Video: Drilling permits on federal land declining under Obama

posted at 10:25 am on March 27, 2012 by Ed Morrissey

This morning, we have two videos to show you.  They are completely unrelated.  Totally, fully, and undoubtedly unrelated.  First, via the Right Scoop, Fox News takes a look at the rate of issuance for drilling permits on federal land over the last five years, and discovers that, to no one’s great surprise, the Obama administration has issued far fewer permits than George Bush — perhaps as much as a third or more less:

Next — and did I mention that this is totally unrelated? — WJZ in Baltimore reports that gas prices have not peaked at all, but will start shooting upward again this spring and summer:

AAA says April is when the East Coast switches from winter fuel blends to the more expensive summer fuel blends. And for drivers that means topping off already abnormally high prices.

“What we’re about to see, the increases will just make it even worse but these are typical increase we would see seasonal,” said Ragina Averella, AAA spokeswoman.

Experts expect prices to jump 10 to 20 cents over the next few weeks before spiking in mid-May at around a record-breaking $4.25 a gallon.

“I actually expect it to go high,” Walter said. “I think $4.50 to $4.70 a gallon isn’t impossible.

But the slowdown in permit issuance for drilling on federal land is totally and completely unrelated to the price of gasoline.  The White House keeps telling us that every time the subject comes up.  As we know from our Acadaemia Institute economics lessons, increased supply never lowers price.

So, enjoy the videos, even though they are entirely separate and unrelated subjects.


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Thank Gaia for Sylvester Howard Roper.

Bishop on March 27, 2012 at 10:28 AM

Ed, admit it, the guy is a commie.

celtic warrior on March 27, 2012 at 10:28 AM

Unexpectedly!

WhatNot on March 27, 2012 at 10:29 AM

How much of a choco ration increase can I get if I turn you in, Ed?

BobMbx on March 27, 2012 at 10:30 AM

Gas prices are still going up in my neighborhood. They just hit $3.89/gal a few days ago. The highest average price I’ve ever seen them get around the Houston/Katy area was $4.09 which will likely be eclipsed sometime in April.

Doughboy on March 27, 2012 at 10:31 AM

I still can’t believe this asshat is trying to take credit for drilling on private land. Wait…yes I can.

Kataklysmic on March 27, 2012 at 10:31 AM

Algae!!!!!!!!!!!

Bitter Clinger on March 27, 2012 at 10:31 AM

Another day, another lie from Team Obama exposed.

Just last week he told us that we were drillin’ everywhere and oil production has gone up, up, up under his administration…

298 days to go…

Lord help us.

coldwarrior on March 27, 2012 at 10:33 AM

Actually, Ed, it’s not really nice of you to post videos of “totally unrelated” content on the same thread. Our liberal friends’ can’t concentrate on more than one thing at a time.

Bitter Clinger on March 27, 2012 at 10:34 AM

But dear leader says more drilling under in his administration

/

Liar!

cmsinaz on March 27, 2012 at 10:35 AM

He kissed the Saudi sheik’s ring. What did you expect him to do, fight the oil prices down?

Archivarix on March 27, 2012 at 10:37 AM

That’s OK…
We have coal as a fall back plan…

Electrongod on March 27, 2012 at 10:40 AM

If Obama were trying to do permanent damage to this country, how would he have acted any differently than he has?

lorien1973 on March 27, 2012 at 10:40 AM

We have coal as a fall back plan…

Electrongod on March 27, 2012 at 10:40 AM

And that’s a BFD.

lorien1973 on March 27, 2012 at 10:40 AM

According to Ricky Santo we might as well vote for Obama in 2012. I disagree.

hanzblinx on March 27, 2012 at 10:41 AM

unrelated

You keep using that word. I do not think it means what you think it means.

LoganSix on March 27, 2012 at 10:41 AM

$4.49 by me. i live in the burbs just outside Chicago.

GhoulAid on March 27, 2012 at 10:41 AM

Well, okay, but are all those Bush issued permits actually being drilled? Obama and the established oil companies have the same desire to see more expensive fuel prices, and they don’t want any new permits issued, despite their public face.

