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Morning Bell: Obama's Anti-Energy Policies Are Bankrupting America

Posted By Rob Bluey On May 5, 2011 @ 9:16 am In Scribe | Comments Disabled

Randall Stilley has witnessed firsthand the Obama administration’s job-killing agenda. As the president and chief executive of Seahawk Drilling, he had to lay off 632 employees before filing for bankruptcy — a direct result of President Barack Obama’s anti-energy policies.

Stilley’s company owned and operated 20 shallow-water rigs in the Gulf of Mexico. The lack of energy production — a consequence of Obama’s drilling moratorium and subsequent “permitorium” — led to Seahawk’s demise [1]. Now he’s speaking out, sharing Seahawk’s story in a new video from Heritage and the Institute for Energy Research. (Click to watch [2].)

It’s an unfortunate example of how policies in Washington are harming American jobs and also squelching energy production at a time when consumers are paying $4-per-gallon for gasoline.

Fortunately, not everyone in the nation’s capital is content with higher prices and fewer jobs. Today the U.S. House considers the first of several bills that directly addresses energy and jobs. Lawmakers will vote today on legislation that requires the Obama administration to conduct oil and natural gas lease sales [3] in the Gulf of Mexico and in the waters offshore Virginia.

It’s a welcome change from the anti-drilling policies first imposed by the Obama administration one year ago. On May 6, 2010, the first moratorium on Gulf drilling took effect, followed by a longer ban that lasted until October. But even after it was lifted, few deepwater permits have been issued [4].

The long-term implications are disastrous for America. That prompted House Natural Resources Chairman Doc Hastings (R-WA) to pursue a remedy through legislation [5]. Today’s vote would ensure that companies continue energy development by requiring lease sales. Two other bills would speed up the permitting process [6] and craft a long-term plan for offshore lease sales [7].

“What we’re proposing is to lower gas prices, create American jobs, which ironically will help drive up government revenues, and ultimately, in the wake of all the turmoil we’ve seen in the world, create an environment in which we are energy independent or on a path to energy independence,” Rep. Peter Roskam (R-IL) explained yesterday.

Even without the president’s signature, the legislation has already had a positive impact. After it passed in committee, the Obama administration promised to hold one lease sale in 2011 [8]. (Ever since 1958, there has been at least one lease sale every year.)

But while one lease sale is better than none, Hastings isn’t satisfied. He wants the Obama administration to hold four lease sales before June 2012  – including one off the coast of Virginia.

Aside from creating new jobs and discovering new sources of energy, the lease sales contribute a substantial sum of revenue for the federal treasury [9]. In 2008, the offshore industry paid $9.4 billion for bids on new leases. Last year, that figure dropped to $979 million in lease bids.

The drop in revenue is a reflection of the Obama administration’s anti-energy policies. And lease sales are only part of the equation. According to the government’s own Energy Information Administration [10], production in the Gulf of Mexico will drop by 190,000 barrels per day. That means less money from royalty payments on offshore rigs as well.

Faced with mounting criticism, the Obama administration has defended its policies [11] as a safety precaution following last year’s oil spill. But one year later, the Bureau of Ocean Energy Management, Regulation and Enforcement is issuing drilling permits at such a slow pace [4] that it’s hard to swallow the explanation.

At the same time, the Obama administration and Democrats in Congress are seeking new ways to penalize energy businesses. As Curtis Dubay and Nick Loris write on The Foundry, a proposal from Senate Finance Chairman Max Baucus (D-MT) would significantly increase taxes paid by U.S. oil and gas companies [12] competing abroad — exactly the wrong approach with gas prices on the rise.

Meanwhile, job creators like Leslie Bertucci and Randall Stilley continue to bear the brunt of the Obama administration’s misguided policies. Bertucci, who told us last month about her company’s struggle to survive [13], has dipped into personal savings to avoid layoffs.

Stilley didn’t have that option at Seahawk. And he’s not optimistic about what the future holds [2] under this administration.

“As an American,” he told us, “you never want to look at your own government and say they’re hurting you personally, they’re hurting your business and they’re doing it in a way that’s irresponsible. I’m not very proud of our government right now and the way they handled this.”

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Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2011/05/05/morning-bell-obamas-anti-energy-policies-are-bankrupting-america-2/

URLs in this post:

[1] led to Seahawk’s demise: http://www.washingtonpost.com/opinions/a-preventable-bankruptcy-in-the-gulf-of-mexico/2011/03/19/ABnGs3KB_print.html

[2] Click to watch: http://www.youtube.com/heritagefoundation

[3] requires the Obama administration to conduct oil and natural gas lease sales: http://naturalresources.house.gov/News/DocumentSingle.aspx?DocumentID=231014

[4] few deepwater permits have been issued: http://www.foundry.org/2011/05/05/deepwater-drilling-permitting-rate-still-way-below-average/

[5] pursue a remedy through legislation: http://www.speaker.gov/Blog/?postid=239521

[6] speed up the permitting process: http://naturalresources.house.gov/News/DocumentSingle.aspx?DocumentID=231013

[7] craft a long-term plan for offshore lease sales: http://naturalresources.house.gov/News/DocumentSingle.aspx?DocumentID=231015

[8] Obama administration promised to hold one lease sale in 2011: http://naturalresources.house.gov/News/DocumentSingle.aspx?DocumentID=237954

[9] substantial sum of revenue for the federal treasury: http://www.ncpa.org/sub/dpd/index.php?Article_ID=20599

[10] Energy Information Administration: http://www.eia.doe.gov/emeu/steo/pub/

[11] defended its policies: http://www.washingtonpost.com/national/environment/rising-gas-prices-shift-energy-debate/2011/04/29/AFbYjZiF_story.html?hpid=z6

[12] significantly increase taxes paid by U.S. oil and gas companies: http://www.foundry.org/2011/05/04/baucus-not-ending-oil-subsidies-but-implementing-tax-hikes/

[13] her company’s struggle to survive: http://www.foundry.org/2011/04/20/video-obamas-anti-drilling-agenda-endangers-gulf-coast-economy/

[14] may be shaping up between GOP leaders and the White House: http://online.wsj.com/article/SB10001424052748704322804576303490627827926.html?mod=WSJ_hp_LEFTTopStories

[15] have jumped to 474,000: http://www.marketwatch.com/story/weekly-us-jobless-claims-jump-to-474000-2011-05-05?reflink=MW_news_stmp

[16] killed at least 21 policemen and wounded at least 75 others: http://www.google.com/hostednews/afp/article/ALeqM5jZXCvnn4wVKo6v6pUekKykE9VZHA?docId=CNG.3bce48042eb243fc76055628cd8a2455.61

[17] analyzing material collected from Osama bin Laden’s compound: http://www.latimes.com/news/nationworld/world/la-fg-bin-laden-intel-20110505,0,1702862.story

[18] offers a defense for defense spending: http://www.foundry.org/2011/05/04/guest-blog-rep-michele-bachmann-on-the-defense-for-defense-spending/

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