Perspectives; Thoughts; Comments; Opinions; Discussions

Posts tagged ‘fracking’

The CNN Interview Reminded People of What Has Always Been True About Kamala


By: Eddie Scarry | August 30, 2024

Read more at https://thefederalist.com/2024/08/30/the-cnn-interview-reminded-people-of-what-has-always-been-true-about-kamala/

Kamala Harris

Author Eddie Scarry profile

Eddie Scarry

Visit on Twitter@eScarry

More Articles

News coverage following Thursday night’s CNN interview with Vice President Kamala Harris predictably recast the episode in ways that were unfamiliar to anyone who watched live and who has even just loosely followed her career in national politics.

New York Times reporter Reid Epstein said Kamala “parried questions from Dana Bash on Thursday without causing herself political harm or providing herself a significant boost.” Aaron Blake at The Washington Post said she “didn’t really stumble or seem to do anything that might hamper her momentum.” Politico’s popular morning “Playbook” newsletter gleaned that the interview “suggested to us how tough Donald Trump’s job is now …”

These are supposed to be the big “takeaways” from the event, but any fair-minded person who watched knows that the reality wasn’t so forgiving. What the taped interview with Nancy Pelosi’s favorite journalist did was reinforce the Kamala we all knew before we were told one day two months ago that she’s a beloved sex symbol — the Kamala who’s in over her head, has no vision for the country, and has no interest in governance.

There’s a reason that Democrats and the media have forced an amorphous, ever-shifting concept of “joy” to be the animating force of Kamala’s campaign. This interview, containing not a single unexpected question, illustrates perfectly why they’ve done so. (Here’s a link to the full CNN transcript for reference.)

Kamala can’t withstand scrutiny.

She implied that she’s never been in favor of banning fracking but when confronted with her position when she ran for president in 2020, she skated past the question to only say she has “made very clear” she’s not in favor of it. In that exchange alone, she used the word “clear” five times. Much like the constant hammering with messages about how average and dad-like Tim Walz is unpersuasive, if you have to repeatedly state how “clear” you’ve been, nobody is convinced.

Kamala can’t articulate an argument for herself.

Confronted with her on-record position to decriminalize unauthorized crossings at the southern border, she started talking about climate policy. “My values have not changed,” she said. “You mentioned the Green New Deal. I have always believed, and I have worked on it, that the climate crisis is real, that it is an urgent matter to which we should apply metrics that include holding ourselves to deadlines around time. We did that with the Inflation Reduction Act.” (Yes, Kamala admitted the “inflation reduction” bill was actually about funding the electric cars scam.)

Kamala can’t even fake a fundamental grasp of critical foreign policy issues.

The war in Israel is just one of two violent global conflicts to break out under the Kamala-Biden administration, and in the almost year since it started, the closest she could come to explaining her depth of understanding about it or how to bring it to an end was to repeat in frustration, “We have to get a deal done.”

“We have got to get a deal done.”

“We — we were in Doha. We have to get a deal done.”

“This war must end.”

“And we must get a deal that is about getting the hostages out.”

“Let’s get the ceasefire done.”

“We have to get a deal done.”

“Dana, we have to get a deal done.”

“A deal is not only the right thing to do to end this war but will unlock so much of what must happen next.”

Look at all that joy! Damn, that’s a lot of joy!

Kamala looked tired. Admittedly, she’s vice president and simultaneously running for president on a platform that ignores she’s currently in the White House. Oh, and joy. I’d be exhausted, too.

We’re finally getting to see again the Kamala we knew all along.


Eddie Scarry is the D.C. columnist at The Federalist and author of “Liberal Misery: How the Hateful Left Sucks Joy Out of Everything and Everyone.”

Tracking Kamala Harris’ Biggest And Baddest Lies: 20 And Counting


By: The Federalist Staff | August 13, 2024

Read more at https://thefederalist.com/2024/08/13/tracking-kamala-harris-biggest-and-baddest-lies/

VP Kamala Harris

Author The Federalist Staff profile

The Federalist Staff

More Articles

Updated August 13, 2024.

Democrats traded one liar for another when they replaced their presumptive 2024 presidential nominee President Joe Biden with Vice President Kamala Harris.

