The President and his campaign have been telling the American people that Oil and Gas production are up under his administration insinuating that he is fully behind increased fossil fuel production. The data tells us another story and although he may say he is behind it his administration and its new regulations are in fact trying to stifle it.
Earlier this month there was a government meeting that went unnoticed by the media and thus, most Americans. On August 2, Adam Sieminski, the administrator for the Energy Information Administration (EIA) which is a part of the U.S. Department of Energy (DOE) testified before the Subcommittee on Energy and Power Committee on Energy and Commerce of the U.S. House of Representatives. The data in Mr. Sieminski's statement is from 2010 as budget constraints have delayed and pushed back the collection of 2011 data until the 1st quarter of 2013. However, there is some data presented from 2011 as well as data from the first 5 months of 2012, so some current information is available that conclusions can be derived. To often our political leaders say specific words that imply one thing so as to give them cover when challenged, that is exactly what is happening here.
Earlier this month there was a government meeting that went unnoticed by the media and thus, most Americans. On August 2, Adam Sieminski, the administrator for the Energy Information Administration (EIA) which is a part of the U.S. Department of Energy (DOE) testified before the Subcommittee on Energy and Power Committee on Energy and Commerce of the U.S. House of Representatives. The data in Mr. Sieminski's statement is from 2010 as budget constraints have delayed and pushed back the collection of 2011 data until the 1st quarter of 2013. However, there is some data presented from 2011 as well as data from the first 5 months of 2012, so some current information is available that conclusions can be derived. To often our political leaders say specific words that imply one thing so as to give them cover when challenged, that is exactly what is happening here.
First a little background; the EIA is the statistical and analytical agency within the DOE. They "collect, analyze and disseminate independent and impartial energy information" to be used to "promote sound policy making, efficient markets and public understanding regarding energy and its interaction with the economy." The EIA is the Nation's premier source of energy information and, by law, it's "forecasts are independent of approval by any other officer or employee of the US Government." Although the preceding is all true, the report goes on to say that the views expressed in the EIA reports must "not be construed as representing those of the Department of Energy or any other Federal Agency." Clearly, the preceding statement is telling us that although the EIA "collects, analyzes and disseminates" the "facts on energy", it doesn't mean anyone within the DOE, the general Government or the Administration for that matter, has to or will use all these "facts" when deriving U.S. energy policy or when making statements to the people or the press. So, you may be getting all the truth, some truth or no truth, and unless you read the report you would never know - thank goodness I did.
The report tells us there is good news on most U.S. energy fronts in 2010: Crude Oil (including Lease Condensate) Proved Reserves have increased by 2.9 Billion barrels ending the year at 25.2 Billion barrels with Texas, North Dakota and the Gulf of Mexico having the largest increases; U.S. Proved Reserves of Wet Natural Gas have increased by 33.8 Trillion cubic feet with Texas, Louisiana and Pennsylvania having the largest increases. Tight oil developments worldwide have contributed significantly to the increases in domestic production as there had been a general decline in U.S. production for the past twenty plus years. These increases in reserves "underscore the potential for a growing role for domestically-produced hydrocarbons in meeting both current and projected U.S. energy needs." That's good news, we have domestic reserves that will carry us well into the future, despite concerns of oil reserve depletion in other countries or "peak oil" cries around the world. The report goes on to further breakdown Lease Condensate and Natural Gas Liquids and how they are produced and priced, suffice to say it gets technical and may add flavor however, it's not the main course.
As stated above, President Obama and his campaign have been crowing that Oil production is up under his administration presumably as a result of his policies and this validates his commitment to domestic Oil and Gas production to energize America. However, the facts speak otherwise. Although initial oil production during the first five (5) months of 2012 averaged 6.2 million barrels per day, which is the highest level since 1998 and the EIA July 2012 Short-Term Energy Outlook forecasts total U.S. Oil production increasing to 6.3 million barrels per day in 2012, the highest annual level of production since 1997, they go on to say that "marked increases in lower 48 onshore oil production, since the fourth-quarter of 2011, are mainly because of higher output from tight oil plays from North Dakota and Texas." Nearly all of the increased oil production is on private land, not federal.
Oil production had declined in recent years from 5.7 to 5.0 Million barrels per day, remained flat and then increased starting in 2010 "largely because of increases in oil output in North Dakota and Texas" - which is non-federal or private land. Oil production on federal lands is dominated by offshore production (Gulf of Mexico). Oil production on federal land had increased slightly in 2010 but dropped in 2011 in the aftermath of the 2010 Macondo blowout and has not regained its pre-blowout levels. Natural Gas production on non-federal lands has increased steadily from 2005, largely because of shale gas reserves. Natural Gas sales of production on federal lands have decreased each of the last four years. Offshore federal natural gas sales have also been on a consistent downward spiral for years. Onshore federal land natural gas production had been growing to make up for the offshore decline but the last two years have seen a steady decline in natural gas in onshore federal land production. In the following statement taken from the report, "the rapid increase in natural gas production from shale resources, found largely outside the federal lands, over the last 5 years..." also serves to emphasize the declining use of federal land in domestic production, whether it be by method used or permits allowed, the result is the same. I think this report on Oil and Gas by Mr. Sieminski speaks for itself.
As for coal, any mention of it in the positive by Obama is factually a lie. Despite our country having centuries of coal reserves and generating nearly 45% of its electricity from the world's most-efficient fuel source the head of the EPA said, "You can't build a coal plant. You'll virtually--it's virtually impossible given our regulations." These regulations are all new and written by the EPA under the direction of Obama and his Czars. Remember, 2008 canidate Obama telling us that you can build a coal fired plant if you want but "you will go out of business" because of his proposed agenda. Also, remember he told us that under his plan "energy prices will necessarily skyrocket." Well, some 3.5 years under his leadership has left us with energy prices higher, much higher. Coal fired electric plants are being shut down, nearly 100 by years end, with another 200+ slated for closer over the next two years.
Media sources have also reported that Obama's Interior Department has recently banned drilling on 11.5 million acres of petroleum reserve. Their decision made earlier this month was to close off from drilling nearly half of the 23.5 million acre National Pretroleum Reserve in Alaska. The area is called the National Petroleum Reserve because in 1976 Congress designated it as a strategic oil and natural gas stockpile to meet the "energy needs of the nation." Alaskans believe in exploration in nearly the entire reserve. The feds had been reviewing four potential development plans, and the state of Alaska had strongly objected to the most restrictive of the four. Sure enough, that was the plan Interior chose. Interior Secretary Ken Salazar believes this plan is the best to bring energy safely to market while also protecting wildlife and subsistence rights of Alaska Natives. He added that the proposal will expand "safe and responsible oil and gas development, and builds on our efforts to help companies develop the infrastructure that's needed to bring supplies online." The problem is almost no one in the energy industry and few in Alaska agree with him. In an August 22 letter to Mr. Salazar, the entire Alaska delegation in Congress—Senators Mark Begich and Lisa Murkowski and Representative Don Young—call it "the largest wholesale land withdrawal and blocking of access to an energy resource by the federal government in decades." This decision, they add, "will cause serious harm to the economy and energy security of the United States, as well as to the state of Alaska." Mr. Begich is a Democrat.
