Energy & Entrepreneurs #60                                                                                        

Even Cuba Gets It

by Raymond J. Keating

Question: How do you know that U.S. energy policy is really messed up?

Answer: When the communist government in Cuba better understands a central energy issue than do U.S. elected officials.

According to Talk Radio News Service, Vice President Dick Cheney made this point in a June 11 speech before the U.S. Chamber of Commerce:

"In light of increased gas prices, Cheney advocated that the United States increase domestic oil production, saying that an increase in supply is the only way to lower prices. Cheney supported initiatives that develop new energy technologies but reiterated that the United States's dependence on oil cannot be erased overnight. Cheney not only pushed for oil production in ANWR, but also supported oil production off of the East and West Coasts. Cheney said that China and Cuba are producing oil off the coast of Florida, noting that ‘even the Communists' understand increased oil production is economically vital."

House Republican leaders also hit on this point. CNSNews.com reported on June 11:

"House Republicans want the American people to know that right now -- around 60 miles off the coast of Key West, Fla. -- China is drilling for oil, thanks to a lease issued by Cuba.  But 1,200 miles north of Key West, Democrats in Washington are blocking the United States from conducting its own environmentally-safe oil and gas exploration in similar U.S. coastal areas, said a news release from House Republican leader John Boehner's office." By prohibiting the United States from taking part in the same type of energy exploration that the Chinese are conducting just miles off our shores, the Democratic Majority on Capitol Hill continues to prove itself complicit in an energy crisis that has saddled American families and small businesses with gas prices that have reached $4.05 per gallon today," the news release said."

Of course, over the years, both Democrats and Republicans have been complicit in barring 85 percent of U.S. offshore and waters from energy exploration and development, along with various federal lands, such as ANWR. But it's time for both parties to wake up.

Indeed, it is critical to understand what this means.  Again, keep in mind what API reported in April: "We have abundant volumes of oil and natural gas resources beneath federal lands and coastal waters, but the bulk of these resources have been placed off-limits to development. For example, according to federal government estimates, there is enough oil in these areas to power more than 60 million cars for 60 years. There is enough natural gas to heat an additional 60 million homes for another 160 years. However, more than 85 percent of the coastal waters adjacent to the lower-48 states, and which extend up to 200 miles from our shores, are off-limits to oil and natural gas exploration. And, 75 percent of the most prospective, technically available U.S. onshore areas are off-limits or accessible only with significant restrictions."

If the commies get it, why don't many of our elected officials in Washington?

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.