Tag Archives: Gulf of Mexico

DISASTER IN THE GULF OF MEXICO

Two man-made disasters have hit the Gulf of Mexico in the last year and a half.  One largely corrected itself through the miraculous forces of nature with some helpful assistance from government cleanup programs.  The second disaster continues to fester and is only getting worse.  Mother Nature is powerless to do anything about the second disaster and only fools expect Washington to fix that which Washington broke.

We are talking first about the oil spill caused by lax safety standards on the part of British Petroleum that led to an accidental oil spill, and then about the ill conceived drilling moratorium that followed it.  The second disaster was no accident.  It was wrong headed intentional action taken by Barack Obama against strong advice from the panel of engineers chosen by the President himself.

The engineers report was so clear and emphatic and contrary to the President’s agenda that the administration saw fit to falsify the report.  We reported the fraudulent act here and here at the time.

As of now, ten rigs have left the Gulf of Mexico and gone to locations in Egypt, the Congo, French Guiana, Liberia, Nigeria and Brazil.  Three more are expected to leave and eight new rigs that were slated for the Gulf have been re-directed elsewhere.  Thousands of jobs have been sacrificed, millions of barrels of domestically produced oil have been forfeited, our dependence on foreign oil has increased, and there is less tax to collect.  Correction: less revenue to be earned.  The Democrats have done away with taxes.

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