Oil considers central banks’ stances

Obama tried to reframe the energy debate in a speech yesterday when he set a goal of reducing our oil imports by a third by 2020. The president is largely viewed as a total failure on energy policy by both his supporters and his critics.

Not a surprise from a guy who during the Presidential campaign insisted that by inflating our tires we could reduce oil imports. I am not sure what he is proposing will break our addiction to oil. Oops, that was President Bush's line, sorry...

The truth is that I think the president failed to make any significant head-way or really give us a coherent plan. For one thing on jobs, the president says that his investment in clean energy is expected to create or save more than 700,000 jobs across America – jobs manufacturing advanced batteries for more efficient vehicles, upgrading the power grid so that it's smarter and it's stronger, doubling our nation's capacity to generate renewable electricity from sources like the wind and the sun.

Yet the energy industry thinks that so far the president's policies like the drilling moratorium have cost us more jobs then he has created. We know at least one firm was forced out of business. Some estimates say Obama's drilling moratorium has cost us 19,000 jobs.

Senator Mitch McConnell responded as reported by the Washington Post, "Over the past two years, the administration has undertaken what can only be described as a war on American energy. It's cancelled dozens of drilling leases. It's declared a moratorium on drilling off the Gulf Coast. It's increased permit fees. It has prolonged public comment periods. In short, it's done just about everything it can to keep our own energy sector from growing. As a result, thousands of U.S. workers have lost their jobs, as companies have been forced to look elsewhere for a better business climate. Consider this: just three of the areas we could tap in Alaska are thought to hold enough oil to replace our crude imports from the Persian Gulf for nearly 65 years. So the problem isn't that we need to look elsewhere for our energy. The problem is that Democrats don't want us to use the energy we have. It's enough to make you wonder whether anybody in the White House has driven by a gas station lately."

The truth is that the answer to our energy problems is right before our very eyes. A natural gas bonanza should be encouraged. It will take a minimal investment by taxpayers and all we have to do is get the government out of the way.

Still targeting the 108-110 area in oil!

Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at pflynn@pfgbest.com.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


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