Buddahpundit on March 27, 2012 at 10:42 AM

I miss the days when the only controversy over a Democratic President and “drilling” was stains on a dress and a cigar. Sad how far we’ve gone down the tubes even from that mess.

search4truth on March 27, 2012 at 10:43 AM

We don’t need to drill…
We have Keystone….

This would be funny if it wasn’t real..

Electrongod on March 27, 2012 at 10:44 AM

Well, okay, but are all those Bush issued permits actually being drilled? Obama and the established oil companies have the same desire to see more expensive fuel prices, and they don’t want any new permits issued, despite their public face.

Buddahpundit on March 27, 2012 at 10:42 AM

Yeah, those eeeeeeeevil oil companies.

Bitter Clinger on March 27, 2012 at 10:45 AM

there may be more rigs drilling but they are

1) on private land

2) controlled by free enterprise – nothing to do / inspite of Obama

3) oil shales wells, which have much lower rates of production, skew the real key issue of production not rig count

look at the production in the Gulf of Mexico
it is down 17% from 2010 with very little current drilling to support it

further regulations will only affect this more drastically

audiotom on March 27, 2012 at 10:46 AM

But…but…butt…I saw him on all the network TV newscasts for several days on the topic of oil drilling… calling the “opposition” a bunch of liars! People were clapping and cheering!
What…WHAT! STOP! NO!

KOOLAID2 on March 27, 2012 at 10:51 AM

lorien1973 on March 27, 2012 at 10:40 AM

Can I get a T-shirt?? :-)

coldwarrior on March 27, 2012 at 10:52 AM

I eat oil, and drink gasoline.

Liberal4life on March 27, 2012 at 10:57 AM

KOOLAID2 on March 27, 2012 at 10:54 AM

For nuclear to play a greater role, either it must get cheaper or other ways of generating electricity must get more expensive. In theory, the second option looks promising: the damage done to the environment by fossil fuels is currently not paid for. Putting a price on carbon emissions that recognises the risk to the climate would drive up fossil-fuel costs. We have long argued for introducing a carbon tax (and getting rid of energy subsidies). But in practice carbon prices are unlikely to justify nuclear. Britain’s proposed carbon floor price—the equivalent in 2020 of €30 ($42) a tonne in 2009 prices, roughly four times the current price in Europe’s carbon market—is designed to make nuclear investment enticing enough for a couple of new plants to be built. Even so, it appears that other inducements will be needed. There is little sign, as yet, that a price high enough to matter can be set and sustained anywhere.

The Economist Mar 10th 2012

Link

Different area of energy consumption, however same thought process.

sublibertate on March 27, 2012 at 10:54 AM

Thank you President O’bama.

crr6 on May 1, 2011 at 10:45 PM

Del Dolemonte on March 27, 2012 at 10:55 AM

If Obama were trying to do permanent damage to this country, how would he have acted any differently than he has?

lorien1973 on March 27, 2012 at 10:40 AM

He could force people to pay for their own contraception, duh. I have it on good information that if we ask chicks to pony up their own $6 a month for generic birth control pills at Target that the universe will implode.

Kataklysmic on March 27, 2012 at 10:55 AM

If you extrapolate the price increase from Jan 09 to now, out to 2016, if Obama gets a second term, gas would be $6.96 a gallon. How about some PAC ads featuring that?

talkingpoints on March 27, 2012 at 10:56 AM

Last time I checked, $3.99 here in Toledo. But that was a few days ago. Good bye, family reunion in Vermont this summer.

rbj on March 27, 2012 at 10:57 AM

Just last week he told us that we were drillin’ everywhere and oil production has gone up, up, up under his administration…

coldwarrior on March 27, 2012 at 10:33 AM

He wasn’t lying. We (as in taxpayers) are drilling everywhere….mostly off the coast of Brazil though

Ditkaca on March 27, 2012 at 10:59 AM

And we haven’t forgotten this one either Barry:

WaPo: Why is Obama pursuing a “Drill, Brazil, Drill” strategy?

“All of the above”, outside of the U.S. = dependency?

