Tuesday, October 23, 2012

API’s Rayola Dougher on an All-of-the-Above Energy Policy and How Energy Policy Affects the Oil Industry, the Markets, and the Price of Gasoline at the Pump


Written : Oct.20 and 23, 2012


Robb Harleston is a co-host of the Washington Journal on CSPAN. On October 20, 2012, he introduced his guest, Rayola Dougher, American Petroleum Institute’s Senior Economic Adviser. He then asked her to speak about energy and how it’s being addressed in the presidential campaigns. She answered, “Both candidates are looking at all-of-the-above strategy, but you have to do more than just say you’re for all-of-the-above. You actually have to follow through with some action. …Production on federal land has fallen off and a lot of this has to do with policy. …Lease sales are down 76% [on-shore] since 2008, 72% off-shore.”

To clarify her remarks, and to address the president’s comments about oil companies deliberately not drilling after accepting federal leases (during the second presidential debate), Ms. Dougher said that no one obtains a lease with the intent of doing nothing. There may be technical reasons why a company might not be drilling, so she said that President Obama is correct when he said that some leases sit idle, but his sense of why it’s so is incorrect.

I’ll let Rayola Dougher’s comments speak for themselves. She said, “You need a policy that’s actually going to support the development of American resources, and we really haven’t seen that. What we have seen is a strong emphasis on wind, solar, and geo-thermal, and some of those renewables. And, they’re going to be an important part of the energy mix moving forward. Instead, we see policy that’s calling for punitive new taxes, for example, on the oil industry. That’s not going to get us more energy. I think it’s very destructive to have a policy that pits one resource against another. Either you have this resource or you have the other… We have 87% of our offshore areas off-limits to development. That’s not supportive to domestic development.”

She said that if we open up new areas to development, for example, “we might be able to get another million, million and a half barrels a day in the market within a decade. …You build the Keystone Pipeline, that’s another 800,000 barrels a day in North America…”

”The difference that [new development] could make in terms of putting downward pressure on the global price of crude oil… as well as a million or more jobs it could create, the $128 billion in government revenue, and the energy. Between crude… and bio fuels, in a dozen years, if we have a policy that says, ’let’s go for this,’ we could be fairly self-sufficient in our needs.”

”Policy has a cumulative impact and each and every decision starts to add up. And, it can add up over years and make a big difference in terms of what we can see in the market. The biggest difference that we’re suffering from is the lost potential. What we could have in the market and what we don’t have in the market, so we don’t want to see any further loss in that potential.”

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Keywords: Conservatism, Conservative blog, Mark A. Cohen, From The Left to the Right, President Obama, Robb Harleston, Rayola Dougher, All-of-the-Above energy strategy, oil production, Browns, Cleveland, Buckeyes, Ohio state, buckeye nation, Cavs, Cavaliers, Bengals, Cincinnati, Blue Jackets, Toledo Rockets, Cincinnati Reds, Columbus, Dayton, Canton, Toledo, Akron

Keywords: "Conservatism", "Conservative blog", "Mark A. Cohen", "From The Left to the Right", “Red Eye”, “President Obama”, “Robb Harleston”, “Rayola Dougher”, “All-of-the-Above energy strategy”, “oil production”, Browns”, “Cleveland”, “Buckeyes”, “Ohio state”, “buckeye nation”, “Cavs”, “Cavaliers”, “Bengals”, “Cincinnati”, “Blue Jackets”, “Toledo Rockets”, “Cincinnati Reds”, “Columbus”, “Dayton”, “Canton”, “Toledo”, “Akron”

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