When Obama announced the drilling moratorium in the Gulf of Mexico, Sen. Mitch McConnell (R-KY) said “30% of our oil comes from the Gulf of Mexico. If you shut that down you will have $14 gasoline.” Actually 29% of U.S. production comes from the Gulf, close enough. But Obama did not move to “shut it down” and the $14 was made up out of thin air. Nevertheless, it does seem we are about to see $4 gasoline or more as a result of the moratorium on new drilling and suspension of exploration leases.

We predicted rigs would leave the bay in our previous post Obama Administration Falsifies Drilling Engineers Report. A later post confirmed the prediction, First Oil Rig Sails Away. The moratorium is lifted but the damage is done. Some rigs are gone and leases (rights to drill) need to be renewed. We discussed the inevitable long delays that would occur in clearing environmental regulations and litigating roadblocks by advocacy groups in Drilling Moratorium Ended?

“Government isn’t the answer to the problem. Government is the problem.”

Gulf of Mexico production graph courtesy of Red State

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