7 things I’d do to prevent an oil crash if my address were 1600 Pennsylvania Ave

Well, you’ve seen the president taking all the credit for something that happened in spite of his policies. We just recently reported how Obama is working to block any access to the Alaska National Wildlife Reserve (ANWR) for oil exploration by declaring it a wilderness.

Of course we all know very well the exploits of the EPA to usurp more private lands under various purported guises of protecting the environment. And what has to be of great concern to any American who comprehends our fragile and anemic economic recovery — 2.5 percent annual GDP growth can’t be considered the new normal — is that the minuscule economic growth we have seen is based on the boom in the oil and natural gas industry. So what if that comes crashing down?

As CBS News Money Watch says, ” A new report by the global information and analytics firm IHS (IHS) suggests the historic gains in U.S. oil production may end abruptly by the middle of this year.”

IHS bases its report on a study of 39,000 oil wells. It concludes that if prices for benchmark West Texas Intermediate (WTI) crude oil remain below $60 per barrel, month-to-month U.S. oil production could come to a halt in several months’ time. As of Tuesday, WTI was hovering well off its recent lows, at around $53 per barrel. Global oil prices have lost about half their value since last June, thanks in part to production of shale oil and tar sands from fields in the U.S. and Canada. And while that’s been great news for consumers, especially when it comes to gasoline prices, it’s bitten hard into the profits and operating budgets of U.S. oil producers and other companies that rely on oil production.”

So what does this truly mean? Well if you’ve been out to the Permian Basin area of West Texas you’ll notice the second and third order economic benefits of oil production in Midland, Texas and Carlsbad, New Mexico. If you travel to Cushing, Oklahoma you’ll also see the economic growth and increase in the quality of life. But if oil production and exploration companies are forced to shut down operations, you’ll see a spike in unemployment.

Consider the tiered effects of the oil boon crash. Instead of pressing on to produce, consume, and export oil and natural gas energy resources, for some reason we are responding the way “somebody” wanted. Saudi Arabia can afford the price per barrel of oil to go as low as $25 because their production costs are so low.

So maybe the Saudis are letting prices tumble as a way to punish competitors — Iran comes to mind first. But it’s also adversely affecting Russia, Nigeria, Venezuela, and of course, America.

Now, how many of you out there remember the Saudi oil crisis during the Jimmy Carter administration and the odd/even day rationing? We won’t get to that point, but we could see our tenuous economic gains squashed.

“Speaking during a conference call BP CEO Bob Dudley said the current situation “reminds me a little bit of (the oil price collapse in) 1986 in terms of the potential for this to be an extended downturn.” I think any time the price of oil drops 60 percent it’s not a correction,” he added, “it’s something different.”

“U.S. oil production has been the main engine of global supply growth in recent years,” Jim Burkhard, an IHS vice president, said in a statement. “And momentum from strong growth in the second half of 2014 means the impact of lower prices will not immediately drive production lower. But the reality of lower oil prices and less spending on new wells will affect production as 2015 progresses.”

So if I were sitting at 1600 Pennsylvania Avenue, here’s what I’d do.

1. I’d suggest we drill, open up more lands and areas, complete the northern portion of the Keystone XL Pipeline, and build more refineries.

2. Begin negotiations with partnering nations to supply them with oil, natural gas, and coal energy resources.

3. Make sure we have at minimum a 20 percent overage of our own strategic energy reserves.

4. Figure out the appropriate level of oil production to maintain average U.S. gasoline prices between $1.80 and $2.00 per gallon.

5. Assess how and where we could build more nuclear power plants and would cut back on the Department of Energy in order to fund the building of those plants.

6. Encourage a national movement to make every method of mass transit in America run on natural gas.

7. I wouldn’t pay attention to the OPEC nations and what they’re attempting to do by manipulating the market. It would in effect be an Energy War, part of our energy security which is the linchpin between our economic and national security.

Unfortunately I don’t think the current presidential administration has a strategic plan — heck, they’re captives to Tom Steyer and the rest of the radical environmental lobby. If we do indeed face a potential oil crash in mid-2015, it will be interesting to see if President Obama takes responsibility, or just blames someone else.

Something tells me it will be the latter.

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35 Comments on "7 things I’d do to prevent an oil crash if my address were 1600 Pennsylvania Ave"

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Terri
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I do not agree with the nuclear power plant operations! We NEED safer energy sources than that.

Russell Neefe
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Terri . . . Every energy source has it’s draw backs and unwanted emissions and wastes. Solar produces localized heat that kills animals that fly over or wander around the solar farms. Wind energy kills migratory and endangered birds but the thousands a year. Jane Fonda made some extreme claims against Nuclear Power in the ‘China Syndrome’ that never came to be a fact in real life. Nuclear Reactors overseas operate with different and less controls than in the US. Oil, Gas, and Coal produce CO2 when burned, but all animals on the planet exhale a great deal of CO2… Read more »
500+NUKreactors????
Guest

Wow u are truly a brainwashed moron. Do u normally get feet of snow in ok & tx in march? Have you looked at the atmospheric compositions of the last 600,000yrs when compared with today, have you done any research at all except tv and social media. People like you is why I think there should be an IQ requirement to vote.

Russell Neefe
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500+NUKreactors . . . I can not look at the last 600,000 yrs. of atmospheric compositions and neither can you. Records were not kept that far back. Geologist can tell us of Major Events I the past such as Ice Ages, Droughts, Floods, Volcanic Eruptions, and other majors events as they leave layers in sedimentations. Even to measure CO2 levels with Ice Cores is not that accurate in as much when you pull the core to the surface you also release trapped gasses in that core, much like when you open a soda pop and much of the CO2 dissipates… Read more »
500+NUKreactors????
Guest

The world is ending and curruption is y nobody knows.

