How Helene Affected The People Of Appalachia

Herschel Smith · 30 Sep 2024 · 11 Comments

To begin with, this is your president. This ought to be one of the most shameful things ever said by a sitting president. "Do you have any words to the victims of the hurricane?" BIDEN: "We've given everything that we have." "Are there any more resources the federal government could be giving them?" BIDEN: "No." pic.twitter.com/jDMNGhpjOz — RNC Research (@RNCResearch) September 30, 2024 We must have spent too much money on Ukraine to help Americans in distress. I don't…… [read more]

Can’t Drill Our Way Out of High Oil Prices? Tell That to Saudi Arabia

BY Glen Tschirgi
12 years, 2 months ago

Well, well… here is a nice little report from The Financial Times on the economics of global oil production and pricing:

Saudi Arabia has offered its main customers in the US, Europe and Asia extra oil supplies through the end of the year, a sign the world’s largest exporter is worried about the impact of rising prices on the global economy.

The Group of Seven finance ministers last month called on oil exporters to expand production. Saudi Arabia initially reacted coolly to the request, saying that global supply and demand were balanced. But the kingdom has recently taken steps to bring down prices, consulting with large refiners and offering them extra oil.

“The current price is too high,” a senior Gulf-based oil official told the Financial Times. “We would like to see oil prices back to $100 a barrel.”

The price of Brent, the global oil benchmark, has risen 33 per cent from mid-June to a peak of $117.95 a barrel on Friday. On Monday it plunged almost $4 in just four minutes, but later recovered.

Saudi Arabia last launched a similar round of consultations with major oil refiners in March, weeks before it boosted its production to a 30-year high of 10m barrels a day. Riyadh is now evaluating the response from refiners.

The nation last month produced 9.9m b/d, but the senior official said that Riyadh was now again pumping around 10m b/d. “We are consulting our clients about their oil needs and telling them we are ready to supply more,” the senior official said.

Opec delegates said Riyadh was trying to bring prices down. “The Saudis are actively managing the market,” added another senior oil official from an African Opec nation. “They supplied a little less when prices dropped to $90 over the summer and they will supply more now that prices are above $115.”

The signal from Riyadh comes as rising energy prices emerge as a contentious political issue in the US presidential race. Mitt Romney, the Republican candidate, has accused President Barack Obama of not doing enough to bring gasoline prices down.

The cost of regular gasoline surged in the US last week to $3.878 per gallon, the highest level ever for this period of the year. US retail gasoline prices reached an all-time high of $4.114 per gallon in early July 2008.

The White House last month dusted off plans to use the strategic petroleum reserve to bring prices down. But so far Mr Obama has not authorised a release, in part because opposition from allies such as Germany and, to a lesser extent, Italy, Japan and South Korea.

Hmmmm….I seem to remember that El Presidente said something to the effect that higher production of oil will not affect gas prices.  Oh yes, here are his remarks from March 2012:

The recent spike in gas prices has been another painful reminder of why we have to invest in this technology.   As usual, politicians have been rolling out their three-point plans for two-dollar gas: drill, drill, and drill some more.  Well, my response is, we have been drilling.  Under my Administration, oil production in America is at an eight-year high.  We’ve quadrupled the number of operating oil rigs, and opened up millions of acres for drilling.

But you and I both know that with only 2% of the world’s oil reserves, we can’t just drill our way to lower gas prices – not when consume 20 percent of the world’s oil. We need an all-of-the-above strategy that relies less on foreign oil and more on American-made energy – solar, wind, natural gas, biofuels, and more.

That’s right.  We “can’t drill our way to lower gas prices…”   Because, El Presidente says, the United States only has “2% of the world’s oil reserves.”   But we all know this is an outdated deception aimed at the gullible.  In fact, the Congressional Research Service reported several years ago that the U.S. has more oil and gas reserves (as that term is generally understood in the world oil industry) than any, other country on earth.   In fact, the U.S. has more oil and gas than Saudia Arabia, Venezuela and Candada combined.

According to this Investor’s Business Daily report based on a Congressional testimony by the Government Accounting Office:

Energy: The Government Accountability Office tells Congress the Green River Formation out West contains an “amount about equal to the entire world’s proven oil reserves.” So why are we keeping it locked up on federal lands?

Exploding the Big Lie pushed by President Obama that we can’t drill our way out of high gas prices because we have but 2% of the world’s proven oil reserves, Anu Mittal, GAO director of natural resources and environment, testified before Congress last week that just one small part of the U.S. is capable of outproducing the rest of the planet.

