We can and must rejuvenate our economy by developing America’s resource bounties
by Paul Driessen
Governor Mitt Romney strongly supports North American energy independence as the foundation of renewed US employment and prosperity. President Obama is waging war on fossil fuels, job creation, and efforts to end our economic recession and reduce dependence on Middle Eastern and Russian oil.
Romney’s emphasis on careful analysis and due diligence brought him and Bain Capital notable winners like AMC Entertainment, Burger King, Burlington Coat Factory, Domino’s Pizza, Dunkin’ Donuts and Staples. Obama’s focus on ideology, political calculation, cronyism and campaign contributors produced scandalous losers like A123, Abound Solar, Crescent Dunes, Ener1, Fisker, Mountain Plaza, Solyndra, Tesla, and a host of wind and biofuel projects that would collapse if their taxpayer subsidies were cut off.
Not surprisingly, US gasoline prices are double what they were the day Obama took office. Some 25 million Americans are without full-time jobs – leaving 23% of the workforce unemployed, involuntarily working part-time or at jobs where they are overqualified, making far less money than they did previously, or no longer looking for a job. Our 64% “labor participation rate” is at a 30-year low.
There are still 4.5 million fewer jobs than in 2007, even though our population has grown; the hourly wage of college-educated Americans age 23 to 29 fell 4.7% between 2007 and 2011; median household income plummeted $3,040 since the recession (supposedly, officially) ended in June 2009; and a record 45 million Americans are on food stamps.
Meanwhile, the ever-unstable Middle East is even more unstable. Terrorists murdered our ambassador to Libya. A pitiful anti-Islamist video excused riots in Egypt, where a Muslim Brotherhood leader is now president. More than 33,000 have died in a nasty Syrian civil war. Internecine conflicts continue in Iraq and elsewhere. The seemingly perpetual Israeli-Palestinian conflict remains poised to intensify. the Taliban and Al Qaeda continue to build power and launch vicious attacks, such as gunning down the US embassy’s Yemeni security chief in Sana’a. And we are importing oil from brutal human rights violators.
Outside the Middle East, the Putin government is using energy to pressure and blackmail European nations dependent on Russian oil and gas, while orchestrating anti-fracking campaigns to keep EU countries from tapping their abundant shale gas supplies. Politics, events and human rights violations raise further questions about Russia, Ecuador, Venezuela, Nigeria and Sudan. And many of these countries are among our most important oil suppliers – because we refuse to develop our own deposits.
Since oil is sold in a world market, producing more in the United States means we could import less from abroad, free up more oil for other nations, and push prices down. Exporting US natural gas and drilling, fracking and production expertise would make other nations less dependent on the Middle East and Russia, bring natural gas prices down further, turbo-charge economies, and encourage African countries to use gas to generate electricity, rather than “flaring” it as an unwanted byproduct of oil production.
Romney understands this. He is calling for more oil and natural gas production here in the United States, changes to excessive and counterproductive federal regulations that raise energy costs and kill jobs, and increased use of friendly Canadian oil to serve America’s consumers. He knows this will protect us against disruptions in Middle East oil supplies, reduce the flow of American dollars to totalitarian human rights violators, create American jobs, increase tax revenues, and jumpstart our sluggish economy.
President Obama, by contrast, continues to ignore reality and embrace policies based on hope, green dreams, and a determination to “fundamentally transform” America’s Constitution, economy, society and business system. He continues to waste billions of taxpayer dollars to subsidize unreliable, unsustainable, inefficient, insufficient energy forms that are at best decades from competing in the free market – even as 80% of Department of Energy grants and loans went to companies owned or controlled by Obama contributors; DOE restructured its $465 million loan to Tesla, to make sure the electric-car company doesn’t run out of cash right before the election; and President Obama says malnourished, energy-deprived Africans should avoid fossil fuels and rely instead on wind, solar and biofuel power.
