President Obama is politically committed to his vision of a so-called “green economy” where alternative energy sources replace conventional oil-gas-coal. His problem is that after three decades of government attempts to distort market forces with restrictions on oil production and subsidies handed out to fund alternative fuel schemes, those alternatives are still not reliable or cost effective.
The recent spike in the price of gasoline reignited voter demand for more oil drilling and production. Obama doesn’t want more production because greater oil supply would drive down prices which would, in turn, make his beloved “green alternatives” even less competitive. So, even as he reminds us that we’re too dependent on oil imports he tries to plant the impression in the minds of uninformed voters that oil production is already “high,” that lack of supply is not the reason for high prices.
On May 6 Obama made a campaign speech at Allison Transmissions in Indianapolis, Indiana. This excerpt from his speech was copied directly from an article on the White House web site about Jobs and energy:
I want everybody to remember that if people ask — because sometimes I get letters from constituencies saying, why aren’t we just drilling more here? We’re actually producing more oil here than ever.
American oil production has dropped 45% since 1985.
Not only was the President – to put it politely – exaggerating when he said “more oil than ever,” the EIA predicts a decline in oil production this year and next year due to the restrictions imposed by the Obama Administration.
It should be obvious, even to Obama/Democrat partisans, that if the government had not blocked them over the past three decades, and oil companies were permitted to produce as much as they were willing and able to produce, there would be much larger domestic supply of oil and gasoline at the pump would be cheaper.