First of all, you’re probably wondering why the headline says "energy glut" when we’re so dependent on foreign sources of oil. Before I get there, the MSNBC/Politico debate had a few good moments on energy policy, specifically by Minnesota Congresswoman Michele Bachmann, former Massachusetts Governor Mitt Romney and Texas Governor Rick Perry, on America’s energy policy. All three made the case for unleashing our own natural resources to spur job creation, promote economic growth and secure our country from oil cartels and despots.
The argument made this evening by the Republican Presidential contenders is sound (and now back to the “glut” headline). As former Governor George Allen recently said, “We are number one in the world when it comes to energy resources. You would never know it. The Russians are second; Saudi Arabia is number three.” Skeptical? Read PolitiFact’s “Truth-O-Meter” on the subject, which rated Allen’s comments “true.”
America has ample energy resources and that's the point: even President Obama’s campaign understands the potential of the economic impact of removing the governor on the energy industry’s engine. As I wrote here three weeks ago when David Axelrod unleashed his preemptive broadside against then-unannounced Rick Perry and his record as Governor of Texas, the Obama campaign is scared to death of a candidate who can effectively make the case for domestic energy production in the face of stifling regulations.
More importantly, in this time of economic crisis where local, state and our very own federal government is faced with draconian budget cuts and dwindling revenues, energy may just be one of our best resources to cure our ills.
According to a study by State Budget Solutions, a non-partisan pro-reform organization that touts “real solutions for real budget problems,” total state debt “exceeds $1.7 trillion”:
“Aggregate state debt now exceeds $1.7 trillion, with much more potentially hidden off the official books.” (Bryan Leonard and Phil Marrone, “States Hide Trillions In Debt,” State Budget Solutions, 7/22/10)
• “The research included total debt outstanding, recent budget shortfalls, pension and retirement health care liabilities, and Unemployment Trust Fund loans. The research also looks at the overall financial landscape for each state by considering top income tax rates, past economic performance, and economic outlook.” (Bryan Leonard and Phil Marrone, “States Hide Trillions In Debt,” State Budget Solutions, 7/22/10)
While nearly all states hold over a billion dollars in debt and most are having to go through some form of austerity measures to balance the books, Alaska recently reported a budget surplus of $3.4 billion due to money “rolling” in from oil revenues.
“Alaska is rolling in money from the high oil prices, with the revenue department on Wednesday projecting a state surplus of $3.4 billion.” (Sean Cockerham, “Oil Price Brings State $3.4 Billion Surplus,” Anchorage Daily News, 4/7/11)
Some of that surplus money from oil profits that Alaska enjoys may be put into state savings accounts, which already totals more than $11 billion.
“Legislators also are talking about putting more than $1 billion into savings in the coming year.” (Sean Cockerham, “Oil Price Brings State $3.4 Billion Surplus,” Anchorage Daily News, 4/7/11)
“Alaska already has more than $11 billion in savings accounts.” (Sean Cockerham, “Oil Price Brings State $3.4 Billion Surplus,” Anchorage Daily News, 4/7/11)
So the question is, as it always is, why can’t more states enjoy profits from oil revenue like Alaska? The fact of the matter is coastal states like Florida, North Carolina and Virginia (to name a few) could benefit greatly from offshore oil exploration. According to that same State Budget Solutions study, Florida is $31.8 billion in debt, North Carolina is $43.7 billion in the red and Virginia has $22.3 billion on the books.
The problem once again is President Obama, Democrats and their lefty-environmentalist supporters. Maybe someday MSNBC, Politico, President Barack Obama and Democrats will get serious about energy policy. Doing so and allowing oil and natural gas exploration would help bring much needed revenue to state coffers and reduce America’s dependence on foreign sources of energy.
