Obama--his gas and energy policies

I want to go back to Hugh Hewitt's book entitled The Brief against Obama. So far, I have summarized his chapters dealing with the nightmare of Obamacare, the failed stimulus, the huge budget deficits, the collapsed housing market, and the huge increase in the unemployed. This time I want to focus on Hewitt's chapter devoted to soaring gas prices and green energy scams.

Again, a little history is useful here. Retail motor gas prices in the United States were $1.89 per gallon when Obama was inaugurated. That was only $.38 more per gallon than when President Bush was inaugurated. But we've all seen recent gas prices, haven't we?

What has the President done regarding gas prices? He has limited drilling operations in the Gulf of Mexico, which supplies approximately 30% of our domestic oil production. In addition, the administration has pushed for new, tighter regulations on greenhouse gas emissions from power plants and oil refineries in an attempt to curb global warming. Don't get me started on global warming. I have several past blog pieces that you can read if you want additional information on that particular scam. Okay, back to Obama. He has also been hesitant to pursue plans to develop other sources of domestic oil production, plans like the Keystone pipeline from Canada, which he vetoed in early 2012, and further developments of resources on federal land.

So why did the national average for gas prices rise so sharply during his administration, especially after his so-called "recovery summer"? In a nutshell Obama restricted immediate domestic oil production, limited oil exploration that would increase domestic supply, increased legislation on much of our existing energy sector, and slowed initiatives that would increase domestic supply from sources other than offshore drilling (such as the Keystone pipeline and development on federal land).

Obama has been keen on investing in clean, renewable energy. How has that worked out? Despite all the funding and support to the American green energy industry over the past decade, it has failed to grow anything like anticipated levels. In some key areas, in fact, it has shrunk. Industry insiders have admitted that without incentives like cap-and-trade legislation, the industry will not grow quickly in the near future. The big picture is that, so far, even with the significant investments just described, the industry is still struggling to compete in the market. Most profit being made is in selling shares, rather than through the creation of marketable products. Clean power (from solar to biofuels) remains uncompetitive and unprofitable. Of course, that hasn't kept Al Gore from profiting handsomely from the green market. Good to know he's doing well by scaring people . . .

What is the smart way to invest in this upcoming industry? Policy experts suggest we should take a long view and support research and development rather than banking on particular companies. Solyndra, of course, is a perfect example of this. Obama and his administration repeatedly chose Solyndra as an example of his economic and green energy policies at work, and he apparently still does not regret it. What is disconcerting about this whole business fiasco is the connection between George Kaiser, a major investor in Solyndra, and Obama. Kaiser is a major donor to Obama's campaign and visited the White House several times to discuss "information on energy policy." E-mails indicate that decision-makers at the OMB (Office of Management and Budget) felt pressured to make a funding decision by White House representatives, who were concerned primarily about the political value offered by the loan announcement when the Vice President would be in California. Concerns about  Solyndra's solvency were never resolved. Obama visited the Solyndra plant in May of 2010, where he touted the company as a harbinger of American prosperity. Solyndra had a difficult time raising additional private capital because of its government loans since private investors correctly understood that in the event of bankruptcy, the government loan would be repaid before their investments. In September 2011, Solyndra filed for bankruptcy. As more information has been revealed, it is clear that relevant parties knew the high risk of investing in this company from day one.

We have heard of other green energy companies folding as well. So, once again, we see the folly of government picking companies. But this is right out of the Obama playbook – have the government involved in everything. We can't afford this for an additional four years.