On the other hand, Obama’s record on public lands — where his administration does have control — is far from stellar. Oil and natural gas production on public lands has decreased significantly under his watch. The Interior Department institutes duplicative and expensive regulations that make it impossible for many independent oil and natural gas producers, small American businesses that employ 12 people on average, to conduct business on public lands.
The president’s own punitive legislative proposals offer a stark contrast to his pro-development rhetoric. Obama repeatedly calls on Congress to repeal the “subsidies” that oil companies receive. However, these are neither subsidies nor government handouts. These are typical business deductions, such as labor and construction costs, which many industries have. These provisions, namely intangible drilling costs and percentage depletion, encourage new development of American energy. Eliminating them is a sure way to decrease energy supply and stunt job creation. Singling out the most productive, creative energy industry for targeted tax attacks certainly does not sound like an “all of the above” strategy for U.S. energy.
A recent poll revealed 68 percent of Americans disagree with the way Obama is handling gasoline prices. The public may be taking note of Obama’s energy policy contradictions. The 2012 election may rest upon the question: Can Obama have his energy cake and eat it, too?
Barry Russell is president and CEO of the Independent Petroleum Association of America.