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Fact Checking Romney’s Permits Claim: Under Obama Permits Declined Over a Third (+video)

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During the Presidential Debate this evening, Romney asserted that permitting for oil and gas on federal lands decreased by 50% under Obama.

Although Obama denied this, the Los Angeles Times states that there was a significant drop from 2008 forward:

Mitt Romney said “the president cut in half the number of licenses and permits for drilling on federal lands and in federal waters.”

According to the Bureau of Land Management, in fiscal year 2011, 2,188 leases were issued for energy development on federal lands. Four years earlier, in fiscal year 2007, 3499 leases were issued. So, not quite a 50% drop, but a drop nonetheless.

Here’s a clip from the debate where Romney went after Obama on the permits issue:

Obama’s Great Alaska Shutout

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President Obama is campaigning as a champion of the oil and gas boom he’s had nothing to do with, and even as his regulators try to stifle it. The latest example is the Interior Department’s little-noticed August decision to close off from drilling nearly half of the 23.5 million acre National Petroleum Reserve in Alaska.

The area is called the National Petroleum Reserve because in 1976 Congress designated it as a strategic oil and natural gas stockpile to meet the “energy needs of the nation.” Alaska favors exploration in nearly the entire reserve. The feds had been reviewing four potential development plans, and the state of Alaska had strongly objected to the most restrictive of the four. Sure enough, that was the plan Interior chose.

Interior Secretary Ken Salazar says his plan “will help the industry bring energy safely to market from this remote location, while also protecting wildlife and subsistence rights of Alaska Natives.” He added that the proposal will expand “safe and responsible oil and gas development, and builds on our efforts to help companies develop the infrastructure that’s needed to bring supplies online.”

The problem is almost no one in the energy industry and few in Alaska agree with him. In an August 22 letter to Mr. Salazar, the entire Alaska delegation in Congress—Senators Mark Begich and Lisa Murkowski and Representative Don Young—call it “the largest wholesale land withdrawal and blocking of access to an energy resource by the federal government in decades.” This decision, they add, “will cause serious harm to the economy and energy security of the United States, as well as to the state of Alaska.” Mr. Begich is a Democrat.

The letter also says the ruling “will significantly limit options for a pipeline” through the reserve. This pipeline has long been sought to transport oil and gas from the Chukchi Sea, the North Slope and future Arctic drilling. Mr. Salazar insists that a pipeline could still be built, but given the Obama Administration’s decision to block the Keystone XL pipeline, Alaskans are right to be skeptical.

Read more from this article HERE.

Alaska September Oil Output Jumps 30% as Maintenance Ends

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Alaska North Slope oil production rose 30 percent in September from the previous month as fields operated by BP Plc (BP/) and ConocoPhillips (COP) resumed production after annual maintenance ended.

Production averaged 516,296 barrels a day in September, up from 398,643 in August, the state’s tax division said on its website.

Production from Prudhoe Bay fields operated by BP rose to 271,444 barrels a day from 177,182 in August, when two fields, Milne Point and Northstar, and three Prudhoe Bay facilities were shut for maintenance during part of the month, said Dawn Patience, a BP spokeswoman in Anchorage.

“Operations are back to normal, and our maintenance season, which typically takes place in the summer because otherwise we are in arctic conditions, has wrapped up,” Patience said.

Read more from this story HERE.

Industry Protests Obama’s Plan for Alaskan Oil Reserves

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Photo credit: roger4336

A new proposal by the Obama administration to expand drilling to half of the National Petroleum Reserve in Alaska (NPR-A) has attracted criticism from the oil industry, as the plan still leaves a broad area off limits to new oil development. Interior Secretary Ken Salazar said new development will be permitted in an 11.8 million-acre geographical area, which purportedly holds about 549 million barrels of oil, while coastal regions such as Kasegaluk Lagoon and Peard Bay — where there is a higher concentration of seals and polar bears — will receive “special protection.”

According to the U.S. Geological Survey, the entire reserve harbors about 900 million barrels of oil, a region west of the Arctic National Wildlife Refuge approximately the size of Indiana. Opening up only half of this area to leasing is disappointing, says Erik Milito, a director at the American Petroleum Institute (API). “This falls short of where we need to be.”

