April 26, 2011

 

 

 

Following the Deepwater Horizon drilling rig explosion in the Gulf of Mexico nearly one year ago, the Obama administration placed a moratorium on all shallow-water and deepwater drilling in the Gulf.  When the oil leak was stopped on July 15, 2010, and the well was effectively declared dead two months later, the Obama administration reluctantly lifted the moratorium in October 2010.  Unfortunately for the region, whose economic health is dependent on a robust energy industry, the administration has continued to delay the permitting process to resume or expand drilling.  The procedural delays have created difficulty in securing rigs and support services, slowing capital intensive projects that provide much needed jobs and lower gas prices at the pump. 

 

Millions of Americans still struggle to find a job, pay the mortgage and keep food on the table.  Many are also finding it increasingly difficult to keep gas in the car.  The challenge for many is not a result of mismanaging the family finances; rather, the challenge is a direct result of the President’s ill-conceived policy decisions that are rapidly increasing energy costs.  The President’s ideology is choking the gulf region, resulting in thousands of jobs lost while increasing the nation’s reliance on foreign sources of oil and driving up gas prices.

 

 

Carpooling on Vacation?  While millions of Americans are trying to adjust to increasing prices of food and electricity, the price of gas will also consume a larger portion of the family budget.  According to a March 9, 2011 Reuters report, the Department of Energy expects “the average U.S. household will spend about $700 more for gasoline in 2011 than it spent last year, bringing total motor fuel expenses up 28 percent to $3,235, based on an annual pump price of $3.61 a gallon.”  The report noted that American families can expect to pay an average price of $3.71 per gallon this summer, which is 98 cents higher than last summer.  While it is unlikely the President will alter his summer vacation plans, many Americans may not be so fortunate.

 

Squeezing the Budget?  According to an April 25, 2011 ABC News report, “This week the national average price of gas reached $3.88, up a little more than 3 cents from a week ago and a $1.03 from a year ago…The new average price of gas means higher fees for road trips. With the current price of gas at $3.88 a gallon, a vehicle that gets 20 miles per gallon will cost your family around $155 in gasoline charges for an 800 mile trip.”  This was not the change millions of unemployed Americans were hoping for.

 

Creating or Saving Jobs?  The President’s official six-month drilling moratorium in the Gulf may have cost up to 12,000 jobs, according to the Department of Commerce.  The long-term impact of the President’s moratorium, if sustained for 18 months, could cause over 36,000 jobs to be lost nationally, over 24,000 jobs lost in the gulf region, and over 14,000 jobs lost in the state of Louisiana, according to a study by Louisiana State University economist Dr. Joseph Mason.  By delaying the process to issue drilling permits, the President has continued a de facto moratorium with the adverse economic consequences therein.

 

Listening to the American People?  An April 19, 2011 CNN/Opinion Research Corporation survey indicated that 69 percent of Americans support increased offshore drilling.  According to the report, the 69 percent is up 20 points from June 2010.  Unsurprisingly, the wisdom of the American people runs counter to the policies of the President and the radical environmental wing of the Democrat party.

 

For more information or questions please contact Sarah Makin at 6-8581.