Is the slavish NEWSWEEK being unfaithful to the Celestial One and his gaseous energy policies? Robert J. Samuelson has belatedly and anemically concluded that “the Obama administration is biased against the oil and natural-gas industries.” Dah! You know, a watered down version of the stuff we have been writing about for years (with some important distinction, naturally):

“Contrary to popular wisdom, the United States still has huge oil and natural-gas resources. The outer continental shelf (OCS), including parts that have been off limits to drilling since the early 1980s, may contain much natural gas and 86 billion barrels of oil, about four times today’s “proven” U.S. reserves. The U.S. Geological Survey recently estimated that the Bakken Formation in North Dakota and Montana may hold 3.65 billion barrels, about 22 times a 1995 estimate. And then there’s upwards of 2 trillion barrels of oil shale, concentrated in Colorado. If 800 billion barrels were recoverable, that’s triple Saudi Arabia’s proven reserves….

The president is lauded as a great educator; in this case, he provided much miseducation. He implied that there’s a choice between promoting renewables and relying on oil. Actually, the two are mostly disconnected. Wind and solar mainly produce electricity. About 70 percent of our oil goes for transportation (cars, trucks, planes); almost none—about 1.5 percent—generates electricity. So expanding wind and solar won’t displace much oil, though there might be some small effect on natural gas for heating. Someday, electric cars may change this. But at best, that’s decades away.
For now, the only ways to reduce oil imports are to use less or produce more. Obama has paid some attention to the first with higher fuel-efficiency standards for vehicles. But his administration is undermining the second. At the Department of the Interior, which oversees public lands and the OCS, Secretary Ken Salazar has taken steps that dampen exploration and development: canceled 77 leases in Utah because they were too close to national parkland, extended a comment period for OCS exploration to evaluate possible environmental effects and signaled a more cautious policy toward shale for similar reasons.”

Read “The Bias Against Oil and Gas.”

Update: “According to the analysis … conducted at The Heritage Foundation … the higher energy costs kick in as soon as the bill’s provisions take effect in 2012. For a household of four, energy costs go up $436 that year, and they eventually reach $1,241 in 2035 and average $829 annually over that span. Electricity costs go up 90 percent by 2035, gasoline by 58 percent, and natural gas by 55 percent by 2035. The cumulative higher energy costs for a family of four by then will be nearly $20,000.

But direct energy costs are only part of the consumer impact. Nearly everything goes up, since higher energy costs raise production costs. If you look at the total cost of Waxman-Markey, it works out to an average of $2,979 annually from 2012-2035 for a household of four. By 2035 alone, the total cost is over $4,600.

…Beyond the cost impact on individuals and households, Waxman-Markey also affects employment, and especially employment in the manufacturing sector. We estimate job losses averaging 1,145,000 at any given time from 2012-2035.

Overall, Waxman-Markey reduces gross domestic product by an average of $393 billion annually between 2012 and 2035, and cumulatively by $9.4 trillion. In other words, the nation will be $9.4 trillion poorer with Waxman-Markey than without it.”