Category Archives: Offshore Drilling

Chinese oil firm in biggest takeover of Canada Nexen Inc., $ 15.1 billion acquisition, Oil sands shale gas western Canada, Ottawa last deal of its kind

Chinese oil firm in biggest takeover of Canada Nexen Inc., $ 15.1 billion acquisition, Oil sands shale gas western Canada, Ottawa last deal of its kind

“Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.”…Barack Obama 

“Canada has outperformed the U.S. since then. In 2010, according to the International Monetary Fund, Canada grew at 3.2% versus 2.9% in the U.S. In 2011, the IMF estimates Canada will grow at 2.9%; unemployment is now 7.3%. The IMF’s U.S. growth forecast is 2.5% this year, and U.S. unemployment is 9.1%.

One explanation for Canada’s more robust growth is its strong commitment to energy, which has become more valuable in U.S. dollar terms under Federal Reserve Chairman Ben Bernanke’s inflationary policies. Alberta is now producing two million barrels per day but expects that number will grow to four to five million within a decade.”…Wall Street Journal Sept. 12, 2011

“For the first time in recent history, the average Canadian is richer than the average American, according to a report cited in Toronto’s Globe and Mail.

And not just by a little. Currently, the average Canadian household is more than $40,000 richer than the average American household. The net worth of the average Canadian household in 2011 was $363,202, compared to around $320,000 for Americans.”…US News  July 18, 2012

 

From People’s Daily Online February 27, 2013.

“Chinese oil firm in biggest takeover”

“CHINA’S dominant offshore oil producer has completed a US$15.1 billion acquisition of Canada’s Nexen Inc, winning a key international platform for its global expansion.

The closing of China’s largest overseas takeover comes seven months after it was first announced.

CNOOC Ltd’s acquisition of Nexen, which has oil sands and shale gas in western Canada and conventional exploration and development in the North Sea and the Gulf of Mexico, will increase the Chinese firm’s production by 20 percent and its proven oil and gas reserves by 30 percent.

Yang Hua, CNOOC’s vice chairman, said Nexen was attractive because it had a diversified product portfolio and the majority of its assets were in politically stable regions.

CNOOC, which failed in its US$18.5 billion bid for Unocal Corp in 2005 due to the United States’ political opposition, started to track Nexen as a potential target the same year, Yang told Xinhua news agency.

In 2011, CNOOC acquired struggling Canadian oil sands producer OPTI, becoming a partner with Nexen in the Long Lake project in Alberta. The OPTI deal paved the way for the Nexen acquisition, Yang said.

Moody’s Investors Service said the ratings and stable outlooks of CNOOC and its parent will remain unchanged after the closing of the Nexen deal.

Senior analyst Simon Wong said the acquisition would “strengthen CNOOC Ltd’s position as one of world’s largest independent exploration and production companies and further diversify its product portfolio, in spite of its weakened credit metrics.”

Canada granted its approval in December after CNOOC agreed to various conditions. CNOOC made commitments regarding transparency, disclosure, commercial orientation, employment and capital investment that “demonstrate a long-term commitment to the development of the Canadian economy,” Canadian authorities said.

But Ottawa indicated this was the last deal of its kind it would approve by saying it wouldn’t allow foreign state companies to control the nation’s oil sands.

The Committee on Foreign Investment in the US approved the deal earlier this month, clearing the last major hurdle for the acquisition to succeed.”

http://english.peopledaily.com.cn/90778/8144674.html

 

 

Obama high gas price solution, Use less oil, Energy costs cripple business jobs homes economy, Obama lies and warnings, If they want to build coal plants they can but it will bankrupt them

Obama high gas price solution, Use less oil, Energy costs cripple business jobs homes economy, Obama lies and warnings, If they want to build coal plants they can but it will bankrupt them

“For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans they’re a huge problem, bordering on a crisis.”…Barack Obama May 2008

“We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times … and then just expect that other countries are going to say OK,”…Barack Obama May 2008

“if they want to build [coal plants], they can, but it will bankrupt them”…Barack Obama

You were warned….

By Obama.

From WCSC February 20, 2013.

“”Gas prices continue to be an ongoing problem,” said Obama. “I’m proud of the fact that under my administration, oil production is higher than it has been in a decade or more. We have seen a doubling of fuel efficiency standards on cars over the next several years, so that is saving people money at the pump.”

The president said one of the things that must happen in order to lower gas prices is to make the “overall economy use less oil.”

“Unfortunately because of world-wide demand, oil prices are going to keep going up and down until we put in place some of the energy saving proposals I talked about in the State of the Union,” Obama said.”

http://www.live5news.com/story/21289844/president-obama-

2012 National Federation of Independent Business October Survey

“MOST IMPORTANT PROBLEM: 2012

1.  Rising Cost of Health Care Insurance
2.  Uncertainty over Economic Conditions
3.  Energy Costs
4.  Uncertainty over Government Actions
5.  Unreasonable Government Regulations
6.  Federal Taxes on Business Income
7.  Tax Complexity
8.  Frequent Changes in Federal Tax Laws and Rules
9.  Property Taxes
10. State Taxes on Business Income”

http://www.nfib.com/research-foundation/surveys/small-business-economic-trends

From Citizen Wells July 29, 2012.

