We Already Know Democrats’ Energy Plan: Higher Energy Prices and Less Energy

February 23, 2012

President Obama is Trying to Pivot Away from Rising Gas Prices, But Democrats Have Consistently Pushed Policies that Hurt the American Consumer

President Obama is speaking this afternoon to unveil what he claims is his plan for American energy amidst rising gas prices. Sadly, Americans know all too well from three years of this administration that Democrats’ plan for energy is to artificially increase prices while exacting enormous costs on the rest of the economy.
Perhaps most shockingly, the Obama administration is trying to reinvent its record of blocking oil and gas production, most recently with their decision to block the Keystone pipeline but also with the hurdles they’ve placed in front of new oil and gas leases.
Instead of allowing proven energy technologies to tap into existing energy reserves and increase American energy independence, Democrats have repeatedly placed high-risk, taxpayer-funded bets on companies like Solyndra in the name of unproven “green” experiments, but have little to show for it.

President Obama is speaking this afternoon to unveil what he claims is his plan for American energy amidst rising gas prices. Sadly, Americans know all too well from three years of this administration that Democrats’ plan for energy is to artificially increase prices while exacting enormous costs on the rest of the economy:

OBAMA TO “PROMOTE ENERGY PLAN THURSDAY”: (Dan Berman and Donovan Slack, “Obama to Promote Energy Plan Thursday,” Politico, 2/21/2012)

“GAS PRICES ARE HIGHEST EVER FOR THIS TIME OF YEAR”: (Chris Kahn, “Gas Prices are Highest Ever for This Time of Year,” Associated Press, 2/18/2012)

OBAMA WANTED ENERGY PRICES TO “NECESSARILY SKYROCKET” UNDER HIS CAP-AND-TRADE PLAN: ” ‘Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket,’ Obama told the Chronicle. ‘Coal-powered plans, you know, natural gas, you name it, whatever the plans were, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.” (Catherine Richert, “Pence

ENERGY SECRETARY STEPHEN CHU IN SEPTEMBER 2008: “SOMEHOW WE HAVE TO FIGURE HOW TO BOOST THE PRICE OF GASOLINE TO THE LEVELS IN EUROPE”: ” ‘Somehow we have to figure out how to boost the price of gasoline to the levels in Europe,’ Mr. Chu, who directs the Lawrence Berkeley National Laboratory in California, said in an interview with The Wall Street Journal in September.”(Neil King, Jr. and Stephen Power, “Times Tough for Energy Overhaul,” The Wall Street Journal, 12/12/2008)

FLASHBACK: HOUSE DEMOCRATS RAMMED THROUGH CAP-AND-TRADE NATIONAL ENERGY TAX IN 2009: (Roll Call 477, Clerk of the U.S. House, 2/22/2012)

Perhaps most shockingly, the Obama administration is trying to reinvent its record of blocking oil and gas production, most recently with their decision to block the Keystone pipeline but also with the hurdles they’ve placed in front of new oil and gas leases:

“THE ANTI-JOBS PRESIDENT” REJECTS JOB-CREATING KEYSTONE PIPELINE:(Editorial, “The Anti-Jobs President,” The Wall Street Journal, 1/19/2012)

GREEN GROUPS THREATENED TO ABANDON OBAMA IF HE APPROVED KEYSTONE: “Environmental groups have been protesting the pipeline that would run from Alberta oil sands to Texas refineries, and there have been rumblings that greens would abandon Obama next fall if he approved it.” (Dan Berman and Darren Goode, “Obama Punts Keystone XL Pipeline,” Politico, 11/10/2011)

NATIONAL JOURNAL ANALYSIS: “U.S. ECONOMY MISSED OUT ON CREATING UP TO A QUARTER-MILLION JOBS” IN 2011 BECAUSE IT “LACKED [ENERGY] INFRASTRUCTURE”: “The U.S. economy missed out on creating up to a quarter-million jobs this year because it lacked the infrastructure to capitalize on a rare divergence in global oil prices, a National Journal analysis shows.” (Jim Tankersley, “A Crude Hit to the Recovery,” National Journal, 11/29/2011)

INCREASING ENERGY INFRASTRUCTURE THROUGH KEYSTONE XL WOULD LIMIT PRICE SPIKES IN FUTURE: “There’s no evidence that the oil industry manipulated the price spread to boost refining profits; the companies just appear to be benefiting from the nation’s inability to move cheaper oil around freely. Energy industry groups say expanding America’s pipeline infrastructure – including potential Obama administration approval of the Keystone XL pipeline to carry oil south from Canada – would minimize the odds of another wide price split in the future.” (Jim Tankersley, “A Crude Hit to the Recovery,” National Journal, 11/29/2011)

OBAMA ADMINISTRATION CONTINUING TO SLOW-WALK NEW DRILLING PERMITS:

OBAMA MORATORIUM ON GULF DRILLING “TAKING ITS TOLL” AND “MIGHT AS WELL STILL BE IN EFFECT”: “Small- and medium-size businesses serving Louisiana’s energy industry are shedding employees, dipping into personal savings or moving elsewhere to stay afloat. The administration’s war on fossil fuels is taking its toll.