That small part is known as the Green River Formation, the world’s largest oil shale deposit, and is located in a largely vacant region of mostly federal land on the western edge of the Rocky Mountains that includes portions of Wyoming, Utah and Colorado.

As we have written in our “Oil And Gas/Fact And Fiction” series, the Green River Formation has been dubbed our Persia on the Plains, an area with technically recoverable oil in an amount estimated at four times the proven resources of Saudi Arabia.

Given that current U.S. daily oil consumption is running at 19.5 million barrels, the staggering amount of Green River reserves would by itself supply domestic oil consumption for more than 200 years. That sure blows the heck out of the “peak oil” theory that the world is running out of oil.

According to Mittal’s testimony before the House science subcommittee on energy and the environment, the U.S. Geological Survey “estimates that the Green River Formation contains about 3 trillion barrels of oil, and about half of this may be recoverable, depending on available technology and economic conditions.”

According to the president’s bizarre formulation, this oil does not count as a “proven” reserve because little drilling has been done. There is a reason for that. As Mittal testified: “The federal government is in a unique position to influence the development of oil shale because 72% of the oil shale within the Green River Formation lies beneath federal lands managed by BLM (Bureau of Land Management).”

(Emphasis Added)

In any event, Obama does not believe what he says, as usual.   While he pontificates about not being able to “drill our way out” of our energy problems, the Financial Times article reports that he has “dusted off plans to use the strategic petroleum reserve to bring prices down.”   If more drilling won’t solve the problem of high prices, then tapping the strategic reserve is useless.  Just one more example of El Presidente’s contempt for the American people.

Furthermore, even if it was true that the U.S. has “only” 2% of the world’s oil reserves, pricing is not determined by how much oil is in the ground.   Pricing is determined by how much is pumped out of the ground.   According to the CIA world fact book, as of 2010, the U.S. was producing an average of 9.688 million barrels of oil per day.   This already exceeds the production of Saudi Arabia when it wants to maintain stable pricing.    As the Financial Times article shows, however, when Saudi Arabia wants to bring down the price of oil, it ramps up its production to something around 10 million barrels per day.   If Saudi Arabia can affect world oil prices by simply putting an extra million or so barrels of oil per day onto the oil market, it is axiomatic that the U.S. can similarly affect the price of oil by getting production to over 10 million barrels or more per day.  In fact, some experts have said that the U.S. has the resources and capability to be producing over 15 million barrels of oil per day if we so choose.

One, other aspect of this subject that needs to be touched upon is the effect of Ben Bernanke’s federal monetary policy on oil prices.  Since Bernanke has decided to unleash another round of printing money and since oil prices are denominated in U.S. dollars, we will see the price of oil rise concomitant with the increase in the U.S. money supply.   In effect, then, the Saudis are underwriting our money printing by increasing oil production to offset to some degree the rise of oil prices that will naturally ensue because of the rising volume of dollars.

Take this one step further:  if the U.S. wants to recover from the Federal Reserve’s monetary inflation policy, producing increasing amounts of domestic oil is one effective way to do it.   Oil is real wealth.  Just like gold is real wealth (or, for that matter, all those incredibly valuable rare earth minerals the U.S. is sitting on but cannot develop due to ridiculous bureaucratic obstacles).  When the U.S. produces lots of oil, the wealth of the world comes to the U.S. rather than flowing to Saudi Arabia or Venezuela or Russia.   Oil, in a sense, is perhaps our greatest strategic weapon because it is one resource that the world cannot do without and it changes the balance of power globally.    In a crude sense, he who has the most oil wins.  We have it.  It’s time to start using it.

It’s time to renew that popular phrase:  Drill Baby, Drill.

American Energy Independence: Closer Than You Think

BY Glen Tschirgi
12 years, 10 months ago

These days we take our optimism wherever we can get it, and if a Leftist media outlet like Bloomberg is sounding a positive note about surging energy production in the U.S., the real news is likely even better than reported.

A few, choice excerpts:

The U.S. is the closest it has been in almost 20 years to achieving energy self-sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo triggered a recession and led to lines at gasoline stations.

Domestic oil output is the highest in eight years. The U.S. is producing so much natural gas that, where the government warned four years ago of a critical need to boost imports, it now may approve an export terminal. Methanex Corp., the world’s biggest methanol maker, said it will dismantle a factory in Chile and reassemble it in Louisiana to take advantage of low natural gas prices. And higher mileage standards and federally mandated ethanol use, along with slow economic growth, have curbed demand.

