Check out this graphic:
Right now the US imports about 70% of its oil. 30 years ago, we only imported 28%. What happened?
Well our economy boomed, we created a huge demand for more oil and we had to find other sources. But that’s not the only reason. The government of the US hasn’t been the most helpful ally in this battle for resources. ANWR is the perfect example of what not to do politically. The Clinton era narrative of “it will take 10 years before we have anything” rings hollow right now some almost 20 years later. Obviously had we done what was necessary then, we’d be reaping the benefit now.
But that graphic is stunning, don’t you think? In a partnership with Canada (the country from which we import the most oil and it is an extraordinarily secure source), who now provides about 20% of our total consumption (US + Canada = ~ 58% of our annual total), we could be 92% self-sufficient in 20 years. What that would mean is we could get that other 8%, for instance, from Mexico (now providing about 10% of the total). Or not. We’d no longer be held hostage by an oil cartel and unfriendly or unstable countries.
Right now 30% of our imports come from Saudi Arabia (2), Venezuela (4), Nigeria (5), Iraq (6), and Algeria (8). We could eliminate every one of them as a supplier. Every. One.
Of course that means doing something politically now. But that doesn’t seem to register with this administration. And that seems funny given the obvious screaming need for them to be seen creating jobs and driving the unemployment rate down.
Check out these numbers from a study by Quest Offshore Resources done at the behest of the American Petroleum Institute and the National Ocean Industries Association.
- Total offshore-related oil and gas employment could hit 430,000 in 2013 if the permit slowdown is reversed, including about 187,000 new jobs.
- New policies could result in a 71 percent increase in oil and natural gas spending in the Gulf to $41.4 billion.
- Texas (will reach 149,000 jobs) and Louisiana (129,000) would gain the most from a return to normalcy in the Gulf, but the jobs impact would touch a number of non-Gulf states as well – including California, Pennsylvania, Ohio and Michigan, Quest says.
- Tax revenues would accrue to all levels of government “if the government pursues a balanced regulatory approach that allows for the timely development of the backlog of (Gulf) projects in an environmentally responsible manner.” Said API President and CEO Jack Gerard: “We need to create taxpayers, and that’s what this would be doing.”
Result? A 20 year program that would result in jobs, revenue and energy resources.
Seems like a no-brainer right? Politicians are currently embroiled in debt ceiling negotiations, but take a look at what doing something like this would mean:
By granting comprehensive access to U.S. oil and gas reserves, $4 Trillion in state and federal revenue could be generated to fill American treasuries and eliminate nearly 30 percent of the national debt.
That growth would spur new jobs – lots of new jobs:
530,000 jobs could be created with increased access to U.S. oil and gas resources. To put that in perspective, that would provide enough jobs to employ 85 percent of Vermont’s entire population. By 2015, development of the Marcellus Shalealone could create 160,000 jobs in Pennsylvania, 20,000 jobs in New York and 30,000 jobs in West Virginia. Add that to the 9.2 million Americans currently employed by the oil industry and you’ve got the economic engine powering our economy and our way of life.
That is how you turn an economy around. That is how you increase revenues to government. That is how a smart government would approach the current problem (and in more areas than just gas and oil).
Instead we have the “permatorium”. If you’re wondering why this isn’t happening, you need to ask the administration:
“The slow pace of Gulf development since the accident has cost jobs, revenue and energy production,” said API President and CEO Jack Gerard. “The study shows what could be accomplished on jobs if project approvals and permits could get back to a normal pace. We’ve done the necessary work raising the bar on safety. We cannot continue to delay developing energy and hiring people in the Gulf. The disappointing unemployment numbers from the government last week make this more important than ever,” Gerard added.
The “accident” of course is the spill in the Gulf. And Gerard is right. This slow down, after the industry has “raised the bar on safety” is inexcusable. Especially in this unemployment climate. Especially in this economic climate. Especially with tax revenues down. And especially with energy insecurity so prevalent.
9.2% unemployment, a slowing economy, a revenue starved government, a country suffering from energy insecurity and a huge part of the answer sitting right there in front of them – and they refuse to act.
[Promoted to a Featured Post by JM.]