World

 

Brazil

Mexico

Bolivia

Peru

Trinidad &
Tobago

Venezuela








Very usefull links



Petroleumworld
Bookstore



Institutional
links


OPEC



 


Petroleumworld
Business Partners

 


IRAQ OIL THE FORUM


Blogspots
recomended

caracas chronicles

Gustavo Coronel

Iran Watch.org

Venezuela Today

Le Blog des
Energies Nouvelles

 

 

Editorial / Commentary / Opinion

 

 

W. F. Shughart : Obama's schizo energy policy


The world price of crude oil has been on a roller coaster lately, gyrating above and below $100 a barrel. Several weeks ago, prices at the pump reached $5 a gallon in some places but seem to have settled down, at least temporarily, to less than $4 in many parts of the country. The elevated cost of gasoline - and of heating oil, aviation fuel and other energy products derived from “black gold” - understandably is a matter of great concern to most Americans.

Rising energy costs already have changed many families' summer vacation plans, threatened to short-circuit the weak recovery from the Great Recession and, combined with recent increases in food prices, contributed to incipient inflationary pressures that foreshadow a lower standard of living and a return to the stagflation of Jimmy Carter 's presidency.

Fluctuations in crude oil prices are being driven mostly by uncertainty over supplies from oil-producing countries in North Africa and the Middle East, along with a weakening U.S. dollar and other political factors that largely are beyond the control of the much-maligned U.S. oil industry.

But they are not totally beyond Washington's control. Just recently, President Obama reversed course once again, announcing policy initiatives that the White House claims will increase domestic oil production.

The president says he now wants to lease more drilling areas in the Gulf of Mexico and reduce bureaucratic delays in issuing permits for energy exploration and recovery.

But these latest moves should not be viewed in isolation, because Mr. Obama also has called upon Congress to impose some $21 billion more in taxes on major U.S. oil companies over the coming decade.

Since 2000, the U.S. oil industry has spent more than $2 trillion on capital projects. As a result, in 2009 total U.S. oil production increased for the first time in more than 25 years. If Congress approves the White House tax proposal - a knee-jerk response to oil industry profits - domestic oil companies are likely to move drilling rigs to other countries, such as Brazil, and invest less in alternative energy sources.

The United States imports about 60 percent of the oil it consumes, at a cost of more than $1 billion a day, some of which winds up in the hands of Islamist terrorist groups.

The lion's share of proven domestic oil reserves lies offshore, below the ocean floor. The domestic oil industry has been investing huge sums of money in exploration, production and safety.

In response to last year's Gulf of Mexico blowout, the industry has adopted better emergency measures to deal with spills. Five major oil companies - ExxonMobil, Chevron, Shell, ConocoPhillips and BP - collectively have established a $1 billion fund to support rapid response to such disasters, including the immediate mobilization of ships with oil-containment equipment. A consortium of 24 drilling companies has developed a device known as a “capping stack” for quickly stopping oil flowing from a malfunctioning deep-water well. The industry also formed an Institute of Offshore Operations to reduce the risk of blowouts and to make deep-water drilling safer.

Although the administration belatedly has recognized that exploiting domestic oil reserves is the key to reducing America's reliance on imports from unfriendly suppliers overseas, that alone won't guarantee greater production.

Encouraging production with one hand while discouraging it with the other is schizophrenic at best and counterproductive at worst.

 

Follow us and post your comments: in Twitter Facebook

 

 

 

William F. Shughart II, a fellow of the Independent Institute, was recently named the J. Fish Smith professor of public choice economics at Utah State University. Petroleumworld not necessarily share these views.

Editor's Note:
All comments posted and published on Petroleumworld, do not reflect either for or against the opinion expressed in the comment as an endorsement of Petroleumworld. All comments expressed are private comments and do not necessary reflect the view of this website. All comments are posted and published without liability to Petroleumworld.

Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of environmental and humanitarian significance. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml.

All works published by Petroleumworld are in accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.Petroleumworld has no affiliation whatsoever with the originator of this article nor is Petroleumworld endorsed or sponsored by the originator.

Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law.

If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Internet web links to http://www.petroleumworld.com are appreciated

Petroleumworld News 05/25/2011

Follow us in Twitter
And post your comments in our
Facebook site


Petroleumworld welcomes your feedback
and comments, share your thoughts on this article,
your feedback is important to us!


We invite all our readers to share with us their views and
comments about this article, write to editor@petroleumworld.com

Copyright© 1999-2010 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors

Send this story to a friend Any question or suggestions,
please write to: editor@petroleumworld.com
Best Viewed with IE 5.01+Windows NT 4.0, '95, '98, ME,
XP, Vista, W7 +/ 800x
600 pixels

 


TOP


Editor:Elio Ohep /
Contact Email: editor@petroleumworld.com

Contact:
editor@petroleumworld.com/ phone: Office (58 212) 635 7252,
or Cel (58 412) 996 3730 or
(58  412) 952 5301


CopyRight © 1999-2010, Elio Ohep - All Rights Reserved. Legal Information

- CCS Office Tele
phone/Teléfonos Oficina: (58 212) 635 7252

PW in Top 100 Energy Sites


Technorati Profile

Fair use notice of copyrighted material:

Legal Information

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.