Free Markets, Free People

Fossil fuel still the hope for the future

Let this paragraph, given the economic circumstances we now find ourselves in and the policies we’ve suffered under with this administration in reference to fossil fuels, sink in:

U.S. energy supplies have been transformed in less than a decade, driven by advances in technology, and the economic implications are only beginning to be understood. U.S. natural gas production will expand to a record this year and oil output swelled in July to its highest point since 1999. Citigroup estimated in a March report that a “reindustrialization” of America could add as many as 3.6 million jobs by 2020 and increase the gross domestic product by as much as 3 percent.

In case you missed those numbers, that’s plus 3.6 million jobs and kicking up the GDP by as much as 3% by 2020.

And imagine the tax revenues that would bring as well.

Low cost fossil fuel will also do much, much more:

[T]here are signs the economic gains have begun to expand beyond the oil and gas fields and that the promise of abundant, low-cost fuels will give a competitive edge to industries from steel, aluminum and automobiles to fertilizers and chemicals.

In other words, low cost fuels will make our manufacturing sector more competitive which means more of it and more jobs as well.  Right now (and for the foreseeable future) our natural gas is much less expensive than that in the UK and Europe.  And we have literally trillions of cubic feet of it that is recoverable.

That’s starting to drive some massive private investment:

Companies plan to invest $138 billion in more than 700 natural gas storage, pipeline and processing plants in the U.S., and another $88 billion in more than 500 gas-fired power generation units, according to Joseph Govreau, vice president and editor-in-chief of Industrial Info Resources. The

firm tracks projects from planning stages through construction.

That’s only a portion of what this will spur, if allowed to go ahead.  Fertilizer production, petrochemicals, etc., all could see a revival with cheap fossil fuel.

Democrats keeps saying that reviving the manufacturing sector should be a priority.

So here’s a valid means of doing so. 

Yet for 3 plus years, this administration has done everything it can to slow walk or block increased production and exploration on federal lands and off our coasts.   There’s no sign it plans on changing that.

This boom we’re talking about has taken place in a relatively very few areas, mostly privately owned:

So far, the economic benefits have been confined to states such as Louisiana, Texas and North Dakota, while the national jobless rate has stayed above 8 percent for 42 straight months in the wake of the worst recession in seven decades.

Seems like the proverbial “no brainer” doesn’t it?  Open up federal lands and let oil companies responsibly and in an environmentally safe way explore for and exploit the natural resources we have and the country is put in the position to reap the benefits:

“This is one of those rare opportunities that every country looks for and few ever get,” said Philip Verleger, a former director of the office of energy policy at the U.S. Treasury Department and founder of PKVerleger LLC, a consulting firm in Carbondale, Colorado. “This abundance of energy gives us an opportunity to rebuild our economy.”

Or we can repeat these past 3 plus years.

Your choice.

~McQ

Twitter: @McQandO

Facebook: QandO

14 Responses to Fossil fuel still the hope for the future

  • Carbondale, Colorado…petrochemicals…fertilizer…manufacturing…cheap fossil fuel…

    Good GAWD, McQ…!!!  Captain Planeteer is going to hunt you down as a running dog capitalist carbon criminal!
    How much are the fossil fuel moguls paying you, really?

  • I vote for 3 more years, because, well, we just haven’t destroyed enough of the country yet.

    • We must confront the reality that it would be awful if the “wrong” folks got prosperity on the road to prosperity for all.
      This goes to the underlying truth …
      It takes investment to create new jobs, and poor people don’t invest
      The simple solution … make everybody poor and enjoying funemployement.

      • I’ve so enjoyed our past 3 recovery summers, I can’t fathom how anyone would want things to be different!
        Unemployment at a consistent high
         
        money being spent like drunken nights in Las Vegas
         
        a “what happens in Washington is none of the public’s business unless Mitt Romney did it” attitude in the White House and half the major government agencies.
         
        The DHS, IRS and now NOAA are stocking up on hollow point ammunition for reasons that escape me. Nothing to see here, move along.
         
        It’s breakfast in America kids!  We’re having Marx style scrambled country with a side of dogmeat.

  • It is increasingly clear that doubling CO2 is unlikely to increase global temperature more than about one degree Celsius, not the much larger values touted by the global warming establishment. In fact, CO2 levels are below the optimum levels for most plants, and there are persuasive arguments that the mild warming and increased agricultural yields from doubling CO2 will be an overall benefit for humanity. Let us debate and deal with serious, real problems facing our society, not elaborately orchestrated, phony ones, like the trumped-up need to drastically curtail CO2 emissions.

    This is our chance to move beyond being “below the optimum levels” if we take it.

  • At what price—the world?

    • At what price if energy isn’t reliable and available? How many people do want to suffer in a low-energy society?

      That kind of blanket “Think of the world!” assertion is just as semantically null as “War is not the answer!” It’s an excuse, a cop-out, a way to avoid thinking through the real problem by asserting smug, vapid, meaningless phrases just to feel better about how much more moral you are than we fools on the right.

    • At what price – stupidity and ignorance.

    • All I can say is, “What a moron”!

    • Yes the world. If we again invest in lo cost fossil fuels, we would not only create countless jobs, but create an environment in which American business would dominate “The World”!