Government Is Impeding America's Energy Explosion
Newsmax
What if the United States could quickly take
steps that would eliminate the entire trade deficit, boost the economy,
and create millions of jobs?
It can, according to a leading energy expert — but not if it retains some current government policies.
American exports now total $1.6 trillion a year,
second only to China's $2.1 trillion, but the United States imports more
than it exports and runs the world's largest annual trade deficit,
about $750 billion.
And 40 percent of the deficit comes from oil
imports, says Mark P. Mills, a senior fellow at the Manhattan Institute
and founder and CEO of the Digital Power Group, a capital advisory group
focusing on technology.
But America is now the world's fastest-growing oil and gas producing region, and could become a net oil exporter.
Much of the credit goes to improvements in
drilling technology. As the Insider Report disclosed earlier, that
technology has improved the productivity of the typical oil or gas rig
on U.S. shale fields by 200 to 300 percent over the past five years.
"Increasing production and exports of oil and gas
and of energy-intensive products from chemicals to fertilizers can put
the nation on track to wipe out the entire trade deficit within the
decade, returning the nation to a trade balance — even a surplus — that
has not been enjoyed for decades," Mills writes.
It would also serve as a huge stimulus to the
U.S. economy, directly creating jobs across the nation and indirectly
creating millions more jobs, he asserts.
However, government policies now in place hinder
the production and export of hydrocarbons, says Mills, who served in the
White House Science Office under President Ronald Reagan and writes the
"Energy Intelligence" column for Forbes.
He urges the government to take a number of immediate steps to accelerate the nation's hydrocarbon capabilities.
For one, the Commerce Department should be
directed to approve any application to export crude oil as domestic
production increases 70 percent within the decade. A 1975 law makes it
illegal to export crude oil, with rare exceptions, although refined
petroleum products can be sold overseas.
Under legislation last modified in 1978, the
Department of Energy has the authority to approve or disapprove
applications for licenses to export natural gas. The government should
approve all qualified entities seeking to export natural gas, Mills
insists.
The Obama administration should approve the
construction of the Keystone XL pipeline, allowing Canadian crude to
replace Venezuelan imports.
The federal government should also offer wider
access to hydrocarbon resources on federal lands, where 80 percent of
offshore and half of onshore territory remains off limits to hydrocarbon
exploration.
Mills concludes: "There are manifold benefits to
be had from ensuring or accelerating energy exports. Congress and the
administration should take action to unleash the economic, employment,
and strategic benefits that will derive from furthering U.S. hydrocarbon
production and exports."