Research Briefing

Obama’s Policies Are The Obstacles Blocking American Energy Independence

“Amid Rising Gas Prices, Obama To Detail US Energy Security Strategy.” (“Amid Rising Gas Prices, Obama To Detail Us Energy Security Strategy,” The Associated Press, 3/30/11)

But Obama Has Never Had A Problem With High Energy Prices

Obama In 2008: “[O]bama Suggested That The Main Problem With High Gasoline Prices Is Their Rapid Rise, Not Their Total Of About $4 A Gallon.” (Charles Babington and Jim Kuhnhenn, “One Down, More To Go For Republicans Aiding McCain,” The Associated Press, 6/12/08)

In 2008, Obama Said He Thinks Americans Can “Adapt” To Higher Gas Prices. “But if the government gives middle-class families tax cuts and encourages the market ‘to adapt to these new circumstances more quickly, particularly U.S. automakers, then I think ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now.’” (Charles Babington and Jim Kuhnhenn, “One Down, More To Go For Republicans Aiding McCain,” The Associated Press, 6/12/08)

• And Obama Wasn’t Concerned That Cap-And-Trade Would Have Boosted Consumer Energy Prices, He Boasted That: “[U]nder My Plan Of A Cap And Trade System, Electricity Rates Would Necessarily Skyrocket.” (Sen. Barack Obama, Interview With San Francisco Chronicle Editorial Board, 1/17/08)

Energy Secretary Stephen Chu: “Somehow We Have To Figure Out How To Boost The Price Of Gasoline To The Levels In Europe.” (Neil King Jr. and Stephen Power, “Times Tough For Energy Overhaul, The Wall Street Journal,” 12/12/08)

OBAMA CLAIMS HE WANTS TO REDUCE FOREIGN OIL DEPENDENCY

Obama Will Claim That He Wants To Reduce American Oil Imports.  “Facing pressure to curb rising gas prices, President Barack Obama is calling for the U.S. to reduce its oil imports by one-third over the next decade, a lofty goal likely to run into significant obstacles.” (“Amid Rising Gas Prices, Obama To Detail Us Energy Security Strategy,” The Associated Press, 3/30/11)

But Less Than Two Weeks Ago, Obama Said He Wants The U.S. To Buy More Foreign Oil

At His Press Conference In Brazil, Obama Said He Wants America To Be A Major Foreign Customer Of Brazilian Oil. OBAMA: “In particular, with the new oil finds off Brazil, President Rousseff has said that Brazil wants to be a major supplier of new stable sources of energy, and I’ve told her that the United States wants to be a major customer, which would be a win-win for both our countries.” (President Barack Obama, Remarks At Press Conference, Brasilia, Brazil, 3/19/11)

• Obama Said He Wants America To Be One Of Brazil’s “Best Customers.” OBAMA: “We want to work with you.  We want to help with technology and support to develop these oil reserves safely, and when you’re ready to start selling, we want to be one of your best customers.” (President Barack Obama, Remarks At CEO Business Summit, Brasilia, Brazil, 3/19/11)
  
  
• Watch Obama Say He Wants America To Be One Of Brazil’s “Best Customers”

OBAMA CLAIMS HE WANTS TO BOOST DOMESTIC ENERGY PRODUCTION

Obama Will Claim That He Wants To Boost Domestic Energy Production. “Senior administration officials say Obama will seek to reduce the U.S. dependence on foreign oil by boosting domestic energy production…” (“Amid Rising Gas Prices, Obama To Detail Us Energy Security Strategy,” The Associated Press, 3/30/11)

But Obama Pushes For Policies That Will Decrease Domestic Energy Production

Obama Wants To Get Rid Of Domestic Energy Production Incentives . OBAMA: “I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies.” (President Barack Obama, State Of The Union Address, Washington, D.C., 1/25/11)

