Based on reliable reports from knowledgeable observers, the oil/natural gas boom has continued to expand and will not be severely inhibited in the indeterminate future. This conclusion is based on the Obama Administration’s realization that expanding energy development now holds the key to rationally confronting the runaway debt ceiling in the upcoming 2014 fiscal year. On Monday, President Obama stunned the nation by announcing that America’s liquid natural gas will be exported worldwide. Can approval of the XL oil pipeline be far behind?
With continued defacto double digit unemployment hanging over the Administration’s head; and consumer demand, needed to encourage production, beset by tax increases and stifling regulations, the success of fracking and its resultant revenues are critical to preventing a 2014 financial breakdown. With the mid-term elections at stake, the Obama Administration needs reasonable economic tranquility. Additional economic deterioration, which could prove politically disastrous, is not an option the Administration is willing to face.
A renewal of current fracking progress discloses a spreading of successful growth. While the Marcellus Shale in Pennsylvania and Ohio is getting the highest marks, New York’s Governor Andrew Cuomo, who has banned the process, is also feeling the heat of irate taxpayers and may be forced to back down.
The successful spread of America’s most successful economic breakthrough in decades (fossil fuel energy development) puts President Obama on the verge of turning his back on his “climatological purity” base. This successful fracking surge is already making itself felt in states other than the much heralded breakthroughs in North Dakota and Texas. Kansas and Oklahoma, hardly known for oil production booms, are experiencing decades-high production gains as previously mature fields are responding to the new technology.
Utah, which is reaching nearly 100,000 barrels a day, is checking in with a 150% increase over the last decade. New Mexico has exceeded its previous record set in 1978 for the first time. And neighboring Colorado has seen oil production triple since 2001, coming close to North Dakota’s Bakken play, with its own version- Niobrara shale.
The revenues and construction employment generated by these fossil fuel successes will become increasingly hard for President Barack Obama to slow down by backing his environment-obsessed extremists. In addition, the Obama Administration is turning skeptical over new Environmental Protection Agency regulations that will add to the cost of gasoline, not a winner with a public increasingly grumbling over the Obamacare tax increases.
At this point, there’s a 50/50 chance that domestic oil production, including the XL oil pipeline will not be the sector thrown under the bus by the politically sensitive President Obama. Events transpiring in the next few weeks will prove decisive as to which alternative the President and his legislative allies choose.
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