Today we'll look at "Changing Energy Markets and U.S. National Security." Indeed, energy markets are constantly changing, reshaping our security picture. Energy impacts trade, terrorism, and even proliferation, this Subcommittee's focus. This week the House passed sanctions aimed at Iran's energy sector. A nuclear-armed Iran would hugely damage security in the energy-rich Persian Gulf.
One major --and not so-well noticed-- development has been the reemergence of the U.S. as a major energy producer and exporter. This is due to technological advances, and hostile political and regulatory climates overseas. A few weeks ago, the Wall Street Journal ran a story: "U.S. Nears Milestone: Net Fuel Exporter." Yes, the U.S. is on track to be a net exporter of petroleum products this year, the first time in over 60 years! One academic has gone so far as to claim, "The Americas, not the Middle East, will be World Capital of Energy." Exploiting its oil sands, Canada is now a bigger oil exporter than was Libya before its civil war.
There may be a bit of academic hype, and predictions are just that, predictions; but the fact remains that global energy demand is surging --especially with China and India modernizing-- and it's far better off to be resource rich than resource poor. The benefits of U.S. energy development are many:
• Less dependence on hostile, unreliable and shaky energy suppliers.
• A healthier trade balance. More dollars are staying at home, not being shipped to Saudi Arabia and Venezuela.
• American jobs. Unemployment in North Dakota is under four percent because of its booming energy industry. Pennsylvania and other states are benefitting too, lessening unemployment and helping balance their budgets.
• Greater U.S. manufacturing competitiveness. The explosion in natural gas production, by one estimate, has give U.S. manufacturing a 20 percent energy cost advantage over Chinese manufacturing.
But these good things are only going to happen if Washington and state capitals let them. Consider the proposed Keystone XL pipeline, a 1,700-mile pipeline extension that would transport 830,000 barrels of oil per day from Alberta to Gulf Coast refineries.
This project will create jobs. Over 20,000 direct jobs, according to a Cornell University study. These are good jobs --manufacturing pipe and earth movers. Another advantage: buying oil from Canada, a close trading partner, means more dollars will be re-circulated in the U.S. Keystone also means more tax revenues.
Yet the Obama Administration has delayed, and delayed, now waiting until after the election to decide on this key project. It has delayed, despite favorable government environmental studies. And despite the economic misery of so many Americans. An Arkansas pipe company just released five dozen employees, citing the permitting delay; 60 more Americans are now unemployed.
Well, the Canadians aren't waiting. The Chinese aren't waiting. Make no mistake about it: the Canadians will develop and export the oil they're developing in western Canada. If this energy isn't piped to Texas refineries, it'll go to China. Prime Minister Harper said so much in reacting to the Administration's disappointing decision. Keystone is part of the Job Creation Act the House passed this week. We can only hope President Obama drops his opposition.
In concluding, back to China. Beijing is on an aggressive quest for energy, in Canada, and worldwide. It is in a resource-driven territorial disputes with its neighbors, some being allies of ours. It's important to reinvigorate relations with the Philippines and other friends to help maintain peace in the South China Sea and elsewhere.