Rovin on March 27, 2012 at 10:59 AM

You all think that the Open Mic comment “The One” made the other day was about Nueclear arms. It wasn’t. It was about more drilling. See what he meant to say to Medvedev was that after the election, he’d have more flexibility to “Drill, baby drill”.

Yeah, yeah, that’s it, that’s the ticket.

dirtseller on March 27, 2012 at 11:01 AM

Every gas station around here in downtown San Diego is already $4.69 or higher. For regular.

Borgcube on March 27, 2012 at 11:03 AM

Del Dolemonte on March 27, 2012 at 10:55 AM

That one will never get old.

Lost in Jersey on March 27, 2012 at 11:03 AM

Obama’s speech last week while on federal lands in New Mexico didn’t do much to impress the people trying to drill on federal lands in New Mexico. That’s because they know the current permit situation.

The Baker Hughes Excel file of U.S. monthly drilling averages by state highlights the problem. If you look at the numbers for New Mexico for 2006-07-08 and then for 2011, they’re not only stagnant, in some cases the month-to-month totals of active drilling rigs are down from 2006′s numbers. Most of those rigs are in Lea and Eddy counties, which are part of the Permian Basin oifield New Mexico shares with Texas. But if you look at the Baker Hughes numbers for Texas District 8, which is the Permian Basin, the 2011 rig totals on the private and state-owned lands in Texas’ counties is double what the numbers were in the 2006-08 period.

District 8 averaged 249 active rigs per month in 2011, versus just 111 in 2007. In contrast, all of New Mexico averaged 78 active drilling rigs in 2007, and in 2011, the state’s month average was 79 rigs. So you’re dealing with the exact same oil and natural gas basin, but on the Texas side drilling activity in four years went up about 125 percent, while on the federally-owned lands in New Mexico, drilling activity in that same span is up just over 1 percent (part of that increase is due to new fracking techniques making the southwestern edge of District 8 more viable for new shale extraction methods, but other areas of the Permian Basin in Texas that have been long-term oil plays have also see sharply higher drilling activity in ways that the BLM land in New Mexico under Obama has not).

jon1979 on March 27, 2012 at 11:13 AM

The true Obowma legacy is the Keystone pipeline FROM nowhere.

A spigot without a supply.

dthorny on March 27, 2012 at 11:16 AM

I take it, when Chitcago leaders proposed adding their 10%+ sales tax to gas, they really did convince the typical Chitcago resident that only the rich would pay?

Thank Gaia you chumps didn’t elect the ex-Republican over the certified fraud.

MNHawk on March 27, 2012 at 11:20 AM

More important than drilling’s effect on gas prices, yesterday Bernanke indicated a “more accommodative” monetary stance. In other words, more printing. Say hello to $5 gas as well as food and all other commodities.

voiceofreason on March 27, 2012 at 11:24 AM

as well as higher priced food….

voiceofreason on March 27, 2012 at 11:25 AM

That’s OK…
We have coal as a fall back plan…

Electrongod on March 27, 2012 at 10:40 AM

Who is this “We” of which you speak?

Difficultas_Est_Imperium on March 27, 2012 at 11:25 AM

All according to plan…

Obama: My Plan Makes Electricity Rates Skyrocket

And still people voted for him to “make history”.

*facedesk*

Yakko77 on March 27, 2012 at 11:26 AM

I am leaving sticky notes on the gas pumps when I fill up my tank. They say anything from “it is your fault barack” to “Is this the hopenchange you voted for?” to “Supply and demand determines price. Quit killing the supply barack!”

Maybe that will sway people when they gas up as well.

DuctTapeMyBrain on March 27, 2012 at 11:28 AM

$4.29 for regular in Sounthern California……of course, Bushdidit.

jon1979 on March 27, 2012 at 11:13 AM

Obowma’s EPA has prevented drilling new water injection wells in SoCal over the past two years. This policy has resulted in a loss of oil production and revenue to the state and local economy, all due to concerns over contaminating the fresh water table with frac fluids. We have used fraccing at our company for over 30 years without any contamination issues

The rest of the story? We drill wells offshore in the Pacific Ocean, the worlds largest salt water ocean.

http://en.wikipedia.org/wiki/Water_injection_(oil_production)

dthorny on March 27, 2012 at 11:28 AM

Experts expect prices to jump 10 to 20 cents over the next few weeks before spiking in mid-May at around a record-breaking $4.25 a gallon.