Harris may not quite live up to her counterpart’s long history of selling whoppers as truth, but there’s no doubt that she has fibbed far too often without consequence or accountability.

Democrats’ new darling likely wants voters to be “unburdened by what has been.” But not even her jumbled babble or unintelligible chattering can keep Harris’ radical track record and history of deception under wraps. Here’s a look back at some of Harris’ biggest lies to date.

20. Harris Claims It’s Trump, Not Her, Who Will Weaponize DOJ

One of Harris’ most repeated talking points since she’s become a presidential nominee states that if Trump wins the White House in November, he will use the Department of Justice to target his political opponents.

“[Trump] will weaponize the Department of Justice against his political enemies,” she said behind the vice presidential podium. “He will round up peaceful protestors and throw them out of our country. And even, quote, ‘terminate’ the United States Constitution.”

It’s the Biden-Harris administration, not Trump, however, that has a track record of weaponizing the federal government against its ideological enemies and destroying the Constitution.

Under Harris’ rule, faith-filled pro-lifersparentsopponents to child transingelection integrity supporters, and Trump have become the targets of unfair prosecutions; Republican-nominated Supreme Court justices were refused protection; and Republican states that want to protect born and unborn children were threatened with punishment.

19. Harris Lies About Trump, GOP Abortion Platform

In the leadup to the 2024 presidential election, Harris ramped up accusations that Trump and Republicans will “ban abortion nationwide.”

Trump’s 2024 abortion platform centers on leaving decisions about ending life in the womb “up to the states.” In fact, the GOP nominee stated he would not sign federal legislation curbing abortion.

Congressional Republicans also have repeatedly failed to make progress on passing a popular 15-week abortion limit, making them much less likely to embrace a national halt on abortions.

18. Harris’ Fracking Flip-Flop

Shortly after the vice president became the Democrats’ 2024 presidential nominee, Harris’ campaign went after former President Donald Trump for exposing her radical belief that the U.S. should ban fracking.

“Trump’s false claims about fracking bans are an obvious attempt to distract from his own plans to enrich oil and gas executives at the expense of the middle class,” Harris’ campaign said in a statement in July 2024.

“She would not ban fracking,” the campaign reaffirmed to Politico.

Harris, however, is on the record in 2019 during her first failed presidential run claiming that she is “in favor of banning fracking.”

17. Harris’ Team Falsely Claims J.D. Vance Endorsed Project 2025

Harris’ rapid response team used a 2021 “Federalist Radio Hour” clip to assert in July 2024 that Trump’s vice presidential nominee J.D. Vance supports Project 2025.

The podcast, however, was published in 2021, nearly a year before The Heritage Foundation launched the project in 2022.

16. Harris Denies Biden’s Obvious Decline

Harris spent months ahead of Biden’s disastrous debate performance and resignation from the 2024 presidential race reassuring Americans that her counterpart’s age did not affect his ability to govern.

“I’ll tell you, the reality of it is, and I’ve spent a lot of time with Biden, be it in the Oval Office, in the Situation Room and other places — he is extraordinarily smart. He has the ability to see around the corner in terms of what might be the challenges we face as a nation or globally,” Harris told ABC News in January.

Yet, Democrats’ coup-like candidate-replacement operation hinged on Biden’s obvious decline. One poll found that, of the 70 percent of voters who believe there was a cover-up of Biden’s decline, 92 percent believe Harris was complicit in the cover-up.

15. Harris Accuses Trump Of Trying To Cut Medicare, Social Security

Harris incorrectly claimed at a July 2024 American Federation of Teachers conference that “Trump and his allies want to cut Medicare and Social Security.”

Even partisan Politifact was forced to admit that Trump’s 2024 platform explicitly states that “under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security.”

14. Harris Repeats ‘Book Ban’ Falsehoods

During her American Federation of Teachers address, Harris accused Republicans who want to keep sexually explicit content off of school and library shelves of attacking “the freedom to learn and acknowledge our nation’s true and full history, including book bans.”

“Book bans in this year of our Lord 2024,” she remarked.