The result: The U.S. has reversed a two-decade-long decline in energy independence, increasing the proportion of demand met from domestic sources over the last six years to an estimated 81 percent through the first 10 months of 2011, according to data compiled by Bloomberg from the U.S. Department of Energy. That would be the highest level since 1992.

Of course, Bloomberg finds it necessary to throw in the canards about the dangers of “fracking” and the lamentation that greater hydrocarbon usage will further depress the interest in and practicability of solar and wind energy.  Against this persistent Leftist meme, however, it should be noted that the article does not mention global warming, nor quote any “leading scientists” about the dangers of increased carbon production, nor feature a picture of polar bears precariously perched on a tiny bit of ice.   That, my friends, is a sure sign of progress in the fight to restore American intellectual sense.

There is so much good news in this sector of the economy in fact that Bloomberg’s attempts to dampen enthusiasm seem to be more a product of the authors’ embarrassment than any, actual cloud on the horizon.   Read the whole thing and do a little, guilt-free basking.

A few notes on this.

First, there is no doubt that the Obama Administration is going to try to take credit for this boom in energy production.   The President, in fact, attempted to do just that in his State of the Union address to Congress.   No one should be fooled, however.   The Administration has dragged its feet and done all it can to suppress, depress, and discourage hydrocarbon production since it took office, including banning off-shore drilling in places like Virginia which has been ready to start since 2009 and nixing the Keystone XL pipeline from Canada to Texas.

Second, as good as this news is for the U.S. economy and geopolitical position in the world, it could and should be much, much better.   Gas and oil production would dwarf the current figures if the Federal government was not putting massive roadblocks in the way of energy production in this country.  This surge in production is almost exclusively a function of private enterprise finding ways around government hostility and getting the job done.   It is a classic example of the American spirit of independent action overcoming daunting opposition.   Just consider the news from the article as it relates to the amazing work being done in North Dakota:

Crude production in the U.S. is already increasing. Within three years, domestic output could reach 7 million barrels a day, the highest in 20 years, said Andy Lipow, president of Lipow Oil Associates in Houston, a consulting firm. The U.S. produced 5.9 million barrels of crude oil a day in December, while consuming 18.5 million barrels of petroleum products, according to the Energy Department.

North Dakota — the center of the so-called tight-oil transformation — is now the fourth largest oil-producing state, behind Texas, Alaska and California.

The growth in oil and gas output means the U.S. will overtake Russia as the world’s largest energy producer in the next eight years, said Jamie Webster, senior manager for the markets and country strategy group at PFC Energy, a Washington- based consultant.

While U.S. consumers would still be susceptible to surges in global oil prices, “we’d end up sending some of that cash to North Dakota” rather than to Saudi Arabia, said Richard Schmalensee, a professor of economics and management at the Massachusetts Institute of Technology in Cambridge.

What the article does not tell you is that all of this production in North Dakota is occurring on private lands.  The Federal government owns massive tracts of land throughout the Western U.S. and has put virtually all of it off-limits to energy production.   The estimated hydrocarbon resources of Colorado alone rival those of Saudi Arabia.   Imagine for one moment what kind of production the U.S. is capable of when even a part of those Federal lands are opened up for development.   In this sense, the Bloomberg article is actually disguising the enormous potential of U.S. production.   The U.S. has the potential to put OPEC out of business, single-handedly.

Finally, in another delicious moment of vindication that should be enjoyed thoroughly, the avalanche of optimism over U.S. energy production conclusively puts the lie to years of Leftist Democrat drivel that the U.S. cannot “drill its way out of our energy problems.”  Here is El Presidente in May, 2011 in his energy policy speech in Indiana:

President Obama called for the elimination of billions of dollars in oil industry tax breaks Friday, while stressing that the United States can’t drill its way out of high gas prices.

“We can’t just drill our way out of the problem,” Obama said during an energy policy speech in Indiana Friday. “If we’re serious about addressing our energy problems, we’re going to have to do more than drill.”

Obama’s remarks come as Washington policymakers are feeling pressure to take action to address high gas prices, which are nearing a nationwide average of $4 a gallon.Republicans have ramped up calls for expanded domestic oil-and-gas production. House Republicans passed the first of three offshore drilling bills Thursday that have been fast-tracked by GOP leadership.

But Democrats, for their part, are pushing for the repeal of billion of dollars in oil industry tax breaks, citing record oil industry profits and soaring pump prices.

*****

He noted that it’s important to “encourage safe and responsible oil production here at home,” but called for a wide-ranging energy policy strategy focused on reducing the country’s oil imports by one-third by 2025, ramping up vehicle fuel economy standards and relying on low-emission electricity sources.

