Showing posts with label oil & gas. Show all posts
Showing posts with label oil & gas. Show all posts

Friday, January 9, 2015

House strips Obama of Keystone pipeline

House of Representative votes 266-153 to strip President Obama of authority over the Keystone XL pipeline

House Speaker Boehner Announced Approval of Keystone - On to the Senate

The House on Friday voted, 266-153, to yank President Obama's authority over Keystone XL and approve the $8 billion pipeline, bringing the new GOP Congress ever closer to its first showdown with the White House.

Twenty-eight Democrats joined Republicans in supporting the legislation that would immediately permit construction of the Alberta-to-Texas heavy oil line, a major priority for industry, the GOP and the Canadian government.

The White House made clear on Friday that a Nebraska Supreme Court ruling upholding the pipeline's route through that state would not alter its threat to veto the legislation.

The Senate is set to take its first votes on the bill Monday, though its passage could be prolonged by what GOP leaders have said will be a freewheeling, open amendment process.
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Friday, November 14, 2014

Being anti-energy is being anti-humanity

Being Anti-Energy is Being Anti-Humanity from the Warning Signs of Alan Caruba at Facts-not-Fantasy

Know the Caruba Warning Signs

Everything you need to know about how perverse and dangerous the U.N. Intergovernmental Panel on Climate Change (IPCC) is summed up in its latest report. Released on November 2, it issued the same tired, old and untrue claims of “severe, pervasive and irreversible impacts for people and ecosystems”

The IPCC wants the world to stop using coal, oil and natural gas, saying that they must be “phased out almost entirely” by the end of the century. The report reeks of their contempt for humanity.

Losing electricity, no matter where you live, is losing every technology that enhances and preserves your life. You lose the ability to cool or warm your home, apartment or workplace. You lose the ability to keep food safe in your refrigerator and freezer. You most certainly lose the lighting. You lose the ability to turn on your computer or television. Indeed, to use everything you take for granted.

Since the discovery and generation of energy with coal, oil and natural gas, generations have lived lives not only different from all who preceded them, but better in so many ways, not the least of which is extended life expectancy. Nations with energy are places where people live longer, healthier lives. They are also wealthier nations where the energy translates into industry, jobs, transportation, and all the other attributes of modern life.

Although we usually don’t associate energy with morality, Alex Epstein has. His book, “The Moral Case for Fossil Fuels” ($27.95, Portfolio, an imprint of the Penguin Group) is the finest case for the role coal, oil and natural gas has played in our lives and the positive, emancipating impact they have had on humanity. Everyone should read it.

“I hold human life as the standard of value” says Epstein. “I think that our fossil fuel use so far has been a moral choice because it has enabled billions of people to live longer and more fulfilling lies, and I think the cuts proposed by the environmentalists in the 1970s were wrong because of all the death and suffering they would have inflicted on human beings.”

“Eighty-seven percent of the energy mankind uses every second comes from burning one of the fossil fuels: coal, oil or natural gas.” That has not stopped environmentalists from denouncing coal and oil as “dirty” or because their use generates carbon dioxide (CO2) emissions. What they never tell you is how small those emissions are and that they play an infinitesimal role to influence the Earth’s weather or climate. They never tell you that the Earth has centuries more of untapped reserves. The modern world could not exist without them.

“In the last eighty years, as CO2 emissions have most rapidly escalated, the annual rate of climate-related deaths worldwide fell by an incredible rate of 98 percent. That means the incidence of death from climate is fifty times lower than it was eighty years ago.”

Epstein points to “the power of fossil-fueled machines to build a durable civilization that is highly resilient to extreme heat, extreme cold, floods, storms, and so on” to demonstrate the foolishness of those who oppose their use. Primary among them is the UN’s Intergovernmental Panel on Climate Change.

As part of its 40th session, in early November the IPCC adopted the final “synthesis” report of its Fifth Assessment Report; a full-scale update calling for the reduction of energy worldwide. They base this on the claim that “human influence on the climate system is clear.”