In a conference call on Tuesday, API president and CEO Jack Gerard disputed President Obama’s so-called “all of the above” energy policy. “Today, we’re sending a letter to the White House to urge the president and his agencies to do more than merely talk about ‘all-of-the-above’ while they pursue policies that include ‘none-of- the-below,’” Gerard charged.

Gerard protested that the Obama administration’s plan to restrict this vast opportunity for oil development is unacceptable, and that it will further depress the nation’s capabilities to become more energy independent. “One half of the National Petroleum Reserve in Alaska, it was announced just yesterday [August 13], has been taken off limits,” Gerard affirmed. “This is an area by law dating back to the 1920s, [which] was specifically set aside in Alaska for oil and natural gas development. The announcement yesterday by Secretary [Ken] Salazar was essentially an announcement that we’re going to take everything that was legislatively set aside and we’re placing them off-limits.”

President Warren Harding established the NPR-A in 1923 as a resource for the U.S. Navy during a period when its ships were transferring over from coal to oil power. In 1976, the Naval Petroleum Reserves Production Act handed 23.5 million acres over to the Department of the Interior. Then in 1980, the Interior Department Appropriations Act appointed the agency’s Bureau of Land Management to administer oil leasing on the Alaskan land.

Read more from this story HERE.

Tentative oil plan for Alaska’s National Petroleum Reserve

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The U.S. Interior Department opened the door to the possibility of an oil pipeline across the National Petroleum Reserve in Alaska and to oil and gas leasing on 11.8 million acres of it.

The draft development proposal unveiled Monday by U.S. Interior Secretary Ken Salazar represents the federal government’s first coordinated plan for the 22-million-acre reserve, which has seen limited oil production in recent years despite controversy over potential threats to wildlife.

The reserve, which lies west of the oil fields on Alaska’s North Slope, is home to the famous Western Arctic caribou herd, numbering about 325,000, and a smaller herd of 45,000 caribou that migrates near Teshekpuk Lake.

The largest single block of public land in the country, the reserve contains an estimated 549 million barrels of economically recoverable oil and 8.7 trillion cubic feet of natural gas.

The compromise plan — unveiled after a long study that collected more than 400,000 public comments — would continue to protect some of the most ecologically sensitive areas, including Teshekpuk Lake, home to tens of thousands of geese and brant that migrate to the far north during sunny Arctic summers.

Read more from this story HERE.

Turkey playing “Obama for a fool”: trades gold for oil to circumvent Iran sanctions

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Turkey has exchanged nearly 60 tons of gold for several million tons of Iranian crude oil, despite its promises to uphold Western sanctions on Iran’s energy sector, according to recent Turkish reports.

By using gold instead of money, Turkey is able to skirt Western sanctions on Iran’s oil trade, particularly those pertaining to SWIFT, the global money transfer service that until recently assisted the Central Bank of Iran and other Iranian financial institutions.

Over the past several months, Turkey has given Iran 60 tons of gold, or more than $3 billion, according to a July 8 report on the Turkish news site Vatan Online. The report was translated by the Open Source Center, a translation service used by the CIA.

The exchanges raise questions about the Obama administration’s decision to grant Turkey a temporary waiver exempting it from U.S. sanctions to Iran, according to foreign policy experts and those on Capitol Hill who speculated that the revelation could spur Congress to pass a new round of Iran sanctions to prevent such trades.

“The idea that Turkey needs a waiver for more time to disconnect itself from the Iran oil trade is ludicrous,” said Michael Rubin, a former Pentagon adviser on Iran and Iraq. “Turkey is playing Obama for a fool.”

Read more from this story HERE.

Photo credit: BullionVault

Obama new five year plan continues “crippling moratorium” on US offshore energy

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The Obama administration’s recently released five-year plan for offshore drilling leases has been met with sharp criticism from the oil and gas industry and Republicans, who say it continues a crippling moratorium on potential energy reserves on the West and East Coasts.

