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
John Hofmeister of Citizens for Affordable Energy was interviewed on the CNBC business channel. It is essential viewing but we are unable to embed it. So here’s a link.
Hofmeister makes many good points. Just to give you a sample he says the moratorium dictate may be lifted but there will be no commitment on the part of drillers until they know what the law is or will be. Even the regulatory authorities are still in the dark and unlikely to issue any permits for months. When the permits are finally issued, virtually every one will be hindered by lawsuits from environmentalist factions.
There is more. Click the link and watch the interview.
Week ending July 16, 2010
White House denies NASA remark on Muslim outreach
NASA Administrator Charles Bolden recently told Al-Jazeera network that Obama told him “to reach out to the Muslim world and engage much more with dominantly Muslim nations to help them feel good about their historic contribution to science and engineering.”
Salazar continues to fight the law over drilling moratorium
(AP) Rebuffed twice by the courts, the Obama administration is taking another crack at a moratorium on deep-water drilling.
ABC/WaPo poll reveals confidence in Obama has reached a new low.
About two-thirds of all voters say they are dissatisfied with or angry about the way the federal government is working.
Obama calls al Qaeda, racist
Expresses concern over al Qaeda now that they have killed Ugandans in Africa. How many dead Africans will it take before he acknowledges al Qaeda as terrorists? Apparently dead Americans don’t count.
Clinton fundraiser gets 12 year prison sentence. Read about it.
Wall St Journal headline “Hillary for President!”
We said it would happen, the headlines, that is.
Announcement – Bush memoir Decision Points to be released before election day.
Dems not happy. Original release was scheduled for Nov 9th
Obama household cook gets to be a czar
“Sam Kass went from being a 20-something, Windy City gourmet cook – privately paid by the Obamas to feed them – to big-time White House adviser in a matter of months,”
What’s next, Obama’s barber as hair czar?
The Obama Administration falsified a report written by a panel of experts hired to provide their opinion on how to handle the BP oil spill disaster. A paragraph was inserted over the signatures of the experts, a paragraph that recommended a drilling moratorium in the Gulf.
When speaking out and exposing the fraud, the panel, whose recommendation was exactly the opposite of that in the words inserted by the government, warned that rigs would not remain in the Gulf. The day rate is too costly and demand exceeds supply elsewhere in the world. Once gone, it will be years before they return, the best and safest will go first, jobs will be lost and the nation’s dependence on foreign oil will be increased.
It has come to pass as they said it would. The first rig is going to Egypt. Contract terminations are in negotiation for more.
Ken Arnold, speaking for the seven experts from The National Academy of Engineering, said the Obama administration changed their report to read support for a drilling moratorium when the actual recommendation was just the opposite.
Ken Salazar altered the signed report to convey the exact opposite advice than given. The report was then presented to the public as justification for a drilling moratorium in the Gulf of Mexico. The seven experts never saw the revised report. In a civil court the charges would be fraud, forgery and perhaps libel. But the sad fact is that politicians are de facto beyond the law.
The BP well was in the process of being shut down. This is a far more critical process than continued drilling. There is worldwide demand for rigs. They will not sit idle.
[The engineers report] also said that because the floating rigs are scarce and in high demand worldwide, they will not simply sit in the Gulf idle for six months. The rigs will go to the North Sea and West Africa, possibly preventing the U.S. from being able to resume drilling for years.
They also said the best and most advanced rigs will be the first to go, leaving the U.S. with the older and potentially less safe rights operating in the nation’s coastal waters.
And we thought Jimmy Carter was the worst President this nation ever had.