Gas prices are going back up and currently average $ 3.49 in the US. One of the biggest reasons gasoline prices have not risen further is the downturn in the US and world economies.

From the NY Times June 13, 2012.

“Mark Juull, a construction contractor for public and residential housing, has something to be thankful for in this sluggish economy: With global commodity prices falling, he’s saving $200 a week on fuel for his three trucks and finding deals on aluminum, lumber and roof shingles, which are typically made from petroleum.”

“Over the last month, global oil prices have declined by about 12 percent, while corn, copper, lead, cocoa and coffee have all dropped by 5 percent or more. Prices of corn, cocoa, oats, cotton, rubber, coffee, aluminum, silver, zinc and nickel are all more than 20 percent lower than a year ago.

Gasoline prices are falling precipitously, too, down nearly 20 cents over the last month alone, to a national average of $3.54 a gallon on Wednesday. That is nearly 45 cents below the high for the year reached in early April. The average household consumes 1,200 gallons of gasoline a year, so every dime shaved off the price of gas translates into a $120 annual savings, according to the Oil Price Information Service.

“The world economy is in risk of a recession and on that possibility, commodity prices weaken,” said Allen L. Sinai, chief global economist for Decision Economics, a consulting firm. “Lower inflation comes with weakening economies.”

Oil is among the commodities that have fallen in price the fastest despite continuing tensions in the Middle East and the tightening sanctions on Iran. OPEC production has been soaring in recent months because of mushrooming crude exports from Iraq, an almost total resumption of exports from Libya since the fall of the Qaddafi dictatorship, and a concerted drive by Saudi Arabia to push up production. At a meeting in Vienna on Thursday, OPEC is expected to decide to keep production steady despite weakening prices.”

http://www.nytimes.com/2012/06/14/business/economy/weak-economys-mixed-blessing-falling-commodity-prices.html

In 2009 when Obama took office, gasoline averaged around $ 1.85 a gallon. Here is a chart of gasoline prices for the last 3 years.

A long time commenter here brought this to my attention.

From WND February 16, 2012.

“The Obama administration, despite the nation’s economic woes, effectively killed the job-producing Keystone Pipeline last month. The Arab Spring is turning the oil production of Libya and other Arab nations over to the Muslim Brotherhood. Iraq is distancing itself from the U.S. And everyone recognizes that Iran, whose crude supplies are critical to the European economy, will do anything it can to frustrate America’s strategic interests. In the face of all of this, Obama insists on cutting back U.S. oil potential with outrageous restrictions.”

“Part of Obama’s apparent war against U.S. energy independence includes a foreign-aid program that directly threatens my state’s sovereign territory. Obama’s State Department is giving away seven strategic, resource-laden Alaskan islands to the Russians. Yes, to the Putin regime in the Kremlin.

The seven endangered islands in the Arctic Ocean and Bering Sea include one the size of Rhode Island and Delaware combined. The Russians are also to get the tens of thousands of square miles of oil-rich seabeds surrounding the islands. The Department of Interior estimates billions of barrels of oil are at stake.

The State Department has undertaken the giveaway in the guise of a maritime boundary agreement between Alaska and Siberia. Astoundingly, our federal government itself drew the line to put these seven Alaskan islands on the Russian side. But as an executive agreement, it could be reversed with the stroke of a pen by President Obama or Secretary Clinton.

The agreement was negotiated in total secrecy. The state of Alaska was not allowed to participate in the negotiations, nor was the public given any opportunity for comment. This is despite the fact the Alaska Legislature has passed resolutions of opposition – but the State Department doesn’t seem to care.

The imperiled Arctic Ocean islands include Wrangel, Bennett, Jeannette and Henrietta. Wrangel became American in 1881 with the landing of the U.S. Revenue Marine ship Thomas Corwin. The landing party included the famed naturalist John Muir. It is 3,000 square miles in size.

Northwest of Wrangel are the DeLong Islands, named for George Washington DeLong, the captain of USS Jeannette. Also in 1881, he discovered and claimed these three islands for the United States. He named them for the voyage co-sponsor, New York City newspaper publisher James Gordon Bennett. The ship’s crew received a hero’s welcome back in Washington, and Congress awarded them gold medals.

In the Bering Sea at the far west end of the Aleutian chain are Copper Island, Sea Lion Rock and Sea Otter Rock. They were ceded to the U.S. in Seward’s 1867 treaty with Russia.

Now is the time for the Obama administration to stand up for U.S. and Alaskan rights and invaluable resources. The State Department’s maritime agreement is a loser – it gives us nothing in return for giving up Alaska’s sovereign territory and invaluable resources. We won the Cold War and should start acting like it.”

http://www.wnd.com/2012/02/obamas-giveaway-oil-rich-islands-to-russia/

And now we learn.

