January 3rd, 2011 10:59 EST
Gas to Hit $5 a Gallon in 2011?
Obama continues offshore drilling ban in favor of wind farms
With OPEC targeting $100/barrel oil as OPEC oil ministers gathered last week for a meeting in Cairo, 2011 may see oil challenge the $148/barrel all-time high reached in July 2008.
This comes at a time when the Obama administration is continuing a ban on offshore drilling in favor of offshore wind farms.
No amount of spin will win the Obama administration gains in public approval if gasoline tops $4/gallon or threatens to reach $5/gallon - an economic nightmare the American public might well see develop in 2011.
OPEC members Iran, Venezuela and Libya have weighed in favor of the $100/barrel target, rejecting Saudi Arabia`s preference for prices centered at the $75 level, the level that oil has traded above since September, according to Bloomberg.
The end of 2010 has seen oil prices climb above $90/barrel, as Red Alert predicted at the end of the third quarter 2010.
Obama bans offshore drilling
Earlier in December, the Obama administration reversed policy, announcing a ban on offshore drilling in the eastern Gulf of Mexico and off the Atlantic coast that is expected to continue for at least seven more years.
Ironically, in March, less than a month before the BP Deepwater Horizon oil rig disaster in the Gulf, Obama and Interior Secretary Ken Salazar had promised to open up the eastern Gulf and parts of the Atlantic coast to offshore oil and natural gas exploration.
The Obama administration has no consideration of reversing the ban on Pacific Coast oil and natural gas exploration that is expected to prohibit drilling until at least 2017, USA Today reported.
Clearly the decision to ban offshore drilling is a concession to the environmental groups on the political left that support President Obama.
Instead, last month Salazar launched a "Smart from the Start" wind energy initiative for the Atlantic Outer Continental Shelf designed "to facilitate siting, leasing and construction of new projects, spurring the rapid and responsible development of this abundant resource," according to a Department of Interior press release.
The decision is a follow up to the Cape Wind project announced in October, in which the Interior Department signed the nation`s first lease for commercial wind energy development with Cape Wind Associates LLC, a subsidiary of Energy Management, Inc.
The area involved in the Cape Wind project involves 25 square miles of the Outer Continental Shelf in the Nantucket Sound offshore Massachusetts.
The 130 planned wind turbines are estimated to generate a maximum electric output that could produce enough energy to power more than 200,000 homes
The Interior Department estimates that the Cape Wind energy project could generate enough power to meet 75 percent of the electricity demand for Cape Cod, Martha`s Vineyard and Nantucket Island combined.
Wind farms continue to fail
In making the decision to pursue wind energy, the Obama administration is ignoring abundantly available information that wind turbine farms have failed to be proven to be economically profitable ventures.
Texas oilman T. Boone Pickens has abandoned his $2 billion investment in a wind turbine farm in Pampa, Texas, despite having invested $58 million to broadcast a series of television commercials promoting his wind energy agenda.
In September, Deere & Co. announced its intention to sell its wind energy business to a subsidiary of Exelon for $900 million, the Associated Press reported.
Originally, in founding John Deere Renewables, the company saw the wind business as an extension of its agricultural work, with projects located in rural areas; before abandoning the project, Deere had invested more than $1 billion in the wind energy project over the last five years.
Last week, Colorado State University abandoned a plan to build a massive electricity-generating wind farm on CSU`s Maxwell ranch, according to Coloradoan.com.
Fort Collins campus president Tony Frank was forced to admit that a 2008 plan to transform the university into a "carbon-neutral" environment by 2020 was too ambitious.
Most of the electricity in Colorado comes from coal-fired power plants and from burning natural gas.
Currently, the Obama administration has no plan in place that has any reasonable chance of reducing the price of oil and natural gas in the near future.
ABOUT THE AUTHOR: Jerome R. Corsi received a Ph.D. from Harvard University in political science in 1972. He is the author of the #1 New York Times bestselling books THE OBAMA NATION: LEFTIST POLITICS AND THE CULT OF PERSONALITY and the co-author of UNFIT FOR COMMAND: SWIFT BOAT VETERANS SPEAK OUT AGAINST JOHN KERRY. He is also the author of AMERICA FOR SALE, THE LATE GREAT U.S.A., and WHY ISRAEL CAN`T WAIT. Currently, Dr. Corsi is a Senior Managing Director in the Financial Services Group at Gilford Securities as well as a senior staff writer for WorldNetDaily.com.
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ABOUT RED ALERT: Jerome Corsi`s RED ALERT is your weekly, global financial strategies newsletter. Designed to be your guide to economic trends in the best of times and the worst of times, it is edited by New York Times best-selling author Jerome Corsi, Senior Managing Director of the Financial Services Group at Gilford Securities as well as a WND senior staff writer and columnist. For 25 years, Corsi worked with banks throughout the U.S. and the world developing financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. Corsi developed three third-party financial services marketing firms that reached annual gross sales levels of $1 billion in annuities and equal volume in mutual funds. Corsi received his Ph.D. in political science from Harvard University in 1972.
By Dr. Jerome Corsi
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