Remember this when gas prices again head to $4 per gallon and more this Summer.    We will again hear the Republicans in Congress pushing for greater drilling rights and we will hear this same response from El Presidente and his accomplices on Capitol Hill, “No, we can’t drill our way out of high gas prices.”

Pardon the thick irony here, but, as the Bloomberg article and many others like it demonstrate: YES, WE CAN.

NYT Attempts to Plug Huge, New Oil Find in Texas (and other disinformation campaigns)

BY Glen Tschirgi
13 years, 6 months ago

To amend the proverb slightly, what the The New York Times giveth, The New York Times taketh away.

In this weekend story online, we see once again the duplicitous nature of the State Run Media:

CATARINA, Tex. — Until last year, the 17-mile stretch of road between this forsaken South Texas village and the county seat of Carrizo Springs was a patchwork of derelict gasoline stations and rusting warehouses.

Now the region is in the hottest new oil play in the country, with giant oil terminals and sprawling RV parks replacing fields of mesquite. More than a dozen companies plan to drill up to 3,000 wells around here in the next 12 months.

The Texas field, known as the Eagle Ford, is just one of about 20 new onshore oil fields that advocates say could collectively increase the nation’s oil output by 25 percent within a decade — without the dangers of drilling in the deep waters of the Gulf of Mexico or the delicate coastal areas off Alaska.

There is only one catch: the oil from the Eagle Ford and similar fields of tightly packed rock can be extracted only by using hydraulic fracturing, a method that uses a high-pressure mix of water, sand and hazardous chemicals to blast through the rocks to release the oil inside.

The technique, also called fracking, has been widely used in the last decade to unlock vast new fields of natural gas, but drillers only recently figured out how to release large quantities of oil, which flows less easily through rock than gas. As evidence mounts that fracking poses risks to water supplies, the federal government and regulators in various states are considering tighter regulations on it.

This article uses the well-worn rhetorical technique that grudgingly acknowledges a seemingly good bit of news that runs counter to the Left’s narrative while seeking to undermine it entirely.   In this case, the NYT announces the incredible news of oil field discoveries within the continental U.S. that have the potential to exceed the daily output of entire, major oil producers but, alas, must point out that these gains may never be realized because (sigh) the process for extracting the oil “poses risks to water supplies.”   It is the poison pill.    Concede that which can no longer be concealed but include just enough disinformation or obfuscating facts as to render the entire portion unpalatable.   And so the NYT inserts the specious claim that “evidence mounts that fracking poses risks to water supplies…”  This is pure nonsense by the NYT.

A recent article by the Institute for Energy Research contains a good explanation of the process of fracking (or “hydraulic fracturing”) and points out that there the controversy over fracking is largely misleading if not fabricated.   My intention here, however, is not to explore the merits of the process itself and settle one way or another whether fracking is ultimately safe.   The aim here is to point out the dishonest approach that the Left uses in attempts to negate developments that threaten their narrative.

Powerline recently noted how The NYT was caught distorting the record on fracking.  Notice how the NYT article uses insinuation to mislead here as well.   Having been caught in their prior article claiming that there were “numerous documented cases” of water contamination caused by fracking, the NYT in this story resorts to the claim that “evidence mounts” with regard to the evils of fracking without stating any, actual instances where it has been documented or revealing that, in their own correction, the NYT stated that there are “few documented cases.”   The IER article goes further and states that there are no documented cases.

The Left’s narrative for America includes the notion that domestic energy supplies are non-existent.   If confronted on this fable, the Left claims that our resources are quickly shrinking and any newly discovered resources are too difficult, hazardous, expensive, or environmentally catastrophic to extract.   In essence, the Left’s narrative is for Americans to get used to expensive and scarce energy supplies that will necessarily mean a dramatic restructuring of society (loss of individual freedoms) that can only be accomplished by a domineering, central government.

When Obama says that we cannot “drill our way out of” high gasoline prices, he is engaging in this subterfuge.   When the lease of new oil wells in the Gulf of Mexico remains at a standstill for over a year with no, legitimate explanation, it is due in large part to the commitment of the Left in stopping all hydrocarbon use which forms a central tenet in their environmental religion.

Considering the diametrically opposed views of the Left and Right in this country, it may not be too much of an exaggeration to say that we are in the midst of a Cold Civil War in which each election cycle offers another critical battle.  It is becoming increasingly clear that there is very little room for compromise with the Left.   Their vision for the U.S. is so foreign, so un-American (a phrase itself that used to have a clear meaning but has now been rendered ambiguous by the Left) that there can only be one side or the other that will survive.


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