From Patriot Update July 28, 2012.

“After Obama Blocks Pipeline, China Readies $15.1B Canadian Oil Deal”

“When President Barack Obama blocked the Keystone Pipeline, Republicans said the move would encourage Canada to pursue oil deals with China instead of the United States and cede a massive chunk of North American oil assets to the communist nation.

Now, with China’s state-run oil company CNOOC poised to cut a $15.1 billion deal–the largest ever foreign acquisition for a Chinese company–with Canadian oil company Nexen, Sen. Charles Schumer (D-NY) and Rep. Nancy Pelosi (D-CA) are in full backpedal mode.

In a draft letter to the Committee on Foreign Investment in the United States (CFIUS), Sen. Schumer writes:

I respectfully urge you, in your capacity as chairman of the Committee on Foreign Investment in the United States (CFIUS), to withhold approval of this transaction to ensure U.S. companies reciprocal treatment.

Similarly, Rep. Pelosi is now sounding alarms of concern. In a statement, Pelosi spokesperson Drew Hamill said:

This deal prompts great concern about the Chinese government’s continued attempts to use its state-owned enterprises to acquire global energy resources.

Saying “I told you so” offers little solace to concerned Republican lawmakers.”

https://citizenwells.wordpress.com/2012/07/29/july-29-2012-gas-prices-up-obama-energy-policy-rewards-friends-punishes-americans-alaska-island-giveaway-to-russians-keystone-pipeline-canada-china-oil-deal/

Obama gas prices facts September 17, 2012, 2 dollars more per gallon under Obama, Crimping consumer spending, Slowing already weak US economy

Obama gas prices facts September 17, 2012, 2 dollars more per gallon under Obama, Crimping consumer spending, Slowing already weak US economy

“Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.”…Barack Obama 

“The price of gas has risen 2 dollars since Obama took office. This has impacted the price of consumer goods, groceries, the economy and jobs. Please explain to me how we are better off now than when Obama took office.”…Citizen Wells

“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. His heart sank as he thought of the enormous power arrayed against him, the ease with which any Party intellectual would overthrow him in debate, the subtle arguments which he would not be able to understand, much less answer. And yet he was in the right! They were wrong and he was right. The obvious, the silly, and the true had got to be defended. Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:

Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

From the Boston Globe September 16, 2012.

“Higher gas prices are crimping consumer spending and slowing the already-weak U.S. economy. And they could get worse in the coming months.

The Federal Reserve this week took steps to boost economic growth. But those stimulus measures are also pushing oil prices up. If gas prices follow, consumers will have less money to spend elsewhere.

The impact of the Fed’s actions ‘‘is likely to weigh on the value of the U.S. dollar and lift commodity prices,’’ said Joseph Carson, U.S. economist at AllianceBernstein. ‘‘We would not be surprised if (it) fueled more inflation in coming months, squeezing the real income of U.S. workers.’’

Americans are already feeling pinched by high unemployment, slow wage growth and higher gas prices.

Consumers increased their spending at retail businesses by 0.9 percent in August, the Commerce Department reported Friday. But that was largely because they paid more for gas. Excluding the impact of gas prices and a sizeable increase in auto sales, retail sales rose just 0.1 percent.

Perhaps more telling is where Americans spent less. Consumers cut back on clothing, electronics and at general merchandise outlets — discretionary purchases that typically signal confidence in the economy.

Gas prices have risen more than 50 cents per gallon in the past two months. The national average was $3.87 a gallon on Friday. Most of the increase took place in August, which drove the biggest one-month increase in overall consumer prices in three years, the Labor Department said Friday in a separate report.

‘‘Consumers were not willing to spend much at the mall since they are feeling the pump price pinch,’’ said Chris Christopher, an economist at IHS Global Insight.

Weaker retail sales will likely weigh on growth in the July-September quarter. Economists at Bank of America Merrill Lynch slashed their third-quarter growth forecast to an annual rate of only 1.1 percent, down from 1.5 percent. That’s not nearly fast enough to spur more hiring, which has languished since February.

The Fed is hoping to kick-start growth with a series of bold steps announced Thursday that could make borrowing cheaper for years.

It plans to spend $40 billion a month to buy mortgage bonds to make home buying more affordable. It also pledged to keep short-term interest rates near zero through at least mid-2015.

And Fed Chairman Ben Bernanke said the Fed will continue its efforts — and intensify them if necessary — until the job market improves ‘‘substantially.’’

The announcement ignited a two-day stock market rally that sent the Dow Jones industrial average to its highest level since December 2007, the first month of the Great Recession.

But the Fed’s actions also helped move oil prices briefly above $100 a barrel Friday for the first time since May. They fell back slightly, but were still up 74 cents to $99.04 a barrel in mid-afternoon trading.

Carson noted that the Fed’s previous rounds of bond-buying pushed up commodity prices and fueled greater inflation. That weakened the ability of U.S. consumers to spend and likely slowed growth, he said.

He expects the same thing to happen again.