Obama Administration Has Approved Only Two Deep-Water Drilling Permits Since Lifting The Moratorium. “The Obama administration has issued its second deepwater drilling permit for the Gulf of Mexico since BP PLC's oil spill last April. The permit -- which was approved Friday evening -- allows BHP Billiton to resume drilling that was suspended as part of the deepwater moratoriums Interior Department issued last summer in the wake of the BP spill.” (Phil Taylor, “Interior Approves Second Deepwater Drilling Permit For Gulf,” The New York Times, 3/14/11)

• First Permit Since Moratorium Lifted Was Issued In February 2011.  “The federal government on Monday told Noble Energy it can resume a deep-water drilling project — the first work of its kind approved since the Obama administration lifted a moratorium prompted by last year's Gulf of Mexico oil spill.” (Jennifer A. Dlouhy, “Deep Drilling Permit Issued For Gulf,” Houston Chronicle, 2/28/11)

“[F]ederal Regulators Had Not Allowed Any Offshore Drilling That Had Been Off Limits Under The Five-Month Ban Against Some Deep-Water Exploration, Even Though The Ban Ended In October.” (Jennifer A. Dlouhy, “Deep Drilling Permit Issued For Gulf,” Houston Chronicle, 2/28/11)

Obama Administration Blamed For Dragging Its Feet On Permits, Creating A “De Facto Moratorium Against New Drilling.” “Gulf state lawmakers and the oil industry have accused the department of dragging its feet on the permits, enacting a de facto moratorium against new drilling, while the department has said it needs to ensure that safety and environmental protections are in place.” (Dan Berman and Darren Goode, “Interior Appeals Oil Drilling Ruling,” Politico, 3/4/11)

In December 2010, The Obama Administration Moved Beyond The Gulf And Banned Offshore Oil Drilling Along Most Of The U.S. Coastline. “Interior Secretary Ken Salazar announced Wednesday afternoon that the Obama administration will not allow offshore oil drilling in the eastern Gulf of Mexico or off the Atlantic and Pacific coasts as part of the next five-year drilling plan, reversing two key policy changes President Obama announced in late March.” (Juliet Epstein, “Obama Administration Reimposes Offshore Oil Drilling Ban,” The Washington Post, 12/1/10)

The Bureau Of Land Management Is Holding Up Oil And Gas Exploration In Western States. “The petroleum industry sued the federal government Monday to try to force action on a backlog of hundreds of unissued federal oil and gas leases in the Rocky Mountain region. The Denver-based Western Energy Alliance and six companies based in Colorado, Wyoming and Oklahoma filed suit in U.S. District Court in Cheyenne. The lawsuit focuses on 118 leases in Wyoming and Utah that the U.S. Bureau of Land Management has not issued despite selling them to the companies at public auctions as long ago as November 2005.” (Mead Gruver, “Energy Group Sues Over Oil-Gas Lease Backlog,” The Associated Press, 10/18/10) 

• Over $100 Million Has Been Spent For Oil Leases That Sit Inactive While BLM Does Nothing. “Region-wide, hundreds of leases sold in the past few years — 1,057 in Wyoming alone — still await decisions on whether they ultimately will be issued or not. Companies have paid more than $100 million for unissued leases across the region, money the government has not offered to refund while also not granting the go-ahead to drill on public lands, the lawsuit said.” (Mead Gruver, “Energy Group Sues Over Oil-Gas Lease Backlog,” The Associated Press, 10/18/10)

Interior Secretary Ken Salazar Acknowledged That BLM Regulatory Hurdles Will Delay Domestic Energy Production. “Energy companies seeking to drill for oil and gas on public lands in the U.S. will face stiffer environmental scrutiny and new regulatory hurdles under changes announced Wednesday by Interior Secretary Ken Salazar. … Salazar acknowledged that the new rules could add delays to the leasing and drilling process but said he hoped the changes also would curb the rising number of legal challenges to government drilling decisions.” (Jennifer A Dlouhy, “Interior Chief Adds Hurdles For Drilling On Public Lands,” The Houston Chronicle, 1/6/10)

