U.S. Chamber’s Energy Institute Says Administration Must Revisit Its Decisions to Halt Oil Production

WASHINGTON D.C.— Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy, issued the following statement today in response to President Obama’s remarks on high gasoline prices:

“While we welcome the President’s attention to the increasing cost of gasoline, he did not paint an accurate picture of America’s energy reality on oil. Last year’s increase in domestic oil production is entirely a product of decisions to encourage new production that were made several years ago, in previous Administrations. The reduction in the percentage of oil we import occurred due to these previously-approved permits, as well as lower U.S. oil demand due to our weak economy.

“These trends are temporary. A far more accurate indicator of the impact that the Administration is having on oil exploration is the government’s own Energy Information Administration forecasts, which tell us that domestic production of oil will decline by more than 90 million barrels of oil in 2012. Production in the Gulf of Mexico is projected to result in a nearly 30 percent decrease as a result of the Administration’s moratorium. This downward trend is likely to be exacerbated even further as the full impacts of our lack of production in the last 10 months are fully factored in.

“The President mentioned that oil companies are currently holding unfulfilled leases. That is largely because his Administration won’t let them explore, and because the government’s regulatory process to obtain permits is so arduous and time consuming. Only one deep water drilling permit has been issued in the last 10 months. The Interior Department’s new 5-year plan on offshore exploration prohibits any new exploration through 2017. If the Administration is serious about a more secure energy future and a robust economic recovery, it will revisit these decisions and let America’s oil and gas industry get back to work.”

The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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