The Fed’s moves can push up oil prices in several ways. The Fed creates new money to pay for its mortgage bond purchases. That increases the amount of dollars in circulation and can lower their value. Oil is priced in dollars, so the price tends to rise when the dollar falls. That’s because it costs more for overseas investors to purchase dollars to buy oil.

Lower interest rates also push investors out of safer assets, such as bonds, and into riskier investments, such as oil, in hopes of a greater return. And if the Fed’s moves accelerate growth, that would increase demand for oil and gas and also raise their prices.

Higher gas prices are eating up a bigger share of Americans’ incomes than in previous years. Spending at the pump accounts for 8.2 percent of the typical family’s household income, according to Fred Rozell of the Oil Price Information Service. That’s just below last year’s 8.3 percent.

Those represent the biggest slice of household income spent on gas since 1981. The typical household spends about $342 per month on gasoline. Before gasoline prices began rising in 2004, households spent less than $200 per month, Rozell said, under 5 percent of median income.”

Read more:

http://www.boston.com/business/news/2012/09/16/rising-gas-prices-crimp-americans-spending/HYCdhf6O46tUDYlRneQ7qN/story.html

From Citizen Wells March 17, 2012.

 

Inflation has been downplayed as well. Anyone visiting a grocery store for the past several years has watched food prices skyrocket, mostly due to rising gasoline prices.

From America’s North Shore Journal March 17, 2012.

The Bureau of Labor Statistics (BLS) keeps track of the average retail price for a number of common items as a U.S. city average. Let’s take a look at a few. We used the price for the month President Obmam was inaugurated, January 2009, and the last month of data available, December 2011. The items are sorted in descending order by the percentage increase of the price during the Obama administration.

Obama Obama
Item Unit Jan 2009 Dec 2011 I/D Perc
Gasoline, unl reg gal $1.787 $3.278 $1.491 83.44%
Fuel oil, #2 gal $2.509 $3.777 $1.268 50.54%
Ground beef lb $2.357 $2.921 $0.564 23.93%
Sugar, white lb $0.569 $0.703 $0.134 23.55%
Bacon. Sliced lb $3.730 $4.550 $0.820 21.98%
Cookies, Choc chip lb $3.114 $3.682 $0.568 18.24%
Spaghetti & macaroni lb $1.131 $1.306 $0.175 15.47%
Eggs, A lrg doz $1.850 $1.874 $0.024 1.30%
Electricity kwh $0.126 $0.127 $0.001 0.79%
Lettuce, iceberg lb $0.944 $0.947 $0.003 0.32%
Milk, whole gal $3.575 $3.565 -$0.010 -0.28%
Potatoes, white lb $0.676 $0.666 -$0.010 -1.48%

CPI Food 2009-2011

https://citizenwells.wordpress.com/2012/03/17/obama-change-in-gas-and-food-prices-higher-gas-prices-threaten-economy-jobs-added-millions-of-jobs-and-job-seekers-lost-won-whip-obama-now/

Gas prices for the latest month.

Only a fool would believe that they are better off now than when Obama took office.

***  Noteworthy comment ***

“CW “Only a fool would believe that they are better off now than when Obama took office”

Citizen Wells,
Some are better off now. The Communist party of America is better off. The Islamic people are better off. China is better off. The union pensioners of General Motors are better off. The Teachers unions are much better off. The drug dealers have been supported by millions of new disabled or unemployed americans with federal money to spend, are better off. The media, taking billions in government money are better off and still talke for Obama (perhaps save the newspapers). Those whom rely upon others to work while they receive government money, including aliens, are better off.

Since taking over congress in 2007, then the Presidency and Congress in 2009, I and most Americans are not better off. We have lost most of our life’s earnings and retirements. Some have lost their homes, and many their jobs. They have trouble, after paying taxes on their lower salaries, of giving their children a chance at better education. We are now forced, unless muslem, to purchase products from the government and support government union workers as well as GM union workers while they further add burdeon to our lives. The US Constitution, US jobs, US manufacturing, US middle class, we have been thrown under the bus. The United States isn’t better off, but many democratic party special interests have made out well.”

Pete

Obama gas price facts August 6, 2012, Canadians embrace oil jobs, Canada unemployment rate falls to 7.2 percent, Canadians richer than Americans for first time

Obama gas price facts August 6, 2012, Canadians embrace oil jobs, Canada unemployment rate falls to 7.2 percent, Canadians richer than Americans for first time

“For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans they’re a huge problem, bordering on a crisis.”…Barack Obama May 2008

“We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times … and then just expect that other countries are going to say OK,”…Barack Obama May 2008

“Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.”…Barack Obama 

Obama’s “energy policy”, aka Chicago style pay to play politics, is destroying this country’s economy and jobs. Citizen Wells has kept you informed about the impact of high gas prices.

From Citizen Wells July 29, 2012.

“Gas prices are going back up and currently average $ 3.49 in the US. One of the biggest reasons gasoline prices have not risen further is the downturn in the US and world economies.”

“In 2009 when Obama took office, gasoline averaged around $ 1.85 a gallon. Here is a chart of gasoline prices for the last 3 years.”

