Obama And Democrats Going To Get Credit For Economic Recovery He Had Nothing To Do With

obama-oil-gas.gi.top

I write often about America’s energy boom – the explosion in oil and gas development made possible by innovations like fracking – but I’m not sure how many people realize the profound impact it’s having on our economy. It’s not just states like North Dakota that are benefiting. As a case in point, consider that the explosion in development in the Bakken is stimulating economic activity in places as far away as Washington:

When recent headlines proclaimed that the United States was poised to become the world’s largest oil producer by 2017, the import of that news may have seemed distant and abstract. Yes, the oil fields of North Dakota, Montana and Texas are alive with new activity, but for Northwest residents, the effects are not something they see every day.

That fact is quickly changing in businesses from Olympia to the Canadian border. The arrival in Tacoma last week of a 103-car train from North Dakota was a sign of just how swiftly the sudden abundance of oil in this country is shifting business even 1,200 miles away from the booming oil fields.

That BNSF Railway train was the first of what will ultimately become weekly trains bringing oil to Tacoma from the new oil fields opened up by hydraulic-fracturing technology in the country’s northern Great Plains.

The train’s arrival and the construction of a new $8 million rail yard at the Tacoma Tideflats refinery of U.S. Oil and Refining is indicative of a shift in the source of crude shipments to Puget Sound refineries.

More oil and gas production here in America is going to mean more jobs available for people to produce that oil and gas. Move that oil and gas. Refine that oil and gas. Distribute that oil and gas.

But that’s just the direct impact. More energy production means cheaper energy prices. That not only means lower prices (or, at least, prices that rise less quickly) for consumers, but it’s also a tremendous boon for manufacturing which consumes enormous amounts of energy. By-products from oil and gas production are also useful for other industries. I’m told that much of the natural gas produced in the Bakken is less useful for energy or heating than it is for the production of things like plastics.

I’m not smart enough to know why, but the idea that America’s dramatic increase in oil and gas production has a lot of ancillary benefits.

What all this adds up to is moderate improvement in our national economy. Modern economies run on energy. There is nothing as sure in economic world as the fact that there will be increasing demand for energy, and that most of that energy will be provided by fossil fuels like oil and coal (as opposed to expensive and unreliable alternatives like solar, wind and biofuels which exist because of politics rather than market demand).

So, ironically, America is going to see some economic improvement even despite what happens with the “fiscal cliff.” I write “ironically” because neither President Obama, nor his party which has largely controlled the agenda in Congress since 2007, are friendly to oil and gas development. Their policy agenda is aimed specifically at forcing America away from those energy sources and toward the aforementioned expensive, unreliable alternatives.

It is ironic, then, that President Obama and Democrats will no doubt benefit politically from economic recovery driven by a boom in the very sort of hydrocarbon energy development most of them have spent big chunks of their careers opposing.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • Captornado

    Obamessiah is an idiot. Carry on

  • Roy_Bean

    This will be just like the Clinton prosperity, with no mention of any Contract with America.

  • SigFan

    The economy may improve a bit on the back of energy production, but that alone will not be enough to bring it back to where it needs to be. And if Obamao follows through with his plan to claw back the fracking permitting process to DC even that is in jeopardy. No matter what though, if there is even the faintest bit of improvement Obama and his sycophants will be trumpeting their success – and the useful idiots will believe it.

  • LastBestHope

    Recovery?

    Morgan Stanley’s Doom Scenario: Major Recession in 2013 – US Business News – CNBC

    “The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

    The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

    “More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report.

    Under the bank’s more gloomy scenario, the U.S. would go over the “fiscal cliff” leading to a contraction in U.S. GDP for the first three quarters of 2013. In Europe, the bank’s pessimistic scenario assumes a failure of the European Central Bank (ECB) in cutting rates and a delay of its bond-buying program.”

    More @ http://www.cnbc.com/id/49898014

    This MS analysis is in alignment with the 2011 book: “Endgame: The End of the Debt Supercycle.”

  • Hannitized, Proofs obsession

    Rob, when are you going to write about the devastating impact fracking is having on the coal industry?