It is not clear. Despite the CO2 emissions, the Earth has been in a cooling cycle for the last nineteen years, during the same time the IPCC’s “climate experts” and others were telling us the Earth was going to become dangerously warm.

Epstein reminds us that “In 1972, the international think tank, the Club of Rome, released a multimillion-copy-selling book, “The Limits of Growth”, which declared that its state of the art computer models had demonstrated that we would run out of oil by 1992 and natural gas by 1993 (and, for good measure, gold, mercury, silver, tin, zinc and lead by 1993 at the latest.)

It is essential to understand that every one of the “global warming” predictions made in the 1980s and the decades since then has been WRONG. Every one of the computer models on which those predictions were based was WRONG.

A younger generation graduating from high school this year has never spent a day when the overall temperature of the Earth was warming. The Earth’s natural cooling cycle is based on a natural low cycle of solar radiation. The Sun is generating less heat. Indeed, the Earth is nearing the end of the Holocene cycle, one of warmth for the past ten thousand or more years that has given rise to human civilization.

Epstein’s book is more than just philosophical opinion. It is based on documented facts regarding fossil fuel use. At one point he quotes Paul Ehrlich who, in his 1968 book, “The Population Bomb”, declared that “the battle to feed humanity is over.”

Epstein notes that in 1968 the world’s population was 3.6 billion people. “Since then it has doubled, yet the average person is better fed than he was in 1968. This seeming miracle was due to a combination of the fossil fuel industry and genetic science…” Farming today is mechanized and that requires fuel!

The claims that Epstein debunks are accompanied by the fundamental truths about fossil fuel use and science. His book, comprehensible to anyone whether they have any knowledge of science or not, should be on everyone’s reading list.

At the heart of environmentalism and its “save the Earth” agenda is the reduction, if not the elimination, of humans from planet Earth.
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Monday, November 10, 2014

Jobs - prosperity - security from oil exports

Jobs, prosperity and security via oil exports from the CFACT.org files of Paul Driessen

Read the Driessen Files at CFACT.org
Ending the antiquated ban on oil exports will also spur US production and keep oil prices low

The midterm elections underscore how much Americans value energy, job and economic revival – and how much they want less Washington control of their lives, livelihoods, and dreams for their children and grandchildren. They also reflect the waning influence of radical Obama and Steyer climate change and anti-energy environmentalist elites. If ever there was a time to end the ban on oil exports, it’s now.

With U.S. demand for oil products falling, production rising, and myriad studies making a strong case for selling American crude abroad, the president and Congress should terminate the ban as soon as possible.

The nation’s demand for crude oil fell by 3.5% in September versus the same month a year ago. Gasoline demand fell by 3.0% because of efficiency gains in cars and trucks, coupled with a still weak economy, abominable 62.8% labor force participation rate, and too many people forced to work part-time, for lower wages and fewer benefits.

Meanwhile, U.S. crude oil production soared in September, climbing to its highest level in 29 years – and demolishing claims that we are rapidly exhausting Earth’s petroleum. During September, the United States produced 8.8 million barrels of oil per day – an increase of nearly 14% over the previous year and 58% since 2005. In fact, the United States has now replaced Saudi Arabia as the world’s #1 oil producer.

The International Energy Agency predicts that U.S. oil production will likely exceed 9 million barrels per day by the end of the year, with imported energy liquids reaching a remarkable low of 21% of our consumption in 2015, compared to 60% in 2006. Hydraulic fracturing played the key role in this.

That brings us to the price component of Economics 101. Declining demand and rising supplies tend to drive prices down, and indeed crude prices plunged 28% – from $105 per barrel in January to $76 in November 2014. Prices for gasoline, heating oil and other petroleum-related commodities also dropped significantly. That’s a huge boon to consumers, from families to refiners to petrochemical makers.

The AAA motorists club estimates that every one-cent decline in the pump price of gasoline feeds an extra $1 billion into the USA economy. The 71-cent drop per gallon has injected $71 billion in actual stimulus money, adding much-needed disposable income to households whose budgets have been pinched by higher taxes and rising costs for food, clothing and healthcare.

