The Obama administration has pursued an "all-of-the-above" energy strategy to increase domestic energy production from various sources and reduce U.S. dependence on foreign oil. Domestic oil production has increased under Obama, though gas prices are impacted more by global supply and demand. The U.S. needs to develop alternative energy sources because domestic drilling alone cannot meet energy needs given that the U.S. has only 2% of global oil reserves but uses 20% of the world's oil.

1. T H E O B A M A E N E R GY AG E N DA
ON DOMESTIC PRODUCTION DOMESTIC OIL PRODUCTION IS UP. FOREIGN IMPORTS ARE DOWN
“Under my administration, America is
producing more oil today than at any time in
U.S. PRODUCTION OF OIL RISING UNDER OBAMA U.S. DEPENDENCE ON FOREIGN OIL DECLINING
the last eight years…Under my administration, Domestic production of crude oil - thousands of barrels per day Net imports as a share of domestic consumption
we have a near-record number of oil rigs
operating right now -- more working oil and
6,000 60%
gas rigs than the rest of the world combined… 50%
We've opened up millions of new acres for oil 4,000 40%
and gas exploration where appropriate and
where it is done safely, and we've approved 2,000 20%
more than 400 drilling permits since we put in
place new safety standards to make sure that 0 0
’0 0 ’0 1 ’0 2 ’0 3 ’0 4 ’0 5 ’0 6 ’0 7 ’0 8 ’0 9 ’1 0 ’1 1 ’0 0 ’0 1 ’0 2 ’0 3 ’0 4 ’0 5 ’0 6 ’0 7 ’0 8 ’0 9 ’1 0 ’1 1
we don’t have the same kind of spill that we Annual average through end of year Annual average through end of year
had down in the Gulf a couple of years ago.”
SOURCE: EIA SOURCE: EIA
President Barack Obama
U.S. CRUDE OIL RIGS IN TOTAL OIL AND GAS PRODUCTION IS ON THE RISE
Nashua Community College
OPERATION ARE INCREASING
Nashua, New Hampshire
March 1, 2012
1200
960 13% increase
over 2 billion in the total federal oil
720 barrels production (offshore + onshore)
of American crude oil 2.97 trillion in the first three years of
480 were produced in 2011, cubic feet the Obama administration
the highest
240 level since 2003 of U.S. natural gas
production on public
lands in 2011,
0 the second best year
Jan Jan Jan Ja n De c in the past 10 years
2000 2003 2006 2009 2012
SOURCE: EIA
ON GAS PRICES INCREASED PRODUCTION DOESN’T LOWER GAS PRICES
“Right now we are experiencing just another
painful reminder of why developing new
energy is so critical to our future. Just like last GAS PRICES CONTINUE TO RISE OIL COMPANIES PROFIT WHEN AMERICANS
EVEN AS WE DRILL MORE PAY MORE AT THE PUMP
year, gas prices are climbing across the
country. This time, it’s happening even earlier.
Monthly average gasoline Total rotary oil rigs operating Yearly average gasoline Yearly profits for
And when gas prices go up, it hurts everybody retail price - regular grade in the United States retail price - regular grade top 3 oil companies
— everybody who owns a car, everybody who
owns a business. It means you’ve got to $4.50 1200 $4.50 $90 billion
stretch a paycheck even further. It means
you’ve got to find even more room in a budget $3.60 960 $3.60 $72 billion
that was already really tight. And some folks
have no choice but to drive a long way to $2.70 720 $2.70 $54 billion
work, and high gas prices are like a tax
straight out of your paycheck.” $1.80 480 $1.80 $36 billion
$0.90 240 $0.90 $18 billion
President Barack Obama
0 0 0 0
University of Miami 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Jan Jan Jan Jan Jan
Miami, Florida 2007 2008 2009 2010 2011
February 23, 2012
SOURCE: EIA SOURCE: EIA
While profits soar, oil companies are receiving about
$7,610 a minute in tax breaks. That’s $4 billion a year.
THE BASICS ON GAS AND PRODUCTION
The single biggest factor in the price Petroleum products made from
of gasoline is the cost of crude oil. 1 barrel of crude oil
Distribution and Marketing - 6%
Diesel - 10.04 gal
Taxes - 12% Other Distillates - 1.24 gal Crude oil prices are
There are about
Jet Fuel - 3.91 gal determined by
162,000 gas stations Refining - 6%
Other Products - 6.8 gal worldwide supply
across the U.S.
Crude Oil - 76% Heavy Oil - 1.68 gal
and demand.
Liquefied Petroleum Gases - 1.72 gal
Gasoline - 19.36 gal
46% of each barrel of oil is allocated
to make consumer gasoline
SOURCE: EIA
THE PRICE OF OIL IS SET ON THE WORLD MARKET
ON SUPPLY AND DEMAND
“Eight years ago, when America last Growing global demand and instability cause high gas prices
produced this same amount of oil, the
average cost of gasoline was $1.56. So the
amount of oil we drill at home doesn’t set GLOBAL OIL CONSUMPTION IS SOARING CHINA TRIPLED ITS NUMBER OF CARS—AND ITS GAS
the price of gas on its own. That’s because Cumulative growth in total oil consumption NEEDS—IN JUST 4 YEARS
oil is bought and sold in a world market.
