blame Bush so now its the Chinese fault. That is why he loves the killing in Syria and a unstable middle east. He gets to blame whole countries.
  • Al Gore's Robot  •  3 months ago
    My response to ole purple lips is. If you are doing such a great job why is gas, food, clothing, taxes, unemployment, homelessness so high?
  • Dave Dixon  •  Syracuse, New York  •  3 months ago
    Obama can say whatever he wants, and his brain dead followers can continue to believe whatever it is he says today, no matter how different it is from what he said yesterday. The rest of us realize that the he promised skyrocketing energy costs and appointed a Secretary of Energy who thought $7 a gallon for gas was too cheap and it should be more. Let's hope that by November there is enough of us to correct our serious mistake named Obama.
  • GodMan101  •  3 months ago
    They think all they'd have to is talk.It's gonna take more then mere talk to get me to side with them.And when I said side with them,I'm talking about both parties.
  • Saxon  •  New York, New York  •  3 months ago
    I wonder how any person (applies also to a presidential candidate) in a capitalistic economy can claim that the price of a commodity will be for example $2.50/gallon. That you could only do in a communist country. Newt explain to me, how? You make it sound like a fact and no way you can guarantee that. If the global economy gets to the gowth we would like it then the gas price will go up no matter what.

    Remember supply and demand?

    Pick your poison, job or cheap gas!

    And stop lying like about presidential powers and capabilities.
  • Ted Spiro  •  3 months ago
    Oil production is way up since Obama took office. Time to make the oil companies the whipping boy, force them to drill and remove the oil on existing leases that they idle or cap. If history is right gasoline should be $4.80 to $5.30 in 2020, way to many new drivers in the world in Asia
  • Ray  •  Olympia, Washington  •  3 months ago
    Doc Hastings is right. They didn't link to the report but here it is.
    http://www.eia.gov/forecasts/steo/pdf/steo_full.pdf
    Another thing no one talks about, is what is a proven reserve? Proven reserves under SEC rules are wells that are producing. All those wells capped under Carter are not counted because they require equipment to be placed on the the wellhead to produce so they are no longer counted. Obama is lying and people are still believing those lies. Check the definitions of developed/undeveloped and proven/unproven. We have more oil than any other country. Because of the way they are required to count. By this counting method the Dems are right we only have 2% of the world's oil reserves but it's smoke and mirrors. Read the report on how the world reports its reserves.
    http://www.spe.org/industry/docs/OGR_Mapping.pdf
 
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