US Action News

You can keep your heads in the sand only so long before the growing effects of such idiotic policies come home to you.

Right now the world produces more Oil than it consumes each day, and it has for the past 16 months, this trend will only get worse in 2013. So expect prices to finally start to address this over supply issue in the Oil Markets in 2013.

Salazar claimed that Obama energy policies were responsible for reduced oil imports, for record natural gas production, for American auto manufacturers making cars that ‘Americans want to buy,’ and for creating hundreds of thousands of jobs in the renewable sector. But the facts are not on Secretary Salazar’s side.

When they sue, the government has to incur the costs of defending itself against the lawsuits, and also picks up the expenses for the groups suing the government. No one even keeps track of how much money the government has ended up spending on such lawsuits.

Throw in the fact that it seems everybody (governments as well as consumers) is in debt, nobody has any money, credit issues are becoming increasingly burdensome to deficit financing to artificially stimulate growth via the government intervention route, all these factors are forming a perfect storm for the oil market to face some major headwinds for the next 5 years.

From Canada to Colombia to Brazil, oil and gas production in the Western Hemisphere is booming, with the United States emerging less dependent on supplies from an unstable Middle East.

Oil is a global commodity and lower demand means lower prices. As Europe crashes, China slows down and America stalls, oil prices will continue downward followed by lower gas prices. Watch for Obama to take credit for lower prices but not the economic slowdown that is really causing the price drop.

Energy is responsible for these states’ job recoveries “to a very large degree,” says Jim Diffley, senior director of U.S. regional services at IHS Global Insight. “In North Dakota and Alaska, the energy sector is predominately very much the single most important factor.”

39,000 workers will be needed in Canada along to replace those who are expected to retire before 2020 just to maintain the status quo. The industry could need as many as 130,000 new hires by the end of the decade with more bullish oil and gas prices.

The Obama administration continues to block drilling where it can but Texas, North Dakota and Pennsylvania have an energy boom resulting in thousands of jobs and billions in new tax revenues. Wherever the federal government manages higher percentages of land oil industry jobs have been reduced dramatically. The only thing standing in the way of expanding US production is the federal government.