Even as the Obama administration postures on behalf of deficit reduction and job creation, it continues to advance policies that undermine energy production in the Gulf region and lower federal revenue, Sen. David Vitter (R-La.) has pointed out in his correspondence with top officials in Washington D.C.
Most recently, in a letter addressed to Interior Secretary Ken Salazar and Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE) Director Michael Bromwich, warned of a severe revenue fall off attached to declining energy lease sales.
“Under the Obama administration’s management, revenue from our offshore lease sale program has gone from $10 billion to nothing in just three years,” Vitter said. “Revenue cannot be generated from sales that do not happen, and jobs cannot be created on leases that private industry cannot acquire. We’re in a severe fiscal crisis and we’re facing significant economic challenges related to job creation, yet the administration continues to neglect our offshore resources.”
In fiscal year (FY) 2008 revenue from bonus bids on offshore leases was approximately $10 billion, but for FY 2011 that amount is down to $0, according to Vitter’s letter. “Revenue cannot be generated from lease sales that do not occur, and jobs cannot be created on leases that private industry cannot acquire,” he continued.
Unless, the administration reverses course, Vitter anticipates “long-term economic impacts that include lose jobs, lost royalties and lost rental fees.” Companies will be reticent to own a lease if they cannot be reasonably certain that exploration plans or permits will be approved, he added.
Daniel Kish, senior vice-president of policy with the Institute for Energy Research (IER), sees an “opportunity cost” for the Gulf region that may not be recaptured anytime soon.
“The Obama administration has virtually put a stop to energy development in federal waters,” Kish said. “This is like planting seeds, if the government won’t allow to the seeds to be planted now, they are preventing future production. We are talking about a lost generation of economic activity.”
In September, President Obama rolled out a new deficit reduction plan built around income tax increases for higher income Americans.
“We can’t just cut our way out of this hole,” Obama said during a speech at the White House. “It’s going to take a balanced approach. If we’re going to make spending cuts … then it’s only right that we ask everyone to pay their fair share.” Obama also said that would veto any deficit reduction plan that includes only spending cuts and no tax increases.
“When you include the $1 trillion in cuts I’ve already signed into law, these would be among the biggest cuts in spending in our history,” Obama continued. “But they’ve got to be part of a larger plan that’s balanced –- a plan that asks the most fortunate among us to pay their fair share, just like everybody else. And that’s why this plan eliminates tax loopholes that primarily go to the wealthiest taxpayers and biggest corporations –- tax breaks that small businesses and middle-class families don’t get.”
But the slow pace of permits for oil drilling also contributes to the deficit, Vitter explained in a previous letter to administration officials. The right mix of policies could unleash America’s abundant supply of domestic energy resources, which would in turn boost revenue into the federal treasury, Vitter argued.
“I share the frustration of Louisianians and Gulf Coast residents with the disparity between the president’s rhetoric and the Interior Department’s actions,” Vitter said. “The administration’s policies have led to massive deficits and job losses, especially in Louisiana, and it’s time for the president to stop lecturing about job creation and allow our energy industry workers to get back to work.”
Without a higher volume of additional permits, the number of active oil rigs will continue to decline in the Gulf, Vitter warned in one of his earlier letters. The 2011 permitting rate is well below the historical average, Vitter observed.
As of early September, “there were 19 floating units operating in the Gulf, up from four in the third quarter of 2010, but down from the average of 28 recorded in the 2007-2009 period,” he wrote.
Up to 20 oil rigs could leave the Gulf, in addition to 11 that have already left, since the administration’s moratorium on deepwater oil and gas drilling went into effect in May 2010, according to a new report.
If U.S. companies were permitted to drill with fewer regulatory hurdles, they could boost government revenues by $800 billion and generate over a million new jobs by 2030, according to API.
But even with a change in administration heading into 2013, the Gulf region is not likely to experience a robust recovery in the short term, Kish, the IER policy expert, warns.
