Rather than deal with the Gulf oil spill in a reasoned fashion, the administration and some in Congress have put forth a barrage of political proposals that could jeopardize jobs and domestic energy production, and deal heavy blows to the economy overall.

Seemingly aimed at preventing a similar accident, these proposals--a six-month moratorium, unlimited liability and tax increases--will do nothing to promote offshore drilling safety. Instead, they could threaten hundreds of thousands of U.S. jobs, cost billions in government revenue and royalties, and limit a major part of the nation's energy lifeline.

When asked recently about the most important issue for the federal government to address, people emphatically responded, "jobs" and "the economy." So why are policymakers ignoring what peop... more »

Where did the oil go?

That's the question being asked in the Gulf of Mexico these days. It appears the oil has dissipated much faster than expected.

As The New York Times says today, reporters flying over the Gulf are spotting "only a few patches of sheen and an occasional streak of thicker oil" while others are seeing only a few tar balls and emulsified oil "here and there."

Is the oil hiding? Or as Peter at OPNTALK facetiously asks, has it been stolen, or is it simply "lounging" below the surface? No.

It's likely that much of the Macondo's sweet crude evaporated on the water's surface, was weathered and broken down by Gulf storms, or was consumed by the oil-eating bacteria that have been living on oil from naturally-occurring seeps since the beginning of time.

The successful deployment o... more »

The Senate bill unveiled today by Majority Leader Harry Reid moves forward with provisions that will cost American jobs, slow economic growth and will place our energy security at risk.

While full details of the Senate bill are not yet available, the liability provision sticks out as a jobs killer. Requiring an unattainable level of insurance coverage for domestic energy producers on the Outer Continental Shelf will force the vast majority of American companies out of U.S. waters, according to insurers.

This would cut domestic production, kill American jobs, slow economic growth and cost billions in federal oil and natural gas revenues.

Even those that could self insure operations would see costs skyrocket, driving investments out of the United States, further hurting our economy, employm... more »

What if Congress and the administration approve many of the deepwater drilling measures that are now being debated? And what if their actions result in unlimited liability for oil spills, additional regulations on well and rig designs, higher taxes and fees and an extended moratorium that cancelled drilling projects?

The economic impacts could be dire.

A new analysis by API economists shows that the moratorium, if continued indefinitely, or similar proposals which would make deepwater development unavailable or uneconomic would cost this country 175,000 jobs every year between now and 2035. Over the long term, it also would reduce U.S. oil production by 27 percent and would likely increase oil imports by 19 percent.

API President and CEO Jack Gerard told reporters today:

"Legislation that... more »

In today's episode, I interview Dr. Tim Considine of the University of Wyoming about his recent study that quantifies the economic impact of developing natural gas in the Marcellus Shale formation, which stretches beneath large portions of New York, Pennsylvania and West Virginia. His study also looks at state policies that could hinder natural gas production in the region and slow economic opportunities.

Use the audio player below to listen to information about the article and follow along with the show notes. I hope you find the podcast informative.

00:17 One of the most significant energy developments in recent years is the production of natural gas from shale rock formations. Technological advances such as the combination of horizontal drilling and hydraulic fracturing have ma... more »