Oil Industry Says It Could Create Over A Million Jobs

deregulated oil industry could create jobsThe day before Obama's jobs speech, the oil industry released its own roadmap for American job growth. Repealing regulations on the oil and gas industry, the report states, could create 1.4 million jobs over the next seven years and over $800 billion in revenue over the next 20.

In his own speech, however, Obama paid no lip service to the oil industry's recommendations. As AOL Jobs reports, the president offered congress five central proposals: cut payroll taxes, develop the country's transport system, repair school infrastructure, get veterans hired, and provide businesses a tax credit for hiring the long-term unemployed.

Obama's only mention of the oil industry was not particularly supportive. "Should we keep tax loopholes for oil companies?" he asked Congress. "Or should we use that money to give small business owners a tax credit when they hire new workers? Because we can't afford to do both."

The suggestions in the report, sponsored by the American Petroleum Institute, the oil industry's largest lobby, were emphatically missing from Obama impassioned call. These included an expansion of offshore drilling, increased production of natural gas in New York and other states, and the approval of a $6 billion pipeline to bring crude oil from Canada to Texas refineries.

API argues that the current regulatory environment delays the issuance of leases and drilling permits and inflates the cost of gas extraction due to water and air quality controls. Undoing these regulations, the report claims, would increase the nation's oil and natural gas production by 10 million barrels by 2030, enabling the country to produce more of the energy it consumes and import less foreign oil.

The API's projections may be encouraging, but every single one of its proposed measures to meet those goals is deeply controversial. For example, the report recommends opening up the Eastern Gulf of Mexico for oil-drilling. In the wake of the BP oil spill last year, the Obama administration reversed its stance on offshore drilling and declared a moratorium on any drilling along the nation's East Coast.

The report also proposes opening up Alaska's National Wildlife Refuge for drilling - a debate that has been waging for over 30 years. Environmentalists, most congressional Democrats, Obama, and Native Alaskan tribes oppose drilling in the region, because of the ecological havoc it would wreak. The report claims that opening up access to Alaska, primarily in the ANWR, would create over 120,000 jobs and $22 billion of government revenue in the next 20 years. Until a few years ago, most Americans opposed drilling in the refuge, but after gas prices spiked in 2008, polls by Pew and Gallup found that 50 to 60 percent of Americans now support the idea.

The proposed 1,700-mile Keystone XL pipeline, which would bring the tar sands oil of Alberta, Canada, to Gulf Coast refineries, is considered one of the biggest environmental issues of the moment. The report urges its construction without delay, and GOP contenders like Mitt Romney have been vocal in their support of the project. Environmentalists counter that the pipeline would tap into the "the continent's biggest carbon bomb." If all the oil in the tar sands were burned, the atmosphere's carbon dioxide concentration would explode by 54 percent, "which would mean if not not hell, then at least a world with a similar temperature," argues Bill McKibben, the author of "Eaarth: making a Life on a Tough New Planet."

More immediately, the pipeline could pollute the Ogallala Aquifier, the Midwest's most important sources of water. For this reason, Nebraska's Republican governor sent a pleading letter to the president last week, asking him to abandon the project. The State Department released a report last month concluding that the pipeline would have minimal environmental impact, but acknowledging the risk of pollution. The Obama administration will make a final decision on the pipeline later this year.

Obama has not publicized any final conclusions on most of the API's proposed policies. But it is clear from Obama's speech Thursday evening that he does not plan to make oil and gas industry deregulation a key part of his jobs plan. He has, however, recently showed his willingness to anger environmentalists in the name of economic considerations. Last week, Obama requested that the EPA withdraw its new air quality standard for smog.

"I have continued to underscore the importance of reducing regulatory burdens and regulatory uncertainty, particularly as our economy continues to recover," Obama wrote in a statement.



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Claire Gordon

Staff Writer

Claire Gordon has contributed to Slate's DoubleX, the Huffington Post, and the book Prisons: Current Controversies. While an undergraduate at Yale University and a research fellow at Yale graduate school, she spoke on panels at Yale and Cornell, and reported from Cairo, Tokyo, and Berlin.

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mikoncons

The suggestions in the report were emphatically missing from Obama's impassioned call. Instead he hammered on eliminating tax "loopholes" for oil companies. Obama's continual reference to a $4B "loophole" elimination for the entire oil industry is an outright deception. Exxon-Mobile ALONE pays more than $100B per year in taxes. The $4B "loophole" is for R&D to improve on extraction methods and reduce polution through cleaner and more efficient processing. Improvement in these processes are needed for the long-term well being of America.
Obama is once again misleading the ignorant and uneducated in America.

October 01 2011 at 11:16 AM Report abuse +1 rate up rate down Reply
mikoncons

Repealing regulations on the oil and gas industry, the report states, could create 1.4 million jobs over the next seven years and over $800 billion in revenue over the next 20. Undoing this administration's new regulations, the report claims, would increase the nation's oil and natural gas production by 10 million barrels by 2030. Further, the report recommends opening up the Eastern Gulf of Mexico for oil-drilling. In the wake of the BP oil spill last year, the Obama administration reversed its stance on offshore drilling and declared a moratorium on any drilling along the nation's East Coast.
Are these actions making the USA more independent of Arab oil? Any sane person can see they are counterproductive and costly to America.

October 01 2011 at 11:14 AM Report abuse +1 rate up rate down Reply
tmoschetti

"SECRET!" Did Obama write this?

September 12 2011 at 2:30 PM Report abuse rate up rate down Reply
bpante

I noticed most comments are for drilling here. I guess people need the jobs.

