Massive Oil Job Losses Debunk The Lie That Obama Is Hostile To The Oil Industry

For six years Republicans have accused President Obama of waging a war on the oil industry by restricting drilling and exploration on federal lands and national parks they claim hampers efforts to make America energy independent. However, under this President, America is now the world’s leading exporter of oil and gas surpassing Saudi Arabia as of last November. In fact, Republicans are still lying that immediate construction of the foreign KeystoneXL pipeline will reduce the nation’s dependence on foreign oil and create tens-of-thousands of American jobs which is another lie. In fact, as the nation continues its record run of monthly jobs created, the oil industry that complains bitterly the President restricts their ability to explore and drill is laying off tens-of-thousands of oil workers every month; not because of Obama’s regulations, but due to the oil glut from America’s prolific oil production success since the President has been in office.

Since December, various oil industry titans have announced major oil industry job layoffs due to record low oil prices as a result of increased exploration, drilling, and production President Obama is responsible for. In fact, the industry is not just laying off workers, they are abandoning and shutting down entire drilling operations in an effort to get control of the market and spark a rise in fuel costs. If nothing else, the Republicans’ claim that there can never be enough exploration and drilling, as well as their assertion that President Obama is hostile to the oil industry, is exposed as another blatant lie. A lie that Americans enjoying low gas prices must certainly aware of by now.

According to a careful assessment by the Federal Reserve Bank of Dallas, they estimate that at least 250,000 oil industry jobs across eight U.S. states will be lost in 2015; there have already been tens-of-thousands of jobs lost in 2014. There will be hundreds-of-thousands of support and downstream jobs lost as well. In what is bad news for good old Texas, well over half of those quarter-of-a-million job losses will occur in the Lone Star state that leads the nation in oil production. One wonders how Republicans will portray the massive job losses that will affect the eight states’ economies because President Obama has presided over an epic oil production bonanza, or if they will back off of their claim that America desperately needs the KeystoneXL pipeline to “ensure America’s energy independence, or if they put a halt to calling for exploration and drilling in America’s national parks.

One thing is perfectly clear; America’s increased oil and gas production has turned out to be a detriment to the industry and will adversely affect several state economies on many fronts. According to a Bloomberg report, U.S. drillers pulled 94 oil rigs completely out of the fields in a single week that amounted to the largest weekly decline since Houston-based oil-field services company, Baker Hughes, began collecting the data in 1987. The nation’s biggest oil field, the Permian Basin of Texas and New Mexico, was the hardest hit losing 25 oil rigs thus far and many more to come this year. In California’s largest oil producing region, Kern County, leaders declared a fiscal emergency because the reduction in oil prices will impact the government’s property-tax collections by 15 percent, and the job losses, both direct and indirect, will further exacerbate the region’s financial crisis. Still Republicans assail President Obama for hampering the oil industry’s ability to enjoy unrestricted exploration and drilling they claim is crucial to creating an “energy independent nation;” a claim they continue making to expedite the construction of KeystoneXL.

Even with the massive job layoffs, drilling operation closures, and taking oil rigs completely out of production, American oil production continues to soar and contribute to falling oil prices at home and around the world. According to data from the Energy Information Administration, U.S. oil production reached 9.21 million barrels per day just last week; the most since well before 1983. One of the three entities that will profit most from construction of the KeystoneXL pipeline, ConocoPhillips, is so concerned that the oil glut will continue and prices will “stay too low for 2015” that they are “taking decisive actions.” No, they are not backing off the push to build the Keystone pipeline of which they hold major contracts to export the oil to foreign markets; they are cutting their oil rig count in the prolific Bakken shale formation in North Dakota and laying off thousands of workers to drive up oil prices for American consumers and increase profits for their shareholders. So much for the blatant lies their only regard is creating energy independence for America.

Republicans, such as Louisiana Governor Bobby Jindal, continue assailing President Obama as “being so hostile to the oil and gas industry, we’ve actually seen oil production on federal lands go down over 6 percent from 2009. Do we harness the energy resources that are here in our country to grow our economy, to create good-paying jobs, to lower the cost of energy for our people? Or do continue in our current path, where we make energy more expensive, more scarce? Where we continue to export good-paying energy jobs that actually hurt our economy.”

Obviously, Jindal is a typical Republican liar whose big energy plan is “immediately approving the KeystoneXL pipeline” he still claims “will actually provide more jobs, more investment, and energy independence for Americans.” For the record, Louisiana is one of the states where the oil industry is laying off thousands of workers and pulling oil rigs out of production due to the oil glut under this President that has proven to be anything but hostile to the oil industry. And, Louisiana’s economy is going to take a major hit from the loss of jobs and tax revenue from the industry closures.

If Republicans were concerned about America, its energy independence, or jobs and the economy, they would be assailing the oil industry for killing over a quarter-of-a-million oil industry jobs and restricting oil and gas production to raise fuel costs for American consumers and businesses. It is important to note that the oil glut in America is a worldwide phenomenon due in large part to the world-leading production and export under this President. A President that Republicans persist in claiming is “so hostile to the gas and oil industry that we’ve seen oil production do down.” It is yet another Republican lie about President Obama that is being debunked in grand fashion and for once every American paying substantially less at the gas pump is aware Republicans are liars.