Huh?

It’s at $4.499/gal in Kalifornia right now. Guess we can look forward to $5/gal this summer.

GarandFan on March 27, 2012 at 11:31 AM

Maybe that will sway people when they gas up as well.

DuctTapeMyBrain on March 27, 2012 at 11:28 AM

Leave a note thanking our federal, state and local government for the high taxes on every gallon of gasoline – 65 cents PER GALLON OF GAS in California.

http://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States

dthorny on March 27, 2012 at 11:33 AM

If Obama were trying to do permanent damage to this country, how would he have acted any differently than he has?

lorien1973 on March 27, 2012 at 10:40 AM

He would have actually brought the Olympics to Chicago in 2016. Oh!!!!

FruitedPlain on March 27, 2012 at 11:40 AM

Marxists have such dedication to policies that are irrational and harmful. They don’t care.

The only solution is to vote these fools out of office and have them whine from the sidelines, which is what Obama will be doing for the rest of his sorry life.

EMD on March 27, 2012 at 11:42 AM

dthorny on March 27, 2012 at 11:28 AM

The good thing about the raw Baker Hughes numbers is they show the lack of growth in drilling on the federal lands in New Mexico that are part of the same oilfield that’s in Texas, where the drilling activity (and the concurrent number of jobs) has skyrocketed. During the Bush years, BLM land drilling activity was above the totals in Texas, in part because the shallowness of the formations containing the oil runs southeast to northwest from Texas into New Mexico, while areas due south of New Mexico in the Permian Basin often require drilling 3-4 miles down to reach the same formations.

So much of the BLM land is lower-cost drilling land than lands directly south in Texas, but the private and state-owned lands in Texas are being permitted and drilled, while the BLM properties are seeing no increase in drilling under Obama.

jon1979 on March 27, 2012 at 11:42 AM

But oil drilling in Brazil and in the Gulf of Mexico (by other countries) is increasing….
So we can’t use our own oil, we can’t use the coal we have…
Gee I wonder where this path leads to?///

dentarthurdent on March 27, 2012 at 11:49 AM

All according to plan…

Obama: My Plan Makes Electricity Rates Skyrocket

And still people voted for him to “make history”.

*facedesk*

Yakko77 on March 27, 2012 at 11:26 AM

And yet he wants us all to change over to electric cars….
Do you see the same disconnect that I see?

dentarthurdent on March 27, 2012 at 11:55 AM

And yet he wants us all to change over to electric cars….
Do you see the same disconnect that I see?

dentarthurdent on March 27, 2012 at 11:55 AM

No, he wants everyone to switch over to trains, so he can control the populace. The switch to electric cars was just a smoke screen to eliminate coal and gas.

Of course, there could be the argument that he wants everyone to switch to electric pods that require road installed electrical currents, then they can just control which roads you can go on.

Excuse me why I go fashion another tinfoil hat.

LoganSix on March 27, 2012 at 12:05 PM

The only oil he cares about goes on his salad.

docflash on March 27, 2012 at 12:15 PM

No, he wants everyone to switch over to trains, so he can control the populace. The switch to electric cars was just a smoke screen to eliminate coal and gas.

Of course, there could be the argument that he wants everyone to switch to electric pods that require road installed electrical currents, then they can just control which roads you can go on.

Excuse me why I go fashion another tinfoil hat.

LoganSix on March 27, 2012 at 12:05 PM

Ya – that’s a logical end-game for these yahoos.

dentarthurdent on March 27, 2012 at 12:20 PM

Alright look, I’m all for getting the government out of the way of the free market and all but this argument just makes conservatives that keep using it look dumb. The only way increasing the amount of drilling in the US will decrease the gas prices in the US is if the government tags any deal for drilling with a clause that makes the oil company sell a percentage of the oil in the US at below market value. I think we all know the chances of that happening.

