Obama yesterday began a four-state tour to promote his energy policies as Republicans blame him for surging gasoline prices. After stops in Nevada and New Mexico yesterday, Obama plans an appearance at Cushing today to announce that the administration is designating the southern Keystone section an infrastructure priority, according to a statement from the White House. That will make the project eligible for accelerated review of permit applications, according to the statement.
TransCanada’s president of energy and oil pipelines, Alex Pourbaix, said in an interview March 6 that construction on the Cushing phase of Keystone could begin as soon as June. The company doesn’t expect the new review process to change that schedule, Cunha said yesterday.
Is it any wonder that our nation has no cohesive energy policy in place when we hear the president state in his "energy" speech that oil is at $1.25 per barrel? You can't make this stuff up. This is what he said before an audience in Colorado, a swing state in this re-election year.
We have subsidized oil companies for a century. We want to encourage production of oil and gas, and make sure that wherever we’ve got American resources, we are tapping into them. But they don’t need an additional incentive when gas is $3.75 a gallon, when oil is $1.20 a barrel, $1.25 a barrel. They don’t need additional incentives. They are doing fine.
How sad that the president doesn't understand the simple economics of how an oil and gas company makes a profit. He sounds as though he thinks the price at the pump and the amount of profit from the price of a barrel of crude oil is the equation. This is what happens when a candidate with absolutely zero business experience in the real world is elected to the highest office in the land. It is a disaster for our economy and certainly for our domestic energy production when ideology overrules sound, common sense policy.