Gas Prices and the Economy -2

Earlier today, I wrote about the Obama policies that have reduced American domestic oil production and caused gas prices to move higher by over 100% during Obama's time in office. I received some email asking for proof that offshore production is actually lower; apparently some folks are being taken in by the Obama claim to have raised production.

Here are the figures: In April of 2010, there were 55 rotary rigs working off shore according to Baker Hughes. By July of the same year, the number of rigs was below 10. Now, a year and a half later, there are only 40 even with the price of oil higher than it was at that time. If the number of rigs in use had stayed at 55 over the last year and three quarters, there would have been 1155 rig months worked until now in off shore waters. After the Obama attack on off shore drilling, the total number of rig-months used off shore during that time was about 470. In other words, the Obama policy shifts reduced the amount of drilling off shore by 60% for nearly two years. While no one could know for sure what the production would be from each well that was not drilled, it is easy to approximate that current American oil production has been substantially reduced due to the Obama attack on off shore drilling.