Oil From The Gulf Of Mexico
It is a sad story. It is a shocking story.
You can find out all about it at OpenTheGulf.org, an internet site sponsored by the trade-backed Shopper Vitality Alliance. The problem, in response to the positioning: the Obama administration’s “Gulf Moratorium and Permit Freeze” are killing jobs. The solution as per the positioning: send a message to U.S. authorities officials to “Open the Gulf.”
Gulf Stories as Centerpiece
The online marketing campaign’s centerpiece are clips of real folks — Lori, David, Mark, and others — telling their stories of economic wreck to a backdrop of empty rigs and warehouses underscored by somber, plaintive music. (These stories are additionally being featured in Television adverts.) Each has a compelling and sad story to tell. Their lives are in economic free fall — they’re out of work, cannot make ends meet, gasoline is simply too costly, all of the jobs have gone overseas. And why is all this happening The administration’s coverage on oil from the Gulf of Mexico.
Mark claims that if “the [Gulf of Mexico] moratorium was opened up … it can be higher for everybody.” Lori, the owner of a company that runs rigs in the gulf, laments the lack of enterprise and has a solution: “Let’s fix it … Let’s give you an answer that everyone can live with and let’s get back to work.” David’s a suffering truck driver but he’s still patriotic: “Made in America says it all. … Simply let us industry do it. Free it up.”
Citing estimates from a July report [pdf] by IHS World Institute and IHS CERA, OpenTheGulf.org claims that greater than “230,000 American jobs and practically $12 billion in tax revenues could possibly be generated in 2012 if activity in the Gulf resumed to regular ranges.” That IHS report, by the best way, was funded by the Gulf Economic Survival Team, “founded in June 2010 to push for a swift end to the federal moratorium on offshore drilling.” It was also roundly criticized by Michael R. Bromwich, the director of
the Bureau of Ocean Energy Management, Regulation and Enforcement, as
being “fundamentally flawed.”
And then there’s the decision to motion. Clicking on “Ship a Message to Washington” takes you to a ready letter able to send to the president and Congress. It says, among different issues, that “stalled growth of our crucial vitality sources threatens another 380,000 jobs nationally and has driven up gasoline and diesel costs because the Gulf of Mexico moratorium and permit freeze force consumers to rely increasingly on overseas oil.” And it ends with a simple demand: “Open the Gulf.”
Wow, a powerful message. But there are some issues: Facts.
The Gulf Offline
The consumer Energy Alliance — a bunch with a personal Internet registration by means of Domains by Proxy, Inc. which says one thing in and of itself — describes the Gulf of Mexico as being “primarily offline.” Hardly. Oil has been flowing from the gulf with out interruption through the Deepwater Horizon disaster within the spring and summer time of 2010 all the way by way of to now. And the charges of production have been pretty near historic highs.
And what exactly do the IHS of us mean by “activity in the gulf” resuming “to normal levels” In case you choose the peak, in mid-2010, then, sure, present exercise is a bit lower. But why should that be designated as normal Why not 2006, 2007 or 2009 In these circumstances, present exercise can be above regular. (2008 was a hurricane 12 months with major shut-ins.)
In late Might 2010 following the Deepwater Horizon accident, the president positioned a six-month moratorium on new drilling — not on all oil operations, simply on new drilling. So the suspension affected a total of about 33 rigs, 12 of which continued to function. (For more, see right here and right here.) The rationale for this brief-time period halt to new drilling was in order that officials may figure out what went wrong and how you can keep away from such an event sooner or later. (Incidentally, the initial moratorium was overturned by a choose; a revised moratorium kicked in in July 2010.)
In October 2010 — a month and a half earlier than projected — the moratorium was lifted and new safety requirements for drilling and spill containment had been established, including the requirement that new operations would must display in advance that they have the ability and gear to include “a subsea blowout,” like what occurred when the Macondo nicely reworked into a uncontainable deepwater oil gusher. Briefly, there is no such thing as a moratorium.
Ok, you might say, the moratorium has been lifted, but the administration has still put a lid on gulf oil by refusing to grant new permits — the so-referred to as “permit freeze.” Actually
The new requirements for drilling and spill containment definitely did gradual things down for a while as a result of they meant that operators would need to procure further gear before submitting new permit purposes. However in February the primary permit for deepwater drilling in the gulf was authorized. Since then, of the brand new permit applications for deepwater drilling that require subsea containment:
113 have been authorized,
17 are pending, and
22 have been returned to the operator for more info.
As for deepwater drilling that doesn’t require subsea containment:
Forty five have been accredited,
1 valve technology & petroleum equipment factory is still pending, and
1 has been returned to the operator.
And shallow water permits between April 2010 and March 2011 have proceeded at a price of seven per thirty days in comparison with eight per thirty days in the 12 months leading up to valve technology & petroleum equipment factory the Deepwater Horizon disaster.
Backside Line: The Gulf of Mexico Is Open for Drilling Enterprise
Did the Deepwater Horizon disaster trigger people to be laid off Did it lead to financial hardship Of course. It was a catastrophe. Virtually 5 million barrels of crude gushed into the Gulf of Mexico — the largest marine oil-spill catastrophe on record. Have been new permits put on hold till steps might be taken to avoid comparable disasters sooner or later Yep.
But, with a allowing process now in place, drilling
activity in the gulf’s deepwaters has been steadily rising.
“Activity Begins to select Up Publish-Macondo” – Penn Power
“Shell Wins New Deep-water Permit, Puts Last of Idled Rigs Again to Work” – FuelFix.com
“Chevron Official Talks About Returning to the Gulf” – Associated Press
“Resumed Gulf Drilling Pays Off for Noble Power” – Houston Chronicle
“Oil Demand Likely to increase; Provide Less Sure” – PRNewswire
The Anti-Oil President Take a look on the Numbers.
It is often claimed that President Obama is in opposition to massive oil, desires to
shut down all oil extraction and exploration within the United States.
Really You assume so
With oil production up, President Obama can hardly be known as the anti-oil president. (Supply: “Short-Time period Power Outlook,” Might 2011, U.S. Vitality Info Administration)
Nicely, listed below are the info: Throughout the Bush presidency from 2001 to 2008, U.S. crude oil manufacturing declined from about 2.12 billion barrels to about 1.Eighty one billion barrels. In the publish-Bush years between 2009 and 2010, however, U.S. crude petroleum production elevated: 1.96 billion and 2.00 billion, respectively. And the EIA tasks the manufacturing rates to proceed to develop in 2011 and 2012.
Is rising crude oil production a very good factor Like so much else, it most likely relies upon in your politics. However one thing I’m fairly sure is not good: misinformation. Like I said: It’s a sad story; it is a shocking story.