Following up on the earlier post regarding the success of U.S. production of crude oil, specifically in North Dakota and the Gulf of Mexico comes this editorial from Investor’s Business Daily which really hits the nail on the head with respect to the Obama Administration’s attitude towards U.S. energy policy, especially as it relates to U.S. production of energy.
The author points out that stimulus money aimed at spurring on construction projects has failed to do so and that the Administration takes a wrong headed view of the opportunity that America’s oil and natural gas producers present in terms of providing good paying jobs and having a significant positive impact on the overall state of the economy.
The author correctly points out that, “The Obama administration has now turned its attention to energy policy. But rather than looking at the energy sector as a vehicle for reinvigorating the American economy, the president has proposed hiking the tax burden on oil and gas companies by $45 billion.”
As I pointed out in part 1, energy production is capital intensive and tagging industry with a $45 billion charge would be devastating to indsutry’s efforts to produce American energy and provide American jobs.
The author goes on to point out that:
“The Sierra Club, a strong advocate of the plan, claims that the tax hikes will “help correct some of the market distortions that unfairly advantage dirty energy at the expense of clean energy.” In reality, it’s the other way around: On a BTU-equivalent basis, the subsidies for renewable energy sources dwarf those received by fossil fuels.”
I encourage folks to read the editorial in its entirety.
Having said that it becomes clear that despite industry’s success in moving forward with production in difficult formations, heavy investment in American production and American jobs;,employing over 9 million workers, this Administration continues to side with anti-development forces who either have no cogent, long term vision of American policy or are idealogues driven by an agenda that is simply too ignorant to the realities of the American economy to care. It is critical that those interested in a sound, long term energy policy continue to remain active participants in developing that policy lest we leave our fates to those who either know no better or simply do not care.