Energy analysts: Expanded drilling can get the U.S. off of Mideast oil

posted at 7:21 pm on June 27, 2012 by Erika Johnsen

I don’t buy in to the school of thought that the United States need be a necessarily energy-independent nation — especially not if that’s supposed to entail that we pour tons of cash down the tubes in the foolish attempt to center our energy infrastructure around wind, solar, etcetera. I think we need to just stop taking ourselves out of the game through scant permitting and uncertainty-inducing regulatory schemes — and increased energy security will naturally follow suit. There’s lots of wealth to be made in the energy sector, and not only do Americans want to get in on the economic action, but we’ve got abundant enough resources to do it, too.

Thanks to the efficient, innovation-encouraging mechanisms of the free market, it looks like ending our reliance on oil from the Middle East could be a very real possibility.

America will halve its reliance on Middle East oil by the end of this decade and could end it completely by 2035 due to declining demand and the rapid growth of new petroleum sources in the Western Hemisphere, energy analysts now anticipate.

The shift, a result of technological advances that are unlocking new sources of oil in shale-rock formations, oil sands and deep beneath the ocean floor, carries profound consequences for the U.S. economy and energy security. …

By 2020, nearly half of the crude oil America consumes will be produced at home, while 82% will come from this side of the Atlantic, according to the U.S. Energy Information Administration. By 2035, oil shipments from the Middle East to North America “could almost be nonexistent,” the Organization of Petroleum Exporting Countries recently predicted, partly because more efficient car engines and a growing supply of renewable fuel will help curb demand.

The change achieves a long-sought goal of U.S. policy-making: to draw more oil from nearby, stable sources and less from a volatile region half a world away. …

Team Obama is fond of throwing around misleading statistics like, “We consume 20 percent of the world’s oil, but only have 2 percent of the world’s oil reserves” — but to anyone who knows anything about oil, that just sounds really dumb. That statement assumes finite proven reserves, except that our proven reserves are expanding all the time. Not only do we continually discover new and deeper deposits, but we’re continually developing better technology that makes previously unobtainable oil suddenly available for extraction.

As the above article describes, hydraulic fracturing (a.k.a. “fracking) has been a huge part of that technological advancement — which makes it really comforting that the Obama administration is using dubious claims of possible environmental calamities as an excuse to start regulating the heck out of fracking, doesn’t it?

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And if the White House was interested…

Great comedy.

cozmo on May 12, 2013 at 12:34 PM

In the meantime, Moonbeam Brown and the rest of the Sacramento idiots will just sit on the oil off the west coast, and let it leak to the surface “naturally”.

GarandFan on May 12, 2013 at 12:35 PM

Drill, baby, drill!

petefrt on May 12, 2013 at 12:37 PM

So. what political party are these governors?

davidk on May 12, 2013 at 12:38 PM

“But oil is icky” /White House

Bitter Clinger on May 12, 2013 at 12:49 PM

Sorry for going off-topic for a minute, but I don’t really know where else to raise this:

This morning I got some political mailing from “Townhall Spotlight” signed by “Martin Biancuzzo Senior Correspondent, Capitol Hill Daily” It was about how Obamacare killed its one millionth victim. It’s not a big deal: I get spam all the time, but what struck me is that I received it to an email address that I know I’ve only ever used to register on this site. It also referred to me as “Time Lord,” a nick I only use here. So I checked the Terms of Use and it does say that I can expect mailings from this site, but I don’t see anything about selling/giving my email address to third parties, and I don’t think I’ve consented to anything like that. Could you clarify your policy regarding disclosure of my private information to third parties? Frankly, I find it unnerving that the owners of a political blog compile and share a list of the people who visit it.

Thanks!

Time Lord on May 12, 2013 at 12:55 PM

Time Lord on May 12, 2013 at 12:55 PM

Townhall and Hotair are now sister sites, since Malkin sold Hotair a couple of years ago. So it’s not really third parties as such.


http://hotair.com/about/

Jeff Weimer on May 12, 2013 at 12:59 PM

DRILL!

workingclass artist on May 12, 2013 at 12:59 PM

Six coastal governors have called on Washington to open up more waters to offshore drilling and to make permitting a quicker, more efficient process.

…and pigs…will fly!

KOOLAID2 on May 12, 2013 at 1:01 PM

With the ME blowing up, the World will be cut from that source in a few years.

Drill Holes, Drill Holes, Drill Holes

Oil Can on May 12, 2013 at 1:07 PM

Any idiotic state that crushed coal or any other form of energy such as fracking…ought to be shut off and let them sit in the cold, the dark and then the heat.

Let their cars sit idle…let their airports become ghost towns and let them bicycle forever…without benefit of a bike seat too.

Twana on May 12, 2013 at 1:10 PM

With the ME blowing up, the World will be cut from that source in a few years.

