Did you know we have vast untapped energy reserves right here in America? In fact, per President Trump,1 “America has 1.5 times as much oil as the combined proven resources of all OPEC countries; we have more natural gas than Russia, Iran, Qatar and Saudi Arabia combined; we have three times more coal than Russia. Our total untapped oil and gas reserves on federal lands equal an estimated $50 trillion.”
The current Administration’s goal is to achieve energy independence from OPEC2. We still import 9.4 million barrels of oil per day! By removing harmful regulations that have thwarted domestic energy production the U.S. could achieve that goal.
There is a ripple effect to achieving this goal which would include greatly helping American workers. Revitalized U.S. energy production could produce the revenues to rebuild roads, schools, bridges and public infrastructure.
And it can be done cleanly per the President,3 “with rational environmental concerns that conserve our beautiful natural habitats, reserves and resources… From an environmental standpoint, my priorities are very simple: clean air and clean water.”
Additionally, the deregulation of the coal industry and the Trump Administration’s commitment to reviving a clean coal industry adds another energy resource for the U.S.
As we move through the year, we will watch these events as they roll out and help keep you informed of the bottom line: how these policy changes will affect your energy prices. Until all this happens we remain at the mercy of OPEC and here’s an interesting story about how they work.4
In the early 2,000s technology was developed to get oil out of the shale formations in our heartland. Oil production went to new highs and communities were reinvigorated as our oil imports were cut by half.
In 2014 OPEC made some decisions that sent oil prices plummeting from $110 per barrel in June, 2014 down to $26 per barrel by January, 2016. Though consumers benefited from this at the gas pumps, the shale industry was decimated as they could not compete. Many companies went bankrupt, 150,000 jobs were lost, and the energy boom in the early 2000s was over.
So we are still subject to this manipulation in the energy market. By achieving complete U.S. energy independence we can not only bring back jobs, revitalize communities, and better the economy, but truly lower and stabilize consumer’s energy costs.