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A Difference of Ideologies and Production

November 29, 2011

Ultimately, the debate that exists between those who are for Hydraulic Fracturing and those who are against it comes down to a difference of ideological positions. Both believe they are protecting our way of life.

Those who are against Hydraulic Fracturing believe the practice is a danger to the environment. They believe the industrial practice needlessly risks our nation’s water supply for the purpose of providing a form of energy that is not sustainable. Environmentalists believe that we need to look to renewable energy as the sole means for meeting energy demands and that fossil fuels are in finite supply, therefore, there should be a pursuance of renewable energy because pursuing a non renewable fuel source is counter productive and a “band-aid” to a growing energy demand. They like to believe that they are long-sighted and that renewable energy is the future and should be treated as such. They feel that fossil fuels are the past and using this type of energy providing fuel undermines what must and will be. The risks, in their eyes do not outweigh the reward.

Those for the practice believe that the country needs fossil fuels now for fuel, energy, and products like plastics. They believe they have found a tremendous glut of natural gas throughout the national shale plays and that the key to this country’s future success rests in their ability to capitalize on the potential of shale gas to eliminate a need for imported oil that costs the country so much wealth. They believe in the ability of shale gas to generate revenue and the perks linked directly to shale gas development. On their end, they believe they understand the country’s immediate needs for jobs, more energy independence, and growing energy needs. They do not believe that shale gas is merely a “band-aid” because of the quantity of shale gas present.

It is a battle of ideologies with “for” and “against” groups standing on polar opposites of the spectrum.

The here and now is that shale gas is creating a tremendous amount of money and an unsurpassed amount of new jobs to boot. This is a hard factor to look past for any level of government. The anti-fracturing claimants are not currently supported by information that can conclusively state that the current profitable benefits do not outweigh what they believe to be grave concerns. Another important aspect of note is that the left supports renewable energy while the right supports the Oil and Gas Industry. Not only is this a debate amongst those for or against the industry’s work, it is also a politically aligned tug-of-war with clear battle lines in place.

The most important part of this conversation seems to have been lost in the midst of this ideological warfare. This is what Oil and Gas is doing and what renewable energy is not, presently creating jobs and money.

Papers like the Wall Street Journal support Oil and Gas because of the money that it makes. The New York Times writes about the risks.

The bottom line (in a strictly financial sense) is that Oil and Gas is thriving while renewable energy is failing. In terms of business alone, renewable energy isn’t renewable because it can’t stand on its own legs. It doesn’t make the money to continue living. As a matter of fact, financially it behaves like a vampire: dead and feeding off of the living.

According to the Washington Post, the Obama Administration’s $38.6 Billion dollar loan program was supposed to save or create 65,000 new jobs. To date, it has created 3,500. This is $11,028,571.43 per job. This happened while company’s like Solyndra and BrightSource went bust to the tune of nearly $2 billion dollars of tax payer money and Greens complain about O&G CEOs making millions.

While Green Job’s and their guaranteed loan programs aren’t producing as promised with their multipliers and “fuzzy math”, Oil and Gas jobs are thriving independently. The Wall Street Journal reports that in North Dakota, the state with the lowest rate of unemployment at 3.5%, there are currently 16,000 job openings that earn over $100,000.00 a year. This due to the approximately 200 rigs pumping out $440,000.00 barrel of oil per day.

In case you were wondering, at the current WTI price of $99.39 per barrel, that is $43,731,600.00…per day or $15,962,034,000.00 per year.

The Brent Price changes that a bit at a current price of $109.23.00 per barrel. At this price, it is $48,747,600.00 per day and $17,792,874,000.00 per year.

Keep in mind that these figures come from North Dakota’s Bakken alone. This does not include the Marcellus, Haynesville/Bossier, Fayetteville, Barnett, Eagle Ford, Woodford Shales, or the Permian Basin, nor does it include anything offshore (which by the way, as the Wall Street Journal reports The Office of Natural Resources Revenue recently noted that federal revenue from offshore bonus bids (from lease sales) in fiscal 2011 was merely $36 million—down from $9.5 billion in fiscal 2008. The Obama Administration has managed the nearly impossible feat of turning energy policy into a money loser, pouring taxpayer dollars into green-energy busts like Solyndra.)

Green Energy, for all of the ideological support it may gather from the current administration and political entities, doesn’t make money.

The Government surely can’t ignore this fact regardless of how much yelling the left does. Money talks they say…if only this were true.

One would think that it would get harder and harder for those opposed to Industry to continue to do so when the realities of economics continue to prove the benefit of Oil and Gas production, particularly natural gas, which is a cleaner burning resource than coal. With all of the good that Oil and Gas is doing, the EPA could still shut down production in North Dakota as early as January before the results of their study come out…and the government has a loan guarantee program for failing Green Energy. Did I miss something?

Where do Greens in our country think that the money for their proposed energy sources is going to come from when none of their major projects seem to have the ability to do anything but crash regardless of loan guarantees backed by tax payer dollars? Is it okay to import energy and lose American money as long as the drilling isn’t done here? Should we keep fighting wars to protect oil?

This is precisely what will be done if drilling stateside is stopped.

This is stupid.

I liken it to the belief that marionettes can dance without strings. “Look” say Green extremists, the puppet needs to dance! We believe the strings aren’t necessary for it to do so! Free the marionette from the strings that hold it back from being free!”

I am sure you can see the flaw behind this reasoning. Without the strings, the marionette doesn’t do anything. This is just like what would happen in this country without Oil and Gas and the products and money they create. Freedom from them makes the puppet crash. Pinocchio is a fairy tale, after all.

I side with the Industry. America’s need for Industry monies, industry products, industry energy, industry jobs far outweighs the concerns for what the industry is “doing to the environment”.

Industry tax dollars pay for the EPA to exist. You think the government is having to curb its spending habits now? You think the government is having to form a strategy about where they can make cuts now? Imagine if the billions upon billions of dollars that come from industry by way of taxes and spending where to disappear because Greens got their extreme way.

This is what will happen if a Frac ban is instated.

When did people start believing that the things we have don’t cost? Cows die so we can eat steak. Chickens die so we can eat chicken. Beautiful corn stalks are cut down in their golden prime so we can eat corn.

This doesn’t need to be an ideological war. It needs to be a conversation about the future of our country. Look around at the global financial climate. Check out how the homeless numbers are skyrocketing. Check out the unemployment figures.

Ignoring the fact that O&G can fix some many of these problems is downright wrong. It is wrong. But this is what is happening, over some ideologies.

Well, ideologies don’t feed families. Ideologies don’t create tax dollars. Ideologies don’t eliminate dependence on foreign energy.

O&G does.

 

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