Pay Attention Or Reap The Consequences

By the end of an Obama second term, 40% of our natural resources will be imported

Marita Noon

 During a recent trip to Washington DC, I heard that “by the end of his second term, President Obama wants 40% of our natural resources to be imported.” Like Harry Reid’s “Bain Capital investor,” my source is reliable: a Capitol Hill staffer. While I do not have a secret White House memo to validate the premise, it explains a lot.

Oil

During his 2008 campaign, candidate Obama made it clear that he doesn’t have a problem with $4-a-gallon gas. His Energy Secretary is on record as having said that he thinks our gasoline prices should be more in line with those of Europe–which are typically more than double ours in the US. We know that supply issues are one of the leading drivers of higher gasoline prices, yet Obama’s policy decisions–such as Keystone–lead to reducing the resource.

In his first campaign ad of the season, President Obama touted his record on oil, claiming that we have more domestic production in America than at any time in recent history. While this is true, it is not thanks to his policies. The majority of the oil extraction is on private land, mostly thanks to North Dakota’s Bakken Field. The development that is being done on federal lands is thanks to leases made and wells permitted during the Bush administration.

New oil and gas leases and permits on federal land are down 50% under the Obama administration compared to the Clinton administration. Because of the time it takes to bring a federal lease into production (5-10 years)–especially with the Obama Department of Interior policies, he is likely setting the US up for an oil shortage (even without Middle Eastern unrest) by the end of a potential second term that will send gasoline prices past his acceptable $4 a gallon, toward Secretary Chu’s “European levels.” With a dearth of new American oil development, we’ll need to import more from places like Hugo Chavez’s Venezuela.

Coal

Candidate Obama’s comment about bankrupting anyone wanting to build a coal-fueled power plant is now widely known. His EPA’s actions surely support the statement as we are seeing record power plant closures. But it is not just power generation that is under attack, it is the extraction of the source fuel: coal, as well. Earlier this year, the EPA’s decision to pull a legally issued coal-mining permit that had been through years of environmental impact studies and analysis was overturned by the US District Court. Last week, his EPA was shot down once again. On July 31, the DC district court sided with coal miners. The decision declared that the EPA’s insistence that water discharged from a coal mine be clearer than bottled water was an overreach and should not hold up new mining permits.

While blocking new coal mining will probably not cause the US to import coal, it will prevent us from exporting it. Currently coal is a major export–one of our few exports–that helps bring a balancing element to our trade deficit.

Rare Earth Elements

On March 13, President Obama announced that the US was joining with Japan and the European Union to file a trade complaint before the World Trade Organization in Brussels to insure that China keeps exporting rare-earth elements. These unique elements, with names like neodymium, europium and dysprosium are what the Japanese call the “seeds of technology” due to their astounding electrical, magnetic, phosphorescent, catalytic, and chemical capabilities. While most Americans are unaware of their existence, rare earths enable everything high-tech we use today–from MRIs, cellphones and iPods to hybrid automobiles and wind turbines–and are extremely important to today’s high-tech defense capabilities.

President Obama is going after China because the Chinese produce more than 95% of all rare earths used in the world by high-tech industry, while sitting on only 23% of the world’s resources. Obama insists that the Chinese continue to ship rare earths to the rest of the world’s economies despite the fact that the Chinese require the use of essentially all of their rare-earth production in Chinese industries.

The Chinese had announced, in 2011, they could become net importers of some of the most critical rare earths by 2015. But in July, they said they would be importers a year sooner–in 2014. And on top of that, the Chinese are creating a national rare-earths stockpile, shutting down production from the worst polluters, and tacking on higher tariffs for those rare earths they will export.

We don’t need a protracted legal hassle in Brussels that won’t produce a single American job or a pound of rare earth produced from America. The solution is streamlined and accelerated permitting, recognizing that American miners and manufacturers employ the world’s best environmental scientists and engineers and geologists. Instead of paying lawyers to push paper in Brussels, we need to be creating jobs from mining and the upgrading of rare earths in America, providing a secure domestic source of these vital “seeds of technology.”

