Obama’s promises are in conflict on energy policy by SupremeLord

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									Obama’s promises are in conflict on energy policy - Fort Worth Business Press




    Obama’s promises are in conflict on energy policy
    BY ALEX MILLS
    March 16, 2009

    President Barrack Obama made so many promises during his campaign for president that he
    is now finding it difficult to keep all those campaign promises.

    One example is Obama’s climate control promise is in conflict with his “energy
    independence” promise.

    During his address to a joint session of Congress in February, he said: “I ask this Congress
    to send me legislation that places a market-based cap on carbon pollution and drives
    production of more renewable energy in America.”

    His plan, however, is not market based but government based (government determines the
    number of emission allowance and the price).

    Two days later Obama releases his proposed 2010 budget that calls for repeal of eight tax
    provisions that are very important to the oil and gas industry. The tax provisions allow small,
    independent producers who drill 90 percent of the nation’s wells and produce more than 80
    percent of the nation’s crude oil and natural gas. Obama’s tax proposals would raise an
    estimated $31 billion over the next 10 years by: repealing percentage depletion, expensing of
    intangible drilling costs (IDCs), and the passive loss exception for working interest owners;
    removing the tax credits for marginal wells, enhanced recovery and manufacturing;
    implementing a new excise tax on production from the Gulf of Mexico; and increasing the
    amortization of geological and geophysical costs from two to seven years.

    During a hearing of the Senate Finance Committee on March 4, Senator Kent Conrad (D-
    ND) asked Treasury Secretary Geithner to explain how the tax revisions would encourage
    more domestic production.

    “Senator,” Geithner replied, “we don’t believe it makes sense to significantly subsidize the
    production and use of sources of energy that are dramatically going to add to our climate
    change imperative. We don’t think that’s good economic policy, and we think changing those
    incentives is good for the country.”

    During the campaign, Obama said many times that the U.S. can become “energy
    independent” for foreign oil. It is surprising that Obama would stake the nation’s energy
    future on the big gamble that wind, solar and biomass would finally be produced in large
    enough quantities to replace crude oil and coal. The magnitude of the problem seems to have
    slipped by the President and his advisors.


http://www.fwbusinesspress.com/print.php?id=9745[3/17/2009 10:21:28 AM]
Obama’s promises are in conflict on energy policy - Fort Worth Business Press

    It is irrational for the President and the Congress to gamble the nation’s economic future,
    especially in these tough economic times, on unproven energy sources to solve a problem
    that probably doesn’t exist.

    Mills is president of the Texas Alliance of Energy Producers, which represents more than
    3,200 members in 32 states. The opinions expressed are solely of the author and do not
    necessarily represent the opinions/policies of the Texas Alliance.

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http://www.fwbusinesspress.com/print.php?id=9745[3/17/2009 10:21:28 AM]

								
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