In the wake of President Obama’s speech on job creation last week, major players in the energy industry have banded together to put pressure on the president to speed up the permitting process for new oil and gas drilling leases. At least 17 different companies and interest groups sent a joint letter to the president telling him that the best way to create jobs is to allow the dirty energy industry to drill, baby, drill.
From the industry letter:
One policy initiative that simultaneously creates high-paying jobs and increases revenues into federal coffers would be to improve efficiency and the rate of permitting activity in the Gulf of Mexico to a rate that is commensurate with industry’s ability to invest. Because safe, reliable domestic energy impacts all sectors of the US economy — manufacturing, agriculture, transportation and small business – such a move makes sense in light of the new regulatory regime and containment protocols developed by the Interior Department and private industry working in partnership.
The dirty energy industry would like us to believe that the administration’s energy protocols for drilling are hindering job growth in the country, even though the current wait time for drilling approval is about three months. Their claims of “safety” also ring hollow for those of us living on the Gulf Coast who are still witnessing oil washing up on our shores more than a year after the Deepwater Horizon oil rig exploded and sank into the Gulf of Mexico, spewing oil into the water for more than three months.
The American Petroleum Institute was not a part of the 17 groups that sent the letter to the president, but they have not been silent in the jobs debate. In a recent release, the API claimed that by lifting restrictions on oil and gas drilling, the energy industry would add as many as 1.4 million jobs and generate as much as $800 billion in tax revenue for the federal government. API president Jack Gerard acknowledged that it would take about 7 years for all of these jobs to materialize, far less than the estimated 2 million “green” jobs created in just one year by the President’s 2009 stimulus package.
Despite the fact that the green jobs sector can create jobs faster than oil and gas drilling, the dirty energy industry has a much louder megaphone and more resources to push misinformation onto the public. The folks over at the industry-funded website GlobalWarming.org (funded and maintained by the Competitive Enterprise Institute) recently posted about how the president’s stimulus package and green jobs initiatives actually lost American jobs. They also beat the familiar drum of “job-killing regulations.”
No net jobs were created in America last month (even as the people needing jobs increased), as the Obama Administration drafted a host of new job-killing regulations and threatened costly lawsuits against employers. But rather than rethink his failed economic policies, Obama is planning to spend billions more on green-jobs fantasies and boondoggles…
The $800 billion stimulus package was indeed a failure. It contained ill-conceived provisions that ignited trade wars with foreign countries such as Mexico, wiping out jobs in our export sector and aggravating America’s trade deficit. The stimulus package’s green jobs funding, nearly 80 percent of which went to foreign firms, effectively outsourced thousands of American jobs to foreign countries, at taxpayer expense. More corporate welfare for “green energy” will do nothing to fix the overall bad business climate, which is discouraging job creation.
Again, their claims seem to be at odds with reality, as we recently reported on several studies that prove that the Administration’s environmental protections are actually helping to create jobs in America. And as for their claims regarding the oil they would produce from increased drilling, those are also false. As we previously reported:
The oil-loving Bush Administration actually did a wonderful job proving how little the impact would be if we opened up the Alaskan National Wildlife Refuge (ANWR) for oil drilling. According to their own estimates, the oil would take about a decade or more before it even reached the market, and at that point might bring the price of oil down by about 50 cents per barrel at its peak. That translates to a reduction of about 1 to 3 cents less per gallon of gasoline at the pump. They estimated that there are roughly 10 billion barrels of oil in the wildlife refuge, and since the US consumes 6.6 billion barrels a year, despoiling that wild public treasure would only supply enough oil to completely fuel the United States (no imports or other sources) for about a year and a half. After that, the well is completely dry.
The Gulf of Mexico oil reserves don’t offer much to get excited about either. According to the U.S. Minerals Management Service, the best estimates say that there could be as much as 20 billion barrels of oil in the Gulf (again, at best.) This means that the Gulf could fully supply America for maybe 3 years, if the estimates are correct.
But this doesn’t mean that Obama will turn a deaf ear to their cries. He has been incredibly forgiving to the dirty energy industry, and has managed to give in to most of their demands since taking office. And with national elections a little more than a year away and unemployment the major talking point, the president could easily cave into polluter demands in an attempt to show the public that he did everything possible to create American jobs.