The high cost of the Obama/Salazar moratorium
Image via WikipediaIn 2011, Gulf of Mexico oil production will under-perform the government’s pre-Macondo forecasts by 355,000 barrels per day — almost 130 million barrels for the year. In 2012, the shortfall rises to 550,000 barrels per day — 200 million barrels. That’s fully one-third of the Gulf’s oil producing capability, and over 10% of total domestic oil production.There is more.
These are staggering numbers.
Alaska, our #1 oil producing state, will supply roughly 200 million barrels in 2012.
Two hundred million barrels is about what the U.S. imports from Iraq every year. Or roughly half of our Saudi Arabian import volume. Two hundred million barrels would supply all of Ohio’s yearly petroleum use, with quite a bit left over.
Replacing 200 million barrels of oil will require an additional supertanker full of oil every two days.
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Not only are we having to pay to import the missing crude, we are foregoing the royalty the government would have received on the Gulf production not to mention the income taxes on the earnings from the production by the workers and the companies involved. It has been a very expensive and unnecessary delay in production. This does not count the jobs lost and the bankruptcy of one driller. There is just no justification for this bad policy.
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