Allen West: Remember the Saudi oil crisis during the Carter Administration?

by Allen West

Allen West White House Townhall

Well, you’ve seen the president taking all the credit for something that happened in spite of his policies. We just recently reported how Obama is working to block any access to the Alaska National Wildlife Reserve(ANWR) for oil exploration by declaring it a wilderness.

Of course we all know very well the exploits of the EPA to usurp more private lands under various purported guises of protecting the environment. And what has to be of great concern to any American who comprehends our fragile and anemic economic recovery — 2.5 percent annual GDP growth can’t be considered the new normal — is that the minuscule economic growth we have seen is based on the boom in the oil and natural gas industry. So what if that comes crashing down?

As CBS News Money Watch says, ” A new report by the global information and analytics firm IHS (IHS) suggests the historic gains in U.S. oil production may end abruptly by the middle of this year.”

IHS bases its report on a study of 39,000 oil wells. It concludes that if prices for benchmark West Texas Intermediate (WTI) crude oil remain below $60 per barrel, month-to-month U.S. oil production could come to a halt in several months’ time. As of Tuesday, WTI was hovering well off its recent lows, at around $53 per barrel. Global oil prices have lost about half their value since last June, thanks in part to production of shale oil and tar sands from fields in the U.S. and Canada. And while that’s been great news for consumers, especially when it comes to gasoline prices, it’s bitten hard into the profits and operating budgets of U.S. oil producers and other companies that rely on oil production.”

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