President Obama has emphasized his commitment to increasing America’s “energy independence,” but so far, policy-wise, that’s just translated into subsidies to support the development of alternative fuels. Alternative fuels are a great concept, but the government has already poured billions into developing alternative energy with little to show for it. Renewable energy today accounts for a small fraction (about 7 percent last year) of the U.S. energy supply. This is unlikely to change anytime soon, regardless of how much money the federal government gives to its green allies.
Fossil fuels, particularly oil and natural gas, will remain vital to America's energy infrastructure for the foreseeable future. The good news is that the United States has vast energy resources available within its territory. The Interior Department estimates that the Outer Continental Shelf alone contains about 86 billion barrels of oil and 420 trillion cubic feet of natural gas—that’s quadruple America’s current proved reserves.
Allowing energy companies to begin the work of accessing these reserves won’t bring more supply on-line immediately, but it will help ensure that we have an adequate supply in the future. Allowing additional exploration will also send an important message to America businesses and investors in the U.S. economy: we are committed to making sure that energy is available and affordable, lowering businesses’ overhead and paving the way for growth.
Of course, allowing greater access to energy resources would also act as an immediate stimulus, much like government spending on “shovel ready” infrastructure projects. According to a study by PricewaterhouseCoopers, as of 2004, the oil and natural gas industry employed nearly 6 million American workers, or about 3.5 percent of the workforce, and each job in that industry supported two in the general economy. Energy companies with access to new territories for exploration would be hiring workers and expanding their businesses.
Environmentalists frequently speak of the need to find a balance between protecting our natural resources and responsible development. Indeed, this should be our goal. But preserving our environment does not require making so much of our energy supplies off-limits. The Obama Administration should move ahead with facilitating environmentally responsible exploration, which can enhance—even stimulate—the U.S. economy in the short- and long-term.