In the context of taxpayer-funded classrooms, there is no such thing as “banned books.” The inappropriate stories Democrats claim are prohibited from circulation are still widely available to readers via publishers and booksellers.

13. Harris Allies Lie About Her Border Czar Appointment

After years of acknowledging and even praising Biden for naming Harris “border czar,” Harris’ allies in the White House and corporate media claimed in statements and fake fact-checks that she was never charged with overseeing the logistics of the record-breaking invasion.

Biden’s statements and the propaganda press’s fawning coverage of Harris, even as she did little to fulfill the role, however, prove that she was the “border czar” in their eyes until it wasn’t politically convenient for them anymore.

12. Harris Wrongfully Asserts NCAA Women’s Brackets Were Banned Until 2022

During the 2024 NCAA March Madness basketball tournament, Harris incorrectly claimed that female teams were excluded from brackets until 2022.

“OK, a bit of a history lesson — do you know that women were not, the women’s teams were not allowed to have brackets until 2022?” Harris told Spectrum News in April 2024. “Think about that, and … talk about progress, ya know, better late than never, but progress.”

While it’s true that the NCAA women’s tournament did not take on the March Madness branding until 2022, brackets for female competitors date back to the “early 1980s.”

Harris’ and Second Gentleman Doug Emhoff’s social media accounts also directly contradict the VP’s claims by showing that the pair filled out women’s basketball brackets in 2021.

11. Harris Repeatedly Lies About Georgia Voting Law

During a March 2024 speech lamenting Republicans’ election integrity efforts, Harris inaccurately claimed that Georgia’s legislature passed a law banning water in poll lines.

“In Georgia, extremists passed a law to even make it illegal to give people food and water for standing in line to exercise their civic duty and right to vote,” Harris claimed.

Georgia’s election security law specifically bans political interest groups from using water to sway voters in line. Election workers are exempt from this restriction.

10. Harris Falsely Blames Republicans For Wisconsin Abortion Limit

“In this beautiful state of Wisconsin, after Roe was dismantled, extremists evoked a law from 1849 to stop abortion in this state,” Harris said at a Milwaukee rally in January 2024.

Even the fake fact-checkers at Politifact admitted that “Republican lawmakers didn’t have to lift a finger to put the 1849 provisions back into effect.” Instead, the overturn of Roe v. Wade sent the preexisting law through the court appeals system, in which the latest ruling claimed the 1849 law does not ban abortion.

9. Harris Fibs About Florida’s History Curriculum

“They want to replace history with lies,” Harris said at the Ritz Theatre and Museum in Jacksonville in July 2023. “Middle school students in Florida to be told that enslaved people benefited from slavery.” Harris had peddled the same lie the previous day in Indianapolis.

The curriculum standards, however, acknowledge that some former slaves used skills they acquired during their enslavement in the free world.

8. Worst VP In History Claims ‘Great’ Approval Ratings

Harris told ABC News’ Linsey Davis in July 2023 that some polls “say I have great approval ratings.”

The Democrat not only received the worst vice presidential rating in the history of modern polling, but her job approval at the time of the interview sat at 40.7 percent. Harris’ abysmal ratings have only continued, often ranking worse than Biden’s, and do not suggest that she’s up to the task of taking over the presidency.

7. Harris Lies About Bailing Out Violent Criminals

Harris told WCCO 4 News in October 2022 that claims she helped bail out the 2020 rioters who led the months-long, $2 billion siege of cities like Minneapolis were “misinformation.”

“People are playing political games right now. We’re 18 days away from midterms. And we have sadly not seen a lack of misinformation and disinformation, and I think this is another one of those examples,” the VP said.

Accused rapistsrepeat offenders, and rioters alike, however, benefitted when Harris encouraged her social media followers to donate to a bail fund dedicated to those arrested during the 2020 summer of rage.

6. Harris Claims Spending Sprees Won’t Raise Taxes

“As promised, we will not raise taxes on anyone making less than $400,000 a year,” Harris claimed in September 2022.

Congress’s Joint Committee on Taxation, however, found that Democrats’ misnomered Inflation Reduction Act will do “nothing to bring the economy out of stagnation and recession, but … will raise billions of dollars in taxes on Americans making less than $400,000.”

