A study commissioned in part by the National Association of Regulatory Utility Commissioners and the industry-funded Gas Technology Institute, released today, indicates that the ongoing failure by the Obama administration, and especially his Department of the Interior, to initiate domestic oil and gas exploration will cost the United States an estimated $2.36 Trillion from now until 2030! That study, reported today by Daniel Whitten at Bloomberg.com, takes into account the increased prices for energy and power generation if domestic production doesn’t occur, the decline in value of the Gross Domestic Product without domestic production, and the positive effects that domestic production would have on the economy, employment, employment taxes, and royalties.
As Mr. Whitten notes,
Annual average natural-gas prices will increase by 17 percent by 2030 and electricity prices will rise by 5 percent if U.S. policy makers don’t open access to off-limit areas, the report forecast. That would cut the gross domestic product by $2.36 trillion cumulatively through 2029, or 0.52 percent annually on average, according to the report.
Dave Harbour, a retired commissioner of the Regulatory Commission of Alaska, who helped oversee the study, said the calculation of lost GDP was based on the contribution the untapped oil and gas revenues would make to the economy, including employment, taxes and royalties.
Harbour said the industry didn’t influence the outcome of the study, which was performed by McLean, Virginia-based SAIC Corp.
As we keep reminding readers, Congress and this administration have done nothing to foster drilling activities despite it being expressly desired by the general public, and in fact has gone out of its way to delay the process. Similarly, Congress will not act on legislation to streamline the process and increase employment and revenue streams for the nation, and that legislation is not even being mentioned in the “mainstream” media. Much of the public remains unaware that it has been proposed.
Failure to capitalize on the resources available to us only helps radical nations who hate us, and Democratic Party supporters who have invested heavily in foreign sources of fossil fuel. The decisions of the current administration have more to do with protecting George Soros than with protecting wildlife in Alaska.
Hayride readers know that there are vast resources available domestically, and they understand their potential value to our struggling economy. This study quantifies that value, and further demonstrates the need for grassroots movements to aggressively push for domestic production of oil and gas, and for Senator Vitter to scream at every opportunity for debate of his “Cost Free Stimulus Package.”