Is Obama Responsible For Increased Domestic Oil Production?

According to this new ad from the Obama campaign, oil production is up in America thanks to President Obama’s policies:

It’s not surprising that the Obama administration would make this argument. Gas prices are going up, and the President is eager to deflect the blame.

While it’s certainly true that oil production is up overall from 2008 – 2011, that increase has come despite President Obama not because of him.

The President himself made this same claim during his State of the Union address, and at the time I posted out this chart from the Institute for Energy Research showing that oil leases, permits and wells on federal lands (where the President’s policies have the most control were down 44%, 39% and 39% (respectively) in 2009 – 2010 as compared to 2007 – 2008.

As you can see, the chart compares the decline in production on federal lands to the increase in production from North Dakota’s oil fields, which exist overwhelmingly on private land. Most of the rise in US oil production is the result of shale oil plays on private land like North Dakota’s, meaning the increase in oil production under Obama has happened despite the President’s policies, not because of them.

In fact, the President has been openly hostile to this sort of oil development. He supports changes to tax policy that would significantly reduce profit incentives for domestic oil production. Obama’s EPA has been making noises about a moratorium on hydraulic fracturing (which has made the domestic energy boom possible) for some time now, and an Obama-appointed US prosecutor here in North Dakota has taken to filing absurd criminal charges against the oil companies operating here, something that has become an issue in the presidential campaign.

So no, President Obama doesn’t get the credit for the rise in domestic oil production.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

    Kinda puts the old kibosh on the right wing extremist meme of President Obama is killing oil production in America. 

    He’s got more oil production, has kept us safer, deported more illegals, got bin laden, killed pirates, started credit card reforms, passed health care, ended the bush/gop recession, turned the stock market around, didn’t take away any guns, this new guy is doing alright.

    • http://sayanythingblog.com Rob

      I guess i should have mentioned it, but we’re just talking about raw production numbers.  Production goes up every year in America, because things like population growth mean more consumption every year.  So in order to keep supply proportional to global demand, we have to produce more every year.

      Demand for oil has been growing, but Obama’s policies have made it harder for supply to keep up.  His policies make the market less elastic, which of course means price spikes.

      • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

        rube:

        Demand for oil has been growing

        Truth:

        UPDATE 2-US Dec oil demand down almost 5 pct from yr ago-EIA

        http://www.reuters.com/article/2012/02/29/usa-oil-demand-idUSL2E8DTA9V20120229

        US oil production, demand estimates cut for 2012 on weaker economy: EIA
        The EIA increased its estimates for domestic supply in 2011 and 2012,
        saying that production from unconventional plays in the Lower 48 will make up
        for expected decreases in Alaskan and Gulf of Mexico output.
        Production is expected to average 5.62 million b/d in 2011, up from the
        5.57 million b/d the EIA forecast in August. And production in 2012 is
        expected to average 5.68 million b/d, up from the 5.65 million b/d forecast
        in August.

        http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6448894

        The EIA said that U.S. petroleum demand fell by 4.8 percent to a
        four-week average of 18.1 million barrels per day. That’s the weakest
        four-week average since April 1997, said Tom Kloza, publisher and chief
        oil analyst at Oil Price Information Service.

        http://www.knoxnews.com/news/2012/feb/08/knox-gas-prices-rise-oil-up-after-us-crude-drop/

        Supply up, demand down…prices up…speculator to blame or did the hand get it wrong this time?

         

        • Jfisher17

          World demand, up. Nice try.

          • two_amber_lamps

            LOL….  Can’t even chop/slop quote right! 

            RBBoob… you are such a failure!

        • Guest

          It is true that oil demand is down from
          the peak years just before great recession. This should not surprise
          anyone. Less oil is consumed when factories shut down and fewer
          people are driving to work. However, as the economy recovers (which
          it hopefully will despite Obama’s policies) the long-term trend for
          oil demand is upward. If you can find an expert that disagrees with
          this point, please let me know. Obama’s policies (anti Keystone
          decisions, anti-fracking talk at the EPA, Gulf oil drilling
          moratoriums, etc) have undoubtedly had an impact on long-term
          supply. A lot of money is being spent in western North Dakota
          because oil companies (and investors, aka evil speculators) are
          convinced oil demand is on an upward trajectory. In order to keep
          prices in balance, the governments role should be to encourage supply
          with minimal taxation and regulation. Beyond that, the government
          should stay the hell out of the way.

