Energy Policy: While we sit on abundant oil and natural gas reserves, prices at both the wellhead and the pump are rising on fears of spreading Mideast turmoil and short domestic supply. But then, maybe that's the plan.
The silver lining for this administration in the gathering storm over the Middle East may be what it's doing and may yet do to energy prices. The average price for gasoline jumped nearly 12 cents a gallon last week to $3.287, according to AAA. But at the White House, that's not necessarily bad news.
Oil has surged to 2 1/2-year highs as the chaos in Libya chokes that nation's exports. Yet among the "full range of options" the Obama administration is considering as the Libyan crisis festers, and the lit match of discontent gets perilously close to Saudi oilfields, ordering the full resumption of domestic oil and gas production is not one of them. Why?
Energy Secretary Steven Chu has said that "any disruption in the Middle East means a partial disruption in the oil we import. It's a world market, and (a disruption can) have real harm on the price." And so, we would think, would the orchestrated and carefully planned disruption of domestic supply by this administration.
It's not just Mideast turmoil that has brought us to this point. It's also a deliberate program of restricting domestic energy to make so-called green energy more attractive and necessary, keeping an Obama campaign promise that energy prices would "necessarily skyrocket" on his energy agenda.
Before he was appointed energy secretary, Chu expressed a fondness for high European gas prices as a means of reducing consumption of fossil fuels. In September 2008, he told the Wall Street Journal: "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe." Gas prices in Europe then averaged about $8 a gallon.
Certainly every administration energy decision has had the effect of raising energy prices. The Deepwater Horizon disaster gave the administration the excuse for a drilling moratorium in the Gulf of Mexico, one that a federal judge overturned. When the administration reinstated the ban, it was found in contempt of court.
A virtual regulatory ban continues today. At least 103 drilling permits await approval by a federal government that has not approved a single new permit since the moratorium was allegedly lifted last October.
The administration has announced that the eastern Gulf and the Atlantic and Pacific coasts will be off-limits for the next seven years. The Interior Department has canceled four pending lease sales in Alaska.
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