January 27, 2011
Thanks to Obama, Oil Disaster Isn't Over for the Gulf
Posted by Dave Blount at January 27, 2011 4:57 PM
The BP oil spill has faded out of the news, but Comrade Obama's war on energy and employment continues:
Policy advisers for the American Petroleum Institute (API) warned that continued delays for deepwater drilling permits in the Gulf of Mexico would negatively impact deepwater Gulf development as well as Gulf region jobs and the nation's energy security.
…API policy advisors cited a Wood Mackenzie study released in December that found long-term Gulf of Mexico deepwater development could be seriously jeopardized if permitting timelines are extended. The study projects nearly one-third of U.S. deepwater production could be rendered uneconomic, which could significantly impact deepwater production, resulting in less energy production, less investment and less revenue to government.
Not to mention higher unemployment, higher gas prices, and more government debt.
"The potential harm is alarming," said Kyle Isakower, API's Vice President of Economic and Regulatory Policy. "We are talking about a transformation of the future relevance of deepwater Gulf development to U.S. domestic energy production — and a major threat to Gulf region jobs and to the nation's energy security. Based on the development impacts outlined by Wood Mackenzie, we believe as many as 125,000 jobs could be lost in 2015."
A slowdown in Gulf permitting has already cost jobs and will reduce Gulf oil and natural gas production and government revenue this year. Unless policymakers reverse course, 2011 could be the first year without a lease sale in the Gulf of Mexico since 1964.
Why should Big Government allow Americans to drill their own oil? The communist Chinese are still willing to lend us money to buy it from Muslims — for now.
On a tip from Zappatrust.