Home > Frac > Will Obama Put Our Money Where His Mouth Is? Politics Are Getting Old.

Will Obama Put Our Money Where His Mouth Is? Politics Are Getting Old.

January 31, 2012

It’s a wonder to me that after three years in the presidency, Barack Obama, in an election year, per his State of the Union Address, talked about the importance of American Energy Independence related directly to the Shale Gas boom.

The sense of wonder that overtakes me stems from a publicly conflicted Barack Obama. His policies and his speech are noticeably opposed to one another.

I am equally surprised that he thought it wise, before a national audience, to take credit for the private sector’s production in spite of his policies, policies that have done next to nothing to help the industry.

To quote The Washington Times: “President Obama taking credit for higher oil and natural gas production is like the rooster taking credit for the sunrise.”

I am not surprised at Obama’s words because the pulse of the American culture is racing and folks are looking for answers to the following questions: “Why is the economy so bad?”, “How did we get here?” and “Who is to blame?”.

The approval rating of congress is abysmal, and Obama is the most divisive and polarizing president ever. Among Republicans, his approval rating is 12%, more proof of growing polarization.

The citizens of the United States are gradually realizing how politics have cost them and their grandchildren.

Politics have cost us dearly.

The reason that Obama’s announcement is a surprise is by in large due to the data that those of us in the Oil & Gas Industry have recognized for years; the same data that up to this point, Barack Obama has either sought to ignore or resist by laundering his “Green” actions through government agencies.

We’ve long recognized that Hydraulic Fracturing is a safe practice that has enabled our Oil & Gas production to rise significantly in a country where, just a few years ago, we thought about energy demand in a way that included lots of Natural Gas imports from Russia.

We’ve understood the potential of homegrown energy through Natural Gas in terms of job creation, economic stimulation, and the benefits of decreasing energy imports from unstable or unfriendly nations.

Our production is the reason that energy bills are lower, the reason that Natural Gas prices are at a low, and the reason that we don’t have to live in fear about expensive energy or power shortages. We have an industry that actually pays its bills, an industry that actually works in the real world.

More reasons for this sense of wonder is that four years ago, when Sarah Palin was chanting “Drill Baby Drill”, Barack Obama rallied against her; and now Natural Gas is the answer.

Under his administration, “Green Energy” was given $14.7 billion dollars in guaranteed loans and subsidies; this, while “Clean Energy” was setting itself up for a giant bust. With $3 billion dollars spent on Green training, a pathetic 8,000 jobs were created at a cost of $375,000.00 per job.

There was the Solyndra debacle, and now Evergreen Energy and Ener1 are biting the dust.

While he claimed to create 22 million jobs, he delivered 3 million.

This isn’t all.

Barack Obama is not only currently strangling drilling onshore by overstepping the bounds of regulation (when Lisa Jackson says the states are doing a fine job),  his EPA is still working to openly attack Hydraulic Fracturing while practicing Mad Hatter science in Pavillion, WY that they want deemed “credible”. They swing back and forth on their positions monthly.

He is also personally responsible for a broad, knee jerk drilling moratorium and a subsequently handicapped permitting process that cost this nation $24 billion dollars.

This administration has already cost Americans billions in failed Green Projects and billions more through the offshore drilling moratorium, Keystone XL refusal, and the EPA’s questionable practices in Dimock, PA and Pavillion, WY. We still have to recover from an administration that has caused our nation to bleed money. With Government backed Green Companies folding like cards while conventional energy projects like the Keystone XL are repeatedly opposed (which by the way would have created some 22,000 jobs and would have been privately funded) it is no curve ball to see what we all just found out.

He just racked up another trillion, with a “T”, dollar deficit.

All that being said, it is good, I suppose, that Obama is finally recognizing that Oil & Gas, in spite of his opposition and blind fiscally irresponsible commitment to Green Energy, is the future of American Energy.

BUT, and I mean BUT, can we believe him?

You see, there is one major complication.

Obama’s approval ratings are terrible and this speech smacks of political strategy.

Is this a political strategy or is he actually going to enable the Oil & Gas Industry to lead the way in American Energy?

