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Author Topic: Obama's impact on oil, gas? Not much. Back to Topics
xgojim

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Michigan

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Message Posted: Nov 19, 2012 12:40:35 PM

Following President Obama's reelection, a number of fossil fuel stocks sold off based on the belief that Obama's policies would prove harmful to the fossil fuel industry. But will the President manage to push through tough new regulations that raise the cost of production for fossil fuel companies? Although President Obama often took an antagonistic position with respect to the fossil fuel industry during his first term, the industry actually fared pretty well. U.S. oil production and dry natural gas production were both sharply higher during President Obama's first term, but coal production fell slightly relative to President Bush's second term. To be clear, the production increases for oil and natural gas were not the result of President Obama's energy policies.
Visit Christian Science Monitor for full article
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bston
Champion Author Oklahoma City

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Message Posted: Nov 21, 2012 12:48:25 AM

It'll come sooner or later!
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 20, 2012 9:30:44 AM

virostek, good point. As a matter of fact, NHLiveFree and others like him continually push stats about how there has been more oil produced starting in 2009 when Obama took office than there was during Bush's terms.

Obama has been one who shamelessly took credit for increased oil production starting back in his first year in office. Obviously he had nothing to do with any oil production at that time since it takes a few years from approval of a federal lease and permit to the point of obtaining oil. Obama also tries to take credit for oil produced on state and private land when he has nothing to do with that either.

The quote NHLiveFree uses is from the article's lead statement after the title. It only gives a positive to Obama as the beneficiary of the lag effect from what Bush did to increase production. Bush increased the number of leases and permits to drill. The part about a hostile policy not being felt for years is not at all true though, as I have pointed out in my earlier posts. I will add more to dispute that shortly.

The "lag concept" is true when you are discussing oil production after proposal of a pipeline or after applications to drill. As an example, I pointed out in my earlier post about the 307 days (on average) it takes for Application for Permit to Drill (APD) on federal land.

But there certainly is no lag when you order drilling to stop as Obama did with his illegal 6-month moratorium after the BP oil disaster in the Gulf of Mexico. Slashing the number of approved leases and permits during Obama's term has also been felt already. If it weren't for the increased oil production on private and state land which Obama has no control over, overall oil production would be significantly less right now because of Obama's hostile energy policies, not years later.

There is very little lag when EPA imposes regulations. As Obama promised during his 2008 campaign that he would bankrupt the coal industry, a record 8.5 percent of the total coal-fired capacity in the United States was scheduled to be shut down in 2012 due to Obama's regulations. More will follow.

Thanks to fracking on state and private land, the natural gas industry has grown. None of that can be credited to Obama. If Obama does to the natural gas industry what he did to the coal industry, that will severely cut natural gas production in this country with virtually no lag.
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virostek
Veteran Author Virginia

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Message Posted: Nov 20, 2012 7:23:11 AM

"Many fossil fuels companies fared better under President Obama than President Bush, because of lag effects. Even if he Obama pursues an energy policy hostile to oil or gas, its impact probably won't be felt for several years."Just curious if you where saying this when Bush was in office? It is amazing how many people denied the lag concept when Bush was in office, yet embraced this concept when Obama was in office?
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FluffyDogAttack
Champion Author Riverside

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Message Posted: Nov 20, 2012 2:02:53 AM

Right on, Alaydown.
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 20, 2012 12:40:02 AM

NHLiveFree, I don't whine or cry in my beer. I only post factual information to combat the disinformation being promulgated by the lying left wing.
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 20, 2012 12:26:23 AM

NHLiveFree, you really need to pay attention to reality instead of following the rants of the left wing writers.
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NHLiveFree
Champion Author New Hampshire

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Message Posted: Nov 19, 2012 11:56:30 PM


All the sore 'LOSERS' still crying in their beer!

"Many fossil fuels companies fared better under President Obama than President Bush, because of lag effects. Even if he Obama pursues an energy policy hostile to oil or gas, its impact probably won't be felt for several years."

Try reading before whining.
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Wanda127
Champion Author Florida

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Message Posted: Nov 19, 2012 11:47:08 PM

You said it all Alaydown
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CVA19
Champion Author Salem

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Message Posted: Nov 19, 2012 10:59:57 PM

Executive Orders and EPA regulations in Obama's second term will be "hell-on-wheels" compared to his first term. All the House of Representatives can do is sue the executive branch if they over-reach. This will be time-consuming and have mixed results.