Anyone that keeps using the argument that drilling here = lower prices here is either lying or has no idea how the market works. Increasing the world market supply of oil would decrease prices to some degree but we have to remember that the amount of people who use oil is still going up as well. Supply isn’t going to increase faster than demand at this point.

So we basically have two choices -

1. Be smarter when buying cars. (Nothing that gets less than 30 miles per gallon).

or

2. Learn to deal with it.

Benaiah on March 27, 2012 at 12:26 PM

Benaiah on March 27, 2012 at 12:26 PM

Fail.
You sound like an Obummer hack pushing his “shut up and eat your peas” diktats.
When Bush announced re-opening oil fields, gas prices dropped immediately.
If supply is not keeping up with demand – then drilling more will get us closer to meeting demand, even if it takes a couple years. Doing nothing doesn’t solve any part of the problem. If getting more oil requires a couple years lead time, then we need to do it NOW not keep waiting to do it later and constantly saying “we won’t see it soon enough”.
Providing more supply absolutely does bring prices down. If you don’t believe that, you don’t understand basic economics – supply and demand. So what if demand is going up? That measn we need to increase the supply to keep up. At the very least, that will keep prices from climbing faster. If we do nothing, prices go up faster.
I refuse to “just deal with it” – on this issue as well as Obummer’s “new normal” unemployment rate. That attitude is just for Obamatrons who are willing to stick their head in the sand and let him do what he wants to whatever part of you is exposed.

dentarthurdent on March 27, 2012 at 1:20 PM

Obama’s master plan –

Drive supply down so demand goes down. Then people will have extra cash via not buying as much gas and will use this cash to buy a Chevy Volt, which will support both the auto and solar panel industries.

It has to work. It’s Obama. You know, the guy that is gonna save us all a ton on money via obamacare…….. You just have to believe………

jfox21 on March 27, 2012 at 1:37 PM

established oil companies have the same desire to see more expensive fuel prices
Buddahpundit on March 27, 2012 at 10:42 AM

Actually the run up in prices is squeezing the oil companies profit margin; particularly at the refining level. Valero is closing a refinery because they have been operating at a loss since the price of a barrel of oil has become so expensive. They use the profit margins off of the polymers that get turned into plastics and paint to cover the gasoline production. Gas is nearly given away at profits of about 5 cents a gallon. Whereas the government makes about 15 cents a gallon in taxes. And the oil companies reinvest upwards of 40% of that profit in oil-field exploration and R&D. Whereas the government uses their profit to build a bike path that goes in circles around a park.

What’s really pushing up the price of gasoline (not oil per se) is the ever increasing demand in China and India. Keep in mind that we export more gasoline, diesel, and fuel oil to other nations than we use here domestically. Petroleum products are our number one export in fact. So, when you go and look at the price of a gallon of gas at the station down at the end of your street you’re actually looking at the price that people in China and India are willing to pay more than the price of what you or I are willing to pay.

At the moment demand is outstripping supply which necessarily increases prices. The only solution is to pump more oil out of the ground to increase supplies which have been slumping globally over the past couple of years. We need to get Sudan to fix their pipeline issues. The refineries in the North Sea have been having a number of mechanical problems. Chevron hit a snag with a small leak off the Brazilian coast. EU sanctions on Iran have caused them to drop off a bit in production. U.S. Federal lands have been dropping in production rather than increasing the 30% like we’ve seen out of the private and state owned lands. We need to get about 2 million barrels a day of production back up and running that we’ve lost over the last few months. And we need to wait and see when the growing economies around world begin to slow down and level off. That will cause the demand for oil to tapper off significantly and the prices will probably begin to drop at the end of the year. That is if Iran doesn’t cut off the Strait of Hormuz; then were all screwed.

Heftyjo on March 27, 2012 at 1:43 PM

How about if we put a Republican back in office. This way high gas prices will be the fault of the POTUS (like it was under Bush). Once this is done, we can open up drilling on federal land and drive the price of gas down that way.

jfox21 on March 27, 2012 at 1:46 PM

So much of the BLM land is lower-cost drilling land than lands directly south in Texas, but the private and state-owned lands in Texas are being permitted and drilled, while the BLM properties are seeing no increase in drilling under Obama.

jon1979 on March 27, 2012 at 11:42 AM

The republican Govenor hasn’t overruled in favor of increased drilling?

