Scroll down a bit in this wrap-up of last weekend’s G8 Summit from The Hill newspaper, and you’ll see that the president and other G8 leaders hinted that they might ask for a draw on the world’s oil reserves to offset disruptions in supply from Iran. Their statement:

“There have been increasing disruptions in the supply of oil to the global market over the past several months, which pose a substantial risk to global economic growth. … Looking ahead to the likelihood of further disruptions in oil sales and the expected increased demand over the coming months, we are monitoring the situation closely and stand ready to call upon the International Energy Agency to take appropriate action to ensure that the market is fully and timely supplied."

The Hill says the White House was mum on... more »

Here’s the president talking about job creation Tuesday in Albany, N.Y.:

“Now, we know the true engine of job creation in this country is the private sector – it’s not Washington.  But there are steps we can take as a nation to make it easier for companies to grow and to hire, to create platforms of success for them -- everything from giving more people the chance to get the right training and education to supporting new research projects into science and technology.”

Sounds good. On job creation the private sector definitely is where it’s at. America’s oil and natural gas industry supports 9.2 million U.S. jobs and could do more – 1.4 million new jobs by 2030 with the right policies, according to a study by the Wood Mackenzie energy consulting firm.

Unfortunately, as the presi... more »

Reuters reports that eight deepwater drilling rigs are expected in the Gulf of Mexico this year, which would bring the active deepwater contingent to 29 – just short of the number before the 2010 Macando accident. While that will be a positive step, here are some reasons to hold off popping the champagne corks:

• The eight rigs are not yet in the Gulf, not yet working.
• While permit applications to work on Gulf jobs have been submitted, the rigs will return there only if the permits are approved.
• Given “A” and “B” above, it’s still premature to talk about Gulf drilling being back to normal or “close to pre-moratorium levels.”
• The eight rigs would bring the Gulf rig count to “just short of the level” before the administration’s permit moratorium, not equal to levels of two y... more »

Normally, we don’t bother with blog posts from the Center for American Progress on oil issues because, to borrow from an old saying, there’s no point in fact-checking someone who puts out propaganda by the barrel.  But since this post yesterday sought to “debunk” our “claims,” let’s have a look at CAP’s. Warning: These point/counterpoint, counter/counterpoint things can get a little long.

From CAP:

CLAIM: “More domestic production is critical to putting downward pressure on gasoline prices — supply matters.” – Jack Gerard, American Petroleum Institute President and CEO, March 26, 2012

TRUTH: To test whether more U.S. domestic production would lower gasoline prices, the Associated Press just completed an exhaustive analysis of 36 years of monthly U.S. oil production and gasolin... more »

Opponents of increased domestic production of oil and natural gas like to point out that oil is a world-wide market – which it is – then immediately try to support their case by looking only at U.S. production.  These folks jumped on an AP report this week that sought to prove that U.S. production has no bearing on prices.  Here’s the key paragraph:

"Politicians can’t do much to affect gasoline prices the market for oil is global. Allowing increased drilling in the U.S. would contribute only small amounts of oil to world supply, not nearly enough to affect prices. The Associated Press conducted a statistical analysis of 36 years of monthly inflation-adjusted gasoline prices and U.S. domestic oil production and found no statistical correlation between oil that comes out of U.S. wells... more »