27 May 2011

Issa’s Wrong About Domestic Oil Production

Posted by John Freeland

Yearly U.S. oil production (source: IndexMundi).

Domestic oil production has risen the last two years, reversing a long decline.

California Congressman Darrell Issa was on CNN’s In the Arena last night, accusing the Obama Administration of intentionally driving up fuel prices and stifling domestic production. The transcript from the program is available here. An excerpt:

REP. DARRELL ISSA (R), CALIFORNIA: Well, Eliot, as you probably know, Secretary Chu said that we needed European oil prices in order to affect the change that he wanted to have. Additionally, the president said when he was campaigning for cap-and-trade that there would be huge increases that would be necessary, that we will be part of it. Now he didn’t get cap-and-trade, but he is pursuing policies — both fiscal policies and financial policies, but also policies at the EPA and other agencies that are leading to a reduction in domestic production and increase in imports and higher prices.

According to the data shown on the graph, instead of “leading to a reduction in domestic production,” domestic production has actually increased.