Today, against all expectations, the United States has overtaken the Saudis as the number one global producer of oil. Combined with rising output from Mexico and Canada, North America stands to become the dominant energy region in the world. It is a shocking transformation, and one which promises huge advantages to the U.S. China may have cheap labor, but we have cheap power.
Unless we give it away.
That’s what President Obama would like us to do; he wants the U.S. to adopt the policies of Tony Blair and other European leaders who have saddled their economies with huge tax subsidies for high-cost, low-carbon fuel and adoption of onerous efficiency measures.
The U.S. has long enjoyed low electricity prices, but that is changing thanks to Mr. Obama’s climate quest. In February, the EIA reported that the price of residential electricity rose 3.1 percent from a year ago, in spite of a 52 percent drop in the cost of natural gas. Cheap gas has kept a lid on electricity prices that otherwise would be rising as coal-burning pants close and a higher percentage comes from mandated renewables. That won’t last.
Last November, the grid operator in Texas, the Electric Reliability Council, said that the new EPA rules will cause consumer energy costs in Texas to rise by as much as 20 percent by 2020.
In Obama’s mind, it serves us right for being such a wicked country. He’s just spreadin’ our wealth around a little bit (OK, a lot) to good and decent nations like… well, I’m sure I could name one or two if I weren’t under deadline pressures.
In my mind, it serves us right for electing the Marxian creep — twice.