And just like last year, one thing that’s
China India U.S.
causing the price of oil to rise right now is 120%
instability in the Middle East – this time in
Iran. But over the long-term, what will keep 96%
causing the price of oil to rise are the
rapidly growing populations of countries 72%
like China, India, and Brazil.”
48%
President Barack Obama
University of Miami
2006 - 11,000,000 2010 - 34,430,000
24%
Miami, Florida
February, 23, 2012
0% The number of cars in the U.S. grew by 10 percent in that time
1995 1998 2001 2004 2007 2010
SOURCE: EIA S O U R C E : 2 0 1 1 , W A R D ' S A U TO M O T I V E G R O U P,
A D I V I S I O N O F P E N TO N M E D I A I N C .
GLOBAL INSTABILITY CAUSES UNPREDICTABLE PRICE SPIKES Price adjusted for Price at the pump
Quarterly retail price per gallon of regular grade gas 2012 dollars at time of sale
$5.00
Global Financial Crisis
Hurricanes Katrina Arab Spring
Iran/Iraq War and Rita
$4.00
OPEC cuts Output
$3.00 Operation Desert Storm
September 11, 2001
$2.00
$1.00
0
1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 jan-feb
2012
SOURCE: EIA
ON RESERVES MORE DOMESTIC DRILLING WILL NEVER MEET OUR ENERGY NEEDS
“The United States consumes more than 20
percent of the world’s oil, but we only have 2
PROVED OIL RESERVES FOR TOP 14 COUNTRIES
percent of the world’s oil reserves — 20
percent we use; we only produce 2 percent.
And no matter what we do, it's not going to
get much above 3 percent. So we're still
going to have this huge shortfall. That's why RUSSIA KUWAIT
if we really want energy security and energy 60 billion
1 2
LIBYA barrels 104 billion barrels
independence, we've got to start looking at 46.4 billion IRAN CANADA VENEZUELA SAUDI ARABIA
how we use less oil, and use other energy barrels UAE
137 billion barrels 175.2 billion barrels 211.2 billion barrels 262.6 billion barrels
sources that we can renew and that we can QATAR 97.8 billion barrels
control, so we are not subject to the whims of 25.4 billion barrels IRAQ
UNITED STATES 115 billion barrels
what's happening in other countries.”
20.7 billion barrels
CHINA 1 KAZAKHSTAN 2 NIGERIA The U.S. has only 2 percent of the world’s oil reserves.
President Barack Obama But we use 20 percent of the world’s oil.
14.8 billion barrels 30 billion barrels 37.2 billion barrels
Nashua Community College
Nashua, New Hampshire
March 1, 2012
YEARLY WORLD OIL PRODUCTION
The U.S. uses 20% of the world’s oil production
S O U R C E : C I A W O R L D FA C T B O O K
ON ALL OF THE ABOVE STRATEGY WE NEED AN ALL-OF-THE-ABOVE APPROACH
“If we are going to control our energy future,
then we’ve got to have an all-of-the-above
strategy. We’ve got to develop every source of Safely develop our large supply of domestic Open new areas for oil and gas exploration
American energy -- not just oil and gas, but natural gas, and create new technologies
that allow us to put that gas to good use. Onshore: January 2009 to March 2011
wind power and solar power, nuclear power,
Acres offered for lease: Over 6 million
biofuels. We need to invest in the technology The U.S. is the largest producer Acres leased: Fewer than 4 million
that will help us use less oil in our cars and our of natural gas in the world Offshore in 2012
trucks, in our buildings, in our factories. That’s Acres offered for lease: Nearly 37 million
E F
the only solution to the challenge. Because as Acres leased: 2.4 million
we start using less, that lowers the demand,
prices come down. It's pretty straightforward. Continue building new cars and trucks
That’s the only solution to this challenge. And with better fuel efficiency standards Increase our use of energy from renewable
that’s the strategy that we’ve now been
sources such as wind, solar, and hydropower.
The fuel economy standards will
pursuing for the last three years.” reduce oil consumption by an President Obama proposed a Clean
estimated 2.2 million barrels a Energy Standard that would double the
day by 2025. share of electricity generated from clean
President Barack Obama energy sources over the next 25 years.
Daimler Truck Manufacturing Plant
Mount Holly, North Carolina
Obama administration fuel efficiency standards Doubling renewable electricity generation, 2008-2012
March 7, 2012 70 mpg 200
60 mpg
X Vehicles on the road in
50 mpg 2025 will average 54.5 150
miles per gallon, saving
the average family
40 mpg
Terawatt Hours
$8,000 at the pump
Passenger Cars 100
30 mpg
20 mpg
Light Trucks 50
10 mpg
0
1975 1985 1995 2005 2015 2025 0
2008 2009 2010 2011 2012
Obama administration
standards Wind Solar
MY1978-2011 figure are NHTSA Corporate Average Fuel Economy (CAFE) Geothermal Distributed solar
standards in miles per gallon. Standards for MY2012-2025 are EPA greenhouse and wind
gas emission standards in miles per gallon equivalent, incorporating air
conditioning improvements. Dashed Lines denote that standards for
MY2017-2025 reflect percentage increases in Notice of Proposed Rulemaking. SOURCE: EIA
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March 12, 2012