January 29, 2013

Wanted: An Affordable American Energy Team

President Obama’s first-term energy and environment team claimed to support an “all of the above” energy strategy, but pushed an agenda at odds with its rhetoric. In spending, regulatory, and policy decisions, the Administration regularly picked “green energy” over traditional fuels. It dismissed Republican proposals that would have utilized both. The President needs new advisers; and new advice. The recently announced resignations of Environmental Protection Agency (EPA) Administrator Lisa Jackson and Interior Secretary Ken Salazar, and expected resignation of Energy Secretary Steven Chu, give the President an opportunity. He should only consider candidates committed to the “all of the above” energy strategy he promised Americans.

The President’s Advisers Forced Green Energy, Rejected Fossil Fuels

Jackson_EPA

Chu_energy

Salazar_interior

The Second-Term Team Must Promote All Energy Sources

With a new team for his second term, President Obama can reposition his energy policy to treat all forms of domestic power as critical components of our nation’s future energy mix. America cannot address its energy, economic, and national security needs with renewable energy alone. It must harness every homegrown energy resource -- coal, oil, natural gas, nuclear, hydropower, solar, wind, geothermal, biofuels -- to get our country back on track.

energy needs

Source: Energy Information Administration

Fossil Fuels Power America for the Foreseeable Future

An “all of the above” energy strategy must be underwritten by America’s abundant, affordable, reliable fossil fuel reserves. Oil, natural gas, and coal account for 82 percent of energy consumed in the United States today and will account for 78 percent in 2040. Whether Democrats like it or not, America will depend on fossil fuels for the foreseeable future. Fortunately, America has sufficient fossil fuel reserves to power our nation for hundreds of years. In fact, America has enough oil, natural gas, and coal to satisfy domestic needs (breaking our dependency on Saudi Arabia and the Middle East) with enough left over to export significant quantities overseas. Fully producing, consuming, and exporting this energy bounty can generate American jobs, reduce America’s debt, and restore American leadership around the globe.

American Fossil Fuels Generate American Prosperity

U.S. oil and natural gas production is a bright spot in America’s otherwise struggling economy. It supports more than nine million jobs and more than seven percent of GDP. Even during the weak recovery, as President Obama’s anti-growth policies led to unemployment rates of 10 percent, the oil and gas industry created thousands of jobs. According to the World Economic Forum, nine percent of all jobs created in 2011 were in the oil and gas sector.

energy jobsSource: BLS

The oil and gas sector is expected to continue strong employment growth for years to come, as long as the Obama Administration stays out of the industry’s way. It’s estimated that between 2012 and 2035 the industry will generate:

  1. 3.5 million direct, indirect, and induced jobs;
  2. More than $5.1 trillion in capital expenditures;
  3. More than $2.5 trillion in government revenue.

In addition, the U.S. coal mining industry accounted for 977,000 jobs in 2010 -- including 211,000 direct jobs -- and contributed $90 billion to U.S. GDP. However, by 2015 President Obama’s environmental regulations could force 205 coal-fired generators to shut down, eliminating 17,000 jobs. Georgia Power is the latest coal-fired power generator to announce job cuts in response to the administration’s regulatory war on coal. It will close 15 coal-fired plants, costing 480 jobs. According to a coalition of 15 major unions, as many as 433 coal-fired electric generating units and more than 250,000 jobs are at risk.

 During President Obama’s second term, Democrats must no longer deny the critical importance of fossil fuels to America’s economic prosperity and energy security. They should stop wasting taxpayer dollars on ill-advised “investments” exclusively in politically favored “green” energy companies like Solyndra. Instead, Washington must allow fossil fuels to generate economic prosperity and market-oriented development of nuclear, renewable, and alternative energy technologies. The President can start by appointing an energy team that is committed to a true “all of the above” energy strategy.

Issue Tag: Energy