Interestingly, the lower crude oil prices have occurred during a time of political unrest. In the past, crude prices have tended to climb rapidly when armies were on the march. Today, however, oil production in the United States and Canada appears to have ended the connection between military clashes and prices.

Despite ISIS butchery in Syria and Iraq, Israel-Palestinian dissension, disputes over the South China Sea, Russia’s incursions into Ukraine, Islamist murders and kidnappings in Nigeria, and saber-rattling in North Korea, the global price of crude oil has declined steadily all year.

Increased U.S. oil and natural gas production have also nearly single-handedly lifted America’s economy out of its recessionary doldrums. A U.S. Department of Energy report found that the number of oil and natural gas jobs grew 40 times faster than jobs in the rest of the economy from 2007 to 2012. Imagine how bad the Obama economy would be if it weren’t for the oil and gas industry that the President, his radical voter base and most of his cabinet secretaries still despise.

Since 2012, the good news has continued. In the booming Marcellus Shale region of Pennsylvania, Ohio and West Virginia, the number of labor hours worked rose by 40% from 2012 to 2013, marking a new all-time high. (New York could also share in this job and revenue bonanza, but its political elites continue to block any and all fracking, severely hurting blue collar and farm families in western NY State.)

Numbers like these make it easy to see the benefits of U.S. oil and natural gas production for the economy. Adding crude oil exports into the mix would multiply the benefits.

A recent study by the economic analysis firm IHS Global concludes that allowing crude oil exports would lower gasoline prices by an additional 8 cents per gallon and support an additional 964,000 jobs in 2018. Moreover, it said, repealing the ban on exports would benefit all 50 states, not just those that actively produce oil and natural gas.

The National Economic Research Associates (NERA) says eliminating the oil export ban would create high-paying jobs for almost 400,000 unemployed American workers, while the Brookings Institution calculates that ending the ban would boost America’s GDP by some $1.8 trillion!

A U.S. Government Accountability Office echoed these analyses. The GAO’s federal auditors found that oil exports would lower energy prices for U.S. consumers, incentivize more domestic oil production, boost the economy, and lower the U.S. trade deficit by further reducing the need for foreign oil imports.

The GAO also advised federal agencies to reexamine the size of the Strategic Petroleum Reserve “in view of changing market conditions,” including America’s new position as a global energy superpower.

Though the GAO didn’t mention it, opening federally controlled onshore and offshore lands to leasing, drilling and fracking would also work wonders. Being energy-rich also gives America more leverage internationally. Consider the impact that crude oil and natural gas exports could have on Russia’s territorial ambitions. Up to half of Mr. Putin’s budget was fueled by energy exports in 2012.

If U.S. energy supplies could be exported to our allies in Eastern Europe, until they can launch their own fracking revolutions, Russia’s ability to use energy exports as a political weapon would be constrained, and Putin’s financial strength diminished. Japan, South Korea and other Asian economies are also hungering to import American crude.

Some major oil and gas users worry that even limited exports of U.S. crude would reduce supplies and send prices back up. Petrochemical and other manufacturers have created jobs and profited mightily from hydraulic fracturing, soaring domestic production, and sharply lower energy and feedstock prices, so one can understand their fears.

However, lifting the ban on crude oil exports will create new markets and convince more voters and politicians to support opening more areas to environmentally sound drilling and fracking, and thereby fostering further exploration and production that will help keep prices low.

Biofuel producers might also oppose ending the ban. The surge in oil and gas production makes it even harder to defend spending billions of taxpayer and consumer dollars on fuels that require some 40 million acres of farmland, plus vast amounts of water, fertilizer, pesticides and fossil fuel energy to produce.

Their claims that biofuels help prevent climate change have become just as tedious and untenable. Global temperatures haven’t budged in 18 years, it’s more than nine years since a Category 3-5 hurricane made U.S. landfall, and any actual human influences on the global climate are not even detectable amid natural climate blips and fluctuations. It’s time to end biofuel mandates and subsidies, and focus on fossil fuels.