Drill Holes, Drill Holes, Drill Holes

Oil Can on May 12, 2013 at 1:07 PM

I can see the news in a few years: Red states are drilling and fortifying the new sites with National Guard and volunteers. Liberal protestors and saboteurs are beaten back (literally)…or just vanish…or worse. Because it is either local oil and screw them or complete economic collapse.

Seriously, forget cheap gas for a second and take a look around you the next time you’re in a hospital. Imagine everything made of plastic in critically short supply because the oil to make it has been cut off. Try to sleep well that night.

MelonCollie on May 12, 2013 at 1:13 PM

Twana on May 12, 2013 at 1:10 PM

I would shut off the powerlines and pipelines myself.

The difference between civilization and barbarism in the modern world is electricity and oil. That is going to be made abundantly clear in our lifetimes.

MelonCollie on May 12, 2013 at 1:16 PM

Any idiotic state that crushed coal or any other form of energy such as fracking…ought to be shut off and let them sit in the cold, the dark and then the heat.

Let their cars sit idle…let their airports become ghost towns and let them bicycle forever…without benefit of a bike seat too.

Twana on May 12, 2013 at 1:10 PM

I am in favor of letting state PUCs set higher wholesale rates for electricity to be send out-of-state, but I assume that would look like an attempt to regulate interstate trade and be illegal at the state level.

Still, I wonder if there’s a way. Liberal states should have to somehow foot the bill for their NIMBY approach to energy.

slickwillie2001 on May 12, 2013 at 1:16 PM

Obama won’t even approve the Keystone pipeline out of fear he’ll lose the support of the environmental activists (and their OFA donations). He’s not going to have the nerve to allow offshore drilling in the Atlantic.

jon1979 on May 12, 2013 at 1:17 PM

Time to end the drilling moratorium. Ya think?

totherightofthem on May 12, 2013 at 1:17 PM

The governors of Texas, North Carolina, South Carolina, Alabama, Mississippi and Alaska spoke Monday at the Offshore Technology Conference in Houston. Officials from Louisiana and Virginia also spoke.

They say a federal moratorium on offshore drilling after the 2010 Gulf of Mexico oil spill, and permitting requirements put in place after that, have made it difficult for companies to develop resources.

The governors say more drilling would create jobs, strengthen the nation’s economy and lower gas prices.

anonymous AP Staff Writer, The Associated Press May 6, 2013

.
It is specifically because it would aid and abet America’s economy and independence, that it will never be lifted by this White House.

listens2glenn on May 12, 2013 at 1:18 PM

Obama won’t even approve the Keystone pipeline out of fear he’ll lose the support of the environmental activists (and their OFA donations). He’s not going to have the nerve to allow offshore drilling in the Atlantic.

jon1979 on May 12, 2013 at 1:17 PM

.
Obama doesn’t fear losing the support of, or ‘pissing-off’ the environmental activists.

He fears pissing-off Maurice Strong and George Soros.

listens2glenn on May 12, 2013 at 1:23 PM

Obama won’t even approve the Keystone pipeline out of fear he’ll lose the support of the environmental activists (and their OFA donations). He’s not going to have the nerve to allow offshore drilling in the Atlantic.

jon1979 on May 12, 2013 at 1:17 PM

The greedy slob Warren Buffett is also paying him off with political donations to keep the oil flowing on his railroad.

slickwillie2001 on May 12, 2013 at 1:24 PM

I saw the words “coastal states” and thought that maybe California would be on the list. It had my hopes up for a short while.

BubbaCluck on May 12, 2013 at 1:41 PM

jon1979 on May 12, 2013 at 1:17 PM

He might approve it, if he thinks it will shift the press off of Benghazi.

Difficultas_Est_Imperium on May 12, 2013 at 1:52 PM

In the meantime, Moonbeam Brown and the rest of the Sacramento idiots will just sit on the oil off the west coast, and let it leak to the surface “naturally”.

GarandFan on May 12, 2013 at 12:35 PM

I’ve said it before, I’ll say it again. This state is sitting on untold wealth. If we could ever get past the ‘Santa Barbara, 1969′ mentality, this state could could end its budgetary and unemployment problems overnight.

I saw the words “coastal states” and thought that maybe California would be on the list. It had my hopes up for a short while.

BubbaCluck on May 12, 2013 at 1:41 PM

Thanks for the sentiment, Bubba, but unfortunately California has been experiencing starvation-levels of sanity for quite some time now.

BillH on May 12, 2013 at 1:52 PM

It’s long past time to revolt against the tyrannical policies of D.C.

I would love to see these governors just go ahead and drill. They may have to protect the sites, but that is why they have a National guard.

Some folks once pledged their lives, fortunes and sacred honor. What will we pledge?

