Everyone can agree on the central premise of President Obama’s
address to his party’s national convention -- that the nation now
has two fundamentally different visions of what path the country
should take. And, surprisingly, when it comes to energy, the two
political parties seem to also agree on the potential of shale gas.
Supporting such unconventional natural gas is the path of least of
resistance. But for Obama, the risk is that this energy position
will alienate elements of his party who disagree vehemently that
shale gas is a “silver bullet” and who protest its production
methods -- called fracking -- because of their alleged effects on
ground water. Still, the rational for giving the fuel source a major
endorsement is centered on two facts: It’s sheer abundance and it is
cleaner than coal.
The acceptance speech, nonetheless, extended an olive branch to the
coal industry that has declared its goal the turning back of the
regulatory clock. The president, in fact, pointed out that “clean
coal” is part of the energy fabric. At the same time, he said that
renewable energy is the future and that during his tenure, such
fuels have doubled in size.
“We're offering a better path – a future where we keep investing in
wind and solar and clean coal; where farmers and scientists harness
new biofuels to power our cars and trucks; where construction
workers build homes and factories that waste less energy; where we
develop a hundred year supply of natural gas that's right beneath
our feet. If you choose this path, we can cut our oil imports in
half by 2020 and support more than 600,000 new jobs in natural gas
alone,” Obama says.
To that end, the president has sought to distinguish his positions
on shale gas from those of his Republican challenger. In essence,
Obama will require more government oversight to ensure that the
production methods are safe. Natural gas developers, however, are
concerned about the federal government invading the territory of
state agencies that they think are closer to these issues.
Those producers are also fearful of revealing proprietary
information, or the chemicals that they are using to loosen the
fuels from the rocks. With environmental and civic groups breathing
down their necks, the administration wants to ensure the “public’s
right to know.” Because tainted drinking water supplies or dirty
water rising to the surface have become such hot-button issues, many
explorers are coming around to this eventual reality.
“So the role the federal government at this point is to make sure
that we are providing the research dollars and the monitoring so
that we don’t see the health and safety of people in these areas put
at risk, but the technology has improved greatly and the natural gas
boom that we’re seeing around the country is something that I want
to encourage,” Obama told WHBC
Radio in Ohio, in a phone interview that its host had
conducted.
Building the Base
The president is opening up more offshore areas to drilling -- a
move that he had committed to make before the BP oil disaster in the
Gulf of Mexico. Now that the administration has reviewed that
situation and implemented new safety measures, he said that
exploration can proceed -- with conditions. In other words, the
federal government understands the economic contributions of the
off-shore oil and gas industries but it also understands that any
spills can devastate the local ecology, affecting all of the
ancillary economies.
Conciliation aside, he is continuing to emphasize that oil company
profits are greater than ever and that the industry should get off
of the government’s dole -- a place where it has been perched for a
century. Its federal allocation could now fund innovative green
technologies: “Government support is critical in helping businesses
get new energy ideas off the ground,” Obama has said previously.
Oil and gas producers are disapproving, saying that the president is
out to “stifle” development. They want more access to areas now off
limits to development and they will continue to push for the
Keystone XL pipeline that would run from Canada and into Texas.
Here, they argue that Obama’s election year politics are causing the
delay of what they believe to be a vital energy lifeline -- one that
would create jobs while also limiting U.S. involvement with
oversea’s regimes.
“We've opened millions of new acres for oil and gas exploration in
the last three years, and we'll open more. But unlike my opponent, I
will not let oil companies write this country's energy plan, or
endanger our coastlines, or collect another $4 billion in corporate
welfare from our taxpayers,” Obama told Democrats.
With the Republican and Democratic conventions finished, the
candidates will now pound the pavement. Both presidential hopefuls
are endorsing an inclusive energy strategy with natural gas taking
top billing. Still, each man is trying to build up his base, which
means that those bankrolling the victor will help write the rules.
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