"A wise and frugal government which shall restrain men
from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government."
(Thomas Jefferson)

Tuesday, July 19, 2011

Oil trade groups: Drilling Deregulation Could Create 190,000 jobs

Those 190,000 jobs are the ones that were lost when the Obama Administration put a moratorium on building permits after the BP oil spill in the Gulf. Normalcy has still not returned to the Gulf as the permit process since the moratorium is slow and laborious -- two things holding up employment for 190,000 jobs by 2013. Why?

It shows that Obama is not serious about creating jobs especially if it has to do with the oil and gas industry -- nothing else makes sense. Our dependency of Middle East oil could be curtailed if oil producers were allowed to do more exploration. We also need the EPA to stop all their rules for new refineries that make them too expensive to build and in some cases remodel.

Obama doesn't hesitate to create more Government jobs to deal with more regulations him and his cabinet love to levy on Americans especially the EPA. His idea of a perfect job has to be government employee because he has grown government jobs during his tenure.

Why does Obama and the EPA want to keep people from working along the Gulf Coast? Would Obama be so petty to keep the permit approval process at a snail's pace because the oil producing states of the Gulf are Red States who voted against him in large numbers? Also going to boldly suggest that this slow permit process is aimed right at Texas and their Governor Rick Perry who could be Obama's opponent in 2012.

Oil trade groups: Drilling deregulation could create 190,000 jobs

Published: 12:04 AM 07/12/2011, Updated: 2:34 AM 07/12/2011

By Michael Mayday

Shell is Ready to Explore Off the Alaskan Coast. Find Out More Online  Shell Alaska

Almost 190,000 jobs could be created by 2013 if offshore drilling returns to pre-spill levels, according to a study sponsored by two oil trade groups, the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API).

The study, conducted by Quest Offshore Inc., found that if permits for exploration and drilling returned to historic levels, and if backlogged requests were granted, 400,000 jobs could be supported across the United States with a GDP increase of $45 billion by 2013.

“The president says he wants ideas for putting Americans back to work right now,” said Jack Gerard, API president, during a conference call today. “So we urge him, again, to take a look at policies that will encourage oil, and domestic gas development.”

The offshore oil and natural gas industries suffered losses in 2008 due to the economic recession, the moratorium on deepwater drilling, and slowdowns in permits issued for drilling in the Gulf of Mexico. The study’s authors claim tens of thousands of jobs have been lost due to the downturn.

Gerard echoed the study’s conclusions, saying the United States has the opportunity to increase employment and secure “as much as 92 percent of [its] oil needs from North American resources.”

Both Gerard and NOIA president Randall Luthi agreed the industry needs the ability to explore newly identified petroleum deposits everywhere, including in East- and West-coast waters. Currently only 15 percent of the U.S. Outer Continental Shelf is available for exploration.

“We’ve got to get out there and have the opportunity to look,” Gerard said, “and the industry needs some insurance that this is serious — that there’s a leasing process in place to eventually commit the resources to go find what level of resources are available, and then to develop it at that point. So given those opportunities, I can guarantee you the industry will spend its money wisely. But you need to have the opportunity.”

Read more:  Daily Caller
Only 15% of the U.S. Outer Continental Shelf is available for exploration? Why is there not a leasing process in place so exploration can begin in more than 15%? Obama really does want to hurt domestic oil production with all the rules, regulations, and large amounts of areas with oil being put off limits. This seems be a Democrat plan to tank domestic oil production because they have fought for years at opening up new areas for exploration while preferring to shut down areas. They don't seem to have any problem with relying on Middle East or South American Oil.
Why does Obama guarantee a $2 billion loan to Brazils' Petrobras on Mar 21, 2011, to do offshore drilling when he tries to stop it here in the States? Billionaire George Soros’s fund management firm sold all of its Petroleo Brasileiro SA stock on August 17th, dumping its biggest company holding ahead of a planned $25 billion offering by Brazil’s state-controlled oil producer.  In this case the reason for dumping stock was Petrobras preferred shares lost 24 percent in the second quarter as investors speculated that the offering slated for next month will dilute earnings.  Obama guarantees $2B in loans at the end of the first quarter and Petrobras lost 24% in the second quarter, and Soros fund management sells all of stock on August 17th in the third quarter.

Then you find out after the $2B guarantee that UBS AG in August became the first bank to recommend selling Petrobras, saying the government may seek a higher-than-expected price for oil reserves it plans to exchange for new shares. You can kiss another $2B from the Treasury good-bye with another bad investment by Obama.  How many times will you find Soros name involved in oil and other ventures where the US gets the short end?

The biggest question may be "Who has the most to gain with the continual use of Middle East and South American oil instead of exploring for more resources in the United States?"

There are a lot more questions than answers but someday when the history of the current Administration is written some of his most loyal supporters are going to be in for a shock.

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