Obama's words to the Russian President about having more flexibility after he is re-elected could just as easily have been spoken (and probably have been) to the extreme environmentalists.
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listerone
Champion Author Boston

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Message Posted: Nov 19, 2012 9:21:39 PM

Gas was $1.80/gal on the day he took office...today it's $3.60/gal
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Lugi1967
Champion Author Ohio

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Message Posted: Nov 19, 2012 6:41:00 PM

Not much good either
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drpepperTX
Champion Author Texas

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Message Posted: Nov 19, 2012 6:33:35 PM

Not much left to say!

Well done Alaydown. Spot on as always.
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ktbaeohana
Champion Author Las Vegas

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Message Posted: Nov 19, 2012 6:20:27 PM

watch and see.
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 19, 2012 3:46:19 PM

Take what Obama told the Russian President off-microphone about having "more flexibility" after the elections as a sign he intends to do a lot more unpopular things. As it was in his first term, he illegally imposed a moratorium on drilling in the Gulf of Mexico, and he imposed cap-and-trade through the EPA after cap-and-trade was defeated in Congress, which is the proper body to approve or disapprove such regulations.

Obama's policies will drive up prices more than they already have. And before he is finished, he will impose a carbon tax and increased gasoline taxes on us all to "European levels" if he is given another DemocRAT majority in Congress. If that happens, expect to see $8-10 per gallon gasoline in 2016.
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 19, 2012 3:30:25 PM

Obama as president has everything to do with the drilling that is approved or disapproved on federal land and water. He also imposed an illegal moratorium on drilling in the Gulf of Mexico. He indicted 7 oil companies drilling on private and state land in North Dakota. He killed the Keystone XL pipeline. He placed a moratorium on drilling offshore in parts of Florida and other areas. He also controls the EPA which is shutting down the coal industry and is imposing new regulations that are increasingly more difficult to follow by refineries and the rest of the oil industry. And there are other examples. Yes, Obama has a great impact on oil and gas.

With just the Application for Permit to Drill (APD) on federal land/water, the average number of days after initial submission that the oil industry takes to resolve any deficiencies in an APD in FY2011 (for example), took an average of 307 days. On private and state land, the time is less because of the red tape by the feds. For example, it only takes 10 days to get a permit to drill on private or state land in North Dakota versus 307 days for federal land.

Obama cannot take credit for drilling in North Dakota because it is on state and private land. But, Obama has tried to stop drilling there. Look at his indictment of 7 oil companies in North Dakota for 28 bird deaths while ignoring the windmill companies that have killed over 400,000 birds. Is that just a double standard, or is it that Obama wanted to stop the drilling?

Gas prices are on the rise, but the Obama administration continues its policy of slow-walking drilling permits in the Gulf of Mexico. Recently, Greater New Orleans, Inc. (GNO) released its monthly report on the status of oil and gas permits in the Gulf of Mexico—and the numbers help explain why gas prices are up so much since President Obama’s inauguration.

Since November 2011, an average of only 3 deepwater permits have been issued each month. This is a 57 percent reduction from the historical average of 7 deepwater permits each month over the past three years.

Shallow water permits, although a considerably simpler operation than deepwater, have also decreased notably. Since November 2011, an average of 4.7 shallow water permits have been issued each month, representing a 68 percent decrease from the historical average of 14.7 new shallow water well permits each month.

Perhaps most telling of the reality in the Gulf is the number of permits that actually get approval. In the year to date, an average of 23 percent of drilling plans have been approved, a 69 percent reduction from the historical average of 73.4 percent. In 2011, the average number of approved plans was 34, which is a 53 percent decrease from the historical average. Instead of increasing in the time since the Gulf moratorium, exploration in the Gulf is continuing on a negative trend downward.

Obama's illegal moratorium in the Gulf of Mexico cut oil production there by over one-third. Prior to the moratorium, oil production was as high as 1.71 million barrels a day, and after that, it was as low as 1.09 million barrels per day, a reduction of over 600,000 barrels per day. Mainly because of the moratorium on drilling imposed by the Obama Administration, oil production from the Gulf of Mexico is expected to reach only 1.3 million barrels per day in 2012. Much of that oil is heavy oil being replaced by imports from Saudi Arabia.

The Congressional Research Service (CRS) found that the increased oil production in fiscal year 2011 came from oil production on private and state lands, which makes up about 70 percent of total U.S. oil production. According to CRS, 96 percent of the increase in oil production between fiscal years 2007 and 2012 came from private and state lands and production there increased 11 percent in fiscal year 2011 from fiscal year 2010 levels.

The following information comes primarily from the Obama Administration websites—from the Bureau of Land Management, the Bureau of Ocean Energy Management and other Department of Interior websites.

The federal government leases less than 6 percent of its onshore lands for oil and gas development. Under the Obama Administration, the rate of leasing has slowed by about half.

