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  • What Obama Didn't Say

    President Obama keeps trying to make our electric bills skyrocket. Now he’s seized on the BP fiasco as an excuse to do it. According to Obama, the Gulf of Mexico gusher proves we need billions more to subsidize green energy.  That was the President’s claim in his big Pittsburgh speech.

    He didn’t tell the audience about his previous admission that electric bills will “skyrocket” under his plan. Or that our government continues to block access to immense onshore oil and gas reserves that don’t require the risks of deep-sea drilling.

    Obama’s exact words in 2008 were, “under my plan of a cap and trade system, electricity rates would necessarily skyrocket”.  Converting fossil fuel plants, he said, “will cost money; they will pass that money on to consumers.”

    If we were rapidly running out of oil, scarcity would drive up its price and make alternatives affordable without needing subsidies.  But Obama left out the facts about our abundant untapped onshore reserves.  As Heritage Foundation energy expert David Kreutzer notes,

    He also could have noted that billions of barrels of “easily accessible” oil have been turned into “impossible to access” oil by federal regulations and moratoria that block any access. There is still a lot of non-deep sea oil available off the coast of California that can be accessed from onshore. And, don’t forget, there are the 10 billion barrels in ANWR. All of this oil has been placed completely off limits by federal regulations.

    Instead, Obama’s speech simultaneously condemned overspending and denounced subsidies to big oil even as he proposed spending billions more on new subsidies for the competitors of oil and gas.

    Obama wants to eliminate tax deductions that, according to his own budget plan, “distort markets by encouraging more investment in fossil fuel production than would occur under a neutral system.” Yet he intends to distort markets even further by expanding subsidies and tax preferences for alternative energy. Those would heavily favor wind and solar as preferred by environmentalists who overstate the potential and affordability of those.

    Nuclear power, however, has far more abundant potential and needs only the lifting of government barriers rather than subsidies. As noted by Heritage’s nuclear expert, Jack Spencer, “the monthly cost of producing electricity from uranium-based fuel remains slightly less than coal and substantially less than natural gas or oil” because, “Nuclear power is the least expensive form of electricity produced in the United States.”

    But nuclear power is not politically correct. So another proposal is a backdoor subsidy that does not give government money directly toward alternative energy but instead dictates that utilities must generate certain levels of our electricity from sources like wind and solar (but not nuclear)—a so-called RES “renewable energy standard.”

    The wind and sun are free, but the expensive equipment to harness them makes these among the costliest ways to generate electricity. RES forces utilities to use this higher-priced power and pass along the rising costs to customers. One study projects that home electric bills would rise by a third and business bills by 60 percent under proposed RES plans.

    But for anyone who believes we can power America solely through windmills (even though it is costlier), dream on. This would require 55,000 square miles densely packed with nothing but windmills. That’s like emptying the entire state of Wisconsin and making it all windmills all the time. But our lights would still go dark when the wind wasn’t blowing.

    Solar power is even trickier than wind power, requiring rare elements to build solar cells, plus daylight and large surface area.

    According to the U.S. Department of Energy, when subsidies are allocated according to how much electricity is generated, it costs $.44 per megawatt for coal, $.25 per megawatt for oil and gas, $1.59 for nuclear, $23.37 for wind and $24.34 for solar. (This leaves out the heftiest subsidy—ethanol—because it’s not used to generate electricity.) Since DoE made that study in 2007, the non-fossil fuel subsidies have been increased; now Obama wants to raise them again.

    Like them or not, fossil fuels have provided great quantities of affordable energy. Higher subsidies for alternatives will cost a lot more, but still not meet our needs.

    Posted in Ongoing Priorities [slideshow_deploy]

    12 Responses to What Obama Didn't Say

    1. West Texan says:

      Like most on the environmental left, Obama lives in a fool's paradise. As with previous dreamers of the Third Reich and similar social movements, Obama and company are delusional wanting to believe their own Utopian idiocy. Logical reality often stands at odds with political popularity. And what's their basic common formula? Take-on celebrity status, create scapegoats, then force their ideological madness down people's throats. What's the best energy alternative? Nuclear power is not only more reliable, its as ecologically friendly as the Sun. Of course, Obama is master of dark agendas that eventually fall apart when exposed to light.

    2. Pingback: AntiObamaBlog.com » What Obama Didn’t Say

    3. Neal Palmquist OH says:

      Why is there no carbon footprint for the percentage of GDP that represents the work required to service and repay the national debt?