The U.S. prohibition on crude oil exports is a relic of the 1970s. It was enacted in response to the Arab Oil Embargo and gasoline lines that snaked through the streets of major U.S. cities. Those days are gone.

Today’s technologies are increasing the nation’s global strength and standing. Just imagine the jobs, security and prosperity we would enjoy if more states permitted fracking, and federal overseers issued Keystone pipeline permits and started allowing real energy production on lands they now keep off limits.

If oil and natural gas exports were allowed, the United States could exert its new energy influence throughout the world without firing a shot. This is a superb opportunity for a newly Republican and bipartisan Congress – and for a President who up to now has been more ideological and defiant than most American citizens can accept. Congress and President Obama should speed oil leasing and exports now.
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Paul Driessen is senior policy analyst for the Committee For A Constructive Tomorrow and author of Eco-Imperialism: Green power - Black death and coauthor of Cracking Big Green: To save the world from the save-the-Earth money machine.
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Tuesday, October 21, 2014

Patrick F. Taylor: Louisiana oilman and visionary

Mr. Patrick F. Taylor: Louisiana oilman and visionary from the files of Ken LaRive at the Examiner

Governor Bobby Jindal speaks at the Patrick F. Taylor Hall

Read the LaRive Files at the Examiner
With a twinkle in their eyes, old timers reminisce about the way it once was in the oilfield. Woven in the colored tapestry of stories is an old cliché, passed from chow halls to rig floors, accompanied by the resonance of motors and pumps. It is usually used to emphasize a bumbling mistake, a near miss, or as a blunt comparison to the way it once was, when there were “men of steel and rigs of wood.” Of course it is flavored with a bit of humor, but always used to make a point.

Men of “the old school” still remember it vividly, and these seasoned veterans want to instill in novice “worms” that those early work ethics should not be forgotten. It’s said these men of steel drank “Texas Tea” for breakfast, and had “Black Gold” for blood. They never got cold, or tired, as they remember, and worked as long as the sun was up, without complaint, happy to have a job.

It took a strong breed of men to tackle the early oil industry, and some think our young hands just don’t have what it takes. Of course they do, but the early oilfield broke so much new ground by discovery and invention, that memories of it today seem bigger than life. What they have in common are the challenges and responsibilities they accept.

The word “wildcat” was invented to describe the danger of drilling where no rig had drilled before. Company Men let the hole “talk” to them. It was a new language learned by hard knocks, and years of time standing on the shakers looking at cuttings. Geology was taught by tempered observation, and there was wonder and magic for some of the things we may take for granted today.

There was amazement while drilling through huge chunks of wood at 5,000 feet, the unexpected dangers of transitional zones and pressured shale, or the finding of great mushroom walls of obstructions like sulfur and salt domes blocking the pay. Before seismic surveys, these things could not yet be explained or predicted, and methods of drilling were explored by the seat of their pants.

There was a young man named Patrick F. Taylor who grew up in the middle of these gutsy times. He looked around his home town of Beaumont Texas, and saw his calling. He wanted to be an oilman.

He knew that in order to be successful he had to have the proper education, and so set out to apply himself in that direction. Though he came from humble beginnings, his dreams pulled him forward. He received an academic scholarship to Kinkaid, Houston’s finest prep school, in spite of being kicked out of his house at 16.

Some kids grew up fast in those days, especially one motivated, and when Mr. Taylor finished high school, he immediately struck out on his own. The world was big, full of opportunity, and Mr. Taylor wanted a piece for himself.

With empty pockets he found his way to Louisiana. There he had heard of a college called Louisiana State University, which had no tuition. His drive secured a petroleum engineering degree in 1959, accomplished in just three and a half years, and from that springboard pushed forward with an innate savvy for business. He got his first job with Mr. John Mecom Sr., and quickly made a name for himself with his own consulting and production company.

The Circle Bar Drilling Company was started with Mr. Mecom in 1974, and became a very successful drilling contracting company. It was sold in 1979, at which time Mr. Taylor formed Taylor Energy Company in New Orleans.

