Home > Frac > If This Administration is Pro-America…It Needs to be Pro O&G

If This Administration is Pro-America…It Needs to be Pro O&G

January 5, 2012

In a recent post by Bloomberg Businessweek, Katarzyna Klimasinka commented on this current administration’s conflicting positions concerning the Natural Gas Industry.

I think the Obama administration’s actions are reflective of a much larger political strategy. President Obama’s realization on March 30th of 2011 that Hydraulic Fracturing is responsible for enabling us to recover “a century’s worth of reserves” was the admission by the Commander in Chief that our country sits atop a mountain of wealth.

And while this administration goes through the trouble of cutting defense budgets, and  forming the Consumer Financial Protection Bureau complete with the controversial recess appointment of Richard Cordray, or enacting the much despised TARP program, and failing to stop the FED from secretly loaning 7.7 trillion dollars to banks, or guaranteeing loans to failing Green Energy companies like Solyndra, or (after that debacle) guaranteeing another $1.6 billion dollar loan to another solar project in Brightsource, they fail understand how they can capitalize on our wealth of resources while unemployment soars and foreclosures/bankruptcies continue.

I am going to shoot straight and say that the waste of money on Solar Incentives, Green Objectives and the stifling of the Oil and Gas Industry smells a whole lot like a politician that does not want to alienate his constituency during an election year.

As Fox News’ Dr. Arthur Herman reports:

We are already the world’s number three oil producer at 7.5 million barrels a day.

In June Exxon-Mobil announced discovery of a massive new field in the Gulf of Mexico, with as many as 700 million barrels waiting to be tapped.

Montana and North Dakota sit on an oil shale formation that could produce another four billion barrels.
In addition, Alaska’s Arctic National Wildlife Reserve’s fields and National Petroleum Reserve could easily add another thirty billion barrels to add to a new American gusher.

Even if you don’t count Alaska, the new boom of off-shore drilling and oil shale production should add another 1.5 million barrels a day to our domestic output by 2015. That’s closing on Saudi Arabia’s daily total. With Canada and Mexico already producing more than Iran and the Arab Emirates combined, we’re looking at a major shift in the geopolitics of oil–with the United States at the center of it.

Don’t be fooled claims that fossil fuels are doomed. Alternative fuels won’t be coming on line anytime soon, certainly not enough to replace the essential role that oil, natural gas, and coal play in our economy from sources of energy to modern plastics and petrochemicals.

Obama, of course, is fighting the emergence of the United States as the new energy colossus every step of the way. 

There were 505,264,447 automobiles manufactured between 1999-2009. None of them run on sunshine, wind, or the Hoover Dam.
Let me clarify my word usage before I continue. When I say “the world” that includes the United States. The world’s demand for energy is increasing. Countries like China and India are exploding. We are finding more Oil and Gas than we had ever imagined…and we found it within the last ten years. We were approaching our own energy crisis before we found all of this Oil and Gas.
I simply can’t believe that this administration doesn’t act (although they do recognize) that the potential for our supply is mind-blowing. Ten years ago we were prepping to have a natural gas dependence on Russia akin to our oil dependence on the Middle East and OPEC.
Rather than shipping out our wealth to OPEC nations or Russians (who love the leverage), we can generate it here at home. We have the potential to export our resources (which comes dearly outside of the states) and fuel ourselves here at home. We can move toward balancing our lop-sided import to export ratio, generate new jobs and lower unemployment, increase the tax base, give an I.V. to an ailing economy…all of this is being halted because of unproven concerns?
You see, OPEC already has a reason to worry. Major investment dollars are making their way to our Shale Plays.
If you would like to apply a supply and demand model to our profit potential read this World Energy Usage Article from Wikipedia. The demand is there.
The supply is here.
If the Obama administration wants to be for the American people, they need to be about Oil and Gas. It’s potential is unparalleled and its value is proven.
To put this in perspective, I will list the Enterprise Values of the Following Companies (according to Yahoo!) as of 3:15 Jan. 5th, 2012.
Apple- 358.30 Billion
Google-181.15 Billion
Coca-Cola-1.06 Billion
Exxon-Mobil-418.05 Billion
Royal Dutch (Shell)-260.83 Billion
Chevron-208.83 Billion
BP-168.39 Billion
Conoco-Phillips-119.63 Billion
StatOil-87.90 Billion
Chesapeake-27.94 Billion
That is a collective enterprise value of  $1,291,570,000,000 Trillion.
The money already proves that the profitability is there and these companies are what they are because of global demand.
The current administration realizes the supply we have. We have got to start doing something about using this to our advantage.
What’s our other option? I heard a Fractivist call O&G outdated and passe’.
$1,291,570,000,000 doesn’t seem outdated to me. It seems relevant and current.
We need to utilize our resources. Mr. President, I hope you are listening.
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