5. Harris Repeats Election Security Falsehood

When Georgia Republicans sought to pass an election integrity bill that would fortify the state’s elections, Harris lamented, “Across our nation, anti-voter laws could make it more difficult for as many as 55 million Americans to vote,” Harris claimed in a January 2022 remarks at the Atlanta University Center Consortium. “That is one out of six people in our country.”

There is no evidence that election integrity laws like the one in Georgia discriminate against legitimate voters. In fact, experts say measures like voter ID make it “easier to vote and harder to cheat” via mass ballot harvesting.

4. Harris Knowingly Spread Border Patrol Whipping Lie

Harris claimed in 2021 that she saw “horrible” footage of Border Patrol agents whipping illegal border crossers.

“Human beings should never be treated that way, and I’m deeply troubled about it,” Harris said.

A U.S. Customs and Border Protection investigation, however, later found no evidence that the horseback unit used their reins to strike migrants.

3. Harris Says ‘Almost Impossible’ For Rural Americans To Photocopy

While arguing against voter ID laws in an interview with BET News in 2021, Harris claimed that it’s “almost impossible” for rural Americans to make a photocopy.

Harris’ claim not only lacks evidence but is strongly contradicted by swaths of rural voters who found the comment insulting.

2. Harris Packages What Appears To Be A Popular MLK Story As Her Own

Harris loves to tell corporate media eager to boost her image a story about asking for “fweedom from her stroller at a civil rights march.

That supposed childhood memory, however, suspiciously resembles one Rev. Martin Luther King Jr. told Playboy in 1965.

1. Harris Claims Jussie Smollett’s Race Hoax Was A ‘Lynching’

Despite serious doubts and a lack of evidence that actor Jussie Smollett was truly attacked in 2019 by a pair of racist, MAGA-loving men who tried to hang him by a noose, Harris called the alleged incident an “attempted modern-day lynching.” 

The so-called hate crime was, in fact, later found to be staged by Smollett. Harris, however, did not retract her support or “lynching” statement even after Smollett was found guilty of felony disorderly conduct and making false police reports.

British PM Lifts Fracking Ban To Combat Energy Crisis


By JACK MCEVOY, ENERGY & ENVIRONMENT REPORTER | September 08, 2022

Read more at https://dailycaller.com/2022/09/08/uk-lifts-fracking-ban-combat-energy-crisis/

Liz Truss Presents Plan To Mitigate Surging Energy Costs
(Photo by Dan Kitwood/Getty Images)

British Prime Minister Liz Truss said Thursday that she is lifting the ban on fracking to help her country reduce exorbitant energy prices.

Truss, who was appointed as the new Conservative Prime Minister on Tuesday, announced in the House of Commons that she will enable oil and gas developers to seek permission from the government to increase domestic fuel supplies as the U.K. looks to combat its energy crisis. Truss said she hopes to get fracking operations started within the next six months and is also approving 100 new exploration licenses for oil and gas drilling in the North Sea(RELATED: British Pound Hits Lowest Level Against US Dollar In 37 Years)

“We will make sure that the U.K. is a net energy exporter by 2040,” Truss told parliament. “We are supporting this country through this winter and next, and tackling the root causes of high prices so we are never in the same position again.”

Fracking, a process that harvests oil and gas from buried shale rock, was banned in England in 2019 by the Conservative Party due to concerns about the safety of the practice, according to the 2019 Conservative Party Manifesto.

PRESTON, ENGLAND – SEPTEMBER 16: An aerial view of the Cuadrilla shale gas extraction (fracking) site at Preston New Road, near Blackpool on September 16, 2019 in Preston, England. (Photo by Christopher Furlong/Getty Images)

Truss also placed a £2,500 ($2,888) cap on skyrocketing household electricity bills for two years as part of an economic package that could cost the U.K. about £150 billion ($172 billion). Soaring utility costs have caused thousands of Britons to protest price hikes and refuse to pay their bills until they are reduced by the government, according to the protest group Don’t Pay U.K.

“We are facing a global energy crisis, and there are no cost-free options,” she stated.

