Energy Update

So, how are things going for America energy-wise? Well, I'm sure you've noticed the price at the pump going up. The real question is...why?

It's quite simple, and completely predictable: supply and demand. When supply goes down but demand doesn't, prices rise.

Unfortunately for Americans, one of the crusades the Obama administration immediately embarked upon two years ago was to deliberately increase gas prices. Think I'm exaggerating? Check the facts. Let's start with Obama's own campaign promises (the money quote begins 33 seconds in):

It works the same way with gas prices as it does with electricity prices. It's all fossil fuels, it's all restricted with the same policies, and it all hammers normal people like you and me who have to pay for for it.

Now let's look at what he did when he took over the White House:

President Barack Obama’s Energy Secretary Steven Chu wants to “figure out how to boost the price of gasoline to the levels in Europe.” At the time he made the statement, gas cost $7 – $8 a gallon in Europe.

Since taking office, President Obama’s entire energy agenda has made a gallon of gas more expensive:

• Immediately after taking office in 2009, Interior Secretary Ken Salazar, canceled 77 leases for oil and gas drilling in Utah.
• The EPA announced new rules mandating the use of 36 billion gallons worth of renewable fuels (like ethanol) by 2020.
• This summer President Obama needlessly instituted, not one, but two outright drilling bans in the Gulf of Mexico.
• After rescinding his outright offshore drilling ban, President Obama has refused to issue any new drilling permits in the Gulf, a policy that the Energy Information Administration estimates will cut domestic offshore oil production by 13% this year
• Interior Secretary Salazar announced that the eastern Gulf of Mexico, the Atlantic coast, and the Pacific coast will not be developed, effectively banning drilling in those areas for the next seven years

At the same time, they're implementing additional regulations that make it more difficult and expensive to develop natural resources on land. Obama's energy policies have been far more damaging that either of the previous two Presidents, as can easily be seen by tracking the gas prices:



Despite his words, Obama's record speaks volumes about his intentions for American energy. If things keep going like this, it's possible we may see $5/gallon gasoline by next year.

And make no mistake, there is clearly a disconnect between Obama's words and his actions. For example, let's look at those bans on off-shore oil exploration. First he banned it, then he re-implemented it. But did he really re-implement it? Look at this chart of the number of oil permits Obama's administration has approved since the ban was 'lifted' and decide for yourself:

Investor's Business Daily reported that “regulators have made it nearly impossible for oil firms to restart operations and have slapped strict new rules on drilling even in shallow waters.” Former president of Shell Oil, John Hofmeister, told CNN that “the moratorium is now lifted in name only,” warning that “the less we drill in the Gulf of Mexico the more dependent we become on crude oil from other countries.”

American oil production is expected to be down 13% this year alone, and it'll only get worse as long as these policies remain in effect. With the Obama administration controlling things, there's no chance of change. In fact, they're moving ahead with even more environmental regulations that will further cripple domestic energy supply and raise prices. Never mind that the whole man-made climate change thing has been thoroughly debunked, and never mind that other viable alternatives like nuclear power exist. Obama's agenda includes destroying the American fossil fuel industry and raising the cost of energy for all Americans. Remember, they think we should be paying as much as Europe does!

And now that they've lost complete control of Congress, they're going to do it with pure regulation, which is much tougher to stop.

But don't worry - some things will never change. No matter how expensive gas gets, you'll never be rid of uber-rich liberals who will continue to chastise you for your earth-destroying fossil fuel consumption -- you know, you've got some serious gall driving your Honda to and from your job and the grocery store -- while simultaneously owning multiple mansions, fleets of vehicles, and private jets:

Isn't that reassuring?

Anyway, it's time to start hammering your elected representatives to force the Obama-driven EPA into submission, preventing these policies that are harming Americans. It's all a deliberate attempt to control Americans and drive up the cost of energy. Obama wants you to pay more at the pump and elsewhere, and he's doing exactly what he needs to do to make that happen. A completely predictable benefit (to him) is further loss of jobs in those industries, which translates into more dependence upon government. See how this works?

Fortunately, it looks like the Republicans are listening. Keep it up.