Wednesday, May 11, 2011

The Politics of Oil

Obama claims that we are producing more oil in this country than ever before. But that's not true. According to the Energy Information Agency (EIA), domestic oil production has fallen 50 percent since 1970.

In another statement, he placed a caveat on this production mumbo-jumbo: Production is at its highest level since 2003. Big woop. But this isn't accurate.

Figures from the EIA:
2003: 2,073,453,000
2004: 1,983,302,000
2005: 1,890,106,000
2006: 1,862,259,000
2007: 1,848,450,000
2008: 1,811,817,000
2009: 1,956,596,000
2010: 2,011,856,000

The second caveat is that the EIA projects that production totals are poised to fall from their current levels over the next two years.

Domestic crude oil production, the agency says, is projected to decline by 110,000 barrels a day in 2011 and by an additional 130,000 barrels per day in 2012. The agency makes that projection based on expected production declines in Alaska due to maturing oil fields. Production in the Gulf of Mexico is also projected to decline. Both are partially offset by projected increases in the Lower 48 states, but on balance, EIA sees the numbers falling.

Here's an interview with a former CEO of Shell Oil (which by the way recently had its permit held by the EPA to drill up off the coast of northern Alaska in fields that contain 27 billion barrels -- after investing $4 billion in the project):

Obama and his ilk want higher hydrocarbon prices. They are getting their way. Too bad for most Americans though. But King Obama doesn't have to worry as he jetsets around the globe like a Monarch.

And realize this: Obama is no longer giving policy speeches, but campaign speeches.

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