Land Access

Early in President Obama’s first term, he announced his intention to increase the quantity of national monuments and introduced a new “wild lands” designation–both of which serve to limit the extraction of natural resources. Two such cases I’ve repeatedly addressed are the proposed tungsten mine in Montana and the swath of land that extends from the Mexican border up into rich farming/ranching land that also includes potential oil, gas, and rare-earth extraction in New Mexico.

In the Montana case, the Forest Service continually throws obstacles to extraction in the way of potential mining activity. Because the tungsten–needed for the manufacture of steel–is located in an inventoried roadless area, the Forest Service has mandated that, among other things, the site must be cleared and, later reclaimed, with hand tools. The drilling equipment must be hauled to the site with a team of pack mules which must be fed certified weed-free hay–all this to move equipment less than 1000 feet from a Forest Service road. If the case were not so tragic, so representative of similar stories being played out all over America, it would be comical.

In the New Mexico case, ranchers and farmers fear being thrown off of land that has been in their family for generations. With a simple stroke of President Obama’s executive-order pen he could remove 2.5 million acres–though 600,000 is the number generally bandied about–from any economic development or useful purpose by creating a new national monument.

Natural Gas

The current verbiage coming out of the White House favors natural gas extraction–but actions speak louder than words. America’s new found natural gas abundance is made possible through the use of multi-stage hydraulic fracturing–which Obama’s EPA has, unsuccessfully, been trying to link to the contamination of drinking water. Plus, we know that much of Obama’s energy policy is driven by an environmentalist agenda–with the Keystone pipeline being the most obvious example.

A few weeks ago, the Sierra Club announced its “Beyond Natural Gas” campaign attacking natural gas, saying “The natural gas industry is dirty, dangerous and running amok,” and “the closer we look at natural gas, the dirtier it appears; and the less of it we burn, the better off we will be.” With this in mind, by the end of an Obama second term, we can expect the availability of natural gas to be diminished–and what we will have will be far more expensive, driving up the price of what is currently low-cost electricity generation.

Nuclear

We may not think of electricity as a natural resource, but effective, efficient, economical electricity generation requires natural resources: coal, natural gas, uranium, and, occasionally, oil. Uranium is the source fuel for nuclear power and we have an abundance of it in America–yet we import more than 90% of what we use. A couple of days ago, it was announced that the Nuclear Regulatory Commission “would stop issuing licenses for nuclear plants until it addresses problems with its nuclear-waste policy.” The “problems with nuclear-waste” are a direct result of White House policy. The Obama administration effectively shut down Yucca Mountain with a 2009 decision to reduce Yucca Mountain’s budget. This new problem for nuclear power has the potential to impact many US reactors.

In Germany, they used to export their nuclear-generated electricity. Since they shut down nearly half of their reactors, they are importing electricity from other countries.

Export or Import

Former Obama adviser Austan Goolsbee has been out talking about getting the economy “revved up.” Part of his solution? “More exports.” The goal should be to have 100% of our natural resources to come from within our shores. Yet, as you can see, the Obama plan seems to call for more natural resource imports. 40% by 2016 adds up.

The countries with the best human health and the most material wealth are the countries with the highest energy consumption. So, why is it that Obama’s policies push us to use less energy, while paying more for it?

As we head toward the November 6 Election Day, keep in mind the stark contrast the satellite photo of the Korean Peninsula at night points out–the country without freedom, North Korea, is dark. With nothing separating them but an invisible line and a vastly different style of government, South Korea, the free-market, democratic, and developed country is bright.

Which do you want?

Do you want a bright future badly enough to step out of your comfort zone and talk to friends, family and neighbors; to talk to them about energy and its importance? Take the points made here and share them in good, old-fashioned conversations, and through new media like Facebook and Twitter.

We are down to 8 weeks to save America. Can we do it? With your engagement, “yes, we can!”

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE).Together they work to educate the public and influence policy makers regarding energy, its role in freedom, and the American way of life. Combining energy, news, politics, and, the environment through public events, speaking engagements, and media, the organizations’ combined efforts serve as America’s voice for energy.

English: President Barack Obama shakes hands w...

English: President Barack Obama shakes hands with Senate Majority Leader Harry Reid after signing the Omnibus Public Lands Management Act of 2009. White House Photo, 3/30/09 (Photo credit: Wikipedia)