Energy prices – USA Gov Policy

There may be some good news about America’s economy coming in 2015. Starting next year, the U.S. will begin exporting energy supplies.

IBItimes reports that America is poised to surpass Russia and Saudi Arabia as the world’s top oil producer. According to Maria van der Hoeven, Executive Director of the International Energy Agency, “The big supply story has been the unprecedented production growth in recent years in North America.”

Unfortunately, the quantity will not be sufficient to dramatically impact the national economy since the vast untapped resources on federal lands still remain off limits. A further deterioration of the energy picture both for Americans and our allies overseas may also occur if the President’s carbon emissions plans go into effect.
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A further increase in energy exports may come if a 40-year old ban on the export of most US oil is lifted. The ban was a response to the energy shortages of the 1970’s. In a recent study, the Brookings Institute found that lifting the ban on crude oil exports will boost economic growth, lower gas prices, and enhance America’s global power.

Energy prices remain a challenge to economic growth in the United States, where gas has risen from $1.78 when President Bush left office to the current average of $3.41 today.

The growing lack of realism in policy choices is becoming increasingly acute.

The problem can be particularly discerned in areas that are easily quantified. Energy is one such issue. Americans pay unnecessarily high prices for this essential commodity largely due to very bad choices made by government, and the problem is about to get worse.

Over the past half-decade, the White House’s refusal to open up federal lands for energy exploitation, the relentless attacks on coal, and the refusal, without any valid reason, to authorize the Keystone XL pipeline have all played a part in adding to the burden Americans shoulder in high energy prices.

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The irrationality extends beyond Washington. One salient example is New York, which continues to endure high taxes, high unemployment, and high energy prices. A bizarre policy choice contributes significantly to this dilemma, and stands poised to make it worse in the future. The Empire State has abundant natural gas resources, but its governor refuses to allow them to be tapped.

Now another odd option is being considered, according to the Wall Street Journal. Despite a lack of convincing evidence, the State Department of Environmental Conservation is considering periodically closing down a key portion of New York’s energy production capacity, a nuclear plant, that some advocates allege may harm some fish.

Quick Analysis

Ukraine’s Frozen Conflict

As we approach winter in the northern hemisphere, the war in Ukraine is beginning to resemble a “frozen conflict” from many perspectives. Ukrainian President Volodymyr Zelensky recently told the media he hopes the war will end faster once President-elect Trump takes over in January. Opinions in Moscow, however, differ from that of the Ukrainian leader. Russian President Vladimir Putin argues that the North Atlantic Treaty Organization (NATO) needs to exclude Ukraine from joining in “exchange” for peace. If it does not, he says, then no end to the war is in sight. So far there is no Christmas solution. Several NATO countries, according to Vladimir Socor of the Jamestown Foundation, are tentatively considering “coalitions-of-the-willing” to provide security for Ukraine outside of the formal NATO framework. There is, however, no collective mechanism today under which such an arrangement is viable. According to the NATO Charter, while Ukraine is a NATO partner country, it may not join as a full member since it has not fulfilled the requirements for membership. That has not stopped NATO and allies from continuing “to provide Ukraine with unprecedented levels of support, helping to uphold its fundamental right to self-defence,” according to the organization. Socor says that keeping Ukraine out of NATO will not advance peace with Russia. Waiting for a peace settlement, he suggests, would only serve to encourage Moscow to continue the war indefinitely. Although the Biden Administration officially withdrew its support for Ukrainian membership in 2021, NATO maintains an “open door” policy toward membership-seeking countries. The current White House position led the way for European states to oppose Ukraine’s membership saying that a decision should be delayed until “conditions are met.” Biden pushed for changing “open door” to a “bridge” metaphor. It is not intended as an across-the-board NATO policy and has been implemented in the past on a case-by-case basis, says Socor. “The alliance’s open-door policy was not fully insulated from Russia’s non-statutory blocking power, and NATO-aspirant countries’ path toward membership was not always irreversible.” Russia has successfully blocked states like Georgia from joining, first in 2008 and again after the war in Ukraine began in 2014. Russia recognizes the value add of Ukraine to NATO is enormous and that Kyiv has a better case than some other nations. Putin’s invasion was, in part, intended to foreclose that option. By 2021, Moscow was pushing hard to maximize its war objectives, which included further annexations of Ukrainian territory. A main goal for Putin was, and is, to ensure there is no Ukraine left to join NATO. As President-elect Trump prepares to assume office in January, he is faced with the historical challenges presented by the war. Post-conflict security guarantees were the center of several proposals made during the 2023 military stalemate. The incoming Trump Administration has yet to outline how it intends to handle the Russia-Ukraine war. Analysts in Washington believe that the new Administration will expect its European allies to guarantee the majority of Ukraine’s security needs. As we approach 2025, several European nations have acknowledged that they do not view Ukraine as eligible for NATO membership as it would draw the organization into the middle of the conflict. Others want to wait until the war is over or pending a “peace” settlement before considering Ukrainian membership. Socor reports that some “influential voices” are suggesting that “Kyiv should join NATO after “freezing” the war along a stable armistice line, de facto accepting Ukraine’s partition, with NATO security guarantees applying de jure to the government-controlled territory only.” This would mean starting accession talks soon with the actual talks to commence only after a ceasefire is in place. Trump arrives in Washington at a time when Putin’s hybrid strategies of war in Ukraine have eviscerated commonly-held differences between war and peace. “Absent a political consensus in NATO over Ukrainian membership, certain European allies, including France’s President Emmanuel Macron, are holding informal consultations about post-conflict security guarantees to Kyiv by NATO members outside of NATO’s framework,” according to the Jamestown Foundation. The Biden Administration downplayed the discussions on possible forms of military assistance and defense industry cooperation by sending only an Assistant Secretary of State. For a European peace to hold the Trump Administration would need to formally extend the United States’ nuclear deterrence to Ukraine. Options under discussion in Europe include a “coalition of the resolute” to deploy forces to Ukraine as part of a possible armistice package, deterring further Russian attacks, says Secor. European officials are also debating, without any agreement, whether its military forces could perform non-combat logistical roles to free Ukrainian forces to fight. None of the possible courses of action has moved forward as all eyes are waiting on the incoming Trump Administration for clues about its intended level of support for a NATO framework and other non-NATO proposals. Daria Novak served in the U.S. State Dept.