Energy Policy: Beyond Right or Left

As Oklahomans, we are blessed with abundant natural energy resources. Source rocks containing rich natural gas and oil abound below the surface in our state while wind, the sun, and precious plant life used in bio-fuels are plentiful above the surface. Our problem is not a lack of resources, it is the lack of creative energy policy to harness both traditional hydrocarbons and new sources of sustainable power. Instead of forward thinking energy policy that utilizes all of Oklahoma’s energy potential, we continue to bicker over any changes to the oil and gas industry, rely on coal as a primary source of electric generation, and lag behind others in the embrace of green collar jobs. This is a tragedy because Oklahoma, with its resources and strategic location, is in the perfect position to lead the way nationally with an energy policy model of blended energy production and consumption. Unfortunately, just like other vital issues in our country, energy policy has been caught up in the squabbling of right and left politics.

We have heard it all before: the right wants more off-shore drilling, drilling in nationally protected land, and no new regulation of carbon emission or taxes on energy companies while the left wants crippling new carbon emission standards, increased taxes on traditional energy producers, and more government money spent on R&D for renewable sources of energy. Neither side wants to give an inch to the other because in this political game to compromise is to lose. The real loser here is us. We continue to import more oil from abroad every year, maintain energy policies built around petroleum and dirty coal, move at a tragically slow pace to embrace the near unlimited supply of natural gas produced here in America, and stand idle as emerging countries such as China and India lead the way in green technology and manufacturing.

We must move beyond the tired left and right politics in our current energy policy. Energy policy does not have to be a zero-sum game. To make this point, we need to look no further than the country’s lagging economy and record unemployment. Herein lies an opportunity to recognize the potential of energy development to create more jobs, not only jobs the left seeks from producing more green collar jobs, but also jobs the right wants from producing more American oil and natural gas. Both green collar jobs and the oil and natural gas industry can clearly play a role in putting Americans back to work. The oil and natural gas industry in the U.S. already supports more than 9 million American jobs (more than 100,000 in Oklahoma) and can create many more. The Center for American Progress reports that, in the past couple years, we have created 1.2 million green jobs and there is the potential for more, especially in Oklahoma. We could be a leader in wind energy creation, technology, and manufacturing, as well as leading through policy created to maximize the use of clean affordable natural gas.

The connection between forward thinking energy policy and more jobs is strong. Unfortunately, the evidence of partisan politics in energy policy is stronger. As Oklahomans and Americans, we need to move beyond political partisanship and work together to create smart, forward thinking energy and economic policy that will secure our energy future and get Americans working again.

Energy Column

I was watching one of those animated films with my son the other night. It along with popcorn has become a Friday night ritual. The main character in the movie was a Panda Bear attempting to fulfill his dream of becoming something great. We can all resonate with a character like that, a character set on changing his or her lot in life. The problem was he was focused on what he had not been able to accomplish yet and what he needed to be in the future all while neglecting what he currently was. At a very strategic point when the Panda was indulging himself with food to cope with rejection another character, a wise turtle offered this advice to his situation, “the past is history, the future is a mystery, but today is a gift which is why it’s called the present.”

I have been thinking about that line in the movie a lot as I prepared to write this first Energy Column for the OKPolitico. Thanks to Kyle Loveless I have been provided the opportunity to investigate and write about issues concerning energy and energy policy in Oklahoma and as far as I am concerned there could not be a more important time or subject as we approach election season again.

The world is running out of hydrocarbons, mankind has created great environmental disasters scouring the earth for more of them (the Gulf spill is the latest example), and burning coal to heat homes or produce electricity is bad for the environment.

Each of these statements are true, however, the problem is like the Panda in the movie to many of us are focused on blaming others for what has already happened and the rest of us are either scaring everyone with doomsday scenarios that may or may not occur or attempting to profit on the production of energy regardless of the consequences to others or the environment. In reality what we need to do is focus on solutions that will impact the present, which in turn will naturally alter the future.

This column will focus on energy issues in Oklahoma. The energy industry is the largest industry in our state and because of that it affects Oklahoman’s in many ways: our pocketbooks, our quality of life, transportation, income, tax revenue (which is used to pay for a large portion of state spending), the environment, and hundreds more. This column will raise important issues concerning research and design, production, development, sale, and use of all different types of energy created here in Oklahoma. In this column I hope to educate readers on positions relating to energy taken by influential municipal, civic, state, and federally elected leaders.

