The warmed-over claim that oil and natural gas companies aren’t using large numbers of leases on public lands is like a Mark Twain line: What’s the difference between a cat and a lie? A cat only has nine lives!

Seriously, here we go again, with the administration claiming (again) that leases in federal areas offshore and onshore aren’t being used. It made similar claims in 2009 and again last year. Politico Pro [subscription required] says this year’s report is basically last year’s with a few updated numbers. Here’s a statement from Interior Secretary Ken Salazar:

“These lands and waters belong to the American people, and they expect those energy supplies to be developed in a timely and responsible manner and with a fair return to taxpayers.”

Let’s be clear: It’s simply fal... more »

Let’s talk about a fundamental difference of opinion on the key energy issue of the day.

We say crude oil supply matters – in the context of global-market pricing, which affects fuel prices because the cost of crude accounts for 76 percent of what Americans are paying at the pump. More supply alters the energy equation, exerting downward pressure on crude prices. Energy Economics 101.

The president seems to disagree, saying there’s no “silver bullet,” while suggesting there’s not much that can be done to affect global markets and offer hope to beleaguered consumers. At the same time he tacitly acknowledges market forces work – but only from the side of the equation that reduces demand through efficiency and other measures.

We’re all for greater efficiency, but the president is igno... more »

From Politico:

"New York Senate Democrat Chuck Schumer wants Saudi Arabia to pledge to make up for any missing Iranian supplies, and he wants them to do it now, rather than waiting until summer. 'A public commitment will cause the price of oil to drop right away,' he said Tuesday."

Senator Schumer is correct, oil markets are forward looking and a public commitment to development matters.  But rather than Saudi Arabia, let’s look at what the U.S. is signaling.

1. Continued reduced production on Federal areas in the Gulf of Mexico.
2. 87% of our offshore acreage being placed off-limits.
3. Federal permits lagging in offshore areas.
4. Federal permits lagging in onshore areas.
5. A million barrels a day from ANWR languishing for decades.
6. The U.S. blocking upwards of 800,00... more »

Opponents of increased domestic oil production like to portray the U.S. as being helpless in the face of worldwide events.  This argument sometimes takes this form:

… with only 2% of the world’s oil reserves, we can’t just drill our way to lower gas prices – not when consume 20% of the world’s oil.

Which we dealt with here, and sometimes like this:

…oil prices are dictated by the vast world market, of which U.S. production is just a small fraction.

or this:

This notion that a politician can wave a magic wand and impact the 90-million-barrel-a-day global oil market is preposterous…

While it is good to see supply and demand being mentioned when discussing oil, the U.S. is hardly a feeble little victim unable to affect the market.

In 2010, according to the EIA, the... more »

Just saying…

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