Lying is not going to rebut Newt Gingrich’s compelling understanding of America’s energy policy and huge energy reserves.
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“And the result is not just money for big oil,” Gingrich continues, “but people who own the property, farmers.” Gingrich recounts a conversation with Louisiana Governor Bobby Jindal, “who just had run into a farmer who suddenly discovered that he had natural gas on his farm and he had been given an amazingly big check by the natural gas company.” That same story is being replicated, or will be, from Texas to Tennessee across the Appalachians throughout Pennsylvania, to long impoverished upstate New York (if the liberals get out of the way there).
It means as well big money for our bankrupt federal government. As Gingrich reports, “One of the leading experts on North Dakota has suggested that we might well have over the next generation $18 trillion, not billion, $18 trillion in royalties… for the federal government with no tax increases.” Note, that is more than the national debt.
But that is not all. Gingrich adds, “If you had $500 billion a year that was not going overseas, that was paying royalties in the U.S., paying landowners, paying people to go out and develop the oil, paying the pipeline builders, you would suddenly have a booming economy right here at home.” What that means is that suddenly “We get a lot more jobs, people come off unemployment, food stamps, welfare, public housing, Medicaid. All that saves money. And they go to work taking care of their family and paying taxes. So government revenue goes up, government expenses go down…. Second, as we develop this, the companies are going to make more profit, so they are going to pay more taxes back.”
And the economy gets a further boost because “Every time prices go up, they are the equivalent of a tax on working Americans and retired Americans.” Similarly, every time gas prices go down, it is like a big tax cut boosting the economy, and lower energy prices are a big tax cut for energy intensive manufacturing in particular. Newt concludes, “Now $2.50 may sound like it is an impossible number, but that’s baloney. When I was Speaker of the House, we paid $1.13 on average during the four years. When Barack Obama became President, we paid $1.89 that week.”
Obama’s Pondscum Vision
President Obama felt compelled to respond to Newt and his campaign for $2.50 a gallon gas, in a speech in Miami February 23. Obama said regarding surging gas prices:
Now some politicians see this as a political opportunity…. You can bet that since it’s an election year, they’re already dusting off their 3-point plan for $2 gas. And I’ll save you the suspense. Step one is to drill and step two is to drill. And then step 3 is to keep drilling. We heard the same line in 2007 when I was running for President. We hear the same thing every year. We’ve heard the same thing for 30 years.
Well, the American people aren’t stupid. They know that’s not a plan, especially since we are already drilling. You know there are no quick fixes to this problem. You know we can’t just drill our way to lower gas prices. If we’re going to take control of our energy future and start avoiding these annual gas price spikes that happen every year — when the economy starts getting better, world demand starts increasing, turmoil in the Middle East or some other part of the world — if we’re going to avoid being at the mercy of these world events, we’ve got to have a sustained, all-of-the-above strategy that develops every available source of American energy.
And that’s why under my administration, America is producing more oil today than at any time in the last eight years…. Over the last 3 years, my administration has approved dozens of new pipelines, including from Canada. And we’ve opened millions of acres for oil and gas exploration. All told we plan to make available more than 75 percent of our potential offshore oil and gas resources from Alaska to the Gulf of Mexico.
But, exactly contrary to Gingrich’s vision explained above, Obama contends, “But here’s the thing — it’s not enough….The United States consumes more than a fifth of the world’s oil — more than 20% — just us. But we only have 2% of the world’s oil reserves. We consume 20; we’ve got 2….[A]nybody who tells you that we can drill our way out of this problem doesn’t know what they’re talking about, or just isn’t telling you the truth.”
So here is Obama’s big answer, contrary to Newt’s vision explained above:
We’re making new investments in the development of gasoline and diesel and jet fuel that’s actually made from a plant like substance — algae. You’ve got a bunch of algae out here, right? (Laughter). If we can figure out how to make energy out of that, we’ll be doing all right. Believe it or not, we could replace up to 17% of the oil we import for transportation with this fuel we can grow right here in the United States. Now, none of the steps that I’ve talked about today is going to be a silver bullet. It’s not going to bring down gas prices tomorrow. Remember, if anybody says they got a plan for that — what?
AUDIENCE: They’re lying.
Newt Slam Dunks Obama
Two days later, in San Francisco, Gingrich gave his reply to Obama’s Miami speech, slam dunking Obama, and his Obamabot audience. Gingrich said, “After I came out for a program to get to $2.50 a gallon gasoline, Obama decided he had to make a speech on energy. It is a very revealing speech. It is factually false, intellectually incoherent, deeply conflicted on policy and in some places just strange.”
Gingrich began by providing context.
In 2007, as a Senator, Obama was the only sponsor of a bill which would have eliminated an inventory of offshore oil reserves. This is part of the Left’s great problem today. They really believe in “Peak Energy.” They really believe that we’re going to run out. The government has to be in charge. Jimmy Carter was right. We ought to have gasoline rationing. We ought to make sure we don’t use all this up.
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