My fav BLM land grab story.

Around 25 years ago, the BLM prevented offroad cars and mortorcycles in the high desert along the 15 freeway in Victorville, California due to the desert tortoise habitat and mating area.

Three years later, while traveling to Lake Havasu along that same route, a new freeway overpass had been erected, a Home Depot shopping center and surrounding businesses and restaurants and thousands of single family homes at the very location of the ill-fated desert tortoise.

dthorny on March 27, 2012 at 2:01 PM

Fail.
You sound like an Obummer hack pushing his “shut up and eat your peas” diktats.
When Bush announced re-opening oil fields, gas prices dropped immediately.
If supply is not keeping up with demand – then drilling more will get us closer to meeting demand, even if it takes a couple years. Doing nothing doesn’t solve any part of the problem. If getting more oil requires a couple years lead time, then we need to do it NOW not keep waiting to do it later and constantly saying “we won’t see it soon enough”.
Providing more supply absolutely does bring prices down. If you don’t believe that, you don’t understand basic economics – supply and demand. So what if demand is going up? That measn we need to increase the supply to keep up. At the very least, that will keep prices from climbing faster. If we do nothing, prices go up faster.
I refuse to “just deal with it” – on this issue as well as Obummer’s “new normal” unemployment rate. That attitude is just for Obamatrons who are willing to stick their head in the sand and let him do what he wants to whatever part of you is exposed.

dentarthurdent

So you believe that the oil that’s drilled here is sold directly to us? Interesting. And by interesting I mean wrong.

All we do by increasing drilling here is increase the world supply of oil. So yeah it will decrease prices globally but not specifically for us. At the current rate of demand I doubt it will so much lower prices as keep them from rising as quickly anyway.

The “drill now” people keep making the argument that we have enough oil here to be self sufficient but what they are keeping from you is that’s not how the market works.

My stance on it is that I want more drilling to be done but if we are going to allow them to drill here it’s going to be to OUR benefit before anyone else’s. As part of the deal that let’s them expand their drilling in US territory they need to sell a percentage of whatever they drill to us at below market prices. If the oil companies refuse to operate like that then it’s time for state governments to hire private companies to drill and refine their oil.

Benaiah on March 27, 2012 at 2:28 PM

So you believe that the oil that’s drilled here is sold directly to us? Interesting. And by interesting I mean wrong.

All we do by increasing drilling here is increase the world supply of oil. So yeah it will decrease prices globally but not specifically for us. At the current rate of demand I doubt it will so much lower prices as keep them from rising as quickly anyway.

The “drill now” people keep making the argument that we have enough oil here to be self sufficient but what they are keeping from you is that’s not how the market works.

My stance on it is that I want more drilling to be done but if we are going to allow them to drill here it’s going to be to OUR benefit before anyone else’s. As part of the deal that let’s them expand their drilling in US territory they need to sell a percentage of whatever they drill to us at below market prices. If the oil companies refuse to operate like that then it’s time for state governments to hire private companies to drill and refine their oil.

Benaiah on March 27, 2012 at 2:28 PM

You appear very confused about this – and as a result are not only contradicting yourself, but missing the point. Of course oil is a worldwide commodity, and supply and demand applies – worldwide, but it does matter where it comes from. I don’t necessarily expect all oil pumped from the US to be used in the US, but right now we are a net importer and the largest user of oil. So if we produce more ourselves, logically much/most perhaps even all of it will be used here, and it will be cheaper because it won’t be getting shipped from overseas. We may even be able to become a net exporter of oil. If we produce more in the US, why would we pay more in shipping costs to get it from somewhere else – especially countries who don’t like us?
You keep falling for the lib illogic that since more drilling now might not increase the supply for a few years then we shouldn’t do it all. That’s just idiotic.
But your last paragraph shows a statist/socialist mindset of the government directly controlling the market. I don’t agree with that at all. Drill here and our internal demand will take care of who gets according to free market principles.

dentarthurdent on March 27, 2012 at 2:50 PM