Today, Taylor Energy Company is one of the larger independent oil companies in the Gulf of Mexico and remains solely owned. Taylor Energy Company is the only individually owned company ever to explore for and produce oil and natural gas in Federal offshore waters in the Gulf of Mexico.

It took raw courage, and Mr. Taylor staked his entire life savings knowing full well that he was attempting to play with the big boys …large conglomerate corporations with seemingly unlimited capital and manpower. He dove in with the same tenacity he had as a sixteen year old, and won!

The October 2004 issue of Forbes Magazine listed that Mr. Taylor was ranked 234 of the 400 richest people in America. He has amassed a fortune worth in excess of 1.2 billion.

On November 5th, 2004, Mr. Taylor died from complications due to bacterial endocarditis at the age of 67. It may seem to some a short life, but what Mr. Taylor saw and did in his allotted time, most wouldn’t accomplish in a thousand. His adventure spirit brought him and his wife around the world. He was quite good at riding bronco bulls, but they say he took his share of spills too.

He had a passion for wild game safaris in Africa, the racing of cigar boats in the Mississippi River, and logged 500 plus skydives, but in spite of this flamboyant spirit, Mr. Taylor was typically known to be very conservative. He would never speed while driving; in fact, he thought it was a sincere and sacred duty not to break social law. He played by the rules.

Mr. Taylor remembered his past and how he had been allowed to attend Louisiana State University with only his will to learn as tuition. Just as he had done in those early days as a boy, he looked around at the circumstances surrounding him in New Orleans, and recognized the need for change. He knew from his own experience that if given the opportunity, those without means may flourish academically.

It struck home in 1988 when he was asked to speak to a group of 183 underachieving and troubled inner-city 7th and 8th grade students who were expected to drop out of school. He saw in their eyes the same hunger he once had, and made a magnanimous gesture that showed the true heart and spirit of this self-made man.

He told these kids that if they maintained a college prep “B” average, and stayed out of trouble, that he would sponsor them in college. The response from the students and their parents was overwhelming. Many went on to college with five of those students being recognized in Who's Who Among American High School Students. It was a turning point.

Government publications were researched by Mr. Taylor, and he found alarming statistics… 80 percent of American parents felt they could not afford to send their children to college. Further study showed the trends of student performance versus tuition costs, and though every public university in Louisiana had an “open admissions policy,” changes would have to be made to make it profitable.

He saw that students came to university mostly unprepared, and there was a very high incidence of dropout in the first semester. ACT scores were below the national average and many students needed remedial courses to get up to par with the University standard. With this data in hand, and a lot of hard work, the Louisiana Legislature finally adopted what was coined “The Taylor Plan,” and was first signed into law July 10th, 1989.

If the student qualified, tuition and fees were paid at any four year public college of their choice in Louisiana. This was an unprecedented achievement, and since that time twenty other states have adopted similar programs.

The original Taylor Plan is now called “TOPS,” the Tuition Opportunity Program for Students. Its requirements are a 2.5 GPA, a minimum of 16.5 college prep units in high school, and a score of at least 20 on the ACT test.

By Mr. Taylor’s insistence, and his never give up attitude, TOPS is now considered the most comprehensive and successful program of its kind in the nation. In 1997, legislation in Louisiana went one step further, eliminating income as a program requirement. Today, 40,000 plus students are taking advantage of TOPS in Louisiana, based entirely on performance.

A quote from the Patrick F. Taylor Foundation mission statement shows the ideals that so inspired this great leader, visionary, husband, successful oilman, and he lives on in the hearts of many: “…to promote the common good and well being of all the people of our nation, primarily by promoting universal and unlimited educational opportunities based solely on each individual’s demonstrated ability and willingness to learn.”

Mr. Taylor is sorely missed, and not just in the oil industry. His quick wit and positive attitude still echoes in the halls of Taylor Energy Headquarters at Lee Circle, New Orleans. What this amazing Texan turned Louisianan did, can not be measured, as the lives of countless people have been touched, by his vision, his dreams, and his good heart.