“The Obama administration, despite the nation’s economic woes, effectively killed the job-producing Keystone Pipeline last month. The Arab Spring is turning the oil production of Libya and other Arab nations over to the Muslim Brotherhood. Iraq is distancing itself from the U.S. And everyone recognizes that Iran, whose crude supplies are critical to the European economy, will do anything it can to frustrate America’s strategic interests. In the face of all of this, Obama insists on cutting back U.S. oil potential with outrageous restrictions.”

“Part of Obama’s apparent war against U.S. energy independence includes a foreign-aid program that directly threatens my state’s sovereign territory. Obama’s State Department is giving away seven strategic, resource-laden Alaskan islands to the Russians. Yes, to the Putin regime in the Kremlin.”

“After Obama Blocks Pipeline, China Readies $15.1B Canadian Oil Deal”

“When President Barack Obama blocked the Keystone Pipeline, Republicans said the move would encourage Canada to pursue oil deals with China instead of the United States and cede a massive chunk of North American oil assets to the communist nation.

Now, with China’s state-run oil company CNOOC poised to cut a $15.1 billion deal–the largest ever foreign acquisition for a Chinese company–with Canadian oil company Nexen, Sen. Charles Schumer (D-NY) and Rep. Nancy Pelosi (D-CA) are in full backpedal mode.”

https://citizenwells.wordpress.com/2012/07/29/july-29-2012-gas-prices-up-obama-energy-policy-rewards-friends-punishes-americans-alaska-island-giveaway-to-russians-keystone-pipeline-canada-china-oil-deal/

Not only are Obama’s policies stalling the economy with the high price of gas, they are killing jobs in the oil industry. Our friends to the north are not so foolish.

From the Wall Street Journal September 12, 2011.

“Canada’s Oil Sands Are a Jobs Gusher”

“For all its soaring rhetoric, President Obama’s “jobs speech” last week didn’t demonstrate a lick of insight into why economies grow or how wealth is created. It was merely trademark Obamanomics: using government diktat to move money that’s over here, over there.

Having spent an hour the day before with Ron Liepert, the energy minister from the Canadian province of Alberta, I found it especially disturbing to hear nothing in the speech about reversing the administration’s anti-fossil-fuels agenda. Canada has recovered all the jobs it lost in the 2009 recession, and Alberta’s oil sands are no small part of that. The province is on track to become the world’s second-largest oil producer, after Saudi Arabia, within 10 years. Meanwhile Mr. Obama clings to his subsidies for solar panels and his religious faith in green jobs.

U.S. unemployment is high because capital is on strike. Short-term offers to coax investors into taking new risks aren’t going to cut it when they have been forewarned that the president intends to pay for it all by raising taxes in the out years. The market dropped over 300 points the day after Mr. Obama’s speech.

On the regulatory front the picture is even gloomier. Much of America’s vast untapped energy potential lies dormant because Mr. Obama’s regulatory watchdogs have spent the past three years throwing sand in the gears of the permitting process for exploration and exploitation on federal lands. Separately, TransCanada has been trying since September 2008 to get a permit to build the Keystone XL pipeline from Alberta to the Gulf Coast. The Environmental Protection Agency has so far blocked it.

TransCanada’s Keystone XL pipeline could mean 118,000 American jobs, if the U.S. government ever issues the permit.

A glimpse of what all this has cost the U.S. economy can be seen by looking north to Canada, where animal spirits have been unleashed in the energy sector. Canada’s close economic ties to the U.S. have traditionally meant that when the U.S. gets the sniffles, Canada gets swine flu. This time it’s been different. Part of the reason is that Canada’s housing market was not poisoned by a federal government push to put unqualified borrowers into homes they could not afford. After the 2008 collapse of the housing bubble in the U.S., the Canadian financial sector remained strong.

That alone was not enough to protect Canada from the effects of the U.S. recession. The manufacturing sector was hit hard, and in the first quarter of 2009 the economy contracted by an annualized 7.9%.

Yet Canada has outperformed the U.S. since then. In 2010, according to the International Monetary Fund, Canada grew at 3.2% versus 2.9% in the U.S. In 2011, the IMF estimates Canada will grow at 2.9%; unemployment is now 7.3%. The IMF’s U.S. growth forecast is 2.5% this year, and U.S. unemployment is 9.1%.

One explanation for Canada’s more robust growth is its strong commitment to energy, which has become more valuable in U.S. dollar terms under Federal Reserve Chairman Ben Bernanke’s inflationary policies. Alberta is now producing two million barrels per day but expects that number will grow to four to five million within a decade.”

Read more:

http://online.wsj.com/article/SB10001424053111904836104576560933917369412.html

From US News  July 18, 2012.

“For the First Time, Canadians Now Richer Than Americans

The average Canadian household is worth about $40,000 more than their American counterparts”

“The net worth of the average Canadian household in 2011 was $363,202.
While Americans might enjoy throwing politically-charged barbs at their neighbors to the north, Canadians now have at least one reason to be smug.

