Tag: Energy prices

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Energy Production May Boost U.S. Economy

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.

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Irrational energy policies

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.