January 2012 Archives

What's ahead for energy and environment issues in the wake of President Obama's State of the Union address last week?

Obama's speech paid significant attention to energy and environmental protection. "This country needs an all-out, all-of-the-above strategy that develops every available source of American energy," he said. Here's a brief rundown:

The president touted vast domestic reserves of shale natural gas and said his administration would work to develop the plentiful energy safely and promote its use. He said he would direct the Interior Department to tap into more than 75 percent of the country's offshore oil and gas resources (referring to an Interior plan already announced).

Obama reiterated his call for Congress to pass a clean-energy standard, a proposal that Senate Energy and Natural Resources Chairman Jeff Bingaman, D-N.M., plans to introduce within weeks. Amid political attacks over Solyndra, the solar manufacturer that defaulted on its $535 million federal loan guarantee, Obama doubled down and said America could not concede the clean-energy race to China. Three major energy sources did go unmentioned, though: coal, which accounts for nearly 50 percent of the nation's electricity; nuclear, which accounts for 20 percent of the country's electricity; and biofuels, which the president has traditionally touted in most major speeches that touch on energy.

He mentioned climate change only in passing when noting that Congress probably wouldn't be able to pass legislation tackling the global problem. He didn't mention the Environmental Protection Agency by name but stood by EPA's mercury power plant standards, saying he "will not back down from protecting our kids from mercury pollution."

With so much rhetoric devoted to energy and environment issues, how could these goals and ambitions the president laid out translate into action? Will they move the needle on major issues facing the nation, such as its dependence on foreign oil and rising levels of greenhouse gas emissions linked to climate change? What should Congress do to assist--or resist--the plans Obama laid out last week?

28 responses: Amy Harder, Kate Offringa, Lance Brown, David Kreutzer, Tim Profeta, Barry Russell, Phyllis Cuttino, Margo Thorning, Jennifer Morgan, Tim Peckinpaugh, Douglas Holtz-Eakin, Scott Sklar, Josh Freed, Allen Schaeffer, Brent Erickson, Brian Keane, Tom Kuhn, Rhone Resch, Mark Muro, Richard Revesz, Robbie Diamond, Bill Snape, Daniel J. Weiss, Molly K. Macauley, David Holt, Kateri Callahan, Charles Drevna, William O'Keefe

Was President Obama right or wrong to reject the Keystone XL pipeline?

Last week, President Obama denied approval of a permit to build the pipeline, which as proposed would have sent oil from Alberta, Canada's tar sands to Gulf Coast refineries. Obama said the "arbitrary" deadline set by congressional Republicans was not enough time to complete a review of the proposal for an alternate route that would not go through an ecologically sensitive area in Nebraska. TransCanada, the Canadian company seeking to build the pipeline, immediately said it would apply for another permit.

Is there a future for the Keystone XL pipeline once TransCanada seeks a new permit? What kind of repercussions will Obama's decision have on the domestic and global oil industries? Will the rejection help the country become less dependent on oil and more committed to renewable energy sources like wind and solar? What does this augur for congressional efforts to enact meaningful energy and environmental policy?

20 responses: Frances Beinecke, Paul Sullivan, Armond Cohen, Jack Gerard, Douglas Holtz-Eakin, Amy Harder, Margo Thorning, Bernard L. Weinstein, Bill Dickenson, Marlo Lewis, Craig Rucker, Michael Schwartz, Kenny Bruno, Tyson Slocum, Kathleen Sgamma, Andrea Luecke, David Holt, Charles Drevna, Scott Sklar, William O'Keefe

What are the challenges and opportunities ahead for natural gas?

The recent revolution involving shale natural gas in the United States has sparked debate on a range of issues: the environmental and safety concerns surrounding hydraulic fracturing--the controversial extraction method that's critical to accessing shale gas; how gas should be used within the country; and whether gas should be exported to countries where prices are high compared to domestic prices, which are at record lows.

Recent developments on these issues underscore the importance of the natural-gas industry. More and more states are enacting laws that require companies to disclose the ingredients and concentrations of the fluids used in hydraulic fracturing. The Energy Department is already approving the first natural-gas exports, and several other applications are pending before it. Meanwhile, legislation in Congress would provide tax incentives for natural-gas-powered trucks, and Environmental Protection Agency clean-air rules are encouraging more utilities to shift from coal-fired power plants to natural gas, which burns cleaner than coal.

How should President Obama and Congress handle these disparate issues in the natural-gas industry? Should Congress enact federal legislation requiring disclosure of fracking fluids? Should the United States export natural gas to capitalize on the shale gas revolution and high prices abroad? What role, if any, should the U.S. government play in regulating natural-gas exports?

21 responses: Steve Bolze, Frank M. Stewart, Jesse Jenkins, Amy Harder, Allen Schaeffer, Tim Peckinpaugh, Bernard L. Weinstein, Barry Russell, Mark Brownstein, Thomas Gibson, Paul Sullivan, Kathleen Sgamma, Tyson Slocum, Charles Ebinger, Gregory C. Staple, Don Santa, Tom Amontree, Mark Muro, David Holt, Armond Cohen, William O'Keefe

What are the economic and political effects of high oil prices throughout 2012?

That's the question on people's minds inside the Beltway and throughout the country as oil prices rise amid uncertainty about Iran and other factors that affect the cost of oil. Prices at the pump will inevitably rise along with oil prices. Although it is uncertain what, if any, major changes will result because of the situation in Iran or events in other major oil-producing countries, experts say that just the threat of instability is enough to spike oil prices.

How could high oil prices--and the resulting high gasoline prices--influence the priorities for Congress and the administration this year? How could the volatility affect the 2012 elections? Washington seems to have the same debate whenever prices at the pump rise. Will this time be any different?

17 responses: Brigham McCown, Brigham McCown, Paul Sullivan, Kateri Callahan, Will Rogers, Tyson Slocum, Peter Lehner, Peter Lehner, Allen Schaeffer, Michael Schmidt, Robbie Diamond, Bernard L. Weinstein, Marilyn Heiman, Josh Freed, Brent Erickson, William O'Keefe, David Holt

What energy and environment issues should President Obama and Congress focus on this year?

The politics of the presidential and congressional races will likely overshadow policymaking on Capitol Hill, but that doesn't mean energy and environment policies will be absent. Several big issues are coming down the pike: Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, D-N.M., has said he will introduce a clean-energy standard this year. Congress could address expiring renewable-energy tax credits early in the year. EPA is on track to issue first-ever national standards for greenhouse-gas emissions. And if all goes as planned for Shell, the oil company could begin drilling in the Arctic Ocean as soon as this summer.

What policies should Congress focus on this year? What, if any, new policies should Obama try to push as he fights to keep his job? What issues, such as the Keystone XL pipeline and EPA, could become flash points during the election season? Will Washington be able to accomplish anything on energy and environment issues this year as most of the political class focuses on the election season?

21 responses: Amy Harder, Ann Weeks, Kate Offringa, Lance Brown, Jamie Rappaport Clark, Molly K. Macauley, Jim Collins, Brent Erickson, Barry Russell, Karl Gawell, Tim Peckinpaugh, Rhone Resch, Josh Freed, Kathleen Sgamma, Danny Kennedy, Bob Bendick, Tyson Slocum, Will Rogers, Brian Keane, Charles Drevna, William O'Keefe