    • HG

      Are you suggesting we slow fracking to save the coal industry?
      The Obama administration is having a devastating impact on the coal industry. Ask the coal miners.

      • Hannitized, Proofs obsession

        No. Stop trying to think for yourself, you aren’t very good at it. I am stating a fact; that fracking is crushing the coal industry, along with Nixon’s EPA. Only political hacks believe Obama is directly responsible for the challenges small coal companies are facing across the globe.

        • HG

          So what do you suggest? Let me guess, more Obama central planning? You know, restrictions and regulations on fracking?

          • Hannitized, Proofs obsession

            It seems you are looking for an answer to save the coal industry from the free market? If coal can’t survive under the pressures of cheap fuel prices created by fracking and the regulations from Nixon’s EPA, then they will have to suffer the consequences of the free market, right?

            Why do we need to do anything?

          • HG

            Removing the uneccessary regulations on coal would allow the free market to decide coals fate. As it is, the over-regulation and anti-coal political agenda interferes with the markets course.

          • Hannitized, Proofs obsession

            Fracking and mining for coal are both regulated and expected to meet the standards that Nixon’s EPA determines is safe for our country. The coal mines outside of our EPA regulations are going out of business due to the effects of fracking.

            We don’t need to create a progress trap just so you can feel good about your political games. Some people happen to care about the lives of others as well as the earth. I realize you think the earth his just ground for you to piss on and exploit….others don’t. Thanks Nixon.

          • HG

            So what is your solution, boy genius?

          • Hannitized, Proofs obsession

            Why are you looking for a government solution to a free market problem?

          • HG

            I’m asking for your solution. Didn’t know you work for the gov’t.
            What do you propose should be done about it?

          • Hannitized, Proofs obsession

            How can you and I provide a solution to the free market challenges facing coal, if not through the government?

          • HG

            I already answered that.
            What do you proposed be done about it?

          • Hannitized, Proofs obsession

            So you want to use big government to force the EPA to back off on the same standards they have for everyone else in the free market?

          • HG

            Still waiting for your proposal. Don’t be afraid, H. It’s just a question. You claimed Fracking is destroying the coal industry. Now what do you propose to do about it?

          • Hannitized, Proofs obsession

            I answered that question already, scroll up. Yet you refused to answer my question because you are demanding big government interfere and give coal a break so they can have a competitive advantage over fracking.

            The free market is working and you want to break it. Why?

          • HGhg

            Quit jumping to conclusions. Try answering again. I don’t see your proposal.

          • Hannitized, Proofs obsession

            Why must I answer your question twice when you can’t even answer mine once, GH?

            I would like to know why you want big government to interfere and give an advantage to the coal industry so it can compete unfairly in the free market?

          • HG

            You’ve phrased your question in a context that is incorrect. Your presumption in your question is also incorrect.
            If you’ve answered my question, link to it. I don’t read it anywhere.

          • Hannitized, Proofs obsession

            Please explain which part if my statement is incorrect. You want to give coal a break from EPA regulations. The only way to give them a break is to use big government. Also, you aren’t asking for this break for the gas companies who are complying to the same regulations and succeeding with tremendous profit under the free market system, so you actually want to give coal an advantage to be able to compete with coal.

            It’s not what I said is inaccurate, it’s that you don’t like that I don’t use wording that allows you to delude yourself.

            I’ve given my answer, you haven’t. If you can’t scroll up and read, that’s on you.

          • HG

            link?

          • Hannitized, Proofs obsession
          • HG

            What was that? I don’t read anything that look like a solution you proposed.

          • Hannitized, Proofs obsession

            That’s because you are a big government guy and I am a free market guy. Let the free market run it’s course. No need to have big government step in and create unfair rules so that coal can continue to be competitive when the free market is producing cleaner and cheaper fuel methods.

            Too bad for you that I don’t allow you delude yourself and others, eh GH?

          • HG

            Well good on ya, H. Glad to see you taking up for the free market.