FOWG1 on May 12, 2013 at 2:01 PM

Texas, North Carolina, South Carolina, Alabama, Mississippi and Alaska

Besides all having coastlines, I wonder what else these states have in common.

/

Odysseus on May 12, 2013 at 2:19 PM

Isn’t Preezy still in contempt of court over no-drilling in the gulf ?
Seems a pretty good time to bring that up.
Add it to the list of cr@p finally seeing the light of day.

pambi on May 12, 2013 at 2:22 PM

So. what political party are these governors?

davidk on May 12, 2013 at 12:38 PM

An interesting coincidence:

AL: Robert Bentley (R)
AK: Sean Parnell (R)
LA: Bobby Jindal (R)
MS: Phil Bryant (R)
NC: Pat McCrory (R)
SC: Nikki Haley (R)
TX: Rick Perry (R)
VA: Bob McDonnell (R)

Eight governors of eight coastal right-to-work states, who support offshore drilling, ALL Republicans. They all want the jobs that offshore drilling brings in. BTW, royalties on underwater drilling leases are collected by the States, not the Federal Government, meaning that these Governors could cut State taxes without loss of revenue, thereby attracting more non-oil jobs to their states.

But Democrats would rather buy oil from Libya, Iran, Saudi Arabia, and Venezuela, where we can’t even secure an embassy, than the Gulf of Mexico or Canada, where the only worries are preventing leaks.

Steve Z on May 12, 2013 at 2:37 PM

In the meantime, Moonbeam Brown and the rest of the Sacramento idiots will just sit on the oil off the west coast, and let it leak to the surface “naturally”.

GarandFan on May 12, 2013 at 12:35 PM

The actual plan that Lefties have for the Golden State, delay drilling to reserve those resources for the ‘new owners’ when they cede the territory back to Mexico.

socalcon on May 12, 2013 at 2:56 PM

Well, yes. But when are all the governors going to express outrage that no one has been allowed to build a refinery in the entire country for more than thirty years, and gas prices are higher than they should be because of it?

Incandescent on May 12, 2013 at 3:02 PM

Time Lord on May 12, 2013 at 12:55

Um, you don’t use an address specially for that type of junk?

TH, HA, TWITCHY, FB all go there ( for me).
Erase everything once a month, without reading it.

socalcon on May 12, 2013 at 3:04 PM

I have NO issues with offshore drilling.

That said, the drillers will have Bonds, Insurance, Coastal monitoring, and the understanding that the U.S. will hire the Mossad (cost, plus 12.5 percent) to haul them up by their genitals and burn their screaming carcasses in a public place if they kill one, delicious, soon-to-be-steamed-in-garlic-butter, piece of seafood.

Oil Weenies! Profit all you want! Go for it!

But an Exxon Valdez or New Orleans debacle…

Bitches, It’s gonna be Pay-Per-View as your Board of Directors have their genitals spiral-sliced, crisped in hot oil as they scream for death and…

Toast and beverages will be provided.

heldmyw on May 12, 2013 at 6:00 PM

I have NO issues with offshore drilling.

That said, the drillers will have Bonds, Insurance, Coastal monitoring, and the understanding that the U.S. will hire the Mossad (cost, plus 12.5 percent) to haul them up by their genitals and burn their screaming carcasses in a public place if they kill one, delicious, soon-to-be-steamed-in-garlic-butter, piece of seafood.

Oil Weenies! Profit all you want! Go for it!

But an Exxon Valdez or New Orleans debacle…

Bitches, It’s gonna be Pay-Per-View as your Board of Directors have their genitals spiral-sliced, crisped in hot oil as they scream for death and…

Toast and beverages will be provided.

heldmyw on May 12, 2013 at 6:00 PM

“Daddy, did you plug the hole yet”

“Uhh, yes honey, we filed a lawsuit against BP in federal court this morning.”

Moron. Show me the gulf coast damage. Are you guys still looking for that “lost” oil?

WryTrvllr on May 12, 2013 at 7:06 PM

Toast and beverages will be provided.

heldmyw on May 12, 2013 at 6:00 PM

Provided by whom?

The federal court where o’bozo filed his lawsuit?

“Daddy, did you plug the hole yet?”

WryTrvllr on May 12, 2013 at 7:11 PM

The actual plan that Lefties have for the Golden State, delay drilling to reserve those resources for the ‘new owners’ when they cede the territory back to Mexico.

socalcon on May 12, 2013 at 2:56 PM

I’d take that trade.

WryTrvllr on May 12, 2013 at 7:14 PM

I have always thought it strange…. one day Obama comes out and surprises us all by saying he suddenly wanted to expand drilling off the east coast. Then… one month later Deep Horizon blows up and.. gosh, so sorry… now he “has to” issue a drilling moratorium.