Sanctions on Russian fuel supplies as well as the cut-off of natural gas via the Nord Stream 1 pipeline are causing British and European electricity prices to spike as countries look to ration fuel supplies ahead of winter. Additionally, the U.K. aims to reach net-zero emissions targets by 2050 by implementing a carbon emissions trading scheme that lowers the competitiveness of fossil fuels and accelerates investments in green energy, according to the U.K. government.

The British Department for Business, Energy and Industrial Strategy did not immediately respond to the Daily Caller News Foundation’s request for comment.

Putin’s Useful Idiots: How U.S. Climate Extremists Are Funding Russia’s Agenda


REPORTED BY: VICTORIA COATES AND JENNIFER STEFANO | MAY 19, 2022

Read more at https://thefederalist.com/2022/05/19/putins-useful-idiots-how-us-climate-extremists-are-funding-russias-agenda/

john kerry shakes hands with putin

The desolation of U.S. energy security has bolstered Vladimir Putin’s dangerous geopolitical aims.

Author Victoria Coates and Jennifer Stefano profile

VICTORIA COATES AND JENNIFER STEFANO

MORE ARTICLES

Russia’s invasion of Ukraine is illuminating an ugly truth: the anti-fracking war on America’s energy security is being waged by well-funded, radical U.S. environmental groups, as well as interests tied directly to Vladimir Putin. For years, the U.S. government has investigated Russian financial ties to environmental groups that push for ending U.S. fossil fuel production and have successfully shut down fracking sites and pipelines, to the detriment of U.S. workers and consumers. Who benefits? Putin, because the desolation of U.S. energy security has bolstered state-owned Gazprom and his dangerous geopolitical aims.

Before the war on Ukraine, the U.S. Congress began exposing connections between Russia and little-known foundations that donate to major environmental groups such as Sierra Club and National Resource Defense Council (NRDC). The Senate Committee on Environment and Public Works released a 2014 report noting a small group of rich Americans was controlling environmental groups and collaborating with questionable offshore funders to maximize support. In 2017, two congressmen called for further investigation of the connection between these funders and Russia. These suspicious donations to radical environmental groups could be part of the larger geopolitical strategy Putin used to execute greater control over Europe before his invasion of Ukraine. For instance, if the United States had ramped up natural gas production, Putin could not today be blackmailing Poland and Bulgaria by cutting off their energy supply. Had America allowed more investment in fracking and other energy production, Putin would not have strategic leverage over Europe.

Most Americans know Putin does not want to see the United States succeed. What they may not know is these anti-energy groups acting under the guise of “environmental justice” are funded by a handful of wealthy Americans who are either blindingly naïve to the role they have played in supporting Putin’s agenda or willfully complicit.

There is no more notorious example than the Heinz Endowment, led by Teresa Heinz, wife of U.S. climate envoy John Kerry. Under her watch, the endowment has deployed at least $13 million toward anti-shale activism since 2008, killing jobs and prosperity in their own Pennsylvania backyard and unnecessarily forcing America to give up market share to tyrants like Putin. The Heinz fortune funds dozens of Pennsylvania groups engaged in killing pipelines and natural gas production. One of their beneficiaries, Delaware Riverkeeper Network, is successfully fighting to keep a ban on natural gas production in the Delaware River Basin that is preventing access to vast new reserves. In fact, Pennsylvania, where the Heinz family made their fortune and is still based, is bearing the brunt of this campaign. The latest example is the Keystone State’s addition to the Regional Greenhouse Gas Initiative. Sierra Club and NRDC lobbied in favor of expanding the interstate compact to tax carbon emissions to include Pennsylvania, even though scientists at Penn State found 86 percent of carbon emissions will simply move to nearby states.

Killing pipelines, banning fracking, and implementing RGGI mean more energy will be produced in other countries with more emissions. Russian gas emits 40 percent more emissions over its lifecycle than U.S. natural gas; meanwhile, U.S. LNG is improving air quality in China. At the same time, Pennsylvanians could lose 22,000 jobs and consumers will face a 30 percent increase in their electricity bills.

We’re already seeing the unfortunate effects of these harmful policies elsewhere throughout the U.S. Under pressure from these same environmental groups, President Biden killed the Keystone XL pipeline, eliminating the projected 60,000 indirect jobs, 11,000 direct jobs, and $800 million in wages, that would have resulted from this important project.

