DGH says: February 14, 2013 at 1:36 pm President Obama made it abundantly clear that we all better be watching our wallets; the tax and spend crowd has a friend in the White House. If you don’t like gun control, immigration reform higher taxes, carbon taxes, more regulations, and windmills this is going to be a tough couple of years, no doubt about that. However, the only accurate thing about this post is the title as it describes the content. I’ve read through the statistics and claims in the post pretty carefully. Between the cherry picking, rants and insults there really isn’t much substance. Yes the President stretched the truth in the first point. There’s a shocker – a politician exaggerated. 1. “Wrong!!! We buy more “foreign oil” now than we did 20 years ago.” No doubt that President Obama did a politician’s stretch on this one. It’s been about 14-16 years since crude imports were this low. But the fact is that imports have been falling dramatically since 2006 and they are approaching mid-90s levels.
The President gets the 20 years figure by combining crude oil and refined petroleum products. This is like combining iron ore and steel in order to boast about a decline in iron ore imports.
2. “We produce more oil at home than we have in 15 years.” Your own data shows that the President’s statement was true. Furthermore, you know that oil production in the federal lands in the Gulf slowed because there was a moratorium on exploration following the big spill. He made no claim regarding public vs. private vs. state. And that’s a split hair given what is happening in the Gulf. For example, BP now a total of 14 rigs in the gulf – that’s more than ever according to their reports. Additionally, the rights to many millions of hectares in the GOM will be auctioned off in the near future.
BP currently has ten (10) deepwater rigs under contract. Three (3) of these are new builds, not yet operational. The other seven (7) are engaged in development operations, primarily in the Atlantis and Thunderhorse areas. This is work that would have been done two years ago, if not for the unlawful moratorium and ongoing permitorium. When faced with criticism of his maladministration, he resorts to variations of, “Under my administration, America is producing more oil than… ” The fact is that his administration has been nothing but an obstacle to US domestic oil production.
3. “The only red tape you have cut, is red tape that your maladministration created.” This Administration didn’t create the spill. And most Americans won’t be surprised or disappointed that production was slowed following that accident. There were videos on the nightly news of a gaping hole on the ocean floor spilling millions of barrels of oil. I’m not arguing that the delay was necessary, useful or effective. But the delay was inevitable no matter who controlled the White House. Returning to the facts for a moment, Federal Gulf Crude production has increased by approximately 5% since this President took office in January of 2009. Your own graph confirms that point. And with the new fields that are coming online forecasts have us at 1.5 million bbl/day in 2014, a 13% increase during the Obama Administration.
In 2008, the forecast was for ~1.8 MMbbl/d by 2013, with most the ~500,000 additional bbl/d coming from the ultra-deepwater Lower Tertiary play. Those fields were expected to start coming on production in 2010. Petrobras’ Cascade/Chinook field came on production in 2012. Most of the ~16 drillships working in the Gulf right now are performing operations that should have been done 2 years ago.
4. What do you mean by “our oil and gas revenues”? You know exactly what he meant by “our” revenues. Show us where you held Mitt Romney (or any other politician) to the same standard when he (they) discussed “our” coal, oil, nuclear, renewables, education system, trips to the moon, agriculture, obesity problem, anything. He wasn’t taking personal credit for drilling a well. This comment is childish and it is a pejorative jab despite your explanations.
Show me where Mitt Romney ever referred to a private sector’s revenue as “our revenue.”
5. “Federal mineral revenues for FY 2012 were HALF of what they were in FY 2008!” Great cherry pick. This one is a doozy. Since 2008 natural gas has a seen a decrease in price. Due to global economic conditions demand has also fallen. Accordingly revenue decreased. Maybe you’d like to blame that on the President. Fair enough. But that’s a small piece of the decrease. In 2008 the mineral revenues were extremely high due to the fact that Bonuses were about 10x greater than normal. Here’s the data from 2003 to 2012 which shows that 2008 was an outlier to the tune of $9 Billion: 2003 $1,263,517,244.50 2004 $ 602,801,496.25 2005 $ 798,679,399.50 2006 $1,163,225,776.25 2007 $ 550,571,499.49 2008 $9,682,957,464.55 2009 $1,555,182,756.70 2010 $1,181,441,803.16 2011 $ 270,218,666.17 2012 $ 946,766,723.25
2008 was an outlier due to the fact that the MMS raked in $7 billion lease bonus and rental payments from the Gulf of Mexico. However, even if you take 2008 out, GOM ONRR revenue is $3 billion below where it should be. GOM ONRR revenue was tightly coupled with oil prices up until 2009. The decline in production and leasing activity are the reasons for the $3 billion shortfall.
6. “What’s even more ironic? We’re importing 50% more from the Persian Gulf than just three years ago!” Persian Gulf imports down since 2008, way down since 2002, and we are at 1994 levels. Of course you trimmed that out of the graph. You must own a cherry orchard.
The only relevant period is since the unlawful moratorium. The Obama administration’s malfeasance has resulted in ~300,000 bbl/d of lost domestic oil production. This production had to be made up from other sources and the only nation on Earth with significant excess production capacity is Saudi Arabia, a Persian Gulf nation.