"The following shall be nationals and citizens of the United States at birth: (g) a person born outside the geographical limits of the United States and its outlying possessions of parents one of whom is an alien, and the other a citizen of the United States who, prior to the birth of such person, was physically present in the United States or its outlying possessions for a period or periods totaling not less than five years, at least two of which were after attaining the age of fourteen years..."
Not so for Obama. You are citing the statute as is stood after 1986. The relevant statute is the one prior to 1986 that covers the time of Obamas birth. Section (g) of that is different. It states :
... a period of ten years, five after the age of fourteen, is required for physical presence in the United States or one of its outlying possessions to transmit U.S. citizenship to the child.)
Obamas mother was only 18, thus not satisfying the 5 year requirement to pass on citizenship.
That only applies to a foreign birth. The state of Hawaii says that Obama was born there.
“You know, during the campaign of 2008, I was actually in the mainland campaigning for Sen. McCain. This issue kept coming up so much in the campaign, and again I think it’s one of those issues that is simply a distraction from the more critical issues that are facing the country. And so I had my health director, who is a physician by background, go personally view the birth certificate in the birth records of the Department of Health, and we issued a news release at that time saying that the president was, in fact, born at Kapi’olani Hospital in Honolulu, Hawaii. And that’s just a fact. And yet people continue to call up and e-mail and want to make it an issue. And I think it’s, again, a horrible distraction for the country by those people who continue this. It’s been established. He was born here.” —[former] Governor Linda Lingle (R-HI)
http://voices.washingtonpost.com/right-now/2010/05/hawaii_gov_lingle_answers_the.html