For the first time in recent history, the average Canadian is richer than the average American, according to a report cited in Toronto’s Globe and Mail.

And not just by a little. Currently, the average Canadian household is more than $40,000 richer than the average American household. The net worth of the average Canadian household in 2011 was $363,202, compared to around $320,000 for Americans.

If you’re thinking the Canadian advantage must be due to exchange rates, think again. The Canadian dollar has actually caught up to the U.S. dollar in recent years.

“These are not 60-cent dollars, but Canadian dollars more or less at par with the U.S. greenback,” Globe and Mail’s Michael Adams writes.

To add insult to injury, not only are Canadians comparatively better-off than Americans, they’re also more likely to be employed. The unemployment rate is 7.2 percent—and dropping—in Canada, while the U.S. is stuck with a stubbornly high rate of 8.2 percent.

Besides a strengthening currency and a better labor market, experts credit the particularly savage fallout from the financial crisis on the U.S. economy and housing market, which torpedoed home values and gutted household wealth. According to the report, real estate held by Canadians is worth more than $140,000 more on average and they have almost four times as much equity in their real estate investments.”

Read more:

http://www.usnews.com/news/articles/2012/07/18/for-the-first-time-canadians-now-richer-than-americans

 

July 29, 2012, Gas prices up, Obama energy policy rewards friends punishes Americans, Alaska island giveaway to Russians, Keystone Pipeline, Canada China oil deal

July 29, 2012, Gas prices up, Obama energy policy rewards friends punishes Americans, Alaska island giveaway to Russians, Keystone Pipeline, Canada China oil deal

“For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans they’re a huge problem, bordering on a crisis.”…Barack Obama May 2008

“We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times … and then just expect that other countries are going to say OK,”…Barack Obama May 2008

rising energy costs “one of the most dangerous and urgent threats this nation has ever faced” gas prices “are wiping out paychecks and straining businesses.”
Barack Obama August 2008

Gas prices are going back up and currently average $ 3.49 in the US. One of the biggest reasons gasoline prices have not risen further is the downturn in the US and world economies.

From the NY Times June 13, 2012.

“Mark Juull, a construction contractor for public and residential housing, has something to be thankful for in this sluggish economy: With global commodity prices falling, he’s saving $200 a week on fuel for his three trucks and finding deals on aluminum, lumber and roof shingles, which are typically made from petroleum.”

“Over the last month, global oil prices have declined by about 12 percent, while corn, copper, lead, cocoa and coffee have all dropped by 5 percent or more. Prices of corn, cocoa, oats, cotton, rubber, coffee, aluminum, silver, zinc and nickel are all more than 20 percent lower than a year ago.

Gasoline prices are falling precipitously, too, down nearly 20 cents over the last month alone, to a national average of $3.54 a gallon on Wednesday. That is nearly 45 cents below the high for the year reached in early April. The average household consumes 1,200 gallons of gasoline a year, so every dime shaved off the price of gas translates into a $120 annual savings, according to the Oil Price Information Service.

“The world economy is in risk of a recession and on that possibility, commodity prices weaken,” said Allen L. Sinai, chief global economist for Decision Economics, a consulting firm. “Lower inflation comes with weakening economies.”

Oil is among the commodities that have fallen in price the fastest despite continuing tensions in the Middle East and the tightening sanctions on Iran. OPEC production has been soaring in recent months because of mushrooming crude exports from Iraq, an almost total resumption of exports from Libya since the fall of the Qaddafi dictatorship, and a concerted drive by Saudi Arabia to push up production. At a meeting in Vienna on Thursday, OPEC is expected to decide to keep production steady despite weakening prices.”

http://www.nytimes.com/2012/06/14/business/economy/weak-economys-mixed-blessing-falling-commodity-prices.html

In 2009 when Obama took office, gasoline averaged around $ 1.85 a gallon. Here is a chart of gasoline prices for the last 3 years.

A long time commenter here brought this to my attention.

From WND February 16, 2012.

“The Obama administration, despite the nation’s economic woes, effectively killed the job-producing Keystone Pipeline last month. The Arab Spring is turning the oil production of Libya and other Arab nations over to the Muslim Brotherhood. Iraq is distancing itself from the U.S. And everyone recognizes that Iran, whose crude supplies are critical to the European economy, will do anything it can to frustrate America’s strategic interests. In the face of all of this, Obama insists on cutting back U.S. oil potential with outrageous restrictions.”

“Part of Obama’s apparent war against U.S. energy independence includes a foreign-aid program that directly threatens my state’s sovereign territory. Obama’s State Department is giving away seven strategic, resource-laden Alaskan islands to the Russians. Yes, to the Putin regime in the Kremlin.

The seven endangered islands in the Arctic Ocean and Bering Sea include one the size of Rhode Island and Delaware combined. The Russians are also to get the tens of thousands of square miles of oil-rich seabeds surrounding the islands. The Department of Interior estimates billions of barrels of oil are at stake.