And Threatened Domestic Energy Producers With Draconian Regulations

In December 2010, After Democrats Failed To Pass Cap-And-Trade, The EPA Issued A Proposal For Unilaterally Regulating Greenhouse Gases. “On December 23, 2010, EPA issued a proposed schedule for establishing greenhouse gas (GHG) standards under the Clean Air Act for fossil fuel fired power plants and petroleum refineries. This schedule provides a measured and sensible path forward that will allow the agency to address pollution from sources that make up nearly 40 percent of the nation's greenhouse gas emissions.” (“Climate Change: Regulatory Initiatives,” U.S. Environmental Protection Agency, Accessed 3/10/2011)

• “Legislation To Limit Greenhouse Gases That Was Backed By The Obama Administration Died In The Senate This Year, After Republicans And Some Democrats Said They Would Not Vote For A Bill That Could Raise Energy Prices.” (Jeff Carlton, “EPA To Takeover Greenhouse Gas Permits In Texas,” The Associated Press, 12/24/10)

The Washington Post: Obama’s EPA Regulations Will Bring “Thicket Of Red Tape And Regulations” On Businesses That “Won’t Be Pretty.” “The Clean Air Act, in other words, is breathtakingly unsuited to the great task of battling global warming. It would provide no economy-wide and declining cap on carbon, no market signal to industry or clean-energy investors that could spark innovation and greater efficiencies. There would be a thicket of red tape and regulations but nowhere near the reduction in greenhouse gas emissions of the Waxman-Markey bill, let alone those called for by the Intergovernmental Panel on Climate Change. The specter of EPA regulation is supposed to scare Congress into more rational action. Yet if Congress does not act, it’s likely that the EPA will. It won’t be pretty.” (Editorial, “Regulating Carbon,” The Washington Post, 9/21/09)

Even Democrats Have Criticized Obama’s Cost-Increasing Energy Regulations

Senator Mary Landrieu (D-LA) Criticized Obama Administration’s Delay On Drilling Permits. ““During Wednesday’s hearing, the senator asked Salazar point-blank how he planned to begin issuing more drilling permits, criticized him for creating uncertainty in the oil industry and scolded him on his agency’s message after the first permit was issued earlier this week. Landrieu showed clear frustration with questions like: ‘What are you specifically doing to get these permits increased so people can get back to work?’” (Amanda Carey, “Louisiana Sen. Mary Landrieu Grills Salazar On Offshore Drilling,” The Daily Caller, 3/2/11)

Three Democrats Have Signed On As Co-Sponsors Of A Bill To Strip The EPA Of Its Power To Regulate Greenhouse Gases. “The Hill reported earlier Thursday that three House Democrats signed on to the legislation. Reps. Collin Peterson (D-Minn.), the ranking member on the House Agriculture Committee, and Nick Rahall (D-W.Va.), the ranking member on the House Transportation and Infrastructure Committee, have are both original co-sponsors. Rep. Dan Boren (D-Okla.) also signed on to the legislation.” (Andrew Restuccia, “Senate Democrat Sponsors GOP Bill To Block EPA Climate Rules,” The Hill, 3/3/11)

• Rep. Nick Rahall (D-WV) “The Congress … Is The Appropriate Body To Design A Program With Such Sweeping Ramifications.” “For his part, Rahall said that he is ‘dead-set’ against EPA moving ahead with greenhouse gas regulations. ‘The Congress -- the place where the People's will reigns -- is the appropriate body to design a program with such sweeping ramifications,’ Rahall said in a statement. Peterson, too, said that he believes EPA ‘needs to be reined in.’” (Dana Fine Maron, “New Anti-EPA Bill Aims To ‘Rein In’ Agency’s Climes Rules Permanently,” The New York Times, 3/4/11)