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These charges, according to a Wall Street Journal story April 18, are being supported by Senate Democrats who are always ready to spoil technological advances. Industry says there’s no evidence these fluids have found their way into water supplies. Nearly 800 million gallons of drilling fluids have been pumped deep into the earth in the past few years.
The White House defensively bragged that last year U.S. oil production reached its highest level since 2003. Obama apparently was unaware that it takes years for a leased area to begin producing. So, the credit for last year’s rise really goes to the Bush administration. Once again the administration had its facts wrong.
The Left seems tied to the stake of green energy, even though it holds little promise today or in the foreseeable future. Green energy, be it windmills or solar panels, exists only because the Obama administration is causing the cost of its competition to soar and because Obama has dumped billions of dollars into the pockets of his cronies to subsidize green projects.
But for the immediate future, U.S. oil and gas companies are a major force in our economy. “These companies produce most of the nation’s energy, put millions of people to work and deliver billions in taxes and royalties to our government.” as American Petroleum Institute President Jack Gerard pointed out.
The Wood MacKenzie study looked ahead. It said increased access could by 2025 create 530,000 jobs, deliver $150 billion more in tax, royalty and other revenue to the government, and boost domestic production by four million barrels of oil equivalent a day….Raising taxes on the industry with no increase in access could reduce domestic production by 700,000 barrels of oil equivalent a day (in 2020) and reduce revenue to the government by billions of dollars annually.
Although more access would eventually replace oil imports, it would not necessarily drive gasoline down to dime-store prices, an API senior manager explains. “We are in a global market for crude oil. Even if we were entirely self-sufficient in crude oil, the price of that crude would be determined by all the thousands of buyers and sellers in the world’s market, not just by us…All we know for sure is that the benefits—jobs, tax revenue, energy security—would be greater.”
Strident environmentalists have long predicted that we will soon be running out of oil. To the contrary, over the past 30 years, the world’s proven reserves have increased 130 percent.
Some Democrats also are calling for a “use it or lose it” policy regarding oil and gas leases. They claim companies are sitting on scores of leases that could be used to search for oil. Obama said in a speech that the industry “holds tens of millions of acres where its not producing a drop.” But the problem is not with leases. It’s with permits. Permits have been tied up with over-burdensome regulations. Again, Obama speaks with a forked tongue.
Adding a spit in the face to industry, the Administration saw fit to lend $2.84 billion to Columbia for an oil refinery, it was revealed April 19. According to reports, the money would go to Reficar, a wholly owned subsidiary of Ecopetrol, the Columbian national oil company. This is part of a $5 billion refinery upgrade project supplying petroleum, products for domestic and export purposes. Who knows what energy misdeeds lie ahead?
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