At this State of the Union address, President Obama proudly stated that “American oil production is the highest it’s been in eight years” and declared that his Administration would “open more than 75 percent of our potential offshore oil and gas resources.” While President Obama spoke favorably of the role that oil and gas development play in America, the President’s and his Administration’s actions don’t match with his words.
There are several areas where the President and his Administration are unreasonably hindering access to more oil and gas for Americans and threatening the industry with punitive measures:
- Keystone permit rejection. The Keystone XL pipeline would deliver oil from our Canadian ally, relieve some of the pain of high prices at the gas pump, and create jobs in America. Nevertheless, and despite a State Department environmental review concluding that the project poses no significant environmental risk, the President chose to reject TransCanada’s permit application to build the pipeline.
- Targeted tax hikes. The President continues to threaten the oil industry with targeted tax hikes. Under the rhetoric of eliminating subsidies for the industry, the President’s proposal would eliminate certain tax treatments for oil that are available to many industries, effectively singling out the oil industry for a tax hike.
- Slowdown of production on federal lands. While American oil production has been increasing, the vast majority of that production is taking place on private lands. Production on federal lands is actually 40 percent lower than it was 10 years ago. The House Natural Resources Committee also reports that under the Obama Administration, 2010 had the lowest number of onshore leases issued since 1984.
- Fracking regulation. Hydraulic fracturing (or “fracking”) is a proven oil and gas extraction process that should not be subject to overly burdensome regulations. The Environmental Protection Agency is currently considering federal regulation of the fracking process under the Safe Drinking Water Act. The problem is that the agency is following a procedure that even the Department of Energy criticized for its “selective focus” on “negative outcomes.”
Words alone will not make energy more abundant and affordable, nor will they create the energy-related jobs that would make the American economy stronger. If the President is truly concerned about increasing America’s energy access, he certainly has a funny way of showing it.
For policies in that direction, Heritage policy analyst Nick Loris explains in two papers how to make gas and electricity prices more affordable and how to create jobs and raise government revenue through energy exploration.
- Natural gas sector set up by Obama to be sabotaged? (mb50.wordpress.com)
- Obama loves oil – Not! (mb50.wordpress.com)
- No energy industry backing for the word ‘fracking’ (mb50.wordpress.com)
- Is President Barack Obama responsible for U.S. oil production rise? (mb50.wordpress.com)
Oil rig under tow, South China Sea-photo: Peter Bowater
Posted by thủy tinh vỡ
HANO: To China, the world’s biggest energy consumer, another Saudi Arabia of oil may lie beneath the ocean to its south. Escalating regional tensions mean large-scale drilling may be slipping further into the future.
The South China Sea may hold 213 billion barrels of oil, or 80 per cent of Saudi Arabia’s reserves, according to Chinese studies cited in 2008 by the United States Energy Information Agency. The world’s second-largest economy claims ‘indisputable sovereignty’ over most of the sea, including blocks off Vietnam that Exxon Mobil and Russia’s Gazprom are exploring.
Disputes have strained China’s ties with its neighbors and tensions rose this year as Vietnam said oil survey boats were harassed by Chinese vessels. The friction threatens maritime security in one of the world’s busiest shipping lanes and may be discussed at a two-day summit of Asia-Pacific leaders hosted by US President Barack Obama in Honolulu starting today.
“China is the elephant in the room at the moment, so like it or not, you cannot ignore it,” said Lin Boqiang, director of the independent China Center for Energy Economics Research at Xiamen University in Fujian province. “Countries at the rim of the South China Sea are under pressure to find a practical way to deal with its presence — not to anger or challenge it.”
The sea lies south of mainland China at the western extreme of the Pacific Ocean, and while it borders several nations China claims a huge expanse. That’s based largely on a historical map that predates the founding of the People’s Republic in 1949. There are hundreds of islands, many disputed.
Chinese and Vietnamese military forces clashed in the Paracel Islands in 1974 and the Spratly Islands in 1988. The region, marked by China’s ‘nine-dotted line’ to delineate its territorial claims, extends hundreds of miles south from its Hainan Island to equatorial waters off the coast of Borneo, and overlaps with areas claimed by Brunei, Malaysia and Taiwan.
The Philippines will propose a new initiative to settle disputes in the South China Sea at a meeting of the Association of Southeast Asian Nations next week, Foreign Affairs Secretary Albert del Rosario said October 26. President Benigno Aquino will also meet with US Secretary of State Hillary Clinton in Manila this month and discuss maritime security with Obama at the East Asia summit in Bali on Novembesr 18, del Rosario said.
The US set off China’s ire in 2010 when Hillary, speaking at a regional summit in Hanoi, called resolving the competing claims to the sea ‘a leading diplomatic priority’. That drew a rebuke from Chinese Foreign Minister Yang Jiechi, who said internationalising the incident with US involvement ‘can only make matters worse and more difficult to solve’.
“There are challenges facing the Asia-Pacific that demand America’s leadership, from ensuring freedom of navigation in the South China Sea to countering North Korea’s provocations and proliferation activities to promoting balanced and inclusive economic growth,” Hillary said in Honolulu on Thursday.
The US has longstanding security alliances with countries including Australia, Japan, South Korea, and the Philippines, which it aims to enhance, and faces a balancing act as it seeks to deepen regional integration.
Nations such as the Philippines and Vietnam are simultaneously attracted by Chinese commerce and concerned by what they consider Chinese belligerence.
- Regional disputes delay large-scale drilling of oil in South China Sea (Oman Time) (thuytinhvo.wordpress.com)
- Philippines seeks summit on sea row; China cool (seattletimes.nwsource.com)
- South China Sea may hold 213 billion barrels of oil (nextbigfuture.com)
- Cambodia: Dispute in South China Sea should be solved between China, concerned countries (xinhua) (thuytinhvo.wordpress.com)
- Vietnam diplomat warns of war in South China Sea (ABS-CBN) (thuytinhvo.wordpress.com)
- US, Asia deepen security ties amid China challenge (seattletimes.nwsource.com)
- Vietnam diplomat warns of war in South China Sea (buletinterkini.wordpress.com)
3D flyaround of Helix Energy Solutions’ Seawell light well intervention and dive support vessel.
- STX Finland Inks Contract with Eide Marine Services for Two Well Intervention Vessels (mb50.wordpress.com)
- Sarah: deepwater intervention vessel (mb50.wordpress.com)
- Norway: DeepOcean AS’ Secures Contract for Edda Flora Vessel (mb50.wordpress.com)
- Support vessel hits Deep Panuke offshore gas platform (ctv.ca)
Dolphin Drilling Ltd, a subsidiary of Fred. Olsen Energy ASA , has entered into a Letter of Intent for the provision of the semi-submersible Blackford Dolphin for drilling of one well offshore Brazil.
Commencement is scheduled late in the fourth quarter 2011, with an estimated duration of total 135 days of which some 118 days will be in continuation of the existing Reliance contract. Total contract value is approximately USD 47 million. The contract remains subject to final contract agreement, partner and management approval which are anticipated to be closed within end May.