Many recipients of involuntary taxpayer largesse are donors to Obama and Democrat re-election campaigns; have electoral clout in crucial swing states, where corn growers and others benefit from ethanol, wind and solar schemes; or provide crucial propaganda and campaign services via government employee and labor unions and tax-exempt radical environmentalist organizations.
While Obama turns his back on the reliable fossil fuels that power America’s economic engine, he denounces and demonizes companies that produce this hydrocarbon energy, pay billions of dollars in taxes and support millions of American jobs. He singles out America’s oil and natural gas sector for discriminatory tax increases and excessive regulations, and makes more and more federal lands, waters and resources off limits to responsible exploration and development.
Environmental activists and the Obama Administration express outrage about subsidies for traditional, efficient means of generating electricity, which amount to $0.25-$0.44 (25-44 cents) per megawatt-hour for coal and natural gas and $1.59 per MWH for nuclear. But they are eerily silent about enormous subsidies for wind ($23.37 per MWH) and solar electricity ($24.34 per MWH).
They express equal outrage about importing petroleum from Canada’s oil sands via the Keystone Pipeline – but are silent about imports of thick, gooey crude from Venezuelan dictator Hugo Chavez. They brag about increased US oil and gas production on private lands, but insist that there be little or no drilling in the Outer Continental Shelf, Arctic National Wildlife Refuge, Rocky Mountains or even National Petroleum Reserve Alaska, which Congress set aside decades ago specifically to safeguard our national security by increasing exploration in areas with the best potential for oil and gas.
Lisa Jackson’s Environmental Protection Agency is imposing draconian restrictions on power plants and other CO2 sources, as another way of “skinning the cat” and hyper-regulating coal out of the US energy picture, after Congress rejected cap-tax-and-trade legislation. Meantime, Rep. Jim McDermott (D-WA) has introduced the Managed Carbon Price Act, which analysts say will impose regressive taxes that will rise to $5.20 per gallon of gasoline by 2024 and equally hefty surcharges on other hydrocarbon use.
The impact on transportation, shipping, commuting, manufacturing, jobs and families is frightening to contemplate. So is the fact that these actions are coming even as Britain’s Meteorological Office released data showing that the world stopped getting warmer almost 16 years ago – and that average global temperatures rose an impossible-to-measure and statistically insignificant 0.03 degrees C per decade.
Meanwhile, Germany, Italy and Japan plan to phase out nuclear power, thereby increasing their use of natural gas and coal for electricity – while China and India plan to build 900 new coal-fired power plants to electrify their growing economies. All will pump millions of tons of carbon dioxide into the atmosphere – dwarfing any reductions the USA might achieve by closing more power plants and further shackling our economy.
The Administration’s actions have been arrogant, irresponsible and autocratic. Win or lose in November, the White House, EPA, DOE and Interior Department will impose boxcars of punitive new regulations that have been put on hold until November 7.
We can dig ourselves out of this hole. We can and must rejuvenate and reinvigorate our economy, by developing America’s resource bounties.
We don’t need to “fundamentally transform” America’s economy, society and free enterprise system. We need to fundamentally transform the anti-hydrocarbon culture that pervades the Congress, White House, Executive Branch and radical environmental groups that have brought us to where we are today.
Paul Driessen is senior policy advisor for the Committee For A Constructive Tomorrow and Congress of Racial Equality, and author or Eco-Imperialism: Green power – Black death. 10/15/12
April 26, 2011 2:30 p.m
Attached is the verbatim text of a letter from the president to Congressional leaders regarding oil subsidies:
Dear Speaker Boehner, Senator Reid, Senator McConnell, and Representative Pelosi:
I am writing to urge you to take immediate action to eliminate unwarranted tax breaks for the oil and gas industry, and to use those dollars to invest in clean energy to reduce our dependence on foreign oil.