    4. Pingback: PA Pundits - International

    5. MJF, CT says:

      You have to admit that this oil spill is a perfect excuse and we are going to hear about it for years! In my opinion, it's TOO perfect! What more is needed to prove that halting oil use and imposing Cap & Trade is the way for the government to go? Every environmentalist and tree hugging lunatic out there will be screaming for action. All of the people on the affected coast lines will demand that BP and oil companies pay through the nose for their losses. Everyone affected by this oil leak will want BP to "feel the pain". You couldn't have asked or planed a better crisis.

      The problem is Mr. Obama will now be able to push all his plans through because "we don't want this happening again" and all the affected people, the moderates and the "followers" will agree with Mr. Obama. Even though this is one of the smallest oil crises we have encountered, it couldn't have happened and a more opportunistic time.

      Do I sound like I think the government (aka Obama administration) had something to do with this oil spill? I don't know, have you really thought about it? Do you trust this government? I do not!

    6. Nick, Los Angeles says:

      Was there any real doubt about why Soetoro fiddled while the gulf burned?

    7. Pete Stroempl of For says:

      The current administration is applying the full power and resources of the Federal Government to destroy the middle class. The current taxation and energy policies are focused on reducing the resources the average taxpayer has available to make his own life comfortable.

      See what this administration says. They justify theft at each shake and turn.. so that their constituency may continue to benefit from other people's hard work.

      Shame on them.

    8. Dennis Social Circle says:

      The dems and obama talk to much. They are not to worried about the rest of us, they just want power and controll. When you sleep with dogs you are boud to get fleas, well people put this socialist idiot in office, we all get fleas!!!!

    9. Brad, Detroit, MI says:

      I think that video is the only truth that man has spoken in the past 2 years. The big two truths (I am surprised this was caught on camera).

      1) Cap and Trade will cause electricity prices to skyrocket

      2) Business will pass increases in their infrastructure costs to consumers (and this includes taxes levied by the government)

      Both of these taxes are highly regressive as they hurt the working poor and middle class the hardest as energy prices and costs of all products (groceries too) will increase. The diabolical nature of these higher taxes is YOUR restricted freedom with your disposal income. This does not hurt the rich and upper middle class because the % of their disposal income spent on these items is far less. But people still vote for this idiot (those idiots).

    10. Drew Page, IL says:

      When I see Obama, Al Gore and all the other Washington politicians who preach "green" energy driving around in cars powered by rubberbands, wind power or flashlight batteries, I'll consider doing the same. Right now, all these "green" energy people are flying around the globe in private jets, being driven in big gasoline powered limos and living in hugh homes that suck up 3 times the energy mine does.

      When the politicians leave office they will have pensions big enough to pay whatever gasoline and electricity costs, the rest of us living on a Social Security pension won't.

    11. Mary, Louisiana says:

      I live in the New Orleans area. We are now being bombarded with paid political ads that Senator David Vitter received millions in campaign contributions from BP(of course, no mention that Obama received more from BP than any other US presidential candidate!) The ad urges us to contact Senator Vitter and urge him to vote YES on the American Power Act which is the shiny new name for Cap & Trade. Yes, I contacted Senator Vitter and urged him to please vote NO and to also take the lead in getting the word out that the environmental movement in this Country should not control our destiny. If energy independence is the REAL goal, then we should be able to drill in far safer, shallow water or, better yet in ANWR! So, as usual, the administration is making good on their promise to never let a crisis go to waste. WAKE UP, AMERICA.

    12. Dennis Idaho says:

      Does anyone have any idea how much energy is expended to manufacture one windmill? Each windmill has to run more than one year just to replace the energy that it took to build it. Then there is maintance, interconnect and production/load regulation. By the time you reach the break even point it is time to replace it. It is called "going nowhere fast".

    13. Tim AZ says:

      The regime knows full well that they can't enslave us if we are not first rendered poor which in turn makes us powerless over our own fate. So they must make everything so expensive that we become third world citizens.

    14. Al Wunsch, Fl says:

      MJF, CT , perhaps the one saving grace is that once the people stare the actual cost in the face, they will clamor for more oil and gas. For an idiologue, like Pres Obama, it won't faze him but for the congress and next Pres, they will back down. The only question is how much damage will be done before we rid ourselves of these progressives.

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