The White House released a report Thursday arguing recent reduced demand for oil is protecting the United States from oil price shocks. The administration said its energy policy supports jobs and addresses climate change.
The 42-page report is designed to inoculate the administration against criticism that new Environmental Protection Agency regulations on coal-fired power plants, expected to be unveiled Monday, will increase electricity costs, cost jobs, and be a drag on economic growth. Conservatives and business groups such as the U.S. Chamber of Commerce have argued that the reductions in emissions will be too small and the consequences to the economy too large to justify new restrictions.
But the report gives a detailed analysis of how the United States has reduced its dependence on oil imports, and of how much energy production is contributing to the economy. “The U.S. is the world’s leading producer of petroleum and natural gas, surpassing long-standing petro-states Saudi Arabia and Russia.”
At the same time that the country has increased production of oil and natural gas, it has unexpectedly reduced its consumption, which has declined 5.5 percent since 2007, or nearly half a million barrels per day, according to the report.
Much of that unexpected boost comes from the controversial technique of mining for natural gas by hydraulic fracturing, or fracking. Environmentalists argue it contaminates water and soil, and that it triggers earthquakes.
The report concedes, “Extraction of natural gas raises some environmental concerns,” and says the administration supports “safe and responsible development.”
The administration believes natural gas is relatively cleaner and forms a bridge between petroleum energy and renewable energy. “Looking further ahead, developing natural gas generation infrastructure now prepares for future widespread deployment of renewable electricity generation,” states the report.
In addition, some of the positive trends predate Obama’s presidency, which began in 2009. The report acknowledges the decline in petroleum consumption, for example, began in 2006. However, it attributes much of the initial decline to the start of the recession. Meanwhile, natural gas consumption has risen 18 percent since 2005.
The Associated Press contributed to this report.
