The Obama Administration and surrogates would have you believe they are advocates for the production of reliable and affordable energy, but their rhetoric fails when we consider these three simple facts:
1. The President denied the Keystone XL pipeline to transport oil from Canada to be refined and used in the U.S.
The Obama Administration decided on January 18 that constructing the Keystone XL pipeline was not in the national interest of the United States. The proposed pipeline had the capacity to carry 700,000 barrels of oil to American refineries, as well as deliver 20,000 jobs to a depressed economy. Only in Washington D.C. would this project not be considered an economic miracle and a key part in securing our energy future.
2. The President’s policies have restricted access to domestic energy resources
Despite numerous discoveries of abundant natural resources, only 2 percent of offshore areas are currently leased for oil and natural gas production. That means 98 percent of energy-rich offshore federal lands remain restricted for exploration and development. Furthermore, despite the claims of the Obama administration and his surrogates that U.S. oil and gas production has gone up during his tenure, the reality is that oil and natural gas production on federal lands—for which he could justifiably claim some credit—has decreased by over 40 percent since 2000. Only on state and privately held lands is production increasing, and it is increasing on account of technologies like hydraulic fracturing that the Obama administration wants to restrict.
3. President Obama acknowledges that electricity prices will have to increase under his proposed policies and regulations
Referencing his proposed cap-and-trade energy tax, President Obama had a rare moment of political clarity when he said, “…if someone wants to build a coal plant, they can – it’s just that it will bankrupt them, because they are going to be charged a huge sum…” Unfortunately the President’s crusade against affordable energy didn’t end there. IER recently noted that new EPA rules and regulations for power plants would shut down roughly 10 percent of our coal electricity production. The 28 gigawatts of generating capacity that would go dark are the equivalent of shutting down every power plant in the state of Indiana or North Carolina, and, in the administration’s own words, would “necessarily” make our energy prices skyrocket.
The most troubling aspect of the energy debate is that President Obama and his administration are actively pursuing policies that make energy more expensive for consumers and businesses, while sending billions to failed businesses like Solyndra. Taxpayer funded renewable energy is a fantasy, but the pain at the pump is very real.