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Obama's Offshore Ban Already Cutting Domestic Energy Supply
Posted By Conn Carroll On January 3, 2011 @ 11:37 am In Energy | Comments Disabled
The Wall Street Journal  reports today that, “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. Experts now expect the wait to continue until the second half of 2011, and perhaps into 2012.” Not only is the Obama permitorium  destroying jobs throughout the Gulf region (the Obama administration’s own estimates put moratorium job losses at 12,000) but the Energy Information Administration is now putting numbers  on the damage the offshore ban is doing to domestic energy supply:
The slowdown also has long-term implications for U.S. oil production. The Energy Information Administration, the research arm of the Department of Energy, last month predicted that domestic offshore oil production will fall 13% this year from 2010 due to the moratorium and the slow return to drilling; a year ago, the agency predicted offshore production would rise 6% in 2011. The difference: a loss of about 220,000 barrels of oil a day.
Experts are now predicting that rising gas prices  will hit $4 a gallon by this summer  and $5 a gallon by 2012 . Remember, higher energy prices are a deliberate policy goal of the Obama administration . This is the purpose of the EPA’s greenhouse gas regulations , the offshore drilling ban , and the Bureau of Land Management’s new rules  restricting natural resource development.
There is a better way . Americans should demand an energy policy that is rooted in the free market, builds on private property rights, and relies on the initiative and entrepreneurial spirit of the private sector. This will not only promote economic growth, but also help Americans to achieve their environmental objectives.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2011/01/03/obamas-offshore-ban-already-cutting-domestic-energy-supply/
URLs in this post:
 The Wall Street Journal: http://online.wsj.com/article/SB10001424052970204204004576050451696859780.html?mod=WSJ_hp_LEFTTopStories
 the Obama permitorium: http://www.foundry.org/2010/11/15/drilling-permitorium-continues/
 rising gas prices: http://news.bostonherald.com/news/regional/view/20110103no_end_in_sight_for_rising_gas_prices/srvc=home&position=recent
 $4 a gallon by this summer: http://www.necn.com/12/31/10/Stocks-quietly-finish-mixedOil-prices-ri/landing.html?&blockID=3&apID=75f4dca7c13b4504965409c7a00b1b8f
 $5 a gallon by 2012: http://abcnews.go.com/US/oil-executive-gas-prices-soar-2011-2012/story?id=12509267
 higher energy prices are a deliberate policy goal of the Obama administration: http://www.foundry.org/2010/12/29/morning-bell-obama-wants-you-to-pay-more-at-the-pump/
 EPA’s greenhouse gas regulations: http://www.washingtonpost.com/wp-dyn/content/article/2010/12/23/AR2010122305643.html
 the offshore drilling ban: http://www.foundry.org/2010/12/01/seven-years-of-bad-policy-government-maintains-offshore-drilling-ban/
 There is a better way: http://www.heritage.org/research/reports/2010/08/meeting-america-s-energy-and-environmental-needs
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