My desire is not to persuade readers but to offer information relevant for you to make educated decisions on important energy matters. I am not naïve enough to believe good energy policy should shed itself of all dependence on hydrocarbons nor am I enough of an idealist to believe all our energy needs can be met by alternative sources alone. But as a father of two and a proud Okie I know if I spend too much time holding others accountable for bad energy policy in the past or dreaming about a cleaner, safer, and more sustainable future I will overlook what the wise turtle described as the gift of the present.

Let’s take this gift and do the best we can to create a better smarter more efficient energy plan for Oklahoma.

The Need for Deficit Spending

There has been plenty of debate both at the federal and state level concerning the additional spending of any money during this economic recession. In Oklahoma, politicians and constituents alike speak strongly against further spending of federal dollars on any programs other than those targeting defense or homeland security. As recent as this summer in Oklahoma there was a conservative populist outcry on display at town hall meetings reprimanding elected officials for considering any legislation that increased the nation’s deficit. Nevertheless, the fact remains our economy is in a deep hole and faces a staggering ascent back to full employment. Federal and state lawmakers can make that ascent easier by strengthening and adding to existing stimulus programs, particularly those related to unemployment, medical, and food benefits. Would this add to an already burgeoning national debt? The answer is unequivocally yes, but it is also the only way to avoid even higher debt in the longer term.

The economist John Maynard Keynes advocated that when an economy has high unemployment, an increase in government purchases (deficit spending) creates a market for business output thus creating income and encouraging increases in consumer spending, which in turn creates a further increase in the demand for business production. This is often referred to as the multiplier effect. Much has been debated about this Keynesian approach (deficit spending) to fiscal policy. With good reason Oklahomans are skeptical about charging more to our federal credit card. However, the problem with Keynes approach to fiscal policy is not inherently its position concerning deficit spending in a recession but the lack of political courage to increase revenues during non-recessionary times to rebalance the system. For decades state and federal governments alike have used deficit spending to stimulate lagging economies during recessions. Only to pass legislation in non-recessionary periods, such as what the Republican-controlled legislature in Oklahoma has done in recent years reducing the state income tax from a top rate of 6.65 percent to 5.5 percent costing the state hundreds of millions of dollars, thus depriving governments of needed revenue to pay off past debt. For state and federal leaders to demand policies aimed at reigning in budgets during a recession by cutting spending and refusing to raise taxes or even providing tax breaks during non-recession periods is irresponsible at best and cowardly at worst.

More than ever before, we need Oklahoma’s state and congressional leaders to speak out regarding another stimulus program. Most of the federal assistance allocated in the American Recovery and Reinvestment Act (ARRA) that states received for Medicaid programs, education, and other services is scheduled to end on December 31, 2010. Even though that seems like a distant future, the problem is relevant now. Oklahoma much like other states, which face huge budget shortfalls, is planning their budget for state fiscal year 2011 during this spring’s legislative session.

According to the Center on Budget and Policy Priorities budget cuts for fiscal year 2010 are $166 billion across 48 states, with at least 39 states cutting programs targeting the most vulnerable residents. Recent statistics in Oklahoma from the Oklahoma Policy Institute reported a budget deficit approaching 700 million in 2009-10 and a possible deficit of the same in 2010-11 and 2011-2012. To close budget gaps during this recession, most states have already implemented cutbacks in nearly all state programs (Oklahoma has instituted a 5% cut). Unfortunately, these cutbacks disproportionately affect women, children, and the elderly and stifle future economic growth potential. The bottom line is if states do not know if they will receive any additional federal fiscal relief they will be forced to institute much more severe budget cuts in 2011 and 2012.

Fiscal responsibility is a must when the United States emerges from this historic recession. Oklahoma and the country will need steadfast leadership to tackle this escalating problem. But now is the time for greater deficits and stimulus programs aimed at boosting employment, encouraging new areas of private industrial growth, and providing relief to those struggling to keep a roof over their head and food on the table.

