Alex Mills
By Alex Mills
Since the day he took the oath of office, President Barack Obama has proposed policies in an attempt to end the “tyranny of oil.” Of course, coal has been a major target, too, as has been natural gas to a lesser degree.
Oil has been his favorite transportation fuel target, and coal has been his favorite electricity generating target.
At his last State of the Union speech last week, he reiterated his disdain for oil and coal saying “we’ve got to accelerate the transition away from old, dirtier energy sources.”
He even claimed that “wind power is now cheaper than dirtier, conventional power.” He used the word “dirty” quite a bit when talking about fossil fuels.
He said he is “going to push to change the way we manage our oil and coal resources so that they better reflect the costs they impose on taxpayers and our planet.”
He did not announce how his new program will work, but many took that to mean that he was going to proposed a new tax on carbon emissions, which was heavily discussed during the United Nations meeting in Paris.
Obama and the Democrat controlled House and Senate worked very hard in 2009 to pass a cap-and-trade bill, but failed.
Since then, he has used the regulatory process to increase the cost of fossil fuels. The Obama administration believes that if it can increase the cost of fossil fuels, renewable energy sources will become more competitive.
They have been very successful in virtually killing the future of the coal industry. Oil and natural gas have fared better, but it has had to fight the administration every step of the way using the legislative and judicial system to prevent burdensome regulations from becoming law.
A carbon tax would definitely increase the cost of fossil fuels.
Opponents of the carbon tax quickly point out that most of the electricity is generated by coal and natural gas. The Energy Information Administration reports that in 2014 coal generated 39 percent of the electricity in the United States and natural gas produced 27 percent. Wind only generated 4.4 percent and solar produced even less at 0.4 percent. A carbon tax would significantly impact the cost of electricity to consumers, and hurt the economy even further.
The Obama administration has tried to use the purse strings of the federal government to enhance technology, marketing, and use of exotic energy sources, such as wind, solar, and ethanol. Billions of dollars have been given to corporations seeking solutions to the many problems facing non-conventional energy sources.
Some believe that the recent increase in crude oil and natural gas supplies has driven down the prices of fossil fuel energy sources to levels that make wind and solar even more uneconomical.
The president made it clear in his State of the Union address that during the final days of his administration, he will use the power of his office to continue his crusade against “old, dirtier energy sources” (oil, natural gas, coal).
Alex Mills is President of the Texas Alliance of Energy Producers. The opinions expressed are solely of the author.
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