In his State of the Union Address he said

Think about the America within our reach: a country that leads the world in educating its people; an America that attracts a new generation of high-tech manufacturing and high-paying jobs; a future where we’re in control of our own energy; and our security and prosperity aren’t so tied to unstable parts of the world. An economy built to last, where hard work pays off and responsibility is rewarded

Tonight, I want to speak about how we move forward and lay out a blueprint for an economy that’s built to last, an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values…

…So my message…

My message is simple. It is time to stop rewarding businesses that ship jobs overseas and start rewarding companies that create jobs right here in America.

I also hear from many business leaders who want to hire in the United States but can’t find workers with the right skills. Growing industries in science and technology have twice as many openings as we have workers who can do the job. Think about that: openings at a time when millions of Americans are looking for work.”

None of these goals are possible the way his current policies are trending. In other words, “talk is cheap” Mr. President, so far you have delivered hollow orations while you are clearly impotent on issues that count. You have done nothing to support Oil and Gas.

You need to give them your vote of confidence and put forth concrete policies that prove the same level of enthusiasm you’ve had for failing Green initiatives.

The truth of the matter is that in the land where we “control our own energy; and our security and prosperity aren’t so tied to unstable parts of the world” the land that endeavors to do so must incorporate a foundation of native Oil & Gas.

There is no getting around it. 80% of our energy comes from coal, and Oil & Gas. Our current Green friendly energy plan needs an overhaul.

All of those job openings he is talking about, the “openings at a time when millions of Americans are looking for work.”, those jobs are in the Oil & Gas sector to the tune of 18,000 available jobs in North Dakota alone (thanks to the Bakken Shale). There would have been an additional 22,000 jobs (plus a projected 100,000 + spinoff jobs) created by the Keystone XL Pipeline. More money means businesses grow.

Those business leaders are demonized (thanks to the press) CEOs like Aubrey McClendon.

The big question:  Will Obama Put Our Money Where His Mouth Is? Or is he again placating Oil and Gas Companies in an election year in the hopes that citizens have a short memory or are ignorant? Is he scrounging for votes with the hidden intention of wasting more tax payer dollars on failed projects. He needs a sense of national (not just Democratic Party) responsibility.

Going into this election, industry folks may be his strongest opposition, as he has been one of their strongest assailants and we have noted his opposition.

As Michael Economides notes,

“With little likelihood of a divided Congress enacting much that is new on energy this year, the President’s remarks last night (at the State of the Union address) are mainly interesting for what they suggest about the energy platform on which he will run for reelection this fall. In terms of clean energy, that seems to mean more of the same from 2008 and the last three years, but with much less emphasis on climate change than we heard in his last campaign. The new element is his pivot to embrace rising oil production and the possibilities created by shale gas, even as he cautiously distances himself from the technologies (hydraulic fracturing and horizontal drilling) that make these two trends possible. Although this might appeal to independent voters, it’s also vulnerable to deflation by fact-checking and stands in tension with his rejection–for now–of the Keystone XL pipeline. And if tensions in the Persian Gulf or some other oil hot spot were to increase, so would the scrutiny applied to the administration’s energy policies.”

Obama seems to be acting politically at a time when he needs to be executing.

He has to be willing to do something that revitalizes the American Economy regardless of popularity. Isn’t that what he said he was willing to do when he appointed Richard Cordray.

I believe he said

“When Congress refuses to act and as a result hurts our economy and puts people at risk, I have an obligation as president to do what I can without them,” Obama said “I have an obligation to act on behalf of the American people.” AND “I will not stand by while a minority in the Senate puts party ideology ahead of the people they were elected to serve,” Obama said. “Not when so much is at stake. Not at this make-or-break moment for the middle class.”

Then approve the Keystone XL Pipeline, which has overwhelming national support for job creation and stop stalling with all of this federal-regulation-of Hydraulic-Fracturing-garbage.

He is trying to walk a fence that will enable him to guarantee the largest number of votes. For a man who talks a lot about the greater good of the people, he sure doesn’t act like it. He wants all the accolades without paying the toll. There is no free lunch on earth. Somebody has to pay for it.

Will Obama Put Our Money Where His Mouth Is? If so, he will move to explicitly support Oil & Gas as the future of American Energy.

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