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News & Information ยป Friday Fact Checks
News Media Contact:
Nicole Daigle / Brendan Bradley
202.857.4722 / 800.433.2851
For Immediate Release
August 27, 2010
Administration, Congress Double Down on Efforts to Block Job-Creating American Oil, Natural Gas
WASHINGTON - Earlier today, the U.S. Department of Commerce "slashed its estimate for U.S. GDP growth in the second quarter from a 2.4 percent annual rate to 1.6 percent, confirming fears that economic growth has slowed to a crawl." "The trade deficit spiked an abrupt 16 percent in June, due to the largest surge in imports in 26 years," reports the Washington Post today, noting that "The unemployment rate remains stuck at 9.5 percent and first-time unemployment claims continue to remain at levels much higher than what's considered healthy for the economy."
But as the economy continues to slow, and jobs continue to be shed, the Obama Administration and some leaders in Washington are taking a shortsighted, no-holds-barred approach to blocking access to job-creating oil and natural gas resources, both onshore and offshore.
In a Fort Worth Business Press column yesterday, Independent Petroleum Association of America (IPAA) chairman Bruce Vincent writes this about efforts in Washington aimed at undermining hydraulic fracturing, the critical and tightly-regulated 60-year old energy stimulation technology used safely in 9 out of 10 wells nationwide:
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Unfortunately, some members of Congress believe that they know better than Texas, and that Washington bureaucrats ought to regulate fracturing, rather than individual energy-producing states who understand the geology best and have amassed an impressive track record of overseeing this critical technology. These advocates say their legislation is about disclosure of fracturing fluids. At its core, though, these efforts are aimed at stopping fracturing altogether, which would significantly blunt the positive economic growth and job creation in Texas, as well as in other energy-producing states, and ultimately, increase the cost of energy for America. |
At the same time, the Obama Administration's misguided ban on responsible offshore energy production - which the Bipartisan Policy Center urged to retire this week - as well as a host of new regulations, are creating more red-tape than environmental safeguards, and continue to compound the economic fallout along the Gulf Coast.
In a Bloomberg news report this week under the headline "Drillers May Face Months of Waiting Even After Obama Lifts Deep-Water Ban", IPAA's Dan Naatz speaks directly to this issue:
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Oil producers are frustrated by some of the administration's new requirements, said Dan Naatz, vice president of federal resources for the Washington-based Independent Petroleum Producers of America. He cited as an example the lack of an industry standard to calculate the worst- case discharge from a well blowout. "Some of those things seem like they're inconsequential, but they can really delay the whole process," Naatz said. "The efforts are moving in the right direction, but we've still got a long way to go." |
Editorials Continue to Weigh-In: "We are far better served by supplying our own oil and gas"
- Shreveport Times: The larger job loss numbers will become reality if the moratorium, now in its third month, is not lifted soon. Among the concerns is that these deepwater rigs will move out of the Gulf and will be difficult to get back. ... But he expects the employment picture, particularly along the coast, to worsen before it gets better. And "if the message starts to come out from BP that this will take longer, we could see an acceleration of layoffs." The drilling ban will have a bigger impact on Louisiana than the oil spill itself, costing the state some 20,000 jobs, Moret said. "The impact of the moratorium is bigger than what the official numbers suggest." ... Dun & Bradstreet estimated June 23 that the drilling ban could cost Louisiana 37,095 jobs at 2,828 businesses. ... David Dismukes, associate executive director of the LSU Center for Energy Studies, recently told The Associated Press it's economically hazardous to ignore the huge job loss forecasts, which he said are based on solid numbers. (8/24/10)
- Monroe (La.) News Star: That six-month moratorium on drilling has idled Gulf wells. State study of the ramifications suggests an effect on 20,000 jobs, Moret said. LSU Professor Emeritus Dr. Loren Scott says the impact may be 32,000 jobs; U.S. Sen. Mary Landrieu said it may be closer to 46,000. That's a lot of disparity among people who should know, but any of those forecasts would be devastating to our people. ... How could the government take such an ill-advised stance on drilling? (8/25/10)
- Opelousas (La.) Daily World: Acadiana residents who fear for their jobs deserve more information than they're getting from administration about the need to continue the moratorium. ... Chastened by the oil crunch, companies may hang on to skilled workers out of fear they won't be able to replace them. ... Yet we're also beginning to hear anecdotal accounts of economic pain being felt not just by Acadiana companies that serve the energy industry, but the vendors that rely on those companies. (8/26/10)
- Fairbanks Daily News-Miner: Alaska and the nation need offshore oil and gas, the governor said. Even if alternatives begin to supply a big slice of our nation's energy, we are far better served by supplying our own oil and gas rather than importing it from places where the governments apply far less environmental oversight. Drilling in Alaska's offshore areas under a rigorous regulatory system similar to the state's is not just good policy for Alaska. It's good policy for the country, and it's good policy for the Earth. (8/27/10)
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IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.