The administration’s 2012-2017 offshore lease plan, released June 28, expands available leasing areas for drilling slightly in the Gulf of Mexico and opens new areas in the Arctic Ocean, but also keeps both the West and East Coasts completely off-limits for offshore oil exploration.

Three of the fifteen lease auctions will be held in the Arctic seas—in Alaska’s Cook Inlet in 2016, in Chukchi Sea in 2016, and in the Beaufort Sea in 2017. The administration lauded its plan, saying the Arctic regions hold more than 75 percent of total undiscovered and recoverable oil.

However, Republicans and industry officials disagreed.

“It’s a very disappointing backtracking of the administration’s supposed ‘all of the above approach,’” said Jim Noe, the senior vice president, general counsel, and chief compliance officer of Hercules Offshore Inc., the largest shallow-water drilling company in the Gulf of Mexico. “It takes both coasts and leaves us the same areas we’ve been drilling in since the ’40s.”

Read more from this story HERE.

Photo credit: L.C.Nøttaasen

Alaska Oil Output Drops Significantly as North Slope Production Declines

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Alaska crude-oil production dropped 11 percent in June from a year earlier, the largest drop in almost a year, after Alyeska Pipeline Service Co., operator of the cross-state pipeline system, conducted maintenance and as output from wells declined.

Production averaged 516,871 barrels a day last month, down from 581,297 a year earlier, the biggest decline since output fell 15 percent from July 2010 to July 2011, the state Department of Revenue said on its website. The pipeline delivered 570,770 barrels a day in May.

Production peaked for the month at 592,381 barrels on June 12 and fell to a low of 380,893 on June 2, when crews scheduled valve testing.

“Any fluctuations in throughput are due to planned maintenance,” Michelle Egan, a spokeswoman at Alyeska, said in an e-mailed response to questions.

Output on the 800-mile (1,287-kilometer) Trans-Alaska crude system has declined annually since 2002 as falling yield from existing wells hasn’t been replaced, according to the state tax division. Crude-oil output from Prudhoe Bay averaged 305,132 barrels per day in June, down from 324,919 in May, the state said.

Read more from this story HERE.

Photo Credit: Arthur Chapman

Without Obama, We Would be a Global Energy Superpower

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Saudi Arabia has long been the dominant producer of petroleum on the planet. Nature endowed the Arabian Peninsula with gigantic deposits of this vital source of energy. Many of us have lamented the quirk of nature that placed much-needed oil in the most geopolitically unstable region in the world.

Although Saudi Arabia is the king of oil producers at present, there is another country that has far more extensive deposits of fossil fuels. Because fossil fuels are the most economical and reliable energy sources known to man, the country that has the largest share of them is fortunate indeed. What is this richly endowed country? It is none other than the United States of America.

Perhaps you have heard the United States described as “the Saudi Arabia of coal.” Actually, that may be an understatement, for while the U.S. Department of Energy estimates that the Saudis have 20 percent of the world’s known petroleum reserves, the United States has an even larger share—27 percent—of the world’s known deposits of coal. As engineers continue to develop more and more “clean coal” technologies, this abundant resource will continue to serve our energy needs for as long as we need it.

In addition to our immense coal deposits, the United States contains gigantic natural gas deposits. Currently, the United States ranks fourth in natural gas production, but domestic reserves are soaring as horizontal drilling and “fracking” tap the mind-boggling dimensions of the natural gas fields located here in Pennsylvania (the Marcellus formation), Louisiana (the Haynesville formations), and elsewhere across the lower 48. If fracking can be done without contaminating precious water supplies, it is possible that the United States may also become “the Saudi Arabia of natural gas.”

There is even more good news: Besides being the Saudi Arabia of coal and potentially natural gas, we may become the next “Saudi Arabia” of oil. This won’t be the light, sweet crude that the Saudis pump at little cost and with relative ease, but it’s oil nonetheless. The Green River shale rock formation under just three of our states—Colorado, Wyoming, and Utah—is estimated to hold 1.8 trillion barrels of oil, about seven times as large as the Saudis’ crude oil reserves.

Read More at Floyd Reports by Dr. Mark W. Hendrickson, Floyd Reports