“The federal six-month moratorium on drilling that was issued in May 2010, after the explosion of the Deepwater Horizon oil rig, has been officially lifted, but it might as well still be in effect.” (“Gulf Deepwater Drilling Ban’s Hidden Victims,” Investor’s Business Daily, 1/31/2012)

GULF BUSINESSES FRET THAT “PERMITORIUM” REMAINS IN PLACE: “They’re calling it a ‘permitorium’ caused by stricter regulations that are allowing gulf drilling, but at a snail’s pace, in both deep and shallow water.” (Katie Moore, “New Study: Small Businesses Hit Hardest by Drilling Delays,” WWL TV, 1/31/2012)

ISSUANCE OF NEW PERMITS MUCH SLOWER THAN IN RECENT YEARS:“Although the moratorium has been lifted, permit issuance has been slower than in the years before the spill. In the past three months, two deepwater permits were issued per month on average, according to the Gulf Permit Index, released each month by GNO Inc.” (“Gulf Deepwater Drilling Ban’s Hidden Victims,” Investor’s Business Daily, 1/31/2012)

OBAMA’S MORATORIUM ON OFFSHORE DRILLING SHRANK PRODUCTION IN THE GULF OF MEXICO: “But that same report provides ammunition for Republicans, because it predicts that in the short term, oil production in the Gulf of Mexico, where the Obama administration placed a moratorium on new deep-water exploratory drilling after the Gulf oil spill, will show a decline in 2011 and this year before rebounding later.” (Dina Cappiello, “Fact Check: Obama, GOP Spin Recent Energy Stats,” Associated Press, 2/5/2012)

OBAMA HAS RESCINDED SEVERAL LEASES FOR OIL EXPLORATION: “Republicans and the oil and gas industry focus on federal lands, because that’s where the government controls access and permitting to drill. There, Obama’s record is mixed. … Soon after Obama took office, the Interior Department rescinded 77 leases in Utah because of their close proximity to national parks, later reinstating 17 of them.

“Then weeks before the 2010 Gulf oil spill, Obama said he would consider expanding drilling off the Virginia coast and Alaska, only to scrap or delay those plans after the spill. And just last week the Interior Department, after completing a preliminary environmental review, said it would offer up thousands fewer acres for oil shale development in three Western states than President George W. Bush had.” (Dina Cappiello, “Fact Check: Obama, GOP Spin Recent Energy Stats,” Associated Press, 2/5/2012)

Instead of allowing proven energy technologies to tap into existing energy reserves and increase American energy independence, Democrats have repeatedly placed high-risk, taxpayer-funded bets on companies like Solyndra in the name of unproven “green” experiments, but have little to show for it:

OBAMA SAID STIMULUS WAS INTENDED TO “TAKE BETS” ON NOW-BANKRUPT COMPANIES LIKE SOLYNDRA: “But that’s exactly what the loan guarantee program was designed by Congress to do, was to take bets on these areas where we need to make sure that we’re maintaining our lead.” (“News Conference by the President,” The White House, 10/6/2011)

LAST WEEK OBAMA INSISTED HE WOULD “DOUBLE DOWN” ON GIVING TAXPAYER MONEY TO COMPANIES LIKE SOLYNDRA: “We’ve got to double down on the clean energy that’s creating jobs.” (“Remarks by the President on the Budget,” The White House, 2/13/2012)

AFTER HE USED STATE OF THE UNION TO EMBRACE HIS RECORD OF FAILURE ON “GREEN” PROGRAMS LIKE SOLYNDRA: “Some technologies don’t pan out; some companies fail. But I will not walk away from the promise of clean energy.… It’s time to end the taxpayer giveaways to an industry that rarely has been more profitable and double down on a clean energy industry that never has been more promising. Pass clean-energy tax credits.” (“Transcript: Obama Delivers State of the Union Speech,” CNN, 1/24/2012)

“REPORT: ENERGY LOANS COULD COST $3B” FROM “HIGH-RISK” GREEN PROGRAMS: (“Report: Energy Loans Could Cost $3B,” Associated Press, 2/10/2012)

REPORT “ECHOES CRITICISM” THAT “OBAMA ADMINISTRATION SHOULD HAVE CUT OFF MONEY TO SOLYNDRA FAR SOONER THAN IT DID”: “The government could reduce its losses from the loan program if it withholds money from companies that fail to meet certain benchmarks, the report said. The comment echoes criticism by some Republicans in Congress who say the Obama administration should have cut off money to Solyndra far sooner than it did.”(“Report: Energy Loans Could Cost $3B,” Associated Press, 2/10/2012)

OBAMA’S RE-ELECT CAMPAIGN SIGNALS INTENTION TO RUN ON FAILURE, CELEBRATING NOW-BANKRUPT SOLYNDRA IN THEIR FIRST 2012 AD: “Don’t think Chicago is deeply concerned about the brand damage that the Solyndra semi-scandal can wreak? Of all President Obama’s vulnerabilities (Isn’t this race supposed to be about the economy?), Team Obama chose to attack Solyndra right out of the gate, placing Obama, literally, in a sea of solar panels, amid quotes proclaiming him to be cleaner than clean — wallowing in the future.”(Glenn Thrush, “Decoding Obama’s First Ad: S-O-L-Y-N-D-R-A,” Politico, 1/19/2012)