And now the Truth about Gas Prices.

[ChasC5]

Is Obama to Blame for $4 Gasoline?


Remocrats, Republicans spin oil data in dispute over high gas prices.

So, why have gasoline prices gone up and what impact have Obama’s policies had on oil production and gasoline prices?

We talked to Fadel Gheit, a former Mobil Oil executive who is now a senior energy analyst at Oppenheimer & Co. Asked about the impact of the deepwater moratorium, Gheit said the moratorium had a "negative impact on production, but not as much as the politicians would like us to believe." The impact of the moratorium on gas prices? "Nothing. Zero," he said.

Moratorium Impact on the Gulf

The moratorium had no effect on wells already in production, according to Nicholas Pardi, a spokesman for the Bureau of Ocean Energy Management, Regulation and Enforcement. But it did affect drilling of new wells, and it’s important for new wells to start producing oil as the old wells experience a natural decline in production.

Department of Interior spokeswoman Eileen Angelico told us that 21 rigs were forced to suspend activity on exploratory or developmental wells. Gary Long, an engineer for the Energy Information Administration, estimated that each rig could produce three wells a year. Each deepwater well can produce an average of about 5,000 barrels a day, but ultra-deep wells can produce sometimes more than double that. How long does it take for a new well to produce oil? Long said it could take just three months — or as long as four years.

So, the moratorium had an impact on production. But how much?

First of all, U.S. oil production in the Gulf of Mexico last year was 1.64 million barrels per day — a record, despite the spill and moratorium. We confirmed that it was indeed a record year for Gulf oil production based on EIA data (since 1981) and Department of Interior data (dating to 1947), as provided by EIA spokesman Jonathan Cogan. (Gheit credited improved technology and increased experience in deepwater drilling for the steady climb in Gulf production.)

This year, however, oil production is expected to decline in the Gulf.
In its latest monthly short-term energy report, the Energy Information Administration on March 8 projected that oil production in the Gulf will decline this year by 240,000 barrels per day. Doug Morris, who is part of the EIA team that estimates oil production for the monthly reports, said some of the expected decline in Gulf oil production is "definitely related to the moratorium" and regulatory changes. And, he added, "some of it’s due to natural decline."

It’s important to note that even before the oil spill and the moratorium, the EIA projected in April 2010 that oil production in the Gulf would decline this year. Before the spill, the EIA expected the Gulf to produce 110,000 less barrels per day in 2011. As we said, it is now expected to decline by 240,000 barrels a day this year. The difference is 130,000 barrels per day.

But domestic production elsewhere will partially offset the decline in the Gulf. EIA estimates that the net result will be a decrease of about 110,000 barrels per day — which amounts to six-tenths of 1 percent of the total 19.30 million barrels per day that the U.S. is expected to consume this year. Gheit said such a relatively small decline "doesn’t even move the needle" on gas prices. He blamed global events — not the president’s policies — for rising gas prices.

Gheit, March 17: Only the naive will think that will have a direct impact. It doesn’t even move the needle. Is 100,000 barrels (a day) going to make a difference? It’s not. A cent or two per gallon? It might. But there are much bigger factors. It is like a perfect storm.

The "perfect storm," he said, includes a series of refinery accidents, including an April 2, 2010, blast in Washington state that killed seven people; a labor strike in October 2010 that caused disruptions and closings of oil refineries in France; "operating problems" at refineries in Venezuela, Mexico and South America; and an increase in demand for oil because of the improving economy. Of course, there is the unrest in the Mideast — which has pushed oil prices above $100 per barrel.

"All in all, oil prices have been on the rise in the last six months — before the Middle East. It has been moving for more than a year now. Oil prices are inflated and will remain inflated for factors other than supply and demand," Gheit said.

Is Obama to Blame for $4 Gasoline? | FactCheck.org

Ready ... Set ... Deny ....

[jhammons01]

Fact Check painted a completely different story when GWB was in office..

Obumble has vindicated GWB in so many ways, I've lost count.

And now FactCheck seems to be on GWBs side as well.....

Thanks for posting this article, I've been saying all along that GWB was right on so many issues, it's good to see Dems like you see the light as well.

[ChasC5]

Originally Posted by jhammons01

Fact Check painted a completely different story when GWB was in office..

Obumble has vindicated GWB in so many ways, I've lost count.

And now FactCheck seems to be on GWBs side as well.....

Thanks for posting this article, I've been saying all along that GWB was right on so many issues, it's good to see Dems like you see the light as well.

Yea I read the same thing.

[Peter Pan]

Drill baby drill and not in Brazil, in America either land or sea, and while we are at it build more coal plants with new tech and retrofit the old coal plants as America will use more power to keep the electric cars on the road that Obama wants and coal is abundant in America already

[AC54ME]

[LATB]

perfect ^^^

[Tinkerbell in Texas]

The moratorium will affect gas prices about 5 years from now, when the wells that would have been drilled will have been coming on. In addition, the continued "moratorium" on permits by the BOEM will affect prices for an additional couple of years.

[ChasC5]

I still haven't heard from anyone here about who I should blame for "my" Gas Prices Going DOWN?

[ChasC5]

Originally Posted by TxAg

Hey you hush up! Big oil needs to pay! They're evil! They had the environment! They are greedy! They had black and brown people!


I think I got most of the out from the left.

Now you'll have more time for the bs from the Right.

And man will you need the time.