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  • No Drilling, No Jobs, No Money

    The Obama Administration lifted the moratorium on new permits and drilling in the Gulf of Mexico, but the same problem persists as it has for over a year now. There’s not a whole lot going on down there.

    ODS-Petrodata Weekly Rig Count keeps tabs on rigs under contract and rigs without contracts in different regions of the world. It also shows the utilization rate for offshore platform drilling rigs. Here are the numbers.

    • U.S.: 44 percent,
    • Europe/Mediterranean: 97 percent,
    • Worldwide: 83 percent.

    The fleet utilization rate for the U.S. Gulf of Mexico for the week of September 23 was 51.7 percent. This is dramatically lower than other areas of the globe: South America: 80.5 percent; Europe/Mediterranean Sea: 87.9 percent; West Africa: 77.8 percent; Middle East: 80.5 percent; Asia/Australia: 82.1 percent.

    A large part of the problem is the complexity of the new regulations and the lack of resources at the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) to handle these new complexities. The solution, however, is not more bureaucrats but a more efficient system that promotes safety, assigns full liability to oil and gas activities, protects the taxpayer, and allows offshore gas and oil exploration to continue. The system in place now is preventing people in the Gulf from getting back to work.

    Not only is the anti-drilling agenda costing jobs and economic hardship in the Gulf region, but it’s preventing billions of dollars from coming into the federal government’s coffers because of decreased royalties, lease sales, and rent fees. Yesterday, Senator David Vitter (R–LA) wrote to Interior Secretary Ken Salazar and BOEMRE director Michael Bromwich urging the need for more action in the Gulf:

    We would like to bring to your attention the steep decrease in revenue from bonus bids that result from zero Outer Continental Shelf lease sales in FY2011. In FY2008, revenue from bonus bids on offshore leases was approximately $10 billion. For FY2011, the amount is $0.

    Our country faces a severe fiscal crisis as well as significant economic challenges related to private industry job creation. Revenue cannot be generated from lease sales that do not occur, and jobs cannot be created on leases that private industry cannot acquire.

    Increasing access to our domestic energy would help lower energy prices, create jobs, and bring revenue into the financially strapped government. Federal regulators should work to return permits to pre-moratorium levels, and Congress should completely open America’s coasts for exploration and drilling and move forward with federal offshore leasing.

    Posted in Featured [slideshow_deploy]

    14 Responses to No Drilling, No Jobs, No Money

    1. VL Tweety says:

      Thank you very much for your information posted here, Americans need to know the facts. As critical as our fuel problem is, it seems catastrophic! It seems as though, through Americas GOP legislative desire to bring America to its economic knees, in order to advance their need to justify WAR, have neglected to advance our own need for fuel. It seems as though they know very little in DC about supply and demand, or they know too much! Short supply means higher prices! DC needs to do their jobs and stop playing politics and take care of Americas real needs. Government lands have massive quantities of oil beneath them. instead of sending troops to make WAR to cover up their greed, our Army Corp of Engineers and Army could be deployed to drill for oil on the aforementioned government lands, which by the way, is owned by the United States of America's citizens! Increasing our foreign debt is worse than absurd. WAR and fuel are Americas worst "economic black holes", next to the GOP!

    2. LibertyAtStake says:

      With J-O-B-S at the very epicenter of the national debate, is it even possible anymore to *not* conclude BHO and his corrupt gang of Progressives are *intentionally* killing a key domestic industry?

      d(^_^)b http://libertyatstake.blogspot.com/
      “Because the Only Good Progressive is a Failed Progressive”

    3. Brian says:

      Yes, drill baby drill!

    4. Bobbie says:

      Obama is doing the right thing for Obama! There is absolutely no reason to hold America AND the economy back from being ENERGY INDEPENDENT! except obama's reasons concealed.

    5. LibertyAtStake says:

      Looks they missed this one during 'Recovery Summer I and II'

      d(^_^)b http://libertyatstake.blogspot.com/
      "Because the Only Good Progressive is a Failed Progressive"

    6. Roger Baxter says:

      I am amazed that you do not seem to understand the situation in toto. The administration has fully bought into the "Green agenda". Increasing our oil and gas production is an anathema to them. They want "Green energy", even though it may well be nothing but a chimera. Oil is the enemy to these people. It is the source of all things they hate about our society – freedom, free movemnent, and personal choice. As long as this administration is in place, expect no new drilling, coal mines, or any other form of "Old energy".

    7. Kailey Mazzilli says:

      I agree completely with the fact that not drilling is costing jobs and hardships in the Gulf Region. They have always had this income and depended on it and now they're just not going to anymore. Many people could use jobs and people starving need the money that it could bring. I wasn't quite clear though, it doesn't make sense to me that that is happening. What is their reasoning for not drilling to begin with?

    8. One2Stupid says:

      This administration wants gas to go to $10 a gallon. It makes "green energy" more economically viable to the public. Currently "green" can't compete with traditional energy sources. Don't produce U.S. oil, import more expensive fuels that have their cost controlled by dictators. Drive costs up! Gas is about double what it was 4 years ago. Unfortunately the public has come to accept $3.50 a gallon as the new "normal". The complaining has almost stopped. TIME FOR A CHANGE!

    9. Fedup says:

      Kailey,
      Liberals do not live by logic and reasoning; and you are thinking with logic and reason. They act out of great compassion for all of creation, excluding humankind. They worship creation and nature. They believe mankind has destroyed, and continues to destroy, nature; and that they must save the earth at all cost. They think that if one minnow could be killed by a drop of oil, that is reason enough not to drill in the Gulf. They are ignorant of the ANWAR region also; and are anti-everything being done there, even though the caribou have flourished in the region since the pipeline was constructed for the Prudhoe Bay exploration/drilling. The bottom line is, they are blooming idiots!

    10. Lloyd Scallan says:

      Although the moratorium has been "offically" lifted, the new regulations the Obama administration
      implemented has even more baracades in place to prevent drilling. How else could Obama cause a massive collapse of our economical system than preventing oil and natural gas production from our own resorces? Despite the lies and distortions that have come out after the BP spill, when the true facts are known, we soon realize the entire matter of the spill after the blow-out, we see Obama caused as much damage as possible, by manipulating government agencies and refusing overseas help, thus Obama could justify shuting down all drilling operations.

    11. You really make it seem so easy together with your presentation but I in finding this topic to be really something which I think I would never understand. It seems too complex and very huge for me. I’m taking a look ahead for your subsequent post, I’ll attempt to get the hang of it!

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