US Energy Policy

US Energy Strategy

For the US to compete globally we must have affordable energy. Without this we cannot have a vibrant manufacturing sector and without that sector we can’t achieve full employment or the American Dream. Every economist agrees without a solid energy policy we can’t fix the American economy. Additionally, making things here in the US is also part of our Return the Pride Program. What do we really make in the US anymore? Not much - some cars, some tech, some raw materials and a few other minor industries. Post World War II we became a great nation because of our manufacturing sector. Obviously I realize we can’t beat the labor arbitrage that India and China have but we can still compete for manufacturing jobs in many areas if we have cheap energy.

We all know that we have some of the largest deposits of oil and coal in the world right here in the US (or in our territorial waters). We also have a natural geography that can produce a lot of green energy as well. I think we need a balanced and very focused long term energy policy – a plan that Americans can count on and that will not change with every political swing.

According to a study by the Energy Information Administration (EIA), the US has over 257 million tons of coal deposits which make it the largest in the world. By comparison Russia which is second on the list has 100 million tons less. On the oil front while we do not enjoy this kind of lead but we do have a lot more oil than folks realize. We hold about 2 % of all oil reserves however, we account for nearly 10% of all oil production. According to the EIA we will increase oil production by 7.7% between now and 2035 and this will lead to a 23% increase in our reserves after consumption. We also have strong gas reserves and production plus lots of very viable alternative energy resources – wind, solar and water.

My energy policy would have two distinct segments – traditional energy and green energy. Here is what I propose for each:

Traditional Energy

·        Encourage and implement drilling for oil everywhere in our territories with sensible timelines and guardrails. (yes some Californians will see oil rigs off the coast and we may kill a few spotted rats as we mine for coal)

·        Do the same for coal deposits in the US with incentives for citizens using coal for more of their energy needs

·        Limit State and Federal taxes on gasoline and heating oil (these taxes hurt the consumer not the big bad oil companies)

·        Give tax deductions to manufacturers who find ways to improve energy efficiency by 20% or more while keeping emissions environmentally acceptable

·        Provide incentives to all businesses that decrease their emissions and carbon footprint voluntarily by 20% or more

·        Provide incentives for citizens to recycle and lower waste emissions annually

·        Participate with the Canadians on their proposed pipeline but ask for favored nation pricing on some of the oil that runs across America

·        Withdraw troops and protection from any oil producing country that does not provide us with “proportional” oil pricing (prices equal to their lowest sale price worldwide)

·        Encourage energy companies to give large amounts to charity via special tax considerations. They have the cash and they need a PR boost.

·        Limit or repeal some of the ridiculous regulations around domestic drilling.

·        Take a very serious look at nuclear energy – we have not built a reactor since the 70’s.

·        Provide tax incentives to energy companies for R&D that results in better efficiency and smaller ecological footprints

Green Energy

·        Encourage the R&D for all green energy – subsidies, and tax considerations but not handouts like Obama did

·        Provide incentives for citizens who use green energy – solar, wind and water ( we have many already)

·        Provide incentives and support for scaling proven green energy

·        Encourage manufacturers who find ways to use green energy that improves their efficiency by 15% or more

·        Educate the US and the world on proper use of green energy – most Americans don’t really understand it

·        Provide incentives to all citizens to decrease waste and clean up America. (bring back the crying Indian)

·        Support research into preserving and regenerating our natural resources – lumber, water, coal etc.

·        Change our environmental policies to encourage conservation while allowing for enterprise growth – they can exist together

Additionally I would consolidate many Federal agencies such as OSHA and the EPA. I would shrink the Department of Energy and combine it with the Department of the Interior. Let them find ways to coexist and shrink their size. (That should be fun to watch). The American people are not stupid and don’t want to be treated that way. We understand our energy needs and the critical importance of a greener energy policy to assist generations to come.

Our target should be to return American gas prices to approximately $2 a gallon thus further spurring economic growth. With cheaper energy, businesses will weigh the financial options of a cheaper foreign labor force versus a US workforce and lower energy costs. If we combine this with less regulation; a highly skilled and educated workforce, lower corporate taxes and healthcare costs we can compete globally we will win.

Over time our two prong approach will drive energy growth with less dependence on traditional sources and more on renewable resources. We will wean ourselves off Middle Eastern Oil and this will in turn decrease our need for military spending there. America is an innovator so let’s provide the incentives and watch as we rise to challenge and succeed. Let us once again become the example other nations want to follow.