There’s a lot of talk of “energy independence” coming from the Obama administration. It’s a perennial red herring. Of it, Holman Jenkins stated earlier this week it was “a favorite of Tojo and Hitler, was debunked by Churchill, who reasoned that true energy security came from a diversity of suppliers, not the foolish pursuit of self-sufficiency.”
Even so, note the hypocrisy here, in Obama’s tax plan:
$5.3 billion – excise tax on Gulf of Mexico oil and gas
$3.4 billion – repeal expensing of tangible drilling costs
$49 million – repeal passive loss exception for working interests in oil and natural gas properties
$13 billion – repeal manufacturing tax deduction for oil and natural gas companies
In other words, in order to promote energy independence Mr. Obama is going to make it more difficult, more expensive, and thus less likely that American energy companies can drill here, drill now.
The key word above, of course, is “American” — Obama has no power whatsoever on the biggest and most powerful global oil companies, to whom we will turn to get our energy even more than before. (Those pie-in-the-sky notions of “clean” and “green” alternative energies won’t help you power your car to work — only oil and gas will). For all our demonization of the Exxons and Chevrons, et. al., they are puny players in the global market — ranked at #17 and higher in terms of global energy conglomerates, the top spots belonging to the state-owned companies in Russia, Venezuela, Iran, Saudi Arabia, China, Nigeria, etc. 94% of the worlds oil is already controlled by non-US companies.
Meanwhile, Max Schultz noted that Obama’s alternative energies are simply too expensive, and no bang for the buck:
The subsidies involved are considerable. The U.S. Energy Information Administration reported in early 2008 that the government subsidizes solar energy at $24.34 per megawatt-hour (MWh) and wind power at $23.37 per MWh. Yet even with decades of these massive handouts, as well as numerous state-level mandates for utilities to use green power, wind and solar energy contribute less than 1% of our nation’s electricity.
Compare the subsidies to renewables with those extended to natural gas (25 cents per MWh in subsidies), coal (44 cents), hydroelectricity (67 cents), and nuclear power ($1.59). These are the energy sources (along with oil, which undergirds transportation) that do the heavy lifting in our energy economy.
No matter. In the guise of “saving” our environment from warming that (1) isn’t a problem, and (2) is not even man-made, the Democrats are going to shove a massive $646 billion that will cost every American consumer, not just those hated “richest 2%.” They may as well tax you for every breath you exhale.