For many decades, America had to import huge amounts of oil and natural gas to meet our energy needs. This constant need for energy was a major problem for the USA. Beginning in 1973 with the Arab oil embargo, America faced each day knowing that unfriendly nations around the world had the ability to cut us off. We tried many remedies to this problem. We spent billions building and filling the national oil reserve. We passed laws that required all sorts of energy usage reductions and conservation. Both moves helped, but they were not even close to being enough.
Then Obama became president, and a new idea started gaining support: we would move to "green energy" and away from petroleum and natural gas. There had been some support for this in earlier years, but Obama made it into clear national policy. President Obama told us over and over that since we had only 2% of the world's oil, we could not drill our way out of this problem. Indeed, it was during the 2012 presidential election that Obama pushed this claim to the fore. As usual, Obama's claim was part distortion and part lie. We had 2% of proven reserves, something that greatly limits the types of oil fields one includes. Beyond this distortion, it was also a lie because it ignored all the non-traditional sources of energy that were coming to the fore. Fracking made billions of barrels of oil and nearly limitless natural gas available right here at home.
Obama's response, and the response of the Democrats to fracking was nothing short of amazing. Instead of embracing this wonderful engine of development, they fought it tooth and nail. Obama decided there could be very little, if any fracking on federal land. States ruled by the Democrats (like NY) banned fracking on supposed environmental reasons (which were also phony). Fortunately, the biggest deposits were under states with governments that understood the benefits of fracking. Texas, North Dakota and Pennsylvania in particular got enormous benefits from new oil or gas production.
Two years ago, the OPEC nations decided to try to wipe out America's fracking industry. They got together and swamped the market with production, thereby driving prices way down with the goal of forcing the frackers from the market. It did not work; it just forced the fracking companies to get more efficient. Oil that used to be profitable only at $60 per barrel is now fine at $40. OPEC gave up the fight.
Now we have reached the point where the USA imports only about 30% of our oil. We export more natural gas than we import, and the expectation is that nat gas exports will continue to soar. There are literally millions of people whose prosperity depends on this increased domestic oil production.
The amazing thing is that all this progress happened during the Obama years over the opposition of the president. Once President Trump took office, federal policy reversed with the government now supporting production. It should not be very long before the USA is both the world's largest producer of oil and gas as well as a major exporter of both.
Then Obama became president, and a new idea started gaining support: we would move to "green energy" and away from petroleum and natural gas. There had been some support for this in earlier years, but Obama made it into clear national policy. President Obama told us over and over that since we had only 2% of the world's oil, we could not drill our way out of this problem. Indeed, it was during the 2012 presidential election that Obama pushed this claim to the fore. As usual, Obama's claim was part distortion and part lie. We had 2% of proven reserves, something that greatly limits the types of oil fields one includes. Beyond this distortion, it was also a lie because it ignored all the non-traditional sources of energy that were coming to the fore. Fracking made billions of barrels of oil and nearly limitless natural gas available right here at home.
Obama's response, and the response of the Democrats to fracking was nothing short of amazing. Instead of embracing this wonderful engine of development, they fought it tooth and nail. Obama decided there could be very little, if any fracking on federal land. States ruled by the Democrats (like NY) banned fracking on supposed environmental reasons (which were also phony). Fortunately, the biggest deposits were under states with governments that understood the benefits of fracking. Texas, North Dakota and Pennsylvania in particular got enormous benefits from new oil or gas production.
Two years ago, the OPEC nations decided to try to wipe out America's fracking industry. They got together and swamped the market with production, thereby driving prices way down with the goal of forcing the frackers from the market. It did not work; it just forced the fracking companies to get more efficient. Oil that used to be profitable only at $60 per barrel is now fine at $40. OPEC gave up the fight.
Now we have reached the point where the USA imports only about 30% of our oil. We export more natural gas than we import, and the expectation is that nat gas exports will continue to soar. There are literally millions of people whose prosperity depends on this increased domestic oil production.
The amazing thing is that all this progress happened during the Obama years over the opposition of the president. Once President Trump took office, federal policy reversed with the government now supporting production. It should not be very long before the USA is both the world's largest producer of oil and gas as well as a major exporter of both.
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