          Anyone can search the internet and
          cherry pick individual statistics and articles that seem to support
          your point. For example, from the EIA
          February 2012 report

          • Global
          oil demand is forecast to climb to 89.9 mb/d in 2012, a gain of mb/d
          (or 0.9%) on the year.

          • Non‐OPEC
          supply fell by 0.2 mb/d to 53.2 mb/d in January.

          This
          kind of cherry picking supports my point that demand the demand outlook is up and
          supply is down. But is was cherry picked. Isn’t that annoying?

        • ellinas1

          This cut and paste of the truth is fun.
          Especially when con(servative) Mr. Port makes up his numbers and stories.
          Nutters I tell you, nutters.

          • 2hotel9

             Yes, you and boob are nutters, keep spewing lies and sh*t to prove it.

          • ellinas1

             Just like I thought. Still the hissing cockroach.

          • 2hotel9

             Just as always, lies and sh*t is all you ever have. Now, prove you have lost again, post another comment. I order you to.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            rube:

            Gas prices are going up, and the President is eager to deflect the blame.

            Poxnoise nutters in 2008: President is not to blame.
            http://www.youtube.com/watch?v=UzEnKdBAb_o&feature=player_embedded

            Nutters, the crack me up!

          • ellinas1

            Yep! The nutters have a long history of deflecting blame, and blaming the innocent and powerless.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            It’s what they do best.

          • ellinas1

            Agreed.

          • Todd

             Are you saying Obama is powerless?? I seem to remember a President who opened up drilling before leaving office resulting in oil coming down to $37.00 a barrel and gas at the pump down to $1.80.

          • ellinas1

            I said nothing of the sort.
            Are you projecting? Why would you do that?

          • Todd

             Then you agree that a President has the ability, and power to take action and influence an outcome.

          • ellinas1

            I said what I meant, and meant what I said.
            Presidents do influence outcomes when congress goes along.
            This congress is determined to make Obama fail.

          • Econwarrior

            As a Marxist, obama is a guaranteed economic failure; this Congress just isn’t willing to cover for him.

          • ellinas1

            Hello robert180.

          • Todd

            Then you’re saying that the congress that was in place during the last two years of Bush wanted him to succeed in his attempt to lower gas prices. Ok, I got it.

          • ellinas1

            You got nothing. All you did was project.

          • Todd

             “You got nothing. All you did was project.”

            Actually it’s you that has nothing. All you did was bailout, you chicken turd.

          • ellinas1

            Getting angry?
            Have some vinegar with that.

          • Todd

             “Getting angry?
            Have some vinegar with that.”
            Why would I be angry that you’ve got nothing?

          • ellinas1

            Because you love me. ;-)

          • 2hotel9

             Barri told America that he would drive up energy costs and he is. Go ahead, ec*nt, prove he never said that.

          • ellinas1

            Oh, yeah? Wow.
            How come the price didn’t stay there?

          • Econwarrior

            obama re-institiuted the drilling bans when he took office, and the price started going up.

          • ellinas1

             Which drilling bans are you refering to robert180?

          • Econwarrior

            If you are that ignorant, you don’t belong in this discussion.

          • ellinas1

            If you can’t back up your claims, you are not telling the truth.

          • Todd

             “How come the price didn’t stay there?”

            Obama took office and began his march towards $5.00 a gallon gas.

          • ellinas1

             ODS.

          • Todd

             Here’s obama’s drilling bans.

          • ellinas1

            I see your map and accept your point.
            Did the previous administration allow drilling in those areas?

