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Finance...
The
Amazing
Flexible President
by Marita
Noon
April 1, 2012
President
Obama made headlines during his visit to Seoul, South Korea—though not
for his
public policy statements, rather for his private comments,
unintentionally
broadcast, in conversation with Russian President Dmitri Medvedev.
Believing he
will be reelected, President Obama addressed dealing with
“controversial
issues”: “This is my last election. After my election I have more
flexibility.”
The comment
was made specifically about missile defense. But there are many other
“controversial issues” plaguing his presidency about which he is likely
to feel
that he has “more flexibility” when he no longer has a pending campaign
keeping
the lid on his actions.
One
controversial issue facing President Obama today is energy. Since gas
prices
have been climbing dramatically, his rhetoric has changed. He is now
bragging
about increased oil production—though fact-checking shows that his
statements
are about as valid as “a rooster taking credit for the sunrise.” This
apparent
“change” is really just electoral posturing, not a new energy policy.
With the
election behind him, four more years in the White House would allow
President
Obama to finish off the American dream—making all of us subjects of the
state.
Some might
think my claim is too harsh. Yet, looking strictly at energy issues, a
third
world is where we are headed. It is widely accepted that energy use,
wealth and
health are connected. The countries with the highest energy consumption
are
also the countries with the longest life expectancy and wealth: human
well-being and material well-being.
When we
study the words and actions of both President Obama and his
administration, we
see that given “more flexibility” our available energy will be greatly
curtailed and what we do have will be far more expensive during an
Obama second
term.
“Energy”
refers to both liquid fuels for transportation and electricity for
residential
and industrial use. In both cases, the Administration’s policies favor
reduced
use and increased cost. Use less, pay more.
Because
gasoline prices, transportation fuels, are the headline issues, we’ll
start
there.
During his
2008 campaign, gas prices spiked—similar to the current increase. At
that time,
candidate Obama was asked about high gas prices. His response: “I think
that I
would have preferred a gradual adjustment. The fact that this is such a
shock
to American pocketbooks is not a good thing.”
And then, Energy Secretary Steven Chu wants to
“figure out how to boost
the price of gasoline to the levels in Europe.” Under the pressure of a
campaign, Secretary Chu has recanted, saying that he no longer “shares
that
view.” Yet, when asked about attempts to lower gas prices, he
acknowledged that
was not his goal.
President
Obama continues his rant about penalizing the oil companies while
promising to
“double down on investment in clean energy technologies” such as “wind
power,
solar power and biofuels.” The biofuel he currently favors is algae:
“Believe
it or not, we could replace up to 17% of the oil we import for
transportation
with this fuel that we can grow right here in America.” The study his
quote is
based on also notes that it would “take acreage equivalent to the area
of South
Carolina to generate that much oil. It takes 350 gallons of water for
every one
gallon of oil you produce” and “meeting that water requirement would
take 25%
of our irrigation capacity.”
Due to the
global nature of oil markets, President Obama doesn’t think that
drilling for
more oil will lower the price of gasoline. In his second term, we can
expect to
see higher prices for gasoline (perhaps, to European levels) and
increased
“investment” in biofuels. At the same time, he will continue to push
for vehicles
with higher MPG, despite the fact that Americans don’t want them. Oh,
and don’t
forget, we’ll have to keep our tires inflated.
Like
President Obama believes investment in biofuels is important, he feels
the same
way about wind power and solar power—though they have virtually nothing
to do
with transportation unless we all drive a Volt. While he is pushing for
electric cars, he is systematically raising the cost of electricity.
Despite his
“all of the above” claim, he really only likes wind, solar, and biofuel.
During the
2008 campaign, candidate Obama stated that “it is wildly expensive to
pursue
nuclear energy” and that he planned to enact a cap and trade program
through
which electricity prices would “necessarily skyrocket.” He claimed that
if
“somebody wants to build a coal-fired power plant, they can, but it is
going to
bankrupt them.”
Now, with
the election looming, the Obama administration is already causing
electricity
prices to skyrocket by killing coal-fueled generation while pushing
wind and
solar that are intermittent and considerably more expensive.
Just this
past week, in addition to the onslaught of new regulations on coal, the
EPA
rolled out new rules for coal-fueled power plants that will effectively
“bankrupt” anyone who tries to build a new power plant. The greenhouse
gas
rules do not currently apply to existing plants, but EPA officials
won’t rule
out issuing climate rules for existing power plants—and environmental
groups
want them. Given the Administration’s propensity to give into
environmental
demands, we can be sure that a second term of the Obama Administration
will
shut down more coal-fueled power plants. Coal-fueled power plant
closures are
already hurting communities that are struggling with the lost tax
revenue that
funds schools and essential services. However, the EPA doesn’t take job
loss
into its decision making process. These closures not only increase the
cost of
electricity and cause the loss of jobs, they threaten the reliability
of the
grid.
Some might
think, no problem, we will replace the coal-fueled plants with natural
gas.
This is a possibility. But, it will require new construction or
expensive
conversions—paid for by the ratepayers (you and me). The abundance of
natural
gas has resulted in record low prices. However the supply growth is a
result of
hydraulic fracturing—a practice currently regulated on a state-by-state
basis,
for which the EPA wants oversight. Given the EPA’s overzealous hand, it
is easy
to picture the Obama Administration banning fracking altogether—which
would cut
the supply of natural gas and consequently raise the cost and cause a
price
increase in electricity generated from natural gas. A ban on
hydro-fracking,
would kill the economic growth in blue states like Ohio and
Pennsylvania—states
Obama needs to win reelection—so such a ban is not likely in 2012, but
would
probably be part of the “flexibility” of a second term.
And, I
haven’t even touched on the dearth of drilling or mining permits
issued, the
impact of high gas prices on everything else and the resulting
inflation, the
growing number of failed renewable companies, or the rolling blackouts
you can
expect. But you get the picture of life under a continued Obama
administration—now with “more flexibility.”
So if you
like high gas prices—albeit gradually increased, if you can afford the
high
price of a Volt and can tolerate the low range—while the rest of us
subsidize
it, if you don’t mind being hot in the summer and cold in the winter,
you know
how to vote. If you want the health and wealth energy provides, you’d
better
revolt this November.
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