Obama Was Wrong on Oil. We Did ‘Drill Our Way Out of the Problem.’
Nicola Loris, The Daily Signal, September 14, 2018
When gas prices topped $4 per gallon in May 2011, President Barack Obama said, “We can’t just drill our way out of the problem.” Throughout his presidency, Obama stated some version of that sentiment every time he wanted to push to subsidize alternative energy sources. More than seven years later, human ingenuity, technological innovation, and the power of the free market have proven him wrong. To the benefit of American families across the country, the United States is now the largest global producer of crude oil.
Our Take: Music to our ears: Free, competitive markets are the solution. Higher prices for oil incentivize energy companies to extract and supply more oil and incentivize entrepreneurs to invest in innovative alternatives to oil—batteries, natural gas vehicles, or biofuels.
From the Washington Examiner Daily on Energy:
CHINA ANNOUNCES $60 BILLION IN RETALIATORY TARIFFS, INCLUDING AMERICAN GAS: China’s government announced $60 billion in new tariffs on U.S. goods Tuesday in response to the Trump administration’s latest round of tariffs on Chinese imports.
China’s Finance Ministry said that it is moving forward with its plans to increase in tariffs of 10 percent and 5 percent on over 5,000 U.S. goods. That includes a 10 percent tariff on American liquified natural gas starting next month, a big blow to the U.S energy industry. China is the largest growth market for LNG imports, and the U.S. is seeking to be a major exporter.
‘Niche’ role seen for Canadian LNG
Caroline Evans, Upstream, September 18, 2018
Canada may emerge as a niche supplier of liquefied natural gas to Asia as tensions between the US and China escalate over trade, a British Columbia official said Tuesday. The US-China trade dispute caused uncertainty surrounding the US LNG export market British Columbia deputy energy minister Dave Nikolejsin said at the Gastech conference in Barcelona. “Who would have ever thought that five years ago or even three years ago that customers in Asia would have to hedge against the uncertainty of supply from the US?” he said. “It’s almost inconceivable, but that’s part of what’s driving the conversations we’re having when we go into the markets in Asia, saying they must diversify their supply. And Canada’s very interesting geographically.”
Our Take: There is a reason, and a good one, why the US energy industry opposes Trump’s tariff tiff with China. The oil and natural gas boom the country is experiencing has supplied U.S. consumers and businesses with low cost energy, which strengthens the U.S. economy. The tariffs will not only harm drillers, but they will also harm the success of Trump’s pro-growth agenda, which relies on oil and natural gas production and exports.