The State Department has undertaken the giveaway in the guise of a maritime boundary agreement between Alaska and Siberia. Astoundingly, our federal government itself drew the line to put these seven Alaskan islands on the Russian side. But as an executive agreement, it could be reversed with the stroke of a pen by President Obama or Secretary Clinton.

The agreement was negotiated in total secrecy. The state of Alaska was not allowed to participate in the negotiations, nor was the public given any opportunity for comment. This is despite the fact the Alaska Legislature has passed resolutions of opposition – but the State Department doesn’t seem to care.

The imperiled Arctic Ocean islands include Wrangel, Bennett, Jeannette and Henrietta. Wrangel became American in 1881 with the landing of the U.S. Revenue Marine ship Thomas Corwin. The landing party included the famed naturalist John Muir. It is 3,000 square miles in size.

Northwest of Wrangel are the DeLong Islands, named for George Washington DeLong, the captain of USS Jeannette. Also in 1881, he discovered and claimed these three islands for the United States. He named them for the voyage co-sponsor, New York City newspaper publisher James Gordon Bennett. The ship’s crew received a hero’s welcome back in Washington, and Congress awarded them gold medals.

In the Bering Sea at the far west end of the Aleutian chain are Copper Island, Sea Lion Rock and Sea Otter Rock. They were ceded to the U.S. in Seward’s 1867 treaty with Russia.

Now is the time for the Obama administration to stand up for U.S. and Alaskan rights and invaluable resources. The State Department’s maritime agreement is a loser – it gives us nothing in return for giving up Alaska’s sovereign territory and invaluable resources. We won the Cold War and should start acting like it.”

http://www.wnd.com/2012/02/obamas-giveaway-oil-rich-islands-to-russia/

 

And now we learn.

From Patriot Update July 28, 2012.

“After Obama Blocks Pipeline, China Readies $15.1B Canadian Oil Deal”

“When President Barack Obama blocked the Keystone Pipeline, Republicans said the move would encourage Canada to pursue oil deals with China instead of the United States and cede a massive chunk of North American oil assets to the communist nation.

Now, with China’s state-run oil company CNOOC poised to cut a $15.1 billion deal–the largest ever foreign acquisition for a Chinese company–with Canadian oil company Nexen, Sen. Charles Schumer (D-NY) and Rep. Nancy Pelosi (D-CA) are in full backpedal mode.

In a draft letter to the Committee on Foreign Investment in the United States (CFIUS), Sen. Schumer writes:

I respectfully urge you, in your capacity as chairman of the Committee on Foreign Investment in the United States (CFIUS), to withhold approval of this transaction to ensure U.S. companies reciprocal treatment.

Similarly, Rep. Pelosi is now sounding alarms of concern. In a statement, Pelosi spokesperson Drew Hamill said:

This deal prompts great concern about the Chinese government’s continued attempts to use its state-owned enterprises to acquire global energy resources.

Saying “I told you so” offers little solace to concerned Republican lawmakers.”

http://patriotupdate.com/26926/after-obama-blocks-pipeline-china-readies-15-1b-canadian-oil-deal

Obama lies on Oil Companies Taxes Profits and impact on consumers, Obama energy policy based on Chicago pay to play politics, Truth Team notification

Obama lies on Oil Companies Taxes Profits and impact on consumers, Obama energy policy based on Chicago pay to play politics, Truth Team notification

“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. His heart sank as he thought of the enormous power arrayed against him, the ease with which any Party intellectual would overthrow him in debate, the subtle arguments which he would not be able to understand, much less answer. And yet he was in the right! They were wrong and he was right. The obvious, the silly, and the true had got to be defended. Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:

Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984”

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

The Truth team was created to keep the candidates honest. Once again I am here to help the Truth Team in their efforts. One of the candidates, Barack Hussein Obama has been spreading lies about oil companies and where the blame should be put for high gas prices.

From Business Week March 29, 2012.

“Obama Says Oil Profits Justify Ending U.S. Tax Breaks”

“President Barack Obama said oil company profits justify abolishing $4 billion in annual oil and natural gas subsidies and shifting those savings to research on clean-energy fuels.

With the Senate scheduled to vote on the matter later today, Obama again urged Congress to repeal the tax breaks. The measure is opposed by Republicans, who have the votes to block the legislation.

“It’s not like these are companies that can’t stand on their own,” Obama said in prepared remarks delivered in the White House Rose Garden. Last year, the three biggest U.S. oil companies took home more than $80 billion in profit, with Exxon Mobil Corp. collecting almost $4.7 million each hour, he said.

“And when the price of oil goes up, prices at the pump go up, and so do these companies’ profits,” he said. “Meanwhile, these companies pay a lower tax rate than most other companies on their investments — partly because we’re giving them billions in tax giveaways every year.”

Energy company subsidies are a staple of Obama’s re- election campaign rhetoric, meant to highlight the differences between himself and Republican presidential candidates and cast them as defenders of such spending as they propose cuts in health and other social programs to reduce a deficit forecast at $1.3 trillion this year.

