Ex-Shell Head Says Energy Policies Choke Economy
by Heather Caygle
Houston Chronicle 2/11/2011
URL: http://www.rigzone.com/news/article.asp?a_id=104068Former Shell Oil Co. president John Hofmeister said that the Obama administration's energy policies and regulations are strangling the U.S. economy and preventing the country from decreasing its dependence on foreign oil.
Testifying before the House Energy and Power Subcommittee, the Houston businessman blamed the administration for restricting offshore drilling after the oil spill in the Gulf of Mexico last year.
"I believe that the decline" in drilling in the Gulf of Mexico "will be sharper and deeper than what anyone is currently projecting," he told lawmakers. "We have made a horrible error as a country."
Hofmeister was one of six energy experts testifying about the effect of Middle East political unrest, including the ongoing protests in Egypt, on the U.S. oil market. The panelists presented a gloomy view of the America's energy future if restrictions on domestic production remain. The Obama administration lifted a moratorium on deep-water drilling in October, but the government has not approved any projects that would have been blocked by that ban.
"We have a real strangulation by regulation taking place for domestic production at the current time in this country," Hofmeister said.
"It is "absolutely critical to reduce dependence on the Middle East," he said. â??He â??said, for example, that if oil tanker traffic were shut down in the Strait of Hormuz, the price of crude would double or even triple rapidly. Rep. Gene Green, D-Texas, said last year's deep-water moratorium and "endless permitting delays" already have affected production.
Some Democratic committee members said the U.S. should focus more on alternative energy and efficiency.
"The bottom line here is we can't afford to not improve the fuel economy standards for the vehicles which we drive," said Rep. Ed Markey, D-Mass. "That is our No. 1 weapon against the Middle East."
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