Looking forward to hitting the open road for some well-deserved R&R this summer? If so, your wallet will be taking some abuse! More ‘Change You Can Believe In!’
John Hofmeister, former president of Shell Oil, predicts Americans could be paying $5 per gallon of gasoline by 2012. He observes that rising worldwide demand for oil, tighter supplies and inadequate responses by the U.S. government could have a major impact on the price of fuel.
The price of unleaded gasoline rose to $2.99 in the Mid-West and is in the neighborhood of $2.90 here in the Free Territories of West Tennessee. The nationwide average is north of $3 per gallon and climbing. This is particularly disturbing because gasoline prices typically decline during the winter months. Declining oil reserves is cited as one of the culprits.
This assessment is interesting in that, for years, oil industry analysts have been claiming that the world had ample oil reserves, and there was no need to develop alternate sources of energy because of plentiful supplies of cheap fossil fuels would meet global energy needs.
Of course, this did not sync with the Obama administration and his ‘green’ special interest agenda. In order to promote their radical agenda of killing the oil industry (with the bonus of the American economy) and imposing their ‘warm & fuzzy’ theory that autos emit nothing but scented potpourri, they have devised a plan to cause a shortage of oil reserves. The Obama Gulf of Mexico drilling ban is a prime example.
More than two months after the Obama administration lifted its ban on drilling in the deep-water Gulf of Mexico, oil companies are still waiting for approval to drill the first new oil well there. Therefore, the ban is still in effect through intentional bureaucratic permit delays; another example of Obama’s end run tactics around legislation or transparency. Some experts say this defacto ban could continue until the second half of 2011, and most likely into 2012.
The delay is hurting big oil companies (which appears to be the intent) such as Chevron Corp. and Royal Dutch Shell PLC, which have billions of dollars invested and tied up in Gulf projects that are on hold and paying hundreds of thousands of dollars a day for rigs that aren’t allowed to drill.
The impact of this intentional bureaucratic ‘fuster-cluck’ reaches far beyond the oil industry. The Gulf coast economy has been hit hard by the slowdown in drilling activity. The Obama administration itself estimated that 8,000 to 12,000 (this is assuredly a low-ball estimate) workers could lose their jobs temporarily as a result of the moratorium. This ‘temporary’ condition could very well turn permanent as oil companies are forced to relocate these very expensive idle rigs moribund in the Gulf to parts of the world where thry can work and generate revenue.
Erik Milito, a senior official at the American Petroleum Institute, the oil industry's main lobbying group, said more rigs will leave soon if drilling isn't allowed to resume. "They're doing everything they can to keep the contracted rigs in the Gulf," said Mr. Milito. "But they're idle, they're not able to do the work they intended to be out there doing, and that can only go on so long."
The Obama administration's newly formed offshore drilling regulator, the Bureau of Ocean Energy Management, Regulation and Enforcement, says it isn't trying to stall new drilling but won't be rushed by industry pressure. The agency notes it has approved permits for deep-water activity that wasn't covered by the moratorium, such as modifications of existing wells.
"We will not cut corners in the permit review process," agency spokeswoman Melissa Schwartz wrote in an email. "Our priority remains, as it must, to ensure that oil and gas drilling is done in a safe and environmentally responsible manner."
Of course, the phrase “environmentally responsible manner’ is code for ‘it ain’t gonna happen!’
Of course, the phrase “environmentally responsible manner’ is code for ‘it ain’t gonna happen!’
Off-shore drilling is not the only target of the enviro-whackos. Massive reserves of Anwar have been sealed off for years. Millions of acres of oil rich soil within the continental United States are similarly off-limits to exploration and development.
If only our southern border were so effective!
If only our southern border were so effective!
This, however, does not stop the rest of the world from taking steps to meet demand. China is drilling for oil off the coast of Cuba, within relative spitting distance of our politically embargoed waters. Brazil, as well as Mexico, have discovered and are moving to exploit huge NEW reserves in their waters; reserves that were not supposed to exist, according to US anti-oil experts.
The Obama administration’s idiot energy non-policies have other consequences, either intended or unintended. As farmers and their landlords know, the prices of the major commodities are up significantly in world markets. Corn futures are currently priced at $6.24 per bushel and soybean futures are at $13.66 per bushel. There are several reasons for this surge; however, one is particularly troubling:
The United States has historically been known as ‘the bread basket” to of the world. The American farmer is the most productive and efficient food producer in history. But, due to Liberal energy policy continued and expanded by Obama, a large portion of the food grains (corn and soybeans) is being re-directed from food production to ethanol production, a most idiotic and inefficient program.
This mis-placed effort to reduce dependence on fossil fuels actually takes more energy to manufacture than it produces. Some estimates note it takes approximately 3 gallons of fossil fuel to produce 1 gallon of ethanol. Only a government program can achieve this type of result and be called a success by the government! The domino this program has tipped in other parts of the world is a terrible food shortage. Grain going into ethanol is not going into bellies of the hungry in third-world countries. How is that for compassionate Liberalism run amok?
‘Professor’ Paul Krugman, Nobel winning moron of the New York Times said, “What the commodity markets are telling us is that we’re living in a finite world, in which the rapid growth of emerging economies is placing pressure on limited supplies of raw materials, pushing up their prices.”
The only thing ‘finite’ is the Liberal left’s and Obama’s ability to comprehend the basics of supply and demand economics. This inbred disdain and hatred for American capitalism is at the heart of their all-out race to destroy America … and with it, our way of life.
2012 cannot get here soon enough … Mayan calendar or not!