In his Feb. 13 budget, Obama said existing tax “loopholes and expenditures” for the oil and natural gas companies amount to an unwarranted “preference” of these industries over others.

Criticism of Republicans
At Ohio State University March 22, Obama ridiculed Republican presidential candidates as the “flat Earth crowd,” who’d “rather give $4 billion in taxpayer subsidies to oil companies this year than to invest in clean energy.”

“We have been subsidizing oil companies for a century. That’s long enough,” he said.

Republicans today cited a March 3 Congressional Research Service report that found repealing $22.8 billion in tax breaks over five years would reduce the tax breaks for independent companies and, on a small scale, “would make oil and natural gas more expensive for U.S. consumers and likely increase foreign dependence.”

Senate Republican Leader Mitch McConnell of Kentucky, in an e-mailed statement, said Obama’s proposal is a political gambit in an election year and called the plan a “tax hike on American energy manufacturers” that he’d oppose.

Brendan Buck, a spokesman for House Republican Speaker John Boehner, said today in an e-mail that the president is giving a speech “with gas prices at $3.92 per gallon, calling for policy that would make gas more expensive and increase foreign dependence on oil. You wouldn’t believe it, right? Yet this is happening.”

Ending such breaks would reduce the deficit by $41 billion over a decade, according to Obama’s budget for fiscal 2013.

Subsidies were worth $24 billion for the five largest oil companies operating in the U.S., including Irving, Texas’s Exxon Mobil Corp. (XOM) (XOM) and Chevron Corp. in San Ramon, California, Senate Democrats said.”

http://www.businessweek.com/news/2012-03-29/obama-says-oil-company-profits-justify-ending-u-dot-s-dot-tax-br

Let’s begin with profits.

Combined, US oil companies are huge and employ millions of employees. Of course their profits will be large numbers.

Also, we want them to make a profit so that they can keep the gasoline and other petroleum products flowing and people working. If they fail, so does our economy.

And how big are the oil company profits?

Net profit margins:

Oil & Gas Refining & Marketing 3.00 %

Oil & Gas Pipelines 6.00 %

Compare these profit margins to other industries.

http://biz.yahoo.com/p/sum_qpmd.html

What about taxes?

First, the corporate tax rate in the US is near or at the top in the world.

US oil companies pay enormous amounts of taxes. How does this compare to one of Obama’s pay to play buddies GE? Check this out for yourself.

Here is the really important point about raising taxes on oil companies and other companies.

Companies (corporations, LLC’s, partnerships, sole proprietors) do not pay taxes!

Consumers pay for the tax increases.

Taxes are part of the cost of doing business.

A tax increase to a company results in some combination of the following:

Product and service price increases.

Employee and hours cutbacks.

Reduced hiring.

Does any of this sound familiar?

The Obama administration has been responsible for rising gas prices and they are now trying to raise them more.

Of course this has impacted food prices and jobs.

Sound familiar?

Obama lies continue, Energy policy Political Platitudes, Gas prices, Truth team moment, No concern from Obama for poor and working families

Obama lies continue, Energy policy Political Platitudes, Gas prices, Truth team moment, No concern from Obama for poor and working families

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984”

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

“Propaganda must not serve the truth, especially not insofar
as it might bring out something favorable for the opponent.”
Adolf Hitler

PP effluent from Obama and left.

Political Platitudes.

These are designed to appeal to Obama’s core support, the left, the elitists, the experts at spending other people’s money, like colleges and universities.

Obama PP in recent speeches.

In regard to the Republicans plan:

“three-point plan for $2 gas”

“Step one is to drill, step two is to drill, and step three is to keep on drilling.”

“not a strategy to solve our energy challenge.”

“It’s the easiest thing in the world to make phony election-year promises about lower gas prices,”

“What’s harder is to make a serious, sustained commitment to tackle a problem that may not be solved in one year or one term or even one decade.”

And straight from “1984” by George Orwell.

“In 2011, the United States relied less on foreign oil than in any of the last 16 years. Because of the investments we’ve made, the use of clean, renewable energy in this country has nearly doubled, and thousands of Americans have jobs because of it.”

Obama is speaking to his elitist, know it all support, such as the UNC University System, which recently raised tuition in a down economy.

This is a Truth Team moment.

While I agree that we need a comprehensive, common sense based energy program, we also need cheaper oil products in the short term. If Obama and his cronies really cared about poor and working class families, they would be concerned about rising gas prices which in turn raise the price of almost everything else, especially food prices. Obama appeases lower income folks with his lying rhetoric and the left with PP, Political Platitudes.

Obama states “not a strategy to solve our energy challenge.” in response to Republicans wanting lower gas prices. Obama’s startegy to help the economy and jobs has failed.

Obama, what is your stategy to help the poor and working families afford food.

More food stamps!

“phony election-year promises”

Obama is the king of phony election year promises.

Obama plan:

Tax

Spend

Promise

Blame

And in case you haven’t noticed, here is a chart presented here last year of the gas prices since Obama took office. I am certain you are aware of food price increases.