The Daily Scoop: Obama’s energy plan: The winners, and winners

NEW YORK (CNNMoney) — President Obama’s half dozen energy proposals will, by and large, benefit nearly all players in the energy space and result in lower prices for consumers, analysts say.

  • Analysts say the combination of Obama’s plans truly represent an “all-of-the-above” approach.
  • Natural gas, out off all the different energy players, natural gas seems to have won the most.
  • The oil industry, Obama offered new leases in the Gulf of Mexico and pledged to open 75% of the country’s resources for drilling, which reflects a prior commitment made by the President.
  • Oil and natural gas production has jumped 14% and 10% respectively, according to the Energy Information Administration.j
  • For renewables technologies like wind and solar, Obama called for extending tax credits that basically give these firms a 30% subsidy.
  • Electricity from solar and wind has risen three-fold since Obama took office, according to those industries’ trade associations.
  • Coal and nuclear are the only two fuels that didn’t garner an outright mention but the bipartisan Policy Center’s Bledsoe said the administration is on track to give the final OK on an $8 billion loan guarantee for a new nuclear plant in Georgia sometime in the next few weeks.
  • The consumer: While prices for oil, which trades globally, remain relatively high, natural gas prices have plummeted, largely as a result of production increases.
  • EIA estimates the country’s oil production will grow another 20% by 2020 & due to that and higher fuel efficiency standards the United States will go from importing 49% of its oil in 2010 to 38% by 2020.
  • “Ultimately, consumers will be the beneficiaries of these policies,” said Mayer Brown’s Valera. “And when the consumer at large wins, businesses of all type win.”

The President has restated previous commitments and offered new policy plans that appeal to both political parties. These policies can be reached if professionalism prevails to take advantage of this out-stretched hand for long  awaited compromise.  While many of us with ever-present environmental concerns for continued oil & gas development this balanced approach to the country’s overall energy policy is the pragmatic solution.
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10 Comments to “The Daily Scoop: Obama’s energy plan: The winners, and winners”

  1. I love that the GOP has said that President Obama is weak on energy independence, when he’s been just as much in favor of “drill baby drill” as the GOP was during his campaign. He’s maintained the subsidies for the oil and coal industries, invested in both green energy and traditional fuel sources. Yet, they cry that he’s the one delaying the Keystone Pipeline, which is really tied up in EPA regulations and rules because of the proposed route, and the state of Nebraska, more than the federal government. And yet, at the same time, there are extreme liberals who see the Obama energy plan as just a continuation of the Bush policies that the GOP heralded as the most reasonable way to handle energy needs in America. (Enron anyone?)

    • As someone who’d prefer to see a firm change of direction from fossil fuels, I do realize that Obama’s approach is a pragmatic one. It makes sense both politically and logically. We can’t simply up and shift away from a resource so intertwined in our economy and lives in general. But I wouldn’t say he’s a eager to drill as the GOP.
      It does seem that the Right in general has created this alternate Obama that is pushing for everything they despise (anti-gun, anti-democracy, anti-business, anti-job, corporate insider, evil socialist colonialist) when in reality that Obama has no resemblance to the actual person.

      • I’m still wondering who this person is the GOP candidates are running against. The more the GOP opens their mouths, the more they show they’re clueless about the way things are actually progressing. It’s hard to take the moral high ground when you’re running away from your own position just because the other guy happens to agree with you.

        It’s that reason that I keep tackling the issues that spring up, and look at what is being said compared to what is actually happening. Perhaps one day, the electorate will wake up and realize that we’re all being had.

      • Annabel> It’s hard for them to take the moral high ground but it’s also hard for us, who write about and question their motivations and actions, to maintain that same higher ground, that same objectivity when we see such displays of ridiculousness by those who wish to lead us.

        Definitely keep addressing these issues and educating people. You’ve already done some great work there on your blog. We’ll all keep our fingers crossed that more people do wake up and see that they are indeed being fooled.

  2. What really irritates me is that our number one export now is gasoline (combo of gas/jet fuel/diesel). Personally, I do not think any corporation should be allowed to export gas unless our cost of gas is cut in half. I know… I know.. .the profit they’re making from the export. But US Corp’s should put the needs of their own country first.

    • Now that would be so nice. Meet our demands before exporting and put your home country’s needs ahead profits. Unfortunately, we’ve seen thay haven’t thought that way for many a’ decade.

  3. One has to hope that people like James Hansen will not give up on reminding the US government (whoever is in power) that proceeding to burn all the Earth’s fossil fuels may not be a survivable option. In the meantime, this pragmatic solution may be the best way of moving forward when Congress is so dominated by Republicans.

    However, if I may offer my thoughts on the GOP’s selection process for POTUS candidates (as reported here in the UK), I was very disappointed to hear just how short-sighted, blinkered and wrong disillusioned Democrats in Florida can be: Saying that they will vote Republican to punish Obama for the financial meltdown that made them homeless.

    This is ridiculous, Obama did not cause the meltdown, that was Alan Greenspan (et al)…

    • Yes, hopefully Mr. Hansen never tires of spreading the science and keeping the government informed of the reality of climate change.

      I’d say pragmatism is the best approach in most cases but the President’s inclusion of many items from the GOP’s energy wishlist he is really daring them to continue their opposition.

      I had not heard that about the Democrats in Florida. I am consistently astonished at how short people’s memories are and how easily they are swayed to believe some of the most ridiculous Obama criticisms. What is even more unbelievable is that people are not acknowledging the roles local/state governments and the private sector had on the housing glut. Local governments allowed continued building without consideration for long-term community planning and the private industry just kept building and building and building not comprehending the surplus they were creating. No one was looking beyond their current quarterly profits.
      Then yesterday, I noticed an article where Mitt Romney took the stance that the government should stop trying to help the housing market and let the private sector fix itself. Do any red flags start waving with this strategy?

      Thanks for the link to “Inside Job” and for your other comments. I will respond to those soon. I looked through your site some more yesterday and ended up signing up for it. You’ve got some good things to say. Nice to hear the UK perspective. Keep it up!

      • Thank you for your kind words and for subscribing. I see what you mean about Obama (regretfully) retaining Republican policies. Although this should make opposition harder, the Republicans have indeed excelled themselves. It must be hoped that, with their moving to the right and Obama taking firm hold of the centre ground, he will lose sight of the need for environmental sustainability in all things; not least energy policy.

        By the way, did you see my post on Climate Change – it’s an Inside Job? I think you will like it…

      • I forgot to say that the BBC only showed an interview with 1 person in Florida, which is hardly proof of widespread reasoning for anti-Obama feelings.

        Also, I have enjoyed reading some of your blog posts too (especially those whose subject matter lies outside the realm of environmental politics); so keep at it… 🙂

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