Team Obama understands that the energy issue could sink their candidate if the truth is known by the electorate. Therefore, they are running a huge energy scam on the American people. Their objective is to convince voters that Barack Obama is “The Energy President”.
If voters fall for this scam, Obama will be reelected and over the next four years his administration can crush the fossil fuel industry in America. Crush the fossil fuel industry and America’s very industrial base will be destroyed. We will cease to be the preeminent power on the planet. We will be a hulk of our former selves with our future sealed.
Let’s take a look at their scam and where it deviates from the truth. The President himself has made the following statement whenever he is discussing energy. “We [Americans] consume about 25 percent of the world’s oil, but we “only have 2 percent of the reserves.”
He follows this statement by saying that even if we drill every drop of oil out of the ground “it still wouldn’t be enough to meet our long-term needs. We’ve got to discover and produce cleaner, renewable sources of energy.”
Even if this statement was true, which it isn’t, our ratio of consumption to reserves is about 12.5 to 1, the lowest by far of other industrial nations. By comparison, the European Union’s ratio is about 32:1; Japan’s, 1,300:1; Taiwan’s, 5,400:1. For those countries that have no reserves, like Switzerland, Hong Kong and Singapore, the ratio is infinite since they have no proven reserves.
Based on Obama’s argument, countries with no proven reserves should use no oil. Didn’t this guy ever take logic as an udergrad? He’s simple setting up an argument with a false premise, a classic liberal trick.
Let’s take a look at U.S. consumption versus Gross Domestic Product. According to the International Energy Agency, in 2011 global oil demand was 89.1 million barrels per day. The U.S. Energy Information Administration put daily U.S. consumption at18.8 million barrels; so, our consumption was actually about 21 percent of the total.
According to the World Bank, in 2011 global GDP was about $63.3 trillion, while U.S. GDP was pegged at $15.3 trillion by the U.S. Bureau of Economic Research. The United States represented about 24.2% of the world’s GDP, so the U.S. contributes more to global GDP than to global oil consumption. Simple math points out that the U.S is actually at a surplus in this consumption to GDP ratio.
Now that we’ve disproved Barack Obama’s misleading oil consumption to proven reserves argument, let’s look at the question of reserves. “Proved” reserves is a deceptive term at its very foundation. The left loves to use it as a club to beat up conservatives. It is simply an estimate of ‘what we think that we have right now.’ It doesn’t take into count new discoveries or new methods of extraction.
Even though the period 1980 to 2009 saw rising consumption, proved reserves more than doubled. Noted industry analyst, Daniel Yergin said, “Just in the years 2007 to 2009, for every barrel of oil produced in the world, 1.6 barrels of new reserves were added.”
The U.S. Energy Information Administration estimates that “ultimately recoverable global reserves” of oil and natural gas total 2.4 trillion barrels, of which 185 billion barrels are in North America.
The U.S. Geological Survey estimates domestic reserves to include another 2 trillion barrels of shale oil. This is nearly twice the reported reserves of all OPEC counties combined, meaning that the total U.S. share is not 2 percent, but closer to two-thirds of global reserves.
However, Barack Obama in his grasping for continued power wants the American public that we’re scraping the bottom of the barrel when it comes to fossil fuels. He can accomplish several objectives with this disingenuous approach.
He has awarded billions in taxpayer subsidies to his campaign contributors in numerous dry holes of green technology like Solyndra. He has convinced some Americans that “Green” is the wave of the future and American reserves in oil, oil shale, coal and natural gas need to go the way of the buggy whip. He has attempted to get a government hammerlock on the American energy sector, just as he is trying in the healthcare sector.
Meanwhile, his policies have caused gas prices to double since his inauguration. Regulations that have been announced by the Environmental Protection Agency could cost Americans trillions in additional charges for home heating, consumer goods and food.
The Next time, you hear Barack Obama masquerade as an energy expert, take note that he’s just a politician who doesn’t even pay for his own gas.