Poll: More Domestic U.S. Gas, Oil Development Needed

- Poll: More Domestic U.S. Gas, Oil Development Needed

Thursday, June 30, 2011
Rasmussen Reports

Most voters continue to feel America needs to do more to develop domestic gas and oil resources. They also still give the edge to finding new sources of oil over reducing gas and oil consumption.

The latest Rasmussen Reports national telephone survey of Likely Voters shows that just 19% believe the United States does enough to develop its own gas and oil resources. Seventy-five percent (75%) do not think the country is doing enough in this area. These findings are virtually unchanged from late February.

Forty-nine percent (49%) of voters say, when given the choice, that increasing the supply of oil by finding new sources is a better energy policy than reducing demand by cutting gas and oil consumption. Forty-two percent (42%) believe reducing the demand for oil is the better energy policy.

The gap between the two was a bit wider in June 2008, when 39% said reducing demand was more important and 47% preferred increasing the supply. But a majority of voters for years have said finding new sources of energy is more important than reducing the amount of energy Americans consume. At the same time, most voters believe investment in renewable energy sources like solar wind is the best long-term solution the nation’s energy issue.

The survey of 1,000 Likely Voters U.S. Voters was conducted on June 26-27, 2011 by Rasmussen Reports. The margin of sampling error is +/- 3 percentage points with a 95% level of confidence. Field work for all Rasmussen Reports surveys is conducted by Pulse Opinion Research, LLC.

Republicans and voters not affiliated with either party believe more strongly than Democrats that America is not doing enough to develop its own gas and oil resources. But sizable majorities across all demographic categories share this belief.

Most Democrats (59%) favor reducing demand for oil over increasing the supply through development of new sources. Sixty-nine percent (69%) of Republicans think increasing the supply is the better policy to follow. Unaffiliated voters are evenly divided on this question. Fifty-three percent (53%) of Political Class voters say reducing the demand for oil is the better energy policy, while 52% of Mainstream prefer the opposite approach.

This past April, one year after the devastating Deepwater Horizon oil spill in the Gulf of Mexico, most voters (59%) were again supportive of deepwater drilling. Two-out-of-three voters (67%) support offshore drilling. Fifty-five percent (55%) oppose President Obama's seven-year ban on offshore oil and gas drilling in part of the Gulf of Mexico and along the East Coast.

One-in-two Americans are ready to drill for oil in the Arctic National Wildlife Refuge (ANWR) to lessen the country’s dependence on foreign oil. However, only 38% think the United States is even somewhat likely to reduce its dependence on foreign oil by the year 2025, a goal set by the president in an energy plan earlier this year.

Americans are no more enthusiastic than they were a year ago about buying a car that runs on alternative fuel.

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Ky. Congressman: Make Domestic Oil Exploration Easier

Ky. Congressman: Make Domestic Oil Exploration Easier

Tuesday, May 10, 2011
The Blade, Toledo, Ohio
by Tom Troy

Boosting U.S. oil production would send gasoline prices downward and help free the United States from dependence on foreign oil, according to U.S. Rep. Bob Latta, who on Monday announced a package of bills to free up the domestic oil industry.

Mr. Latta's legislation, the "Consumer Relief of Pain at the Pump Act," contains numerous provisions that would allow for more exploration of oil and natural gas in the ocean outer continental shelf, the Gulf of Mexico, Alaska, and in the lower 48 states.

It would abolish regulations, tamp down on environmental lawsuits, and repeal a $4,000 fee on new applications for drilling permits.

"We've got to be able to produce our own energy in this country," Mr. Latta said.

The Bowling Green Republican held his news conference in front of a rusty old oil derrick at the Wood County Historical Museum near Bowling Green, the legacy of an era when producers in northwest Ohio and Indiana led the nation in oil production.

"Given America's abundance of natural resources, there is no reason why we are sitting tight and letting gas prices soar. I am excited to introduce this bill, which will curb surging gas prices and create downward pressure on the cost of oil by allowing America to take advantage of its vast domestic oil resources," Mr. Latta said.

