Oil Boom: Trump Delivers Devastating Blow to OPEC
President Donald Trump’s Make America Great Again agenda is based upon placing the interests of “America first,” and a big part of that is making sure America is not simply energy independent, but dominant in the global energy market.
As such, the Department of Interior just announced a draft proposal plan that would unleash American energy production by opening up vast areas of our nation’s outer continental shelf to consideration for off-shore oil exploration and drilling.
Current policy put in place by the prior administration has nearly 94 percent of America’s OCS labeled as off-limits to exploration, but a new 5-year oil and gas leasing program would essentially reverse that number and potentially open up virtually all of America’s offshore resources for exploration and extraction, in a responsible manner.
“Responsibly developing our energy resources on the Outer Continental Shelf in a safe and well-regulated way is important to our economy and energy security, and it provides billions of dollars to fund the conservation of our coastlines, public lands and parks,” stated Interior Secretary Ryan Zinke.
“Today’s announcement lays out the options that are on the table and starts a lengthy and robust public comment period,” he continued. “Just like with mining, not all areas are appropriate for offshore drilling, and we will take that into consideration in the coming weeks.”
“The important thing is we strike the right balance to protect our coasts and people while still powering America and achieving American Energy Dominance,” Zinke added.
The proposed program would include 47 potential new leases in 25 different areas, including 19 new leases off the coast of Alaska, 7 off the Pacific coast, 12 in the Gulf of Mexico and 9 along the Atlantic coast.
The goal of the program is to move America beyond simply aspiring to become energy independent and place the country on track to be highly competitive and dominant among other oil and gas producers around the globe.
The proposal, which is still in the public comment phase and has yet to be finalized, would be a significant shift in policy from that of former President Barack Obama’s administration, which sought to protect resources rather than exploit them.
“This is a clear difference between energy weakness and energy dominance,” Zinke stated, according to The Washington Post.
Of course, the reliably anti-Trump WaPo made sure to note the “controversy” surrounding the proposal and highlighted the opposition the plan is receiving from various governors, lawmakers and special interest groups, as well as the increased potential for environmental disasters.
Indeed, both Democrat and Republican governors and lawmakers in East Coast states from Florida to New Jersey have all said “not in my back yard” when it comes to new leases for off-shore drilling, citing potential economic damage to their beach tourism industry and even threatening legal action to prevent the new leases.
But the time to strike at energy dominance likely couldn’t be better, as the Financial Times noted that crude oil prices are once again on the rise for the first time since 2015.
The supply of oil produced globally has shrunk as Russia and the OPEC nations have reduced their production in an effort to push prices back up.
However, U.S. shale oil production is set to double this year over last, and with the accelerating U.S. economy pulling along the global GDP to nearly 3.6 percent growth, demand for oil is growing at a rapid clip.
When increased shale oil production is combined with new offshore oil production, the U.S. will be flush with energy resources in such a way that it won’t matter as much what the OPEC nations do with their oil production as the U.S. will be able to meet its own needs and set a price for everybody else.
Please share this story on Facebook and Twitter to let everyone know that President Trump’s Interior Department is planning to open up the vast majority of America’s off-shore continental shelf for oil and gas exploration.
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