Auto Industry Bailout

Reading the New York Times this morning I came across a good op-ed piece concerning the fate of the auto industry in the United States. While I can say I would usually vehemently disagree with the author, I thought he made some good points in this article. Obviously the issue is complex, however, I fail to understand how providing companies more money to spend on dysfunctional policies does anyone any good in the long run. Thomas Friedman wrote a good piece (NY Times) about this last week as well if anyone is interested.

http://www.nytimes.com/2008/11/19/opinion/19romney.html?partner=permalink&exprod=permalink

Failing Economy

I am trying to think my way through the bailout of U.S. companies. On the one hand I realize letting major companies collapse will have a negative trickle down effect on the economy and Americans as a whole. However, on the other hand I fear the cultural precident being set that rewards companies not just for bad business but for unabashed greed. It seems, that in retrospect Americans will look back in 5-10 years and realize that, as in so many other instances they were "duped" by corporate America.

When the dot com bubble burst in the late 90's Americans should have learned a lesson. We should have reminded ourselves that "get rich quick" investment schemes are never as great as they appear. We should have worked together to establish forward thinking technologies and industries of the future. Spending money on the kinds of ideas that last and make us better. Instead, we moved on to the "next" great investment idea, which in this case happended to be the housing market. We all know the story, a little bit of speculating here and some deregulation there throw in some greed and you have the recipee for the latest economic disaster.

Greed has been the downfall of more that one civilization and I am afraid that without a systemic change in the cultural mindset of leaders in America, history will add the United States to the list. Everyone knows you can't spend more money than you make and expect a good turn out in the end. So why don't we hold the corporate world and government officials accountable to these bankrupt principles. It's simple, because we don't even hold ourselves to these principles. If we want real change in America we all have to take some real responsibility, and fiscal responsibility should be at the top of the list.

You Know Spring is coming in Oklahoma

You know spring is coming in Oklahoma when you get 10 live hours of weather coverage commercial free. I swear these weather guys probably wear diapers so they can stay live without using the can. For all the fuss most of the storms do no more harm than make some noise and bring much needed rain. But, the way they report you would think you should strap yourself to a deep well with Bill Paxton and Helen Hunt as the "beast" blows overhead. I don't mean to imply that tornadoes aren't dangerous and shouldn't be taken seriously I just hate the non-stop coverage of: heavy rain, heavy sideways rain, hook echo's, strong wind, nickel sized hail, and it's going to be loud. Really! Thanks for that update weather guy.

It's 8:30 in Yukon, and .....it's raining. Honestly, I kind of like storms. They remind you of just how powerful nature is, and why as stewards of the kingdom we need to take care of this planet. Cheers.

Politics

I am a political junkie. There it is, I have finally admitted it. I have been so enthralled by the 2008 Presidential election cycle. Much to my wife's chagrin I read two or three different political blogs each day, have watched all of the Democratic debates (mostly on youtube since we don't have cable), and get geeked up for primary days. Before I began collecting data for my dissertation on Sunday mornings I would watch at least two of the morning political wrap-ups (Meet the Press, and Sunday Morning with George Steaphanopolus being my favorite). I'll even admit I was more excited about Super Tuesday than the Super Bowl.

This isn't the post to divulge into my political preferences but I wanted to call attention to something I believe to be troubling. Sexism. That's right I said it, sexism. From all of the attention I have paid to this election cycle I believe a pattern of sexism has emerged. Honestly, I find that it is often blatantly employed. However, unlike when race has been an issue in this contest gender had garnered far less attention and outcry. The problem is, when feminists raise the issue of gender Hillary must dampen their voice for fear of loosing male voters, and when non-feminist male or female's raise the issue of gender Hillary must dampen their voice as well for fear of loosing votes for not being strong and a leader. Ironically, Obama has been the candidate to employ more feminine characteristics in this contest, reaping huge rewards.

Not only has Hillary had to adopt more masculine characteristics to get where she has in her career but now that she has almost reached the summit the rules have changed. I for one am tired of seeing political cartoons, and listening to pundits and columnists alike frame her as the "angry female" hungry for power. If Hillary where a man (perfect example: Bill) her qualities would be viewed as ambition, drive, and leadership. The U.S. has always been ready for another male president, but clearly, as this contest has shown not sure about a female running the show.