He really meant it when he said prices would “skyrocket.”
Our America today is very different from the America of some years ago. Government spending is greatly increased, as is the regulation of our economy. The growing size and reach of our government is sapping our nation’s strength and independence. And our current president’s policies have been quite different from our leaders of some years ago.
One of the best examples of these public policy changes is the huge increase in government regulation in how we generate and use energy, with its negative impact on supply, its focus on financing new and inefficient energy industries, and the resulting higher costs.
The policy of the Obama administration has been not to increase the energy supplies that are so critical to our nation’s economic health, but to limit them, to increase energy prices, and to make energy more expensive.
Eliminating tax deductions for the oil and gas industries is at the top of the President’s list, which would increase the price of gasoline and home heating oil for everyone. But this fits in with the Obama administration’s overall inclination to hamper domestic production, whether through slowness in granting new permits or refusal to open new areas for exploration. In fact oil, production on federal lands was flat between 2009 to 2011, while production on nonfederal lands increased almost 7%.
And it is not just petroleum. Mr. Obama’s Environmental Protection Agency wants to increase regulation of coal-fueled electricity plants, which produce almost half of our electricity, so as to drive up the price of electricity and force plants to close. None of this should be surprising, for as we know, Obama’s energy secretary, Steven Chu, told The Wall Street Journal in 2008 that we must “figure out how to boost the price of gasoline to the levels in Europe.”
The president admitted that his cap-and-trade energy proposals, had they come to pass, would cause energy prices to “skyrocket” and bankrupt coal companies. In the Mr. Obama’s words, coal fired plants can be built, but if they are, “it will bankrupt them because they’re going to be charged a huge sum” for emitting the greenhouse gases.