He said the oil sources cited in the bill are capable of providing 198 billion barrels of oil, not counting shale oil.

Critics contend that America's domestic reserves won't make a big enough impact soon enough to lower the price of gasoline.

Republicans gained control of the House last November, running in part on promises to expand domestic oil projection. Mr. Latta's bill is one of several that aims to turn the GOP goal into reality.

Mr. Latta is chairman of the Energy Working Group of the Republican Study Committee, a conservative caucus within the Republican majority of the House of Representatives. He said the bill has 33 co-sponsors in the House.

The aim of the legislation is to increase the supply of North American energy by lessening "the regulatory burdens, mandates, and prohibitions that artificially increase the price of gasoline."

Mr. Latta held a similar news conference to promote domestic oil exploration on May 27, 2008, when a gallon of gasoline cost $4.09 at one Bowling Green station. Six months later, as the nation was plunged into a financial crisis and a recession, the price was less than half that much.

Monday the average price of regular gasoline in Toledo was $3.97 a gallon, about 19 cents less than one week earlier. A year ago, the average gallon of gas in Toledo cost $2.79.

Last week, U.S. Rep. Marcy Kaptur (D., Toledo) called on House Republicans to allow a vote on President Obama's proposal to end $4 billion in oil-industry tax benefits.

While acknowledging that reducing the oil and gas companies' tax deductions would be unlikely to reduce retail gasoline prices, Miss Kaptur said the additional revenue could be used to reduce the national deficit or could be paid out as a consumer refund.

Kaptur spokesman Steve Fought said the five biggest American oil companies earned a combined $27 billion in the first quarter.

"I don't think they need tax breaks from the middle class," Mr. Fought said.

President Obama has proposed using the funds for alternative-energy programs. The President has said that domestic production is at its highest point since 2003.

"The challenge is we've only got about 2 to 3 percent of the world's oil reserves and we use 25 percent of the world's oil. So we can't just drill our way out of the problem," Mr. Obama said in a recent speech.

Mr. Latta said repealing the tax benefits would be passed along to consumers in the price at the pump.

Copyright (c) 2011, The Blade, Toledo, Ohio. Distributed by McClatchy-Tribune Information Services.

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Credit Suisse Lowers U.S. GDP Forecasts for First Half 2011

Credit Suisse Lowers U.S. GDP Forecasts for First Half 2011



Credit Suisse has revised down its U.S. GDP forecasts for the first half of 2011. The firm now expects 2.5% real GDP growth in Q1, down from its previous forecast of 3.5%. Its Q2 forecast was also revised down to 3.3% from 3.7%. However, the firm's 2011 second half forecasts remain unaltered at 3.8% and 4.0% for Q3 and Q4, respectively. Credit Suisse expects full year 2011 growth of 3.4% on a year-over-year basis and 3% on an annual average basis. This is down from its previous estimate of 3.8% and 3.3%, respectively. The firm sees 4.0% real GDP growth in 2012.

Credit Suisse issued a statement saying: The first quarter's forecast revision is mostly due to current quarter accounting. The monthly building blocks that add up to GDP have consistently printed below expectations this quarter, defying the much rosier readings from other parallel evidence on the economy (such as the ISM surveys). The list of GDP "source data" disappointments includes home sales, housing starts, capital goods shipments, non-residential construction, federal spending, and a sharp increase in the trade deficit. Most importantly, the GDP's largest building block - consumer spending - is slowing sharply on a sequential basis, on track for less than 2% growth in Q1, compared to 4% growth in Q4. Our revision to second quarter growth is partly a consequence of higher oil prices and the negative effect on real income growth. Consumer confidence gauges also fell sharply in March, presumably due to higher gasoline prices. Another reason for our Q2 downgrade is housing, particularly the 22% plunge in February housing starts. Falling starts will impact future readings on construction outlays and the associated GDP component - residential investment.