Talk about weird coincidences. One day he does something good that nobody would ever expect… goes against his very nature and states he’s going to expand oil drilling…. then one month later.. nearly to the day.. an oil rig blows up and he can’t do it. In fact.. this gives him a reason to go in the exact opposite direction.

And nobody thinks that is suspicious? The President who gave us Fast and Furious?

JellyToast on May 12, 2013 at 7:54 PM

…the price has nothing to do with supply and demand for oil. It’s the financial market for oil, filled with both professional speculators and amateur investors betting on poorly understood oil exchange-traded funds, who have ratcheted up the price of gas to such sky high levels.

“There is no supply issue going on here – what you have is the perception of the possibility of a supply issue,” Dicker says. “A whole bunch of people are pouring money into an oil market trying to take advantage of what they perceive to be a real risk in supply. It’s a marketplace that I argue should not be allowed to be wagered on like a stock or bond.”

…

Among the biggest winners of the new oil markets are investment banks like Goldman Sachs… In 2004 and 2005, Goldman Sachs made $1.5 billion a year trading oil, Dicker says. In the first half of 2009 alone, the firm made $3.4 billion oil trading profits.

Take a look at:

http://data.bls.gov/timeseries/APU000074714
Consumer Price Index – Average Price Data
Series Id: APU000074714
Area: U.S. city average
Item: Gasoline, unleaded regular, per gallon/3.785 liters

Here are some facts about the U.S. city average price of unleaded regular gasoline in 2008:

January 2008: $3.047 per gallon

July 2008: $4.090 per gallon

December 2008: $1.689 per gallon

The electorate was up in arms about the 30% increase in gas prices between January 2008 and July 2008. There was a “Tea Party” like reaction at the time (you could even call it the “‘Texas Tea’ Party” because it was over the price of “Texas Tea”, i.e. oil).

So, what are some of the factors that led to the price of gasoline DROPPING an amazing 59% in just 5 months, from $4.090 per gallon in July 2008 to $1.689 per gallon in December 2008?

Here are some significant data points:

July 14, 2008: President Bush lifted an executive order banning offshore oil drilling, and urged Congress to follow suit. President Bush also called for exploration of Alaska’s Arctic National Wildlife Refuge (ANWR).

September 16, 2008, the House approved on a 236-189 vote legislation that would open waters 50 miles off the Pacific and Atlantic coasts to oil and natural gas development.

September 27, 2008, the U.S. Senate by a 78-12 vote eliminated a 27 year ban on offshore drilling off the Atlantic and Pacific coasts of the United States.

Open up supply, remove any “perception of the possibility of a supply issue”, and the price of gas dropped nearly 60%!!!

So who do we have to thank for gas prices approaching new record highs?

Barack Obama for his illegal moritorium.

Barack Obama for his illegal war in Libya.

Barack Obama for his Middle-East policies.

Barack Obama and Democrats in general who seem do be doing everything they can to stand in the way of U.S. oil production and refining.

Do you want to see gas prices drop by more than 50%?

Allow us to DRILL & REFINE HERE! DRILL & REFINE NOW!!!

ITguy on May 12, 2013 at 9:39 PM

Why is it ok in Brazil, but not here?

gp403220 on May 12, 2013 at 10:26 PM

Liberal states should have to somehow foot the bill for their NIMBY approach to energy.

slickwillie2001 on May 12, 2013 at 1:16 PM

Since many blue states buy electricity from other, sometimes red, states (I’m thinking of this imbroglio from 2010), some of them do “foot the bill”; unfortunately, so do the rest of us.

The trick (politically and Constitutionally) is figuring out how to make them be the exclusive “beneficiaries” of anti-energy high prices.

AesopFan on May 13, 2013 at 12:30 AM

NO MYSTERY HERE:

If you want to figure out what Obama will do, just imagine what Al Qaeda would do to inflict maximum damage on the USA.

The US government has been infiltrated, and it no longer serves the interests of its citizens. This explains almost all US government actions since 2008.

For further information, review “The Manchurian Candidate” (originally intended as a fictional work).

landlines on May 13, 2013 at 1:24 AM

Toast and beverages will be provided.

heldmyw on May 12, 2013 at 6:00 PM

Mmmmmmm…… toast……..

BillH on May 13, 2013 at 10:17 AM

Why is it ok in Brazil, but not here?

gp403220 on May 12, 2013 at 10:26 PM

Because it’s a whole bunch of miles away in another country that speaks something similar to Austrian. The protests aren’t happening here in front of the cameras, and the LIVs couldn’t care less, just so long as they can continue to get fuel for their soccermobiles.

BillH on May 13, 2013 at 10:24 AM

He’s already ignoring 2 court orders to open up drilling again. Why would he listen to a bunch of governors?

osborn4 on May 13, 2013 at 4:46 PM