Research Briefing

Despite His Version Of “Reality,” Obama’s Regulations Are Standing Between Americans And Affordable Energy

PRESIDENT OBAMA: “So, Any Notion That My Administration Has Shut Down Oil Production Might Make For A Good Political Sound Bite, But It Doesn't Match Up With Reality.” (President Barack Obama, Remarks On Energy, Washington, DC, 3/11/11)

THE TRUTH IS OBAMA’S ADMINISTRATION IS PUTTING THE BRAKES ON DOMESTIC ENERGY PRODUCTION

Americans Will Pay On Average $700 More For Gasoline This Year

The Average American Household Will Spend $700 More On Gasoline In 2011, Increasing Motor Fuel Expenses By 28 Percent. “The average U.S. household will spend about $700 more for gasoline in 2011 than it spent last year, bringing total motor fuel expenses up 28 percent to $3,235, based on an annual pump price of $3.61 a gallon, the department's Energy Information Administration said.”(Tom Doggett, “Gasoline Cost To Jump $700 For Average Household,” Reuters, 3/9/11)

“‘Gas Prices Are Rising, And The Stock Market Has Stumbled,’ [Moody’s Analytic Senior Economist Ryan Sweet] Says. ‘We Could Potentially See Consumers Take A Step Back And Slow Spending.’” (Larry Copeland, “Rising Gas Prices Could Stall U.S. Recovery,” USA Today, 3/8/11)

The Energy Information Administration Predicts Drivers Will Pay $3.71 A Gallon During The Summer, A 98 Cent Increase From Last Year. “The EIA said it expects drivers will pay an average $3.71 a gallon during the summer peak driving season from June through August, about 98 cents more than last year.” (Tom Doggett, “Gasoline Cost To Jump $700 For Average Household,” Reuters, 3/9/11)

With Pain At The Pump Looming For Many Americans,

The Obama Administration Continues To Block New Offshore Drilling

Obama Administration Has Approved Just One Deep-Water Drilling Permit Since Lifting The Moratorium. “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, 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, 12/1/2010)

And Threatening 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 BEEN CRITICAL OF OBAMA’S JOB-KILLING 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)
• Rep. Collin Peterson (D-MN): EPA Regulation Of Greenhouse Gases Are “The Last Thing We Need When Our Economy Is Beginning To Show Signs Of Recovery.” “Now, with congressional efforts to regulate greenhouse gases off the table and EPA at the helm on this issue, he said that agency's regulations are the "last thing we need when our economy is beginning to show signs of recovery." (Dana Fine Maron, “New Anti-EPA Bill Aims To ‘Rein In’ Agency’s Climes Rules Permanently,” The New York Times, 3/4/11)

18 Democrat Senators Joined Republicans To Raise Concerns Over Obama’s Environmental Regulations  On Industrial Boilers. “The groundwork is already laid for action on several fronts. Last week, 41 senators, including 18 Democrats, raised concerns over the reach of new air toxin regulation for industrial boilers. And 21 senators called the soot proposal the “most stringent and unparalleled regulation of dust in our nation’s history.” (Darren Samuelson, “EPA Rules Could Hurt Obama In 2012,” Politico, 10/4/10)

• The New Boiler Rules Could Incur Tens Of Billions Of Dollars In Costs. “The 41 senators are worried about the proposed ‘Boiler MACT’ rule, which would require operators of the boilers to install maximum achievable control technology (MACT) for toxic air pollutants such as mercury. It could cost tens of billions of dollars to upgrade the nation's roughly 200,000 boilers, which provide power to many industrial facilities, universities and hospitals.” (Gabriel Nelson, “18 Senate Democrats Join GOP In Assault On EPA's Boiler Proposal,” The New York Times, 9/28/10)

BUT THE OBAMA ADMINISTRATION SEES HIGH ENERGY PRICES AS ESSENTIAL

TO ITS “GREEN ENERGY” AGENDA

Sen. 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)