Waiting for the Election to Invest?

You Cant Afford to Wait (512) 527-6000

Fear of the outcome of a presidential election often causes investors to become increasingly wary of investment opportunities. This social occurrence, often referred to as buyers paralysis, becomes even more evident in the months leading up to an election. However, there is plenty of evidence to suggest that investing in oil and natural gas is a sound decision regardless of the presidential race. Despite environmental regulation increases and the prevention of offshore development, domestic oil production in the United States has increased by 24 percent compared to 2005 levels. Furthermore, the United States achieved an eight year high of 9.2 million barrels of oil per day in 2011.

Information from the EIA demonstrates that the federal government is not responsible for this spike. In fact, roughly 68 percent of the domestic oil and gas production increase in 2011 came from the development of state and privately-owned lands areas that are beyond the President's control. Meanwhile, oil and gas production on federally-owned lands decreased by 14 percent in 2011. This demonstrates a reduction of roughly 83 million barrels compared to the nine-year production high achieved in 2010.

The United States dependence on foreign oil has been steadily declining since 2005. Roughly 55 percent of the petroleum consumed in 2011 was produced domestically. The remaining 45 percent of petroleum imports came from foreign suppliers the lowest level since 1995.

Contrary to popular belief, over half of U.S. petroleum imports come from the western hemisphere. These countries exercise more rigid environmental, safety and labor restrictions compared to other top producing nations.

Ultimately, the outcome of this years election will have very little direct impact on the booming oil and gas industry. Energy policy has become a hot-ticket item for the 2012 Presidential Election. Because of this, both parties are tailoring their strategies to meet public opinion and are embracing the opportunities that a strong energy sector provides. The presidential debate will have very little impact on the domestic production of oil and natural gas in the upcoming years. Because of this, TAP Management and other domestic producers that engage in business activity solely with private land owners encourage investors to overcome their apprehension, and invest in their nations future. Contact TAP Management at (512) 527-6000 for more information about our current drilling projects.