Due to the global nature of oil markets, President Obama doesn’t think that drilling for more oil will lower the price of gasoline. In his second term, we can expect to see higher prices for gasoline (perhaps, to European levels) and increased “investment” in biofuels. At the same time, he will continue to push for vehicles with higher MPG, despite the fact that Americans don’t want them. Oh, and don’t forget, we’ll have to keep our tires inflated.
Like President Obama believes investment in biofuels is important, he feels the same way about wind power and solar power—though they have virtually nothing to do with transportation unless we all drive a Volt. While he is pushing for electric cars, he is systematically raising the cost of electricity. Despite his “all of the above” claim, he really only likes wind, solar, and biofuel.
During the 2008 campaign, candidate Obama stated that “it is wildly expensive to pursue nuclear energy” and that he planned to enact a cap and trade program through which electricity prices would “necessarily skyrocket.” He claimed that if “somebody wants to build a coal-fired power plant, they can, but it is going to bankrupt them.”
Now, with the election looming, the Obama administration is already causing electricity prices to skyrocket by killing coal-fueled generation while pushing wind and solar that are intermittent and considerably more expensive. Just this past week, in addition to the onslaught of new regulations on coal, the EPA rolled out new rules for coal-fueled power plants that will effectively “bankrupt” anyone who tries to build a new power plant. The greenhouse gas rules do not currently apply to existing plants, but EPA officials won't rule out issuing climate rules for existing power plants—and environmental groups want them. Given the Administration’s propensity to give into environmental demands, we can be sure that a second term of the Obama Administration will shut down more coal-fueled power plants. Coal-fueled power plant closures are already hurting communities that are struggling with the lost tax revenue that funds schools and essential services. However, the EPA doesn’t take job loss into its decision making process. These closures not only increase the cost of electricity and cause the loss of jobs, they threaten the reliability of the grid.
Some might think, no problem, we will replace the coal-fueled plants with natural gas. This is a possibility. But, it will require new construction or expensive conversions—paid for by the ratepayers (you and me). The abundance of natural gas has resulted in record low prices. However the supply growth is a result of hydraulic fracturing—a practice currently regulated on a state-by-state basis, for which the EPA wants oversight. Given the EPA’s overzealous hand, it is easy to picture the Obama Administration banning fracking altogether—which would cut the supply of natural gas and consequently raise the cost and cause a price increase in electricity generated from natural gas. A ban on hydro-fracking, would kill the economic growth in blue states like Ohio and Pennsylvania—states Obama needs to win reelection—so such a ban is not likely in 2012, but would probably be part of the “flexibility” of a second term.
And, I haven’t even touched on the dearth of drilling or mining permits issued, the impact of high gas prices on everything else and the resulting inflation, the growing number of failed renewable companies, or the rolling blackouts you can expect. But you get the picture of life under a continued Obama administration—now with “more flexibility.”
So if you like high gas prices—albeit gradually increased, if you can afford the high price of a Volt and can tolerate the low range—while the rest of us subsidize it, if you don’t mind being hot in the summer and cold in the winter, you know how to vote. If you want the health and wealth energy provides, you’d better revolt this November.
