David Feldman

Myths of Energy - Federal policies are driving down oil production

Blog Post created by David Feldman Champion on Dec 8, 2016

In 2015, the White House Administration implemented the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) initiative. According to the White house website; this program is a coordinated effort, involving multiple federal agencies, with the goal of effectively aligning, leveraging, and targeting a range of federal economic and workforce development programs and resources to assist communities impacted by changes in the coal industry and power sector. Not only does the White House have a vested interest in making federal policies to combat changes in the coal industry; they are working to make sure everyone involved is taken care and that there is a proper balance is maintained in the energy industry as a whole.

 

According to the Energy Information Administration (EIA) not only is oil production on the rise, so is natural gas. These projections come from a growing resource base and quickly improving production efficiencies that ultimately mean we have much more oil and gas at our disposal than people think. In 2015-2016 the EIA Annual Energy Outlook projected for the U.S. crude output in 2030 to increase over 20 percent. A significant reason for the increase in production is due to the amount of oil rigs in the U.S. According to oil-field services company Baker Hughes Inc. the number of rigs drilling for oil in the U.S has climbed by three in October of 2016, to total 428.  This recent increase shows that the oil rig count has been generally rising since the beginning of the 2016 summer.

 

An increase in the number of oil rigs in the U.S. means more production overall. That is why the EIA has projected such a significant increase for oil in the coming years. With many federal policies working to find balance in the energy industry, it’s reasonable to assume that no policy is trying to deplete oil production, only maintain a balance that works for everyone’s benefit.

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