High oil and gasoline prices are weighing on the minds and pocketbooks of every American family. While our economy has begun to recover, with 1.8 million private sector jobs created over the last 13 months, too many Americans are still struggling to find a job or simply just to pay the bills. The recent steep increase in gas prices, driven by increased global demand and compounded by unrest and supply disruptions in the Middle East, has only added to those struggles. If sustained, these high prices have the potential to slow down the pace of our economy’s growth at precisely the moment when we need to be accelerating it.
While there is no silver bullet to address rising gas prices in the short term, there are steps we can take to ensure the American people don’t fall victim to skyrocketing gas prices over the long term. One of those steps is to eliminate unwarranted tax breaks to the oil and gas industry and invest that revenue into clean energy to reduce our dependence on foreign oil. Our outdated tax laws currently provide the oil and gas industry more than $4 billion per year in these subsidies, even though oil prices are high and the industry is projected to report outsized profits this quarter. In fact, in the past CEO’s of the major oil companies made it clear that high oil prices provide more than enough profit motive to invest in domestic exploration and production without special tax breaks. As we work together to reduce our deficits, we simply can’t afford these wasteful subsidies, and that is why I proposed to eliminate them in my FY11 and FY12 budgets.
I was heartened that Speaker Boehner yesterday expressed openness to eliminating these tax subsidies for the oil and gas industry. Our political system has for too long avoided and ignored this important step, and I hope we can come together in a bipartisan manner to get it done.
In addition, we need to get to work immediately on the longer term goal of reducing our dependence on foreign oil, and our vulnerability to price fluctuations this dependence creates. Without a comprehensive energy strategy for the future we will stay stuck in the same old pattern of heated political rhetoric when prices rise and apathy and neglect when they fall again.
I recently laid out my approach to a comprehensive strategy in my Blueprint for a Secure Energy Future, which includes safe and responsible production of our domestic oil and gas resources and doubling down on fuel efficiency in the transportation sector while investing in everything from wind and solar to biofuels and natural gas. None of you will agree with every aspect of this strategy. But I am confident that, in many areas, we can work together to help show the American people that we can make progress on an energy policy that creates jobs and makes our country more secure.
And I hope we can all agree that, instead of continuing to subsidize yesterday’s energy sources, we need to invest in tomorrow’s. We need to invest in a 21st century clean energy economy that will keep America competitive. In the long term, that’s the answer. That’s the key to helping families avoid pain at the pump and reducing our dependence on foreign oil.
by: Tim T. Schowalter
To the Editor:
Now that oil is back up to $100-plus a barrel,is spouting nice words but no plan of action. Not only do his words carry no action, they are distortions and outright lies about what he has done in the last two years and what he plans to do. He has increased our dependence on , not decreased it.
First, he capriciously shut down drilling in the, putting 80,000 people out of work and reducing . Most of those rigs have taken long-term contracts in other countries and the rigs and jobs won’t come back for years. Ironically, by executive order he gave $2 billion to to drill in their deep water offshore. So, we can’t drill for oil but we are paying money to the 5th largest economy in the world to drill in the same environment that he shut down in the U.S. This has to be one of the most corrupt give-aways in American history as one of the owner’s of the Brazilian company is , a major Obama supporter.
Under Obama, leasing on federal lands has been decreased by 75 percent. It now takes two to three years to get a lease and a permit to drill. Thank goodness Obama only controls drilling on federal lands.
By contrast on state lands you could be drilling in 30 days. U.S. oil production is going up and Obama claims credit but he has done nothing to help. Production is up because oil companies are finding new oil fields, mainly inon private lands.
Obama’s stimulus package gave billions of dollars of our money to subsidize high priced wind and solar projects. Wind and solar project energy do nothing to decrease our dependence on foreign oil as we only generate 1 percent of our electricity from oil. Obama also plans to continue to subsidize bio fuels, which take as much energy to make as they deliver and raising food costs in the process.
If we want to reduce our dependence on foreign oil we need to drill in America. Wake up America, Obama is making us more dependent on foreign oil — not less. He also wants to implement hisbill which will make your energy cost skyrocket, all for the sake of the .
Tim T. Schowalter – Granby
( Original Article )