As Putin now leverages his energy dominance as a tool of coercion and his geopolitical strategy is brutally playing out for all the world to see, Heinz and other radical environmental groups can no longer claim they are innocent arbiters of environmental justice when their actions have, intentionally or not, aided and abetted him.

Isn’t it time for these Americans to focus on policies that protect the earth, advance American energy security, and counter America’s enemies?


Victoria Coates, a distinguished fellow at the American Foreign Policy Council, served as senior policy adviser to the secretary of energy in the Trump administration. Jennifer Stefano is executive vice president of the Commonwealth Foundation and an Independent Women’s Forum visiting fellow.

Today’s TWO Politically INCORRECT Cartoons by A.F. Branco


A.F. Branco Cartoon – King Putz

Governor Walz played politics buy allowing only 250 people into a Trump rally in Minnesota.

01 King T AN 1080 Political cartoon by A.F. Branco ©2020.

A.F. Branco Cartoon – The Color of Doom

Biden says if he’s elected there will be no Red or Blue states, but we know what color they will be.

Biden Green StatesPolitical cartoon by A.F. Branco ©2020.
Donations/Tips accepted and appreciated – $1.00 –  $5.00 –  $25.00 – $50.00 – $100 –  it all helps to fund this website and keep the cartoons coming. Also Venmo @AFBranco – THANK YOU!

A.F. Branco has taken his two greatest passions, (art and politics) and translated them into the cartoons that have been popular all over the country, in various news outlets including “Fox News”, MSNBC, CBS, ABC, and “The Washington Post.” He has been recognized by such personalities as Dinesh D’Souza, James Woods, Sarah Palin, Larry Elder, Lars Larson, Rush Limbaugh, and shared by President Donald Trump.

Biden Claims He Never Opposed Fracking (He Did)


Posted by  | 

Read more at https://www.conservativereview.com/biden-claims-he-never-opposed-fracking-he-did-2648453241.html/

Energy industry: Thank fracking for Memorial Day driving on the cheap


waving flagBy John Siciliano | May 21, 2015

PumpingGas052115

The oil industry is touting shale oil and fracking for making Memorial Day driving more affordable this weekend.

“Thanks to hydraulic fracturing and horizontal drilling, the U.S. is experiencing a renaissance in domestic oil and natural gas production. The benefits for U.S. consumers — as well as manufacturers, the travel and tourism industry and frankly our entire economy — are hard to overstate,” John Felmy, chief economist with the American Petroleum Institute, said in a conference call with reporters.

Hydraulic fracturing is the process by which water and sand are injected deep underground to release oil and gas from large shale rock formations. The advent of new drilling technologies that enable oil producers to drill horizontally through the formations has made the process more affordable, leading to an energy renaissance in the country and the United States becoming a global leader in oil production.

The increased production has caused the U.S. to import less from Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries. That has led to more supply being available on the global market, deflating the price per barrel of oil, which in turn has lowered gasoline prices for consumers.

Felmy said the national average price of gasoline is about $1 per gallon less than it was at this time last year, based on data from AAA. The association also said more drivers will be on the road over the weekend in the Mid-Atlantic region compared with last year, with some states projected to experience the highest number of travelers on the road in a decade.

Oil shale production has provided “welcome relief at the pump,” he said. Without the added supply, some have suggested price per barrel could have climbed as high as $150 per barrel. Today’s prices are between $59 and $66 per barrel, compared to nearly $100 a year ago.

Felmy said the advent of shale production should keep the “new equilibrium below the 100 dollar mark.” He said the government should not take low prices “for granted.” Instead, the more affordable gasoline prices should spur policymakers to keep regulations predictable for oil producers and avoid punitive tax regimes.

“In order to maintain a robust supply of domestic oil, it is essential that the industry be allowed to affordably and predictably explore for and develop new resources,” Felmy said.

“That means companies must be able to lease acreage and obtain permits in a timely fashion. It also means the federal and state governments should avoid punitive tax regimes that would cause energy companies to look elsewhere for the best opportunities,” he said.