The number of new leases fell by 42 percent from 9,661 between fiscal years 2006 and 2008 to 5,568 between fiscal years 2009 and 2011. And, under President Obama’s administration, the total number of acres under lease fell by over 18 percent, from 47.2 million in fiscal year 2008 to 38.5 million in fiscal year 2011. The rate of permitting has also declined by more than one-third. During fiscal years 2006 to 2008, 20,479 federal drilling permits were approved, compared to 12,821 for fiscal years 2009 to 2011.

The time it takes to receive a permit to drill on federal lands has doubled since fiscal year 2005 when it took 154 days to receive a drilling permit compared to 307 days in fiscal year 2011. The Obama Administration issued almost 40 percent fewer permits and took twice the time to do it. Since fiscal year 2008, the amount of time that industry needs to take to “resolve any deficiencies” in an application has tripled.

The USA has a vast amount of offshore acreage that could be leased for offshore drilling, but only 2 percent of the outer continental shelf is currently leased for oil and gas development, 35,275,233 acres out of 1,712,260,000 total acres.

During the Obama Administration, revenues from the sales of offshore leases fell by well over 99 percent, from $9,481 million in fiscal year 2008 to below $37 million in fiscal year 2011 due to cancelled and delayed lease sales. Both the number of acres and the number of tracts leased have declined by about two-thirds since President Obama has taken office. That revenue could have helped our deficit, or at least paid for the president's and first lady's many expensive vacations.
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peakkeller
Champion Author Colorado Springs

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Message Posted: Nov 19, 2012 2:49:01 PM

The market operates independently of whomever is president - not much correlation.
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bullfrog42
All-Star Author Texas

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Message Posted: Nov 19, 2012 2:40:36 PM

Ok
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mitt4prez
Champion Author Tacoma

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Message Posted: Nov 19, 2012 2:40:15 PM

Evidently the MONITOR has not learned about the "second terms are worse than first terms for Presidents" With no lust for reelection to hold The Won in check, the idiotic reign of blockage will now commence in earnest. Also note: production on private lands held up, production on federal/state lands fell. This trend will only worsen in The Won's second term.
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Wally3023
Champion Author Pennsylvania

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Message Posted: Nov 19, 2012 2:21:03 PM

They don't control everything.
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fullcirclethink
Champion Author Washington

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Message Posted: Nov 19, 2012 2:18:36 PM

Not to worry. Once he fully implements his 'more flexibility' mandate, he will have greater influence than we could ever imagine.
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Taxrefugee
Champion Author Arizona

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Message Posted: Nov 19, 2012 2:03:52 PM

Electoral college hasn't voted yet. Wait until after they do in Dec.
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djwhit
Champion Author Ohio

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Message Posted: Nov 19, 2012 2:02:01 PM

4 MORE YRS. OF THE SOME OUT OF HIM............THANKS PEOPLE.......
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steelydawn
Rookie Author Winnipeg

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Message Posted: Nov 19, 2012 1:48:59 PM

I think the president has other things on his mind. He doen't seem to be able to handle alot on his plate at once. It would be nice to see him concentrating on more than just a few major issues at a time.
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Nicoalbum
Champion Author Ottawa

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Message Posted: Nov 19, 2012 1:42:20 PM

Big politics is defined largely by oil and gas prices, not other way around
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Jeff4U
Champion Author Atlanta

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Message Posted: Nov 19, 2012 1:13:16 PM

"U.S. oil production and dry natural gas production were both sharply higher during President Obama's first term" ONLY BECAUSE he couldn't control PRIVATELY owned land!
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FlatulenceOdor
All-Star Author Maryland

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Message Posted: Nov 19, 2012 12:52:44 PM

What do I think about Obama's policies on fossil fuels? I do recall a company named Solyndra that failed miserably and the keystone pipeline rejected by Obama.
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humblepie
Champion Author Toledo

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Message Posted: Nov 19, 2012 12:51:30 PM

cant have much impact on the golf coarse or
while on vacation, which is often
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xgojim
Champion Author Michigan

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Message Posted: Nov 19, 2012 12:51:05 PM

Much as I respect CSM, I differ on this one. His continued influence on oil supply and prices may lag for a while but his disapproval of the pipeline has much quicker effect on jobs. That is a massive project and will have a quick impact on the economy if/when it gets underway. The administration has just cut oil drilling on Federal lands. They may be hopeless.
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FluffyDogAttack
Champion Author Riverside

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Message Posted: Nov 19, 2012 12:48:20 PM

Isn't it time for another speech? Does the teleprompter run on green energy?
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cdrrod
Champion Author Wisconsin

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Message Posted: Nov 19, 2012 12:42:11 PM

Whatever he does, it's another four years! :-(
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