Energy Policy at the Crossroads

Pages: 1 2

WASHINGTON, D.C. – The American Petroleum Institute released its “State of American Energy” report today at a media event held at the Newseum in Washington. API President and CEO Jack Gerard outlined the oil and gas industry’s perspective on energy policy and released details of an API commissioned study looking at the effects of natural resource access and tax policy. This reporter was invited to attend the event by API, which paid for my travel expenses.

There is little doubt that America has arrived at another energy policy crossroads. Oil prices are rising because worldwide supply has remained relatively flat while China and India demand more and more crude to fuel their economic growth. While America has far more proven crude oil reserves than anyone suspected even a decade ago, a good deal of those reserves lie offshore in areas that are currently off limits for new drilling. Offsetting that somewhat, domestic natural gas production is robust and supplies and prices have remained very stable. Much of the good news about natural gas supply can be tied to tapping vast reserves of “shale gas” trapped in huge underground formations.

American energy policy will follow one of two roads. The Obama administration’s preferred approach is to continue to ban most new offshore oil exploration and, perhaps, to levy an energy tax as a means of both reducing consumption and raising federal revenues. The other path, of course, runs in exactly the opposite direction: aggressively pursue offshore exploration, in both deep and shallow waters, and avoid any new taxes on petroleum and natural gas. In releasing the “State of American Energy” Gerard and API made their case for the latter course.

Gerard argued that the United States will continue to consume vast amounts of oil and natural gas, far into the future. Industry estimates project that fifty percent of all energy used in America will come from the combustion of natural gas and petroleum products by the year 2035. (Currently, sixty percent of all domestic energy use involves oil and natural gas). “Our nation will require more oil and natural gas for decades to come,” Gerard said. “A lot of it will come from deep sea well – and if it doesn’t come from here, then we’ll import it.” The industry’s perspective is that increased domestic oil and natural gas production can lead the way to economic recovery, but only if it has access to these natural resources and if additional taxes are not imposed on energy production and distribution.

Pages: 1 2

  • Wesley69

    This administration is not interested in energy independence. That IS NOT Mr. O's game Heavy regulations, taxes, reductions in oil and natural gas drilling are. Look at this administrations actions:

    While there was the five month moratorium on drilling in the Gulf due to the BP Platform disaster, Interior Secretary Salazar was slowing down onshore drilling with new regulations. http://thedenverdailynews.com/article.php?aID=849….

    Regulations passed by the EPA to regulate Greenhouse Gases, will send electricity rates higher, hurting all customers & industry. Say good-bye to the Economic Recovery. Studies have shown that the reductions will cause almost no change in the atmosphere. Here is a good link to discuss what EPA has in mind. http://www.time.com/time/health/article/0,8599,20

  • Wesley69

    And President Obama is on record for supporting this scheme: "When I was asked earlier about the issue of coal…under my plan of a cap and trade system, electricity rates would necessarily skyrocket…even regardless of what I say about whether coal is good or bad, because I’m capping greenhouse gasses, coal power plants, natural gas…you name it…whatever the plants were, whatever the industry was, they would have to retro-fit their operations… That will cost money…they will pass that money on to the consumers.
    http://newsbusters.org/blogs/kerry-picket/2008/11

  • Wesley69

    And in another statement: “Cap and trade was just one way of skinning the cat." http://www.bloomberg.com/news/2010-11-04/obama-ca… So we know where Obama stands. But why??? Why stall the economic recovery? Why jeopardize his own chances of reelection?

    They know if they cripple the energy industry upon which industry depends, they can take down the economy and create a crisis of unbelievable proportions. Their actions are in accord with the Cloward-Piven Strategy: to cause the fall of capitalism by overloading the government with demand after demand after demand.

    Republicans MUST education all citizens showing what is at stake. Only with massive citizen opposition can there be any hope for stopping this administration's destructive course of action. Republicans must investigate, develop legislation to stop or delay these measures from going into effect. They will need the help of Democrats interested in this country and not their party to pull it off. The regulations can also be tied up in the courts as well. The Republicans MUST put the President and his administration on the spot and have them DEFEND their harmful actions.

  • Wesley69

    CONGRESS HAD BETTER REIN IN THE EPA!!!!!!!!! It is an unelected bureaucracy dominated by environmental wackos, hell-bent on destroying the energy industry.

    Lisa Jackson clearly enjoys her role as Queen Bee. Listen up, Baby, do you think for a minute the American people are going to support your abuse of power?

    IF CONGRESS WILL NOT TAKE ACTION, THE STATES NEED TO!!!!

    ANOTHER SOLUTION – THE REPEAL AMENDMENT – THE STATES'S VETO

    "Any provision of law or regulation of the United States may be repealed by the several states, and such repeal shall be effective when the legislatures of two-thirds of the several states approve resolutions for this purpose that particularly describe the same provision or provisions of law or regulation to be repealed."

    For more info check http://www.cato.org/pub_display.php?pub_id=12144

    Is this became an amendment to the Constitution, the States by a 2/3rds vote of state legislatures could repeal the bill authorizing the existence of the EPA and hand Lisa Jackson her pink slip.

  • scum

    Great! Hey, let's get Haliburton to oversee the increase in production. They did a great job in the gulf.

  • Wesley69

    Right, let's end all exploration in the Gulf, scum. We don't need the energy. Don't worry, the administration's views about energy seem closer to yours.