Friday, March 2, 2012

Newt's Big Ideas on Energy

Filling up with gas has become a very  painful experience. I'm luckier than most, because I live in Texas. We typically have some of the lowest gas prices in the nation, but, even in Texas, our $3.40/gal gas still puts a strain on the budget. The cost of everything seems to be taking a hit; I paid just under $4 for a gallon of milk this week. It costs producers and deliverers of goods and services more, so those additional costs are being passed onto us. With all the angst in the Middle East, and no faith that the Obama administration has any idea how to deal with recent foreign policy issues or soaring gas prices, American's are increasingly concerned about how they are going to pay their bills. We need answers. We aren't getting them from this president.

Newt Gingrich has come forward with bold ideas on how to address the rising cost of energy in America.  We have enormous untapped energy potential here in the United States.  Newt claims it is time for us to reverse course on our energy policies; drill here, drill now, and pay less.

Newt’s American Energy Plan:
  1. Remove bureaucratic and legal obstacles to responsible oil and natural gas development in the United States, offshore and on land.
  2. End the ban on oil shale development in the American West, where we have three times the amount of oil as Saudi Arabia.
  3. Give coastal states federal royalty revenue sharing to give them an incentive to allow offshore development.
  4. Reduce frivolous lawsuits that hold up energy production by enacting loser pays laws to force the losers in an environmental lawsuit to pay all legal costs for the other side.
  5.  Finance cleaner energy research and projects with new oil and gas royalties.
  6.  Replace the Environmental Protection Agency, which has become a job-killing regulatory engine of higher energy prices, with an Environmental Solutions Agency that would use incentives and work cooperatively with local government and industry to achieve better environmental outcomes while considering the impact of federal environmental policies on job creation and the cost of energy.

Newt is taking on the Energy crisis at every level:  Reduce regulation, increase domestic production, open up the world market for American oil, increase energy research, provide incentives to states to tap into their own resources, and reduce stifling litigation pertaining to energy production and exploration.  

Newt's solutions are in stark contrast to the liberal approach of Jimmy Carter in the 70's.  Carter sought to regulate consumption of gas by placing limits on consumers instead of working to increase production of oil.   With these limits, the cost of gas skyrocketed, and high inflation commenced.  Carter failed to understand the basic economic concept of supply and demand.   In contrast, Newt's plan is based on free-market principles.  

The Obama administration has been waging a war against the use of fossil fuels.  Obama's desire to reduce fossil fuel consumption has led to several wrong turns including the government financing of Solyndra, government subsidies for a $40K electric car, and restrictions on domestic energy exploration and production. Obama's rejection of the construction of the Keystone pipeline is another example of Obama's unwillingness to compromise his liberal agenda to bring down the cost of fuel.   He's recently tinkered with the Keystone decision saying he would allow the building of portions to go forward; perhaps because his rejection of Keystone was such a political loser for the Democratic party. 

Newt call's Obama's energy policy 'Stupid - like he is governing on Mars'

We learn this week that the Energy Secretary Chu is comfortable with higher gas prices because he believes that higher costs for fuel will force Americans to abandon their gas-burning cars and trucks for environmentally friendly alternatives.   

Newt Gingrich has railed against Secretary Chu saying he should resign from office calling him the 'Anti-Energy Secretary'., saying that Chu has openly admitted wanting America to have gas prices comparable to Europe ($9 to $10/gal). 

Newt Gingrich opened this conversation about energy.  He understands just how destructive high gas prices are for this economy. Other candidates are now jumping on Newt's energy-solutions bandwagon, but Newt was the first to step forward.   We need a leader who stands in the front, takes on the status-quo and can make the case to the American people.  Newt Gingrich is our energy crisis solution.

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