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US Ban To Cost 30M Barrels Of Oil A Year

A report from Reuters that for some odd reason did not seem to make it to our shores:

U.S. drilling moratorium to take bigger output bite

By Tom Doggett and Timothy Gardner

July 7, 2010

WASHINGTON (Reuters) – The Obama administration’s contested moratorium on deepwater drilling will take a larger portion out of U.S. oil production next year than previously thought, the government’s energy forecasting agency said on Wednesday.

Oil production next year is expected to be cut by 82,000 barrels per day, or almost 30 million barrels total, due to delayed or cancelled drilling caused by the moratorium, the Energy Information Administration said. That is 17 percent more from the 70,000 bpd in lost output the agency predicted just last month.

Monthly production losses could reach nearly 100,000 bpd by December 2011, the EIA said.

In response to the BP oil spill, the administration imposed a six-month moratorium on exploratory and development drilling in waters more than 500 feet deep. A federal judge lifted the ban last month, but administration lawyers will go to an appeals court on Thursday to argue it be reinstated…

Because of the legal uncertainties, analysts said oil exploration will be hampered for months to come.

As a result, the moratorium will end a recent pattern of yearly increases in U.S. oil production, as according to EIA data total output from both onshore and offshore next year will fall by 26,000 bpd to 5.37 million bpd.

The American Petroleum Institute, which lobbies on behalf of oil and gas companies is fighting a blanket moratorium.

It has recommended to Interior Secretary Ken Salazar that as long as oil companies meet the department’s new safety regulations for shallow water drilling then companies should also be allowed to drill in deep waters.

What kind of crazy logic is that?

The safety rules for exploratory and development wells, which were issued last month, require companies to certify they have working blowout preventers to avoid oil spills, they will conduct at least two tests of cement barriers in underwater wells and that they will follow new casing installation procedures.

"The government has imposed significant new requirements. If companies demonstrate compliance with these new requirements, then they should be permitted to begin operations across the board and maintain the thousands of job that are at stake," said Erik Milito, who oversees drilling issues for API.

Obviously the American Petroleum Institute (aka ‘Big Oil’) is a little slow to catch on.

The whole idea behind the oil spill Mr. Obama’s moratorium is to drive up the cost of energy so high that his coveted (and largely imaginary) ‘green alternatives’ will be viable.

How on Gaia’s green earth can he carry out that noble mission that if evil oil companies are allowed to drill in the US?

This article was posted by Steve on Thursday, July 8th, 2010. Comments are currently closed.

6 Responses to “US Ban To Cost 30M Barrels Of Oil A Year”

  1. proreason says:

    Why is the criminal so keen on green?

    I think it’s because green is the way to reduce the wealth of the world, and hence the threats to the elite’s power.

    No question that the elimination of fossil fuels will reduce wealth in massive ways…..probably by 90% when fully enacted..

    Essentially, it will reduce life styles from 2010 to the mid 1700’s, before the steam engine began the Industrial Revolution.

    The Industrial Revolution was the point when capitalists began their 200-year climb from fringe players in politics to the dominant power center on earth. When it started, the aristocracy understandably had no idea what would happen. There simply was no precedent. And once lifestyles began to improve, the momentum was simply impossible for the elite to even control, no matter stop. So now you have Warren Buffets, whose power rivals the greatest political leaders in the world.

    And the elites don’t like that.

    So they have packaged up their “solution”. Man is ruining the environment, and it will destroy the planet and mankind. Pretty compelling that, isn’t it? The only solution is to back to the halcyon days of yore, when man was one with nature.

    And kings were kings.

    • Right of the People says:

      The only fly in that ointment if we do regress that far is all the “deadly carbon” that will be spewed in the air with people burning wood like they did in the 18th century.

      The price of oil, gas and nuclear would have to go up about 20,000% for “green” energy to be viable. Not that I don’t believe the Obamanation wouldn’t be amicable to it I just don’t see the good folks of the US sitting still for it to get that bad. Revolutions have been started over far less.

    • proreason says:

      “all the “deadly carbon” that will be spewed in the air with people burning wood ”

      don’t go thinking they actually care about the environment. That’s not what it’s about at all.

      Oh they have some inconsequential people thoroughly brainwashed that they care, but the people running the show know what it’s really about.

      Here’s something for 100% sure……if this green crap takes hold in the world, the elites will have just as much access to fossil fuel cars and planes as ever, and fossil-fueled mansions and workplaces. You won’t. They will.

    • Rick Caird says:

      My take is that people like Obama, with no real world background and no technical background, just assume whatever the environmentalists proclaim to be true, is true. If some people claim that you can run an electrical utility and variable loads with variable supplies such as wind and solar, that must be true. People like Obama simply do not know enough to reach valid conclusions.

    • proreason says:

      “People like Obama simply do not know enough to reach valid conclusions.”

      With respect, Mr Caird, I think your idea is horse manure.

      I might buy the argument if the fatastic conclusions that the statists reach every single time for every single topic didn’t all result in more power for them and fewer rights and a diminshed lifestyle for the peasants.

      And moreover, it doesn’t take a brain surgeon to see the obvious flaws in green technology. 3 year olds know the wind doesn’t blow all the time, and the limitations of batteries aren’t exactly a secret. And in addition to that, everybody knows that trillions of dollars have already been flung at the non-problem, with less than zero progress.

      They know exactly what they are doing, and protecting the enviornment is about 1 millionth on their list of priorities….along with other 999,999 which don’t increase their wealth and power.

    • tranquil.night says:

      “People like Obama simply do not know enough to reach valid conclusions.”

      If that is the case, then it too is intentional. It’s easier to sell a lie when you keep yourself ignorant to the truth. Obama has nowhere near the charm nor fluidous ease when it comes to lying as Slick Willy and Barack’s trying to peddle twice the amount of crap. So I’ll buy your premise only because it gives people a reason to call him incompetent instead of diabolical.

      Like all leftist scams, the Green Scheme isn’t singularly focussed but works towards several ends:

      – Money: most of Green’s biggest activists also have fortunes invested in a heavily subsizidized green tech market. Now our auto industry is being tooled to be solely dependent on it.
      – Control: this is the biggest and most powerful EPA in history. Just like ObamaCare sets the precedent for government to regulate personal behavior, a similar condition is sought over business behavior through Carbon taxes and regulation.
      – Power: the serious energy crisis required to complete the transition ensures that only those who paid get to continue to play.

      “I just don’t see the good folks of the US sitting still for it to get that bad. Revolutions have been started over far less.”

      Agreed but humbly, so what? The goal is destabilization and the managment of America’s decline – I think we have to forget about what we consider to be usual deterrents with these maniacs because they clearly have their act together when it comes to creatively manipulating circumstances to their will. They’re governing against a very loud majority demanding them to stop, it’s caused near unprecedented divsion in the country, and they’re not the least bit concerned that their actions or inactions are what’s responsible.

      Instead they’re upset that such an opposition grew so quickly in the regime’s first term.

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