He gave a large part of his time and effort to make this world a better place, and set in motion a way of looking at ourselves and the world where the power of a positive attitude can maintain and sustain us. His love for people was the building blocks of a life where his pride and hope displaced despair. He was a man who made original ideas reality, and took on his shoulders the responsibility for putting something back.

Sometimes, we are just too close to the light of history in the making to see it clearly. With time, the true awareness of what this man has done will be recognized. Mr. Patrick F. Taylor illuminated Louisiana, and in the process made our world a better place. He will be known throughout the ages as one of America’s true greats.
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Wednesday, October 1, 2014

Breaking the Russian energy stanglehold

Breaking Russia’s energy stranglehold from the files of Paul Driessen at CFACT.org

Europe cannot afford to have its foreign and domestic policies dictated by Putin’s blackmail

Read the Driessen Files at CFACT.org
European Union nations want to impose tougher economic sanctions on Russia for invading Ukraine and providing the missiles that shot down Malaysia Airlines Flight MH17. However, they are worried about biting the hand that feeds them – with the natural gas that fuels much of its economy.

Russia is the world’s second-biggest natural gas producer and third-biggest oil producer, so it can inflict tremendous pressure and damage on its neighbors without firing a shot. The 28 EU nations as a whole depend on Russia for one-third of their oil and gas.

However, Estonia, Finland, Latvia and Lithuania get 100% of their natural gas from Russian President Vladimir Putin. Six other European countries get more than half of their gas from the powerful Russian Bear: Czech Republic (57%), Poland (59%), Ukraine (60%), Hungary (80%), Slovakia (84%) and Bulgaria (89%).

That makes the Europeans highly vulnerable to cuts in the fuel supplies they need to power their cars, keep their businesses, factories and economies running smoothly – and heat homes, to literally keep people alive during brutal winters like those they’ve experienced recently.

A simple “nyet” from Mr. Putin could reduce or cut off energy exports, leaving the continent hostage to Russia and creating a potential disaster. European officials know this but so far are frozen by their own fears and policies.

Sen. John McCain (R-AZ) calls Russia “a gas station masquerading as a country,” because 60% of its exports are oil and natural gas. Cutting these exports to pressure Europe politically might hurt Russia’s economy.

However, it has already done so, is currently squeezing Ukraine over winter gas supplies – supposedly over late payments for past deliveries – and is making export arrangements with China and other countries, to reduce any economic harm it might suffer from engaging in renewed energy blackmail.

Moreover, during one week this September, Russia supplied up to 45% less gas than Poland requested, the Poles’ largest oil and gas company reported. Over the past decade, “Russia has halted the flow of gas through Ukraine three times, directly affecting eastern and southern European countries most reliant on Gazprom, the giant Russian energy monopoly,” the Christian Science Monitor has observed.

Indeed, 16% of Russian natural gas exports flow through Ukraine. In yet another pressure tactic, Russia began tightening the export spigot in June. Russian gas supplies through Ukraine to Slovakia have been cut by 25%, says Ukrainian Energy Minister Yuriy Prodan.

There’s no question that the EU and USA must punish Russia for seizing Crimea, infiltrating troops and military equipment into eastern Ukraine to support secessionists, aiding terrorism, and killing hundreds of innocent jetliner passengers. Since no one wants a shooting war with Russia, economic sanctions are all that’s left.

Failure to do even that would give Putin a green light to move more forcefully against Ukraine – or even try to occupy other former Soviet Union nations.

Putin has called the breakup of the Soviet Union “the greatest tragedy of the 20th century.” Before invading Ukraine, Russia invaded the former Soviet territory of Georgia in 2008 to support separatists who had declared independence for the Georgian provinces of South Ossetia and Abkhazia.

It’s not at all hard to imagine Putin moving against Lithuania, Latvia, Estonia, other former Soviet possessions or even Finland, to bring them into Mother Russia’s suffocating embrace. But how can the EU end the blackmail, enjoy some foreign policy independence and improve its faltering economy with less reliance on Russia?

