Separating Rhetoric from Reality: President Obama’s Radio Address, February 28, 2009

Last week, President Obama unveiled his budget proposal outline, which included the most devastating tax proposals in the history of America’s oil and natural gas industry.  Throughout his campaign, and so far during his short time in office, President Obama has spoken of a responsible approach to American energy.  The administration has included virtually every tax possible on American oil and natural gas producers – which will not only increase our dependence on foreign oil, but also eliminate good-paying American jobs and the U.S. tax and royalty revenues that are a primary component of federal, state and local revenues.

Abolishing American oil and natural gas from the nation’s energy mix is not a comprehensive energy plan.  Americans and the Independent Petroleum Association of America overwhelmingly recognize the need for all kinds of energy to help decrease our dependence on foreign oil.

As the American public continues to wait for a detailed energy plan from the president and his staff, the statements they have made so far can best be described as an energy train wreck.  The following is an examination of President Obama’s remarks on energy from his most recent radio address:

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Blowing Out the Blue Flame of Natural Gas – Wachovia

AT RISK: American natural gas means good-paying jobs, clean energy, less foreign reliance, state and federal tax & royalty revenues.

AT RISK: American natural gas means good-paying jobs, clean energy, less foreign reliance, state and federal tax & royalty revenues.

One of the nation’s largest banks warned investors this week that President Obama’s proposal to increase taxes on natural gas producers could “do some serious damage and actually undermine both energy independence and the renewable transition.”

Wachovia’s Equity Research group is exactly on point.  The President’s plan to raise $30 billion from America’s oil and natural gas producers — mostly small, independent businesses — is not a comprehensive energy plan and would increase our dependence on foreign oil. 

Last week, IPAA issued a press release on this proposed tax increase that gained a lot of press attention.  And this week, IPAA member companies are coming to Washington DC to bring this bad proposal to Congress’ attention.  Read more about IPAA’s outrage and actions in The Hill article, “Lobbyists Ready to Bring it On.”

The Wachovia report is something all of us should read.  Click here to read it.