America is the third largest oil-producing nation in the world with Alaska being able to produce in excessive of 2 Million Barrels a day as it did in 1988, and the lower 48 States being able to produce over 9 million barrels per day in the early 1970’s.  Today this oil production is less than ½ for both Alaska and the lower 48, primarily due to a low market price that has resulted in capping many of these wells. [1]

During June of 2004, while world oil production remained constant, US oil production began to drop.  This began in late May due to the lack of production by the Alaskan Pipeline.  Alaska dipped below 900,000 bbls a day for the first time in July of 2004, and reached a record low in August of 2004 producing only 701,000 bbls per day on the average, less than 278,000 bbls per day less than March.[2]

Immediately after this short fall oil production dropped in the lower 48 states during the months of September (4,222,000 bbls a day) and October, down to it lowest production ever (4,178,000 bbls a day), a drop of 528,000 bbls per day average.

Imports during the month of September dropped by 500,000 bbls a day while world production remained constant.

Gas consumption dropped in 2004 in comparison to 2003, and more oilrigs were in operation during this period of time, (156 per month average) from Sept 2003 to Nov 2003 compared to, (173 per month average) from Sept 2004 to November of 2004.

This shortage in oil production with back-to-back record low crude oil production for both Alaska and the Lower 48, along with a shortage of Imports during this exact same time clearly indicates that this was no coincidence.  Oil Companies know that in order to boost the prices of oil, the American market was going to need to be targeted.  American Oil Business’s purposely lowered the supply of oil in order to increase the demand from May to November.  With the elections, focus was more easily diverted while the Nations people and news agencies were fixated on the elections.  The results of this drop in supply means today that the oil companies in America today are able to receive over $50 a barrel,

 EIA GRAPHS

The cost per barrel of crude oil has risen from March 2003 ($32.86 per bbl) to over $60 per bbl today.  With productivity today being back to its near normal amount (5,542,000 bbls per day) as of 6/10/2005.  This is a $27.14 increase per bbl minimum profit, $150,409,880 per day, $4,574,967183 per month, $54,899,606,200 per year in earnings, and this is only American Oil pumped from our land.  Is it any wonder that the Oil Companies and refineries are recording record profits?

Created Graph to show downfall in production

0 = Previous years Average from May to November

There is no justification for the Oil Companies shortfall in production.  Today’s technology allows companies to locate oil deposits with much greater accuracy and this reduces their overhead for unnecessary drilling reducing their costs.  Additionally, the Oil Companies lease this Federal Land (from Americans) and is placed in the care of our representatives to extract this oil.  The oil is under US jurisdiction and anyone who finds oil on their land does not have the rights to it, and now this also includes miles out to sea.  The US Government should have Jurisdiction on both the volume and controls on the amounts that these companies need to extract and how much they can charge back to us, the people for extracting it.  Has our Government failed in its responsibilities by releasing these rights of both price and control to these companies through these lease agreements, or is the Government in some way involved in these false claims of shortage?

Our Representatives have the responsibility to its people to use its Oil Resources wisely for the betterment of our nation as a whole, including the future.  The Oil Companies, a hand full of men, have now shown their inability to produce and control the oil needs for this nation and as a result we are looking at the onset of a recession.  They should not have this kind of power or control over our economy and way of life, and this power and control should go under US jurisdiction.  We the people want more control by our Representatives.

It would be a wise Representative that would take the initiative to increase the Alaskan Oil Production to 1 Million Barrels per day,[3] and to increase production in the Lower 48 States to 5 Million Barrels per day increasing the supply, lowering the demand, and bringing the prices and concerns for oil down in order to avoid deepening a recession in America.

If politicians really wanted to conserve energy as they say, and make this world a better and cleaner world, then lets see if they are willing to offer this…

Offer a $100,000,000.00 purse, this is $3 for every person in America, to any AMERICAN CITIZEN or AMERICAN owned and operated Business, University or Non-Profit Organization who successfully creates a vehicle that can run coast to coast, non stop, operates at normal speeds, rests for no more than 10 minutes every 300 miles, has both heating and air conditioning, conforms to all-automobile safety standards, and accomplishes this without fuel.  Some people say this cannot be done, and if this is the case, such an offer will never be paid out.  If it does, then we can look at drastically reducing pollution and have an impact on reducing the problems with Global Warming by reducing emission levels.  Think of the technological gains we would gain, and the American Spirit of unity and support of such a challenge.

When a handful of men can determine the destiny of our nations economy, it is time for our Representatives to take action and put in place controls to prevent this from having any further harmful affects upon its people. If the Government will not assist in such a venture, then it is time for the people to ban together and have their voice be heard.