          • Econwarrior

            As you have been told many times, and as you should know before trying to discuss this subject, President Bush abandoned the drilling bans in August of ’08, and within hours, the price of oil began dropping, until obama renewed the bans, whereupon the price of oil started increasing again.  Cause, effect.  Even someone of average intelligence can understand this.

          • ellinas1

            Nah! you don’t say.
            You ain’t shitting me now are you?

          • Todd

             ” I did take the time to  read the link which is highly partisan.”

            Sorry you don’t like the facts as they are. But continue killing the messenger, it won’t change what is being done by obama.
            Good night.

          • ellinas1

            I am not trying to kill the messenger.
            A lot of the messages though are highly hyped up and not worthy of serious consideration.

          • Todd

             “I see your map and accept your point.
            Did the previous administration allow drilling in those areas?”

            Areas available for drilling after the moratorium was lifted Oct.2008 until March 31, 2010

          • ellinas1

            And from Oct.2008 until March 31, 2010, who drilled in those areas?

          • Todd

             I’m sure it wasn’t the butcher or the candle stick maker. Does BP ring at least one bell?
            You should do a little home work on your own.

          • ellinas1

            BP? That’s all?
            Damn! I thought everybody and their mother would rush to drill and or secure future drilling rights.
            The federal lands open for drilling and no takers.
            Tsk! Tsk!

          • Todd

             “BP? That’s all?
            Damn! I thought everybody and their mother would rush to drill and or secure future drilling rights.
            The federal lands open for drilling and no takers.
            Tsk! Tsk!

            You’re kidding, right? Or are you just ignorant to what obama is doing?

            http://naturalresources.house.gov/Issues/Issue/?IssueID=15410

          • ellinas1

            I am not kidding. I did take the time to  read the link which is highly partisan. Not impressed.
            If anyone is allowed to drill on “our” lands, all oil derivedshouldstay in the USA and not exported to other countries.

          • Todd

             ” “A lot of the messages though are highly hyped up”

            Hyped or not, it doesn’t change the facts of the steps that obama has taken to prevent drilling.

      • borborygmi

        Gene Granger  guru of commodities say increase in oil prices is because of devalued dollar not supply and demand.  As the value of the dollar goes up oil comes down.

        • sbark

          …….so then really, the Obama Regime is the big speculator in the room with Bernakes printing press on full roll……..

          If the stock market drops just a little………I see Bernake jumping into QE3 at the drop of a hat…..

          then watch food, fuel, energy, pm’s prices move……

          The biggest speculator is the ObamaRegime….printing money on pure speculation it might turn things around.

        • Econwarrior

          The problem with that meme is that the dollar was getting devalued during the last part of 2008, when the price of oil was dropping like a stone, due to the elimination of the drilling bans.  Whoops!  When obama renewed the drilling bans, the price started increasing.  Whoops!  Those pesky facts…

    • Jfisher17

      “Ended the Bush/Gop recession” Yes, all those folks out of work may disagree. “Passed health care.” Psst- I won’t tell anybody you actually think that’s a good thing. “has kept us safer..” What, by using Bush’s policies? Yes, I thought so. “Didn’t take away any guns.” Wow- telling us what he didn’t do? Desperate. He didn’t take away any guns cause maybe… it’s un-constitutional? Great guy! And here I thought the Seals got bin laden and the pirates. Silly me.  “He’s got more oil production..” Does he really? And if that’s a good thing, than why not open Alaska and the coasts to oil exploration? Or are the libtards being hypocrites and trying to have it both ways? Nah…

    • borborygmi

      And it just pisses off the conservatives.  That is why they do the happy dance when companies layoff people.  I guess Yahoo is going to restructure and people are going to be laid off.  NO doubt Obamas fault.   I think Rob will most likely dance the Happy Samba.

  • Bat One

    Obviously, Barack Obama is a shameless liar.  But then he’s a liberal.  What else would you expect?

    • ellinas1

      I would never ever expect him to be like a shameless con(servative) liar claiming to have family values or to be against gays.

      • Econwarrior

        The liberal liar desperately tries to change the subject when smacked with the truth.  Typical.

        • ellinas1

          Robert180. We went through this before. The only thing you smack is my …… with your lips.

