Monday, March 19, 2012

President Obama manipulating the truth about oil!

President Obama plays fast and loose with the truth surrounding U.S. oil reserves!

And given the fact that his only focus concerning U.S. energy sources going forward is the pursuit of his "green" agenda, who can blame him for lying?

The truth of the matter is that when Americans go to fill up their gas tanks and see a 4 handle directly after the $ sign and a total cost in the $60 to $70 range, much of the blame can be placed directly on the policies of President Obama and his administration!

On the President because the Iran risk premium presently in the crude oil marketplace is compounded by the fact that this administration will do anything to keep the country from tapping into its vast domestic oil reserves. And the oil market is well aware of that fact.

Hypothetically what do you suppose would happen to the price of a barrel of oil if on Monday the White House announced a 180 degree shift in oil policy? We would of course see a severe and steep drop in the price of crude because the markets would understand that a serious effort by the federal government would be taking place.

But both the market and all Americans know that isn't going to happen, and when President Obama gives a speech alluding to the "Flat Earth Society" to disparage those who want to drill for the oil that the US possesses, so does everyone else!

Why does President Obama hold to his position of not drilling for domestic oil?

There are three reasons that initially come to mind concerning the Obama administrations refusal to drill domestically for oil. For the purposes of civil discussion the fourth which is to sabotage the country and our economy will be excluded.

1) The President seems to feel that drilling for oil today would not bring any new sources on line for a few years. In other words no immediate impact on our current domestic supply. And he is right about that fact although you do have to start sometime.

Additionally, as mentioned before, the psychological impact on the oil market seeing a U.S. President actually serious about energy production would be immediate and sharp.

2) The President has a love for alternative "green" energy technologies and in this regard has given billions of dollars to companies that has resulted in few tangible results.

In fact, many of the firms have actually gone out of business while at the same time costing taxpayers a fortune. A number of these companies have also seemed to possess some rather conspicuous political connections to the Democrat Party as well.

That said and contrary to public statements from the Left, there are few on the Right who say that exploring for these new sources of energy is a bad thing.

To the contrary the point is usually made that it is extremely important but that it needs to be done alongside, and not instead of, exploration and development of our domestic oil reserves.

3) Lastly, President Obama continues to state that the United States only has about 2% of the worlds oil reserves. And as such he believes that we would have little ability to impact global supply and demand and therefore prices.

This is where the manipulation of statistics to prove ones position comes into play. The President is correct up to a point.

True that the United States possesses only about 2% of the worlds proved oil reserves, but vastly more oil that is recoverable using already available technology as well as a massive supply in oil shale!

To that point consider the following:

"A separate Rand Corp. study found that about 800 billion barrels of oil shale in Wyoming and neighboring states is "technically recoverable," which means it could be extracted using existing technology. That's more than triple the known reserves in Saudi Arabia.

All told, the U.S. has access to 400 billion barrels of crude that could be recovered using existing drilling technologies, according to a 2006 Energy Department report.

When you include oil shale, the U.S. has 1.4 trillion barrels of technically recoverable oil, according to the Institute for Energy Research, enough to meet all U.S. oil needs for about the next 200 years, without any imports.

And even this number could be low, since such estimates tend to go up over time..." (Source)

Hundreds of years of supply without the need for any imports? This is no "Flat Earth Society"!

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