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New Ad: Nine Dollar Gas



American Energy Alliance reminds consumers that President Obama and his administration are intentionally boosting the price of gas by restricting access to Americas natural resources. We have enough oil to fuel our economy for the next 200 years. To learn more, go to

The following ad will run in these States over the next two weeks: New Mexico, Colorado, Nevada, Iowa, Florida, Ohio, Virginia, and Michigan


MYTH: ” As a country that has 2 percent of the world’s oil reserves, but uses 20 percent of the world’s oil … what that means is, as much as we’re doing to increase oil production, we’re not going to be able to just drill our way out of the problem of high gas prices.” – March 7, 2012

FACT:  The reality is that the United States has enough recoverable oil to last for 200 years. In fact, the United States is the third largest oil producer in the world.

When President Obama’s says that the U.S. only has 2 percent of the world’s oil reserves, he is only talking about a small portion of our oil resources—reserves that have already been discovered through actual exploration or drilling and can be recovered economically.  But that isn’t all of the oil we have or all of the oil we could extract with today’s technology. According to government data, the United States has 1,442 billion barrels of technically recoverable oil—enough to last 200 years.

President Obama’s number does not include oil that we know exists, but are unable to access because of government restrictions. Much of these untapped reserves underlie oil-rich federal lands, including the Alaskan National Wildlife Refuge, the Naval Petroleum Reserve-Alaska, federal waters off the Atlantic and Pacific coasts, at least 45 percent of the Gulf of Mexico, the Chukchi and Beaufort Seas, and oil shale on federal lands in Colorado, Utah, and Wyoming, to name a few. In fact, the federal government only leases 3 percent of federal lands for energy development. The 2 percent number is artificially small because the federal government keeps so much of the tax-payer owned federal lands off limits.

To put our recoverable our resources in perspective, 1,442 billion barrels of oil more than six times the proved reserves of Saudi Arabia.

MYTH“There is no such thing as a quick fix when it comes to high gas prices. There’s no silver bullet.”  –  March 15, 2012

FACT:  We agree there is no silver bullet, but we should consider what happened when President Bush allowed lifted the executive moratorium on drilling in most of the Outer Continental Shelf (OCS). The price of oil fell over $9 per barrel almost immediately after the announcement.  It fell further when Speaker Nancy Pelosi announced that Congress would allow the congressional moratorium on offshore drilling to expire, as well.  Ebbs and flows in oil futures prices occur as markets attempt to anticipate what future supply and demand might look like for a global commodity like oil, and much of this access to resources hinges on the decisions of policymakers and world leaders.

Similar to allowing the executive moratorium to expire, President Obama could adopt pro-energy policies that would, with reasonable certainty, increase domestic oil production and/or supply to U.S. markets.  This anticipated future supply would place downward pressure on global oil prices, which represent the majority of the cost of a gallon of gasoline.  However, the Obama administration has undertaken numerous efforts that will instead curtail access to energy, including putting forth a five-year offshore drilling plan that closes the majority of the OCS to new production, restricting 75 percent of federal lands with Western oil shale resources to development, and denying a permit for the Keystone XL pipeline, which would have brought up to 800,000 barrels of oil per day to U.S. markets.

MYTHThe long-term solution to rising gas prices is to “invest in the technology that will help us use less oil in our cars and our trucks, in our buildings, in our factories.” – March 7, 2012

FACT: In 2009, the price of natural gas rose to over $14 MMBtu. Today the spot price is $2.03 at Henry Hub. The difference between today and 2009 is an increase in production that outstripped demand. Reducing oil demand faster than oil can be produced is highly unlikely. Oil demand is already falling.

In 2009, the U.S. used less oil than it did in 1978.  The U.S. has used less oil 5 years in a row.  The problem isn’t our usage—the growth in global demand is coming from countries like China that are using more and more affordable energy to fuel their rapidly growing economies.

Secondly, investments in wind and solar generation technologies have been subsidized since 1978, with even larger subsidies for actual production coming in 1992 and 2004.  In fiscal year 2010, subsidies were $775.64 per megawatt hour (mWh) for solar and $56.29/mWh for wind, compared to $0.64/mWh for coal, natural gas and petroleum liquids.  The “long-term” approach has been taken, billions of taxpayer dollars have been spent, and no affordable alternative to using oil as a transportation fuel has materialized.

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