September 10 2011 at 10:32 AM Report abuse +1 rate up rate down Reply
ceosvcs

Energy industry has been a culprit for over a decade, the economy of many countries is directly affected by the price of oil at the pump and beyond. The by products alone are a major impact to many every day items used (plastics,preservatives, construction material,etc). When we look at the major impact that this product has on everyday income it is staggering. Now take into effect the cost that the US and foreign subsidiaries are absorbing in the Middle East Wars and wake up to a general budget that has exceeded credit limits in astronomical proportion and a disastorus domestic growth. The energy company has taken advantage of every aspect of every countries internal economic woes, always promising to boost the economy but in reality only boosting the firms profitablity by billions while strengthening the stronghold for energy dependence.

September 10 2011 at 8:19 AM Report abuse -1 rate up rate down Reply
nos2001

PIPELINE SOUNDS LIKE A WINNER TO ME. JOBS, TAXES,A LOT LESS FOREIGN OIL--WHY ARE LIBS ALWAYS AGAINST EVEYTHING THAT MAKES COMMON SNESE. GO TEA PARTY..

September 10 2011 at 6:36 AM Report abuse +3 rate up rate down Reply
Handsome

I don't know why I bother to comment. Because the people that I'll be trying to expose to some truth, will refuse to listen anyways. No matter how much we oil and gas we extract from our country, will do nothing to reduce the price or foriegn dependence on the final product. The crude once removed is not U.S. oil anymore, it belongs to multinational conglomerates. It is essentially put in one large pool, and distributed to whomever will pay the highest price. These corporations have no concern for Americans, or reducing our "need" for oil from "questionable" countries. They have obligations to pay these countries for their rights to drill. In most cases, for a much higher price than they do in the U.S.. These profits for the most part, go to foreign interests. It may look like an "American" name at the pump, but it is not. Granted, some jobs will be created by the creation of a new pipeline, but not as many as the industry claims. And of those created, how many will be filled by foriegners. Quite a few. Please stop believing the hype and misinformation from the bought and paid for politicians, lobbyists, and media ******. Please stop letting these devils polluteyour minds. Use your brain, it is why God gave it to you.

September 10 2011 at 4:14 AM Report abuse +1 rate up rate down Reply
1 reply to Handsome's comment
rolhock

Have you thought about changing your name from Handsome to Stupid? There is no Pooling of oil...that produced here stays here.

September 10 2011 at 7:11 AM Report abuse rate up rate down Reply
1 reply to rolhock's comment
Shawn Bushway

Actually you're the stupid one because that's not true at all. We export 1.6 million barrels a day and then import 13 million barrels. We export 9% of our refining capacity which is 17.3 million barrels a day. Even if we stopped exporting and even if we drilled for more oil we would still be dependent on foreign oil by at least 3 million barrels a day based on the figures provided by this article not taking into consideration a growing population.

September 10 2011 at 11:29 PM Report abuse +1 rate up rate down
lulu0510

The energy situation alone demonstrates that Obama is not competent to be president of the USA. He's making us dependant on foreign oil. We are sending billlions of dollarfs to countries that hate us and will work against us. .
He is making manufcturing in this country more difficult through lack of energy. He is depriving us of jobs, the income from oil and gas production, and reasonable fuel costs. He puts us at a disadvantage with other countries who have no regard for enironmental consequences. He endangers our food spply and raises food prices by endorsing ethanol production. In short he is a toatotal failure and in an earlier time would have been asked to step down from office.

September 10 2011 at 1:56 AM Report abuse +1 rate up rate down Reply
bbenz56

Oil and gas companies are going to drill and money somewhere. More of their profits are made overseas because we are continually make it harder for the to operate here. For example, after Obama stopped drilling in the gulf many rigs were moved to other countries for drilling. Another example is the tar shale oil in Canada. It will be extracted and sent somewhere. People are fighting the building of a pipeline to bring it to the US. This would create American jobs and keep the Taxes here. We have some of the largest coal and natural gas resources in the world and yet we make it difficult for companies to get to it, create jobs and generate taxes. By the way libs. out there do not respond with the lie that Exxon paid no taxes. They did not pay federal taxes partially because of overpayments in previous years and because much of their earnings were already taxed in other countries. They DID pay 7.7 billion in state taxes, sales taxes and duty taxes in America!

September 10 2011 at 12:41 AM Report abuse +1 rate up rate down Reply
jacklyncatena

I am so sick of the Presidential Jack Ass thinking of ways for small businesses to hire more people.
Helloooooo Stoopid (yes! with 2 o's). How the hell can a business hire more people until they get more business to warrant hiring? Bring our industrial manufacturing base back to the USA! Give the blue-collar working people jobs!

September 10 2011 at 12:20 AM Report abuse +1 rate up rate down Reply
1 reply to jacklyncatena's comment
clpblank

I would start by casting your blame on the MultiNational Corps that run this country, they make more money by sending the manufacturing jobs overseas, so untill they are brought back to the States nothing no matter the intention of our government job growth will stay as it is - declining along with the middle class.

September 10 2011 at 12:55 AM Report abuse +3 rate up rate down Reply
1 reply to clpblank's comment
lulu0510

And when they do bring the jobs and factories back to the USA what will provide power for them. Hot air from Washington? Businessmen are not stupid, They are forced to ship manufacturing overseas because of Obama's crazy energy policies. And they know that he cant be trusted to be a friend to industry until he allows the USA to develope its own fossil fuel energy resources.

September 10 2011 at 1:40 AM Report abuse +1 rate up rate down

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