If European countries faced food shortages due to import restrictions, they would offer their farmers incentives to grow more. EU members need to act the same way on the energy front. Otherwise, they give Russia tremendous sway over their future. European nations certainly have the ability to take action.

For one thing, they could import more natural gas from the United States and other countries besides Russia, until it can produce more domestic energy. Europe is blessed with enormous quantities of oil and natural gas – including enough gas to supply all its needs for at least 28 years, during which it could develop viable alternatives to gas and the dozens of coal-fired generators it is now building. US Energy Information Administration data reveal that Sweden has enough gas to meet its needs for 250 years.

Denmark, Poland, Bulgaria, France and Spain also have extensive potential, as do Great Britain and other countries. Unfortunately, those deposits aren’t economically recoverable using traditional drilling.

However, they can be captured using hydraulic fracturing (fracking) – which has been used safely and with great economic and employment benefit more than a million times in the United States since 1947. It has made the United States the world’s largest natural gas producer.

Not surprisingly, environmental extremists strenuously oppose fracking – further crippling Europe’s ability to meet its energy needs and chart its economic destiny and foreign policy. Also not surprising, Russia is secretly funding the European anti-fracking movement “to maintain European dependence on imported Russian gas,” NATO Secretary General Anders Fogh Rasmussen recently revealed.

But if there’s a silver lining to unfolding Middle East events and Russia’s naked aggression, it’s that more sensible Europeans are finally looking more critically at their self-destructive energy and environmental policies. The European Union announced in September that it will combine previously separate energy and climate ministries into one office.

The decision infuriates radical greens, but it reflects growing business, worker, consumer and family concerns about reliable, affordable electricity and motor fuels.

Next, Europe needs to allow fracking. Right now, virtually every EU nation except Poland and Britain bans fracking. Besides making Europe more energy independent, fracking would reduce carbon dioxide emissions by enabling European nations to rely more on natural gas and less on coal. Fracking would also reduce EU natural gas, electricity and even oil prices, as it has in the USA.

It would also create or save millions of jobs that are endangered (or gone) because of Europe’s outrageously high energy costs. In fact, many EU companies and families pay three to eight times more than Americans do for electricity.

Another problem in Europe is that people living above the shale deposits have no ownership or economic interests in developing them. They are inconvenienced, but the state and drilling companies get all the money. The EU needs to devise incentives that give landowners and residents a positive stake in development – such as a royalty or percentage of every Euro of oil and gas produced and sold.

On this side of the pond, US petroleum production must be further increased. The huge gains in American oil and gas output since 2009 were all on private and state lands, while the Obama administration has presided over a nearly 40% decline in production from onshore and offshore federal lands. The President and congressional Democrats need to stop being energy obstructionists, and let American companies tap these energy treasure troves.

That would create jobs, generate billions in government revenues, make more gas available for European purchase, and strengthen our economy and balance of trade. Congress should also consider prohibiting state and local fracking bans as unconstitutional constraints on trade.

Congress and the President should also fast-track US natural gas exports to Europe, by speeding permits for liquefied natural gas (LNG) facilities. These actions would encourage further drilling, technology improvements and job creation. As Europeans adapt and improve America’s rapidly advancing fracking technologies and develop their own gas, these exports will be less vital. But they are essential now.

The world is not going find safe, efficient, affordable, environment-friendly alternatives to oil, natural gas and coal in the next decade or so. (Right now, Europe gets just 1.3% of its energy from wind and solar, but 75% from fossil fuels – and both wind and solar exact significant environmental costs.)

In the meantime, we need to rely more on realistic opportunities and initiatives, and on our oil supplier friends in Canada and Mexico. If we don’t, we’ll have to continue importing from increasingly unstable and unfriendly parts of the world – and being constantly at their tender mercies, just like the Europeans.
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 Paul Driessen is senior policy analyst for the Committee For A Constructive Tomorrow  and Congress of Racial Equality, and author or Eco-Imperialism: Green power - Black death.

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