18 Replies to “Massive Oil Job Losses Debunk The Lie That Obama Is Hostile To The Oil Industry”

  1. Well well well. How long will it take for the GOP to admit they are wrong? I know, never. There is always a cost…small government means jobs are lost all along the way..from DC to Midland. Our local government is way smaller than 10 years ago, and we have lost some great families due to that austerity under GOP ‘leadership.’ But they won’t admit they are wrong. They can’t, because the base has to be scared and dependent on what the rulers tell them, or they might actually vote for their best interests. Guess how the GOP could help? Pass the infrastructure bill, and give these oil workers jobs building bridges and fixing roads and sewer lines; updating our declining school buildings. But will they?

  2. So one of the GOP money masters, Big Oil, s going to shut down oil rigs, shut down refineries, and shut down jobs…just to raise prices at the pump and raise profits for their privileged shareholders??

    These unpatriotic, unAmerican corporations need to be curtailed, and that needs to happen FAST.

    If Obama makes a fart in the White House, U.S. Media is all over it for weeks on end, but news like this, this important to American kitchen-table budgets and American jobs that are being threatened by oil manipulation…all we hears is how cook one Superbowl commercial was from the other.

    My god. No wonder Americans are DUMB.

  3. US cannot export crude oil. The President has no influence on domestic production, unless on federal lands. Since 2010 crude oil production on federal lands has declined by 16 percent and natural gas production is down 24 percent.

  4. Shiva. LOL? No, it can’t. Sorry you don’t understand simple economics, this industry or commodity prices.

  5. I wish the “Big Oil” haters would go for just one week without the products made possible by this industry. Oh, and BTW 95% of all domestic oil and gas wells are drilled by independent producers, NOT “Big Oil.” No other industry is more intricately connected to our everyday lives and economy. Period. Literally 1,000s products and conveniences used by all of us on a daily basis would not be possible without it. These include the fuel used to heat our homes, cook our food, drive our cars, fuel our planes, material used to make cellphones, computers, cameras, coffee makers, detergent, aspirin, cars, boats, fertilizers, crayons, deodorant, glue, golf balls, hair coloring, hand lotion, medical equipment, medicine, ink, life jackets, nail polish, shampoo, shaving cream, shoes, and the even electricity to charge the handful of “zero emission” electric cars on the roads today. You get the idea, but no matter how many times you say it, it never seems to fully resonate with some.

  6. And with all that, we really need to let the Keystone pollute the land. Dont we.

    It seems to go right over your head what this is about didnt it? Let me help you. The gop says we need to drill far more and Obama wont let them, yet the oil corps are not drilling so they can get the price up. No one hates oil, they hate some of the people who screw with them over energy

  7. US crude oil exports are restricted to Alaska, some produced crude oil destined for Canada, shipments to U.S. territories, and a small amount from CA to the Pacific Rim. The federal ban on exporting crude oil has been in place since the 1970s to fight potential fuel shortages caused by the Organization of Arab Petroleum Exporting Countries (OAPEC) oil embargo. This article says the US is the largest exporter of oil. Not true in the slightest.

  8. We don’t need KXL, but we do need Congress to lift the oil export ban. It’s ludicrous that we don’t allow producers to ship crude oil oversees, while the refineries are getting rich shipping all the refined products they want.

  9. Shiva – So you expect companies to go full steam ahead when something puts pressure on their business or industry? I don’t understand your point. This is not the first time oil prices have dropped significantly. It’s simple supply and demand economics, combined with a slow down in China, Japan, etc. Companies are slowing production activities because they will lose money if they don’t. Like any other industry, I’m not sure how you fault them for adjusting their business strategy to address market fluctuations and external forces.

  10. Shiva – ? You’re making my head hurt, so I’m done after this post. The US is the largest producer of oil and natural gas, but a minuscule amount of crude oil is ever exported (because of the federal oil export ban). Oil imports are at a 20 year low thanks advancements in shale exploration and production methods, the use of horizontal drilling, and hydraulic fracturing, a transformative technology that has been used safety in the US for more than 60 years (bet that will set you and your alarmist friends off). Supply chain diversity is important when it comes to oil imports, so it’s unlikely that we will ever be completely self sufficient. Have fun. Peace out.

  11. I think you missed my point. Of course they adjust, thats why so many jobs are being lost by that industry.

    At the same time the gop is blaming the lack of drilling on Obama’s policy. Which is of course refuted by your very statements

  12. I’d say Not Quite didn’t quite read the article. Or Not Quite is quite comprhensionally challenged.

  13. Shiva, these people are too thickheaded to get your point, that is one of the biggest problems with the RW, they just don’t get simple logic.

  14. Actually not correct. The President can and has eased restrictions and can decide to buy and sell oil through executive orders. It was actually done by Bush Jr, Clinton, and Regan.

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