As Gas Prices Rise, Obama Tries to Talk Them Down—Literally

Offering Hollow Promises of More Domestic Production, Obama Attempts to Spin Away His Anti-Energy Policies that Drive Gas Prices Higher

As gas prices continue rising, Obama will speak Wednesday morning at Georgetown University on energy security, potentially addressing his plans to “boost domestic energy production”:

“Facing pressure to curb rising gas prices, President Barack Obama is calling for the U.S. to reduce its oil imports by one-third over the next decade, a lofty goal likely to run into significant obstacles.

“Senior administration officials say Obama will seek to reduce the U.S. dependence on foreign oil by boosting domestic energy production, offering incentives to increase the use of biofuels and natural gas, and making cars and trucks more fuel-efficient. Obama is expected to outline these steps during a speech on the nation’s energy security Wednesday at Georgetown University.”(“Amid Rising Gas Prices, Obama to Detail Energy Security Strategy,” Associated Press, 3/30/2011)

But despite two years of promises that he would boost domestic production, Americans are still waiting. As usual, Obama chooses to substitute talk for meaningful action. While the President refuses to take meaningful steps to expand domestic oil production, his anti-energy policies increase America’s vulnerability to oil price spikes and destroy jobs:

360,000 BARRELS/DAY OF PRODUCTION LOST DUE TO OBAMA: “Because of the moratorium and de facto moratorium, the United States has lost an estimated 360,000 barrels per day of oil production from the Gulf of Mexico in 2010 and 2011. The Obama administration also keeps postponing the approval of an oil pipeline from Canada. The administration cannot seem to figure out the environmental implications of a pipeline despite the fact that there are more than 50,000 miles of oil pipelines already in the United States.  And instead of drilling here, the Obama Administration is promoting offshore oil production in Brazil and placing the United States into an air combat situation with Libya, a member of the Organization of Oil Producing States (OPEC).  It seems that Mr. Obama’s administration will go to lengths to obtain oil supplies from everywhere but the United States and Canada.” (“The Obama Administration Is Slowly Reissuing Offshore Oil Permits,” Institute of Energy Research, 3/23/2011)

OBAMA’S MORATORIUM DESTROYED OIL-PRODUCING JOBS: “Last month, Seahawk Drilling declared Chapter 11 bankruptcy and announced the sale of its assets to shallow-water driller Hercules Offshore. This devastating decision was the culmination of a long period in which we found our customers unable to secure permits for work in the Gulf of Mexico despite the fact that both our industry and our company have excellent safety records. In the 11 months after the Deepwater Horizon accident, it became clear that Seahawk’s greatest rival was no longer our industry competitors but the U.S. government.” (Randy Stilley, “A Preventable Bankruptcy in the Gulf of Mexico,” The Washington Post, 3/23/2011)

OBAMA TAKING CREDIT FOR BUSH ENERGY POLICIES: “He doesn’t want to admit it, but President Obama is taking credit for something George W. Bush did.

“The White House is touting federal data that shows domestic oil production is at its highest level since 2003. In a blog post last week, Obama’s top climate and energy aide, Heather Zichal, points to Energy Information Administration data that shows oil production from the Outer Continental Shelf (which basically means the Gulf of Mexico) has increased by more than a third between 2008 and 2010…

“According to EIA’s short-term 2011 outlook, released last week, oil production was significantly higher in 2009 than in the years prior. Obama may have been in office for most of that year, but the oil production numbers are due to action taken before he became president. In 2010, most if not all of the production increase recorded is likely due to action that predates Obama, since Obama didn’t take any major action expanding offshore drilling his first year in office.” (Amy Harder, “Obama’s Fuzzy Oil Production Math,” National Journal, 3/17/2011)

As The Washington Post noted Monday, President Obama apparently did not see the irony when he voiced support for Brazilian offshore drilling last week, even as he maintains both de facto and de jure moratoriums in effect for most of the U.S.:

THE WASHINGTON POST: SUPPORT FOR BRAZILIAN DRILLING “HARD TO RECONCILE” WITH DRILLING MORATORIUM. “When was the last time an American president stood before an audience in a foreign country and announced that he looked forward to importing more of its oil? Answer: Just over a week ago, when President Obama joined political and business leaders in Brasilia in hailing the fact that their newly discovered offshore petroleum reserves might be twice as large as those in the United States. …

“As for offshore drilling, Mr. Obama’s enthusiasm for punching holes in the ocean floor off Brazil is hard to reconcile with his decision, announced Dec. 1, to keep the waters off the East and West coasts and the eastern Gulf of Mexico off-limits to exploration indefinitely.” (Editorial Board, “Drill, Brazil, Drill, Says the U.S.,” The Washington Post, 3/28/2011)

NO NEW DRILLING PERMITS TO DATE UNDER OBAMA: “The Obama administration would like you to think that major strides have been taken to increase drilling in the Gulf of Mexico. But, that is hardly the case. The administration has been touting the four drilling permits it has issued, but in reality, but these are not new permits—they have only reissued four permits that it suspended last year. The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) also touted its approval of Shell’s supplemental exploration plan in the Gulf of Mexico. But due to the way the approval process was set up by BOEMRE, it is very likely environmental groups will sue the plan before any work actually occurs.  These approvals are simply a mere drop in the bucket compared to what drilling and oil production could be garnered in the Gulf.” (“The Obama Administration Is Slowly Reissuing Offshore Oil Permits,” Institute of Energy Research, 3/23/2011)

Meanwhile, Obama’s Environmental Protection Agency is moving full speed ahead with greenhouse gas regulations that will increase gas prices beyond their already record highs. Many business groups expect this increase will raise energy prices more and be more damaging to the economy than cap-and-trade would have:

NATIONAL PETROCHEMICAL & REFINERS ASSOCIATION: “Our nation’s fuels and petrochemical manufacturers are already experiencing the adverse economic impacts of EPA’s actions. Some of our members have been forced to stop expansion projects that would have increased our domestic petrochemical and fuel supply. These projects would have also created thousands of jobs. In the face of escalating fuel costs and persistently high unemployment, EPA should not be moving forward with regulations that threaten to generate more unemployment and raise consumer fuel costs further by restricting our domestic energy production.” (Charles T. Drevna, Letter to House Energy and Commerce Committee, National Petrochemical and Refiners Association, 3/3/2011)

TESORO: “The regulatory morass currently being created by EPA under the guise of the Clean Air Act to control carbon emissions…will continue to cause increased manufacturing costs which will, in turn, result in higher energy costs for our customers and your constituents.” (Gregory J. Goff, Letter to House Energy and Commerce Committee, Tesoro Corporation, 3/10/2011)

VALERO: “Even though the Clean Air Act does not explicitly grant EPA the authority to regulate GHGs, nor was the Act ever envisioned of controlling GHGs, the Agency is charging full steam ahead. Every credible economic analysis that has been performed shows that American’s [sic] will pay higher prices at the pump, and that the refining sector, its high-paying jobs, and our nation’s energy security will suffer as a direct result of EPA’s action.” (William R. Klesse, Letter to House Energy and Commerce Committee, Valero Energy Corporation, 3/9/2011)