“With the right policies, our energy renaissance can endure for decades and help even more families afford to take a vacation on Memorial Day weekend,” he said.Gas Prices the day Obama took office

The Interior Department’s Bureau of Land Management is on track to implement new regulations for fracking that the industry is warning could increase the cost of production. Several states and industry are suing the agency over the rules that are set to go into effect next month.freedom combo 2

How low can it go? Oil, gas prices in freefall as OPEC reels from US fracking


FoxNews.com, Published November 29, 2014

URL of the Original Posting Site: http://www.foxnews.com/world/2014/11/29/opec-keeps-oil-output-steady-despite-falling-prices/

Mideast Bahrain Oil Prices-1.jpg

A row of oil pumps work in the desert oil fields of Sakhir, Bahrain. OPEC nations have agreed to keep supply steady, putting new pressure on US producers. (The Associated Press)

Drivers paying less at the pump due to free-falling oil prices can thank the U.S. energy boom for generating shale oil – and weakening OPEC’s ability to keep the cost of a gallon of gas high.

In just a matter of months, the price of a barrel of oil has dropped from more than $100 to about $70, and gas is now cheaper than it has been in years. But a recent report conducted for the American Petroleum Institute claimed oil would cost twice as much as it does now if it weren’t for America’s fracking boom, which wrings oil and natural gas out of shale miles underground.

But the next question could be whether the fracking industry can survive the low prices it brought.

“The shale boom is on a par with the dot-com boom,” Russian oil baron Leonid Fedun of OAO Lukoil told Bloomberg. “The strong players will remain, the weak ones will vanish.”

OPEC, the cartel of oil-producing nations that has historically been able to calibrate the price of oil – and ultimately gasoline – by increasing or decreasing supply, announced Thursday that it won’t fight the price skid by cutting production this time. That likely means prices will continue to fall, and the more costly production technique of fracking could become cost-prohibitive, say experts.

Drivers have benefited in recent months from the falling prices, the API study found.

“This reduction in petroleum product prices have saved U.S. consumers an estimated $63 to $248 billion in 2013 and estimated cumulative savings of between $165 and $624 billion from 2008 to 2013,” stated the report.

OPEC decision to maintain a production target of 30 million barrels a day was seen as a reflection of its members view that the short term pain was necessary to pressure rival producers in the U.S., who need moderate oil prices to break even. Saudi Arabia, the leader of OPEC, appears to be hoping to drive prices below the level at which shale oil production is economical. Experts say shale oil production turns too costly at the $60 a barrel level.

But other OPEC countries may not be able to withstand the steady production and the falling prices it brings. OPEC members like Venezuela and Nigeria need levels close to $100 or above to fund national budgets. Saudi rival Iran is suffering, too, with the price drop adding to huge revenue losses due to sanctions on its crude sales imposed over its nuclear program.

And Russia’s economy is in trouble, making falling oil revenues a problem there, as well.

“I think you’re going to see additional tension between the OPEC ranks,” said Jamie Webster, senior director of crude oil markets at IHS consultants.

In the U.S., gasoline prices are averaging $2.82 per gallon, the lowest price this time of year since 2009, according to the U.S. Energy Information Administration, which says the average U.S. retail regular-grade gasoline price has fallen 88 cents/gal since the start of July.

But in the U.S., consumers’ joy at pump prices falling toward $2 a gallon will be tempered by fears the burgeoning economy in places like the Dakotas, Texas and Oklahoma could be hurt by the lower cost. The industry is credited with creating nearly 2 million jobs, a number projected to double by 2035.

“If prices don’t recover soon this could be the beginning of the end of the Great American oil fracking boom,” Forbes’ Christopher Helman recently wrote. BIgger energy companies with money of their own to invest might be able to ride out the dip, but smaller, highly-leveraged oil and gas companies will have problems, he said.

By WhatDidYouSay.org

By WhatDidYouSay.org

Very Important Video of the Day.


After viewing this you will not be surprised with what you hear. It will confirm all you have ever thought might be the case with Hollywood and Islam.

Hollywood in bed withIslam

https://www.youtube.com/watch?feature=player_embedded&v=KOX5ehfFF7I

Wake up AmericaVOTE 02

 

 

Tag Cloud