President Barack Obama gave a speech at Georgetown University where he described a general plan to reduce dependence on foreign oil. There were few specifics—the text of the speech published at the Council on Foreign Relations suggests content closer to campaign remarks rather than a solid plan.
Obama did say the U.S. Navy has set a goal of using 50-percent alternative fuels in all planes, vehicles, and ships in the next 10 years. The president also pointed to a large amount of money designated to reduce consumption: [T]he Defense Department has invested $2.7 billion this year alone to improve energy efficiency.” No specifics were provided.
Obama has emphasized producers are sitting on leases—the use it or lose it claim.
The Independent Petroleum Association of America, however, takes issue with some of the president’s claims.
IPAA represents companies that drill 95 percent of US oil and natural gas wells. CEO Barry Russell said actions speak louder than words. In a formal statement, Russell said the Obama administration has put “new burdens” in place in a processs “laden with opportunities to delay or deny access and production…”
Russell did not agree with the president’s position on leases, either. The IPAA CEO said blaming domestic oil and natural gas producers for untapped US resources “is merely an ill-fated attempt to detract the attention of the American people from the president’s own failed energy policies.”
IPAA is not alone in criticizing administration policy. Harvey Gulf CEO Shane Guidry talked to Fox News’ Neil Cavuto recently after Obama praised Brazil’s state-owned oil company’s plans to drill offshore. The New American and other media said Obama told Brazil government officials, “And when you’re ready to start selling, we want to be one of your best customers.” Obama’s administration supported a $2 billion loan to Brazil from the US taxpayer funded Export/Import Bank for offshore drilling.
The US Report featured a column about that loan in 2009. Blue chip media caught on to the story in March, 2011.
Guidry asked Cavuto, “If you’re going to do something for one country, why not do it for yours…?” Guidry also told Cavuto the Brazil deal would do nothing for American companies.
Thousands and thousands of Americans have been put out of work because of the moratorium on drilling in the Gulf.
IPAA’s Russell brought information to light that he says Americans aren’t being told about. Russell said,
“[O]nly seven permits have been issued in the deepwater offshore Gulf of Mexico by the Administration since last spring, and lease sales in these areas have been put on hold. Leases can't be developed if companies don't have the permits necessary to proceed with exploration and production activities, which take several years and billions of dollars to develop. There is also no guarantee that oil and natural gas will be found on all of the land that is leased. If no production is found, the companies already have an obligation to return the land back to the federal government by law. Independent producers reinvest 150 percent of their American cash flow back into American production. Why would producers sit on leases that will not provide them with cash flow that will provide capital for future projects?”
Russell also pointed out the U.S. has more energy resources than many may realize. He said, "America is blessed with abundant energy resources, including a century worth of clean-burning natural gas. As world events sharpen our focus on the need to secure our own energy future, the President has a chance to pivot accordingly and put words into action by getting the Gulf back to work and encouraging the responsible production of our vast natural gas and oil resources. We remain hopeful that this opportunity won't be another missed opportunity for America's future."
Shortly after Obama’s inauguration, his energy secretary suggested Americans paint their roofs white—a populist approach perhaps to energy policy.
The president, however, has never pulled punches about his draconian approach to low cost energy. During the 2008 general election, Obama told media energy prices “would necessarily skyrocket” under his energy policy. US consumers appeared not to take the candidate at his word, but that is one promise he has kept.
The president’s energy policy has also caused food prices to “skyrocket.”
Obama, Energy Policy and Favored Firms
Vitter wants answers on Brazil drilling loan
The US Report
Obama: Energy prices will skyrocket…
(Analysis by Kay B. Day/March 30, 2011)
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The Daily Caller explains Obama's energy secretary's hopes for higher gas prices. Be reminded Sec. Steven Chu is not an entreprenuer or businessman. He's a geeky physicist who is brilliant in his discipline and purely stupid when it comes to Main Street economics. Chu is not alone. Many academics are wonderful theorists but clueless in the discipline we call common sense.
Obviously the administration appears to favor creating jobs anywhere but in the U.S., unless, of course, it's a job for a government worker funded by the US taxpayer.