          • HG

            Next you’ll be deriding Obama’s central planning of our energy industry by trying to advantage solar and wind with deficit dollars. He should get out of the way and let the market decide the future. No need for big gov’t to step in and try to steer the market. Right?

          • http://proof-proofpositive.blogspot.com/ Proof

            “I am a free market guy” If by that, you mean you are in the market for anything that is free, that just makes you a typical Obama voter, Tiny Poputchik. After your vigorous defense of Solyndra and the big government guys that pumped money into it, no one believes you are a “free market guy”, Hanni. Or is that just you deluding yourself?

    • http://sayanythingblog.com Rob

      I have written about that, extensively.

      From May:

      https://www.google.com/url?q=http://sayanythingblog.com/entry/fracking-has-done-more-to-reduce-carbon-emissions-than-the-epa-al-gore-and-wind-turbines-combined/&sa=U&ei=VaizUODpGs2YiAeOuoGoAw&ved=0CAcQFjAA&client=internal-uds-cse&usg=AFQjCNEBp4l0SU6xBrSoSqXltbgryuYakw

      June:

      https://www.google.com/url?q=http://sayanythingblog.com/entry/thanks-fracking-america-sees-largest-reduction-of-carbon-emissions-in-the-world/&sa=U&ei=VaizUODpGs2YiAeOuoGoAw&ved=0CBAQFjAD&client=internal-uds-cse&usg=AFQjCNFwimd0iNWOwpX7WXmz_F7GM_3Ilg

      July:

      https://www.google.com/url?q=http://sayanythingblog.com/entry/thanks-fracking-carbon-levels-down-to-1991-levels-cheap-natural-gas-chiefly-responsible/&sa=U&ei=VaizUODpGs2YiAeOuoGoAw&ved=0CAoQFjAB&client=internal-uds-cse&usg=AFQjCNGonS5Vk8wHYv8wh9T-__AyE-gp2g

      August:

      https://www.google.com/url?q=http://sayanythingblog.com/entry/thanks-fracking-carbon-emissions-hit-20-year-low-thanks-to-private-sector-innovation/&sa=U&ei=VaizUODpGs2YiAeOuoGoAw&ved=0CA0QFjAC&client=internal-uds-cse&usg=AFQjCNGXq5oZ7_QGs5GixqyPLo9TQ-kklA

      I am a supporter of free markets, and a believer in spontaneous order. I know you don’t really know what that means, so I’ll explain.

      I believe that decisions such as where we get our energy will be guided by the trillions of economic decisions made by the hundreds of millions of consumers in the market place. Coal is being replaced by natural gas because natural gas is better. It is cheaper. It is every bit as reliable, and it emits less pollution which, it may surprise you, even we conservatives care about.

      I am just fine with things being replaced in the market place by better things. What I’m not for is the government driving things out of the market place because of political reasons.

    • sbark

      Is it purely fracking impacting the coal industry…………or is it the layers upon layers of Enviro wacko regulations on coal industry that cannot allow it to compete on a level playing feild with natural gas?
      Its like asking Ford to Compete with GM even though GM gets an ObamaCare waiver and free govt capital, GM turned over 100 billion in cash into 40 billion in cash as quickly as any govt beuracracy could’ve done…..but hey –its a success.

      • Hannitized, Proofs obsession

        I would say you have to be pretty out of touch to fail to understand how badly fracking has hurt the coal industry and caused numerous coal plants to close across the globe. Coal plants that are not unacceptable to our regulations…..let alone those that haven’t even gone into effect yet, mind you.

  • Harold

    In all fairness all politicians take credit for things they had nothing to do with, and Obama is really good at doing that, better then most politicians. In my view all politicians from both political parties are liars, some are experts and some are novices Obama belongs in the expert group of liars.

  • cylde

    The conventional wisdom is that all economic downturns are of limited duration, however what you are more likely to see is a double dip because of obamas re election. This is more likely to last at least 10 years because the damage already done with massive debt and foolish legislation will stifle any recovery.

  • borborygmi

    IF Mitt would have been elected he would have got credit also yet he would have done nothing. Right place right time

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