500+NUKreactors????
Guest

Watch Arctic Methane Emergency: economy vs ecology, the the arctic methane monsters rapid rise. And Dr. Shakobas complete study is posted online, also you can go to arctic news. Thank you for asking by the way. If nothing else watch the 1st one it’s only 30 min. it doesn’t have the ice core data chart, but the second one does, and it’s 400,000yrs, on that 1

Cody Stark
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Russell your thoughts are much in line with my own. I don’t believe the whole “the science is settled, only cro-magnon morons don’t believe in man made climate change!” nonsense… The Earth has gone through many Ice Ages long before carbon emissions. I’m not saying the greenhouse effect is bunk, but I am saying that the global warming alarmists have making an incredible amount of money perpetuating the hysteria that the planet is totally doomed if we don’t all go back to the stone age tomorrow. Think about it – a meteorologist uses some of the most sophisticated technology on… Read more »
500+NUKreactors????
Guest

Ok, how about something this simple… jet stream b4 —-> jet stream now ‘-.’-.> this has changed our entire weather system and as much as you try to deny it you cannot change factual reality. Please ppl educate. Yourself. As most of America is being.brainwashed more&more by the day from Oligarchy corporate/government. Nobody has independent thought.
SOAD for congress; life/profit

Gregory Iskat
Guest

That’s all ridiculous Allen, Next thing you’ll be proposing we treat ISIS like Terrorists

Cincinnatus
Guest

Green is the new Red. We will NEVER be able to solve our energy conundrum as long as the FAKE nonprofit envirommunist groups are permitted to file lawsuits against our communist-infiltrated government entities, agree on racketeer settlements, and collect legal fees. That must be stopped.

MotherBatherick
Guest

Economic growth and stability means freedom for people and independence for a nation. Col West’s seven-point plan clearly outlines this for us.

Uncle Ruckus
Guest

Mr west plan only keep the us, dependent on OIL…the man is too stupid to look to the future

Republic
Guest

This is a nice plan, a departure from incompetently trying to ruin workers’ jobs and our self-sustaining energy resources, that the current administration involves itself in.

However, the Republican Party has the Dream Candidate if invited in the 2016 program.

Ronald Natale
Guest

Please stop running garbage ads on your website. They make it impossible to read your stories on a Kindle. They’re also insulting.

Amy Grant Bayliss
Guest

Believe me I know how irritating the ads can be but the greater good here is that it provides Mr. West with much needed funds to campaign for president. Unfortunately, in this day and age the most qualified candidates will never get their name and policies in front of the voters due to lack of funds. I will overlook the ads as long as that means Mr. West can run a successful campaign. Just another POV.

Uncle Ruckus
Guest

Seriously…are u that STUPID to believe that Mr West is using the funds generated from this site to pay for a mythical presidential campaign?? Please tell me you are not that STUPID!!!

Andy Martin
Guest

Wipe the Allen off your chin.

Uncle Ruckus
Guest

And yet another Homosexual reference

Andy Martin
Guest

For the homosexual.

Rafael X
Guest

The only way Allen West can find himself in the Oval Office is through Photoshop. Funny he would mention BP’s CEO because I remember when their rig exploded in the Gulf of Mexico. Or when a train carrying crude from the tar sands of western Canada went off the rails in Québec and burn half the small town of Lac Mégantic. Fire did not care if it burned private or public property.

Andy Martin
Guest

Ape Obama is never at work.He should try to join the PGA.

Uncle Ruckus
Guest

You are right about that…the only way this man sees the OVAL OFFICE is as a VISTIOR!!

Andy Martin
Guest

Keep sukkin Ruffy off.

Uncle Ruckus
Guest

Another Homosexual reference

Andy Martin
Guest

Your mammy.

sandrapelletiergray
Guest
Thank God you aren’t President – not a word about the future of energy oh except nuclear – we can’t run our world on these old sources – drill baby drill is a wish for an old model to stay alive forever – it is not going to if we don’t turn our focus on sustainable energy while we have these resources to use we will be behind the world in the future of energy and we will have destroyed the lands that we need for food and water and a life worth living – thank you for helping me… Read more »
Uncle Ruckus
Guest

I totally agree….not one world about green energy…..the man is bought and paid for by BIG OIL!!

Andy Martin
Guest

Like the way your great ape Obama bought Solyndra?

TacticalYoda
Guest

Your last name is hyphenated, isn’t it? Just a wild guess

Jimothy Jones
Guest

Why would we elect someone who cant even figure out how to sit at a desk properly for a photo op. Do they realize the desk is turned around backwards?

Uncle Ruckus
Guest

MUHAHAHAHAHA.,……too funny!!

Uncle Ruckus
Guest

I don’t think Allen knows how IDIOT he looks!!!

Uncle Ruckus
Guest
A 257,000 January increase in employment capped the biggest three-month advance in 17 years and delivered the strongest wage gain since 2008, figures from the Labor Department showed Friday in Washington. The unemployment rate rose to 5.7 percent from 5.6 percent as the prospect of finding work lured hundreds of thousands into the labor force. “These are pretty amazing numbers,” said Nariman Behravesh, chief economist at IHS Inc. in Lexington, Massachusetts, and the top forecaster of payrolls over the last two years, according to data compiled by Bloomberg. “The January number is strong, but then you’ve got sizzling November and… Read more »
Uncle Ruckus
Guest

Uh allen?? Uh….not going to touch this huh?? Lets hear your excuse why things are getting BETTER…uh…ALLEN??? MUHAHAHAHAHAHAH

500+NUKreactors????
Guest

None of you know the real reason this is happening. Our entire jet stream is shifted and massive amnts of methane are pouring into the atmosphere. This has caused global action to divest, and you idiots have no idea. Be smart invest green or go broke.