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Sunday, February 26, 2012

Oil Production Increased During Obama's Administration

SEARCH BLOG: OBAMA and OIL

President Obama recently pointed out that domestic oil production has increased during his administration.  True.  But he is taking credit for those increases which occurred because they were outside of federal jurisdiction.

The increase in domestic drilling was almost entirely in areas for which the Obama administration exercised no authority, as oil production on federal land declined by 11 percent in fiscal year 2011, according to a study by the Institute on Energy Research (IER), a free-market energy think tank. But oil production on state lands increased that year by 14 percent and increased by 12 percent on private lands.

Increases? Yes.  His doing? No.

About a year ago, the headlines read:
U.S. approves first deepwater oil drilling permit since BP spill 
Published: Monday, February 28, 2011, 9:05 PM 
You should remember that during the time when the Obama administration was dragging its collective feet, China and Cuba were doing the drilling dance not far from U.S. shores.

But, you say, the Obama administration was simply being responsible.  When the time was right, the Obama administration acted decisively to ensure a new flow of oil for the country.

Eh, not exactly....  From one week earlier:
Court orders Obama to act on drilling permits

February 21, 2011: 11:14 AM ET 
NEW YORK (CNNMoney) -- A federal court ordered the Obama administration Thursday to act on five deep water drilling permits in the Gulf of Mexico within 30 days, calling the delays in issuing new decisions "unreasonable, unacceptable, and unjustified."


Still, with environmental concerns, President Obama was completely justified in stopping oil exploration.
Bill Clinton: Drilling delays 'ridiculous' 
Bill Clinton reportedly criticized delays in oil drilling permits since last year's spill in the Gulf. | AP Photo
CloseBy DARREN GOODE | 3/11/11 4:55 PM EDT 
Former President Bill Clinton said Friday that delays in offshore oil and gas drilling permits are “ridiculous” at a time when the economy is still rebuilding, according to attendees at the IHS CERAWeek conference.
Oh, but that was so last year!


True, Obama has had a chance to change directions and make the U.S. less dependent on oil from OPEC.
Obama’s Keystone pipeline rejection is hard to accept
January 18, 2012 
But one has to admire Obama for being consistent about his anti-oil policies.

Besides, the economy is recovering.  What's the big deal? Well, oil prices are up from $33.07 in January 2009 when Obama took office to...



That more than tripled ... and that's just the start.  The story, of course, is that starting expansion of drilling would take 3-4 years to influence oil supply.  Uh, help me with the calculations here, but isn't it three years since 2009?

Gas prices high? No magic bullet, Obama says. 
Gas prices rise to average $3.65 a gallon, a record for this time of year. Obama dismisses GOP plans to lower gas prices as 'bumper sticker' answer.  
Oil prices are approaching last year's highs as tensions increase over Iran's nuclear program. The rise pushed gasoline prices Friday to a national average of $3.65 a gallon, the highest ever for this time of year.
The most recent innovation of the Obama administration to ensure no lessening of foreign oil dependency is aggressive regulation.


Now we understand.  It is not necessary for the U.S. to increase its own supply of oil because those are "bumper stick" solutions to high gasoline costs in the U.S. which is the result of the fear of not having enough oil because of actions by countries like Iran on whom the West is dependent for some of its oil.  

In other words, being less dependent on unreliable sources of foreign oil would not make any difference regarding the impact of being dependent on foreign oil... so we're just not going to do anything about it.  Same story 100th verse; a little louder, a little worse.

MONDAY, FEBRUARY 20, 2012

Energy - Obstructionism As Policy

SUNDAY, FEBRUARY 26, 2012


Sen. Barack Obama's 2008 Speech About Oil And The New World Order


2012 IS HERE

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There is always an easy solution to every human problem—neat, plausible, and wrong.
Henry Louis Mencken (1880–1956)
“The Divine Afflatus,” A Mencken Chrestomathy, chapter 25, p. 443 (1949)
... and one could add "not all human problems really are."
It was beautiful and simple, as truly great swindles are.
- O. Henry
... The Government is on course for an embarrassing showdown with the European Union, business groups and environmental charities after refusing to guarantee that billions of pounds of revenue it stands to earn from carbon-permit trading will be spent on combating climate change.
The Independent (UK)

Tracking Interest Rates

Tracking Interest Rates

FEDERAL RESERVE & HOUSING

SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006 Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
November 28, 2007 FED VICE CHAIRMAN DONALD KOHN
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."
http://www.reuters.com/

December 11, 2007 Somehow the Fed misses the obvious.
fed_rate_moves_425_small.gif
[Image from: CNNMoney.com]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's Economy.com. "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.”
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

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Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)