In a New Orleans Advocate editorial of April 4 titled, "American families need cost of energy lowered" was the typical hype past statements by Scalise and the GOP concerning their in-bed relationship with the Oil and Gas industry. Scalise's bill passed the GOP controlled house titled, Lower Energy Costs Act is the latest example of folly.
Scalise claims that his legislation will produce more drilling and production, more timely offshore lease sales and reduce regulations that would end up reducing the price of oil and gas and lower inflation. But we know the price of a barrel of oil and gallon of gas is not connected to inflation. Just this week, OPEC announced a production cut and immediately American oil and gas industry followed and the next day prices increased in the U.S.
It is also a fact that the La. Dept. of Natural Resources and Office of Conservation published the offshore drilling activity historical data monthly and yearly and it reveals that the average offshore rig count during President Obama's first term was 33 working rigs and during his second term it average 38 working rigs per year. During Trump's four years the offshore rig count averaged 17 working rigs per year. So, Louisiana and the oil and gas industry did much better during the Obama administration even though Scalise said President Obama's moratorium after the BP Oil spill and blowout would cause an exodus of offshore rigs from the Gulf. The industry did not do so well under Trump because why drill when they received a 14% reduction in their corporate tax rate thanks to Trump and the GOP. Scalise never mentions that America became the world's leading producer of oil on President Obama's watch and that oil hit a record price at the time on the watch of President George W. Bush. Where were Scalise and the GOP during the oil and gas meltdown on Trump's watch? They were running the show.
It is nothing new for those who follow the facts, the oil and gas industry has its best years during democratic administrations and in the past 42 years the Clinton administration saw the largest yearly number of offshore rigs working the Gulf of Mexico when it averaged 90 working rigs per year. It was also the most stable price time for a barrel of oil and a gallon of gas.
If the bill ever arrives on the President's desk, President Biden should veto the bill for three reasons. The President knows the facts, the bill is just another Social give away to big oil and the President will not back off his green energy policy of phasing out fossil fuels over a period of time.
And that really says it all.
This commentary written by Joe Lorio