          • Econwarrior

            I have refused your homosexual advances many times, and will always do so, when you get that desperate after being smacked with the truth.  The only way you can avoid that is to stop lying.

          • ellinas1

             I love you too, uncle robert.

          • Econwarrior

            You continue to pile one lie on top of another, the hallmark of the compulsive liar.

          • ellinas1

            I do not hate you, you old fart.
            I just think you are a funny old dude who got his facts mixed.

          • Neiman

            Very Christian reply.

          • ellinas1

            Something for you to ponder on……

  • ellinas1

    You sir are a desperate and conniving con.
    Why are you using as a measure federal lands only?

    • borborygmi

      It is called fun with numbers.  You can make statistics say anything by adjusting the parameters.

      • ellinas1

        That’s what I thought.

    • 2hotel9

       Because the President is driving down oil production on Federal lands, stupid c*nt. Production is up on PRIVATE land because Barri can’t stop it.

      • ellinas1

        Not supported by the evidence on hand, hissing cockroach.

        • 2hotel9

           Lies and sh*t, that is all you ever have. Now, prove you are lying, yet again, post another comment. I order you to.

    • Econwarrior

      Because federal lands are under the control of the Kenyan Marxist.  Production is increasing due to private production, while federal production is down,  as obama wants.

      • ellinas1

        Oh, yeah! I almost forgot.
        On top of everything else you are a birther.

  • sbark

    In the oil industry, it is generally considered to take 10 yrs to bring new oil fields into full production……ie Bakken

    The boost in oil production is ridiculous to even think Obama Should get credit……..with only 3 yrs in office

    …….but I suppose a Messiah can just make it so………but then again so did Jim Jones and his koolaid

  • http://flamemeister.com flamemeister

     Reminds me of the time Uri Geller, to exercise his presumed powers of psychic healing, made a highly-publicized flight over the London area during which he would perform a general healing ceremony.  He asked that any instances of extraordinary healing be reported.  One was—a mother reported that her child, who was 4 years old and had not yet spoken a word, suddenly began to speak.  This incident was widely and sensationally reported in the British tabloid press.  It was a great publicity scam.  Of course, in a population of several millions something like this was bound to be reported whether true or false.  This wasn’t, of course, due to anything he did.  (I apologize for pointing this out, but this comment will be read by liberals who need an explanation.)

    • borborygmi

      How do you know?   Uri can bend spoons, Uri has a great mind.  

      • http://flamemeister.com flamemeister

        OK, you win.

  • HostileLogic

    Barack Obama is a malevolent Marxist cockroach, a serial liar and an illegal alien. 

    • ellinas1

       Nah! You don’t say.
      You ain’t shitting me now, are you?

  • SigFan

    “Is Obama Responsible For Increased Domestic Oil Production?”

    No. Next question.

    • 2hotel9

       Are you following me!?!?!?!

      • SigFan

         GMTA

        Funny how that happens from time to time!

  • 2hotel9

     “Is Obama Responsible For Increased Domestic Oil Production?”  No. Next stupid question, please.

  • Bat One

    If he thought it would garner him the votes of the “blue hairs” who tend to their rose gardens, Obama would claim credit for the mild winter and early spring.

  • A Citizen

    Obama’s, and the lefts argument against drilling is that it takes 5-10 years to get the oil (gas) to the pump. That would mean that what’s hitting the pumps now started back during Bush and maybe Clinton. Obama is a liar who’s trying to take credit for something he had nothing to do with

  • http://www.bikebubba.blogspot.com bikebubba

    It would be really refreshing if any President,  Republican or Democrat, would simply admit that when petroleum is going for $100 a barrel, domestic producers are going to work harder to get it out of the ground than they would if it were coming in at $30/barrel. 

    And shame on Obama for abusing this basic principle of economics in a campaign commercial.  Of course, he’s the same guy who thinks that insurance companies can provide a service for nothing, so I guess that tells you how good his economics instruction was.

  • DooDooEcon

    Progressives just can’t allow the truth to get out. 

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