“It will take time to correct these policies,” Kish said. “The Obama administration has shifted the entire ground on which the Gulf of Mexico operates.”
by Kevin Mooney
- Collateral Damage: Lost Gulf Rigs from Obama Obstructionism (10 down, more to go?) (mb50.wordpress.com)
- Louisiana Remains on the Receiving End of Washington D.C.’s Worst Regulations (mb50.wordpress.com)
- Is Mexican Gulf Energy Production Recovering? (mb50.wordpress.com)
- No Drilling, No Jobs, No Money (papundits.wordpress.com)
- Obama’s Real Energy Policy (mb50.wordpress.com)
- Obama’s Interior Chokehold on America (mb50.wordpress.com)
- Vitter to block Interior nominee (politico.com)
- Exxonmobil Battles U.s. Over Gulf Oil Discovery (mb50.wordpress.com)
Accuracy in Media
The Obama State Department and a George Soros-funded organization calling itself Global Integrity have launched an “Open Government” international initiative that should be a subject of late-night jokes.
“Here in the United States, we’ve worked to make government more open and responsive than ever before,” Obama said, as his administration fights congressional requests for information about the Solyndra bankruptcy and the U.S.-Brazil alliance to help the socialist and pro-Castro Latin American country develop its own oil resources.
Interestingly, the new “Open Government Partnership” project was announced on Tuesday at the United Nations by President Obama and Brazil’s President Dilma Rousseff, a former Marxist terrorist…
This would be laughable were it not for the fact that the initiative and its cheerleaders, including those at the Soros-funded Center for American Progress, are apparently taking it seriously.
But the conservative legal group Judicial Watch has filed a number of lawsuits, complaints and Freedom of Information Act legal actions against President Barack Obama and his administration “in pursuit of the president’s repeated violations of the law and his contempt for the public’s right to know.”
Obama used his U.N. speech on Wednesday to urge the world to “harness the power of open societies” in order to fight corruption. [emphasis CAJ] This sounded very much like George Soros, a funder of this new project who has been spending hundreds of millions of dollars a year promoting “open societies” in the U.S. and around the world. Soros, one of the richest men in the U.S., named one of his foundations the “Open Society Institute” but runs a secretive off-shore hedge fund, the Quantum Group of Funds, based in the Caribbean country of Curaçao, a tax haven…
…The Soros role in the U.S. housing market collapse continues to be a subject of much controversy, stemming from a meeting he had with John A. Paulson, a Wall Street trader who made billions of dollars on the decline in housing prices.
A possible Soros role in the Obama Administration’s dealings with Brazil continues to generate controversy…
…The Global Integrity group is managing the project and says that it is “supported by a diverse mix of charitable foundations, governments, multilateral institutions, and the private sector.”
Center for International Private Enterprise (CIPE), an affiliate of the U.S. Chamber of Commerce
Inter-American Development Bank
National Endowment for Democracy
Open Society Institute (Soros-funded)
Open Society Justice Fund (also Soros-funded)
U.S. Department of State
Wallace Global Fund
The William and Flora Hewlett Foundation
The World Bank
Google is listed separately as having provided $350,000…
The complete article is at Accuracy in Media.
H/T Gulag Bound
Richard Miniter has a very interesting article in Forbes about the damage anti-American millionaire George Soros is causing to both Central Asia and the foreign policy of the United States.
Soros is an interesting if risible figure. For good reason his name is a boogieman name for we on the right. Truthfully, though, most on the right don’t really have a full grasp on what it is he does to make his name worthy of being put in the pantheon of history’s worst haters of America…
- Word Is That Geroge Soros Might Be Involved In The LightSquared Scandal Too (businessinsider.com)
- CULTURE OF CORRUPTION (CONT’D): Soros turns up in Obama’s LightSquared imbroglio. “As Republican l… (pajamasmedia.com)
- At UN, Obama calls for government openness (sfgate.com)
- Musical Chairs Game At The UN, With George Soros Controlling The Music (thepalinexpress.wordpress.com)
- Obama Details Open Government’s Next Phase (informationweek.com)
- Obama, The Epitome of Stupidity, Ignorance and Arrogance (fellowshipofminds.wordpress.com)
- George Soros: The Double Dip Is Already Here (businessinsider.com)
- Anonymous US officials push open government (seattletimes.nwsource.com)
- Are Leaders Meeting at the U.N. on NESARA and Disclosure? (stevebeckow.com)
- Scott Bessent Just Can’t Quit George Soros (blogs.wsj.com)