On Energy, Obama’s Full of Hot Air
With this new tax burden, American energy companies’ ability to compete for energy concessions around the world diminishes substantially. With less money to bid on future projects, and exploration and production budgets slashed to account for this new tax liability, our future access to affordable and reliable energy becomes far less certain.
State-run oil and natural gas companies in the Middle East, Africa, and Asia are 8 or 10 times larger, and have far deeper pockets, than the U.S.-based companies the president is targeting. Removing “dual capacity” treatment makes a mess of this already unlevel playing field. Although President Obama closed his address by saying “We do big things,” the “We” is domestic oil and natural gas companies. And if Congress goes along with his request, the new “We” will be our principal economic competitors abroad.
Sadly, the president’s lofty address to the nation did little to bail any water from the ship of state, especially with his energy policy proposals.
America’s current and future security is based upon a sound economy and energy supply. Thus the president’s unrealistic energy generation goals and detrimental new energy taxes must be rejected. If they are not, the next twenty-plus years will be both expensive and painful.