Tag Archives: engineers report

OBAMA RAISES PRICE OF GASOLINE

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

FIRST OIL RIG SAILS AWAY

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.

Bob B

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