So the news is out that Obama is going to destroy one industry and “stimulate” another. This act of aggression is being treated as a heroic act rather than a criminal one.
Here’s Bloomberg’s version of the story: “Obama Climate Proposal Will Shift Industry Foundations.”
Coal-dependent power companies from American Electric Power Co. (AEP) to Duke Energy Corp. (DUK) face billions of dollars in added costs from the Obama administration’s proposed climate rules. Renewable-energy backers and nuclear generators like Exelon Corp. (EXC) stand to gain from the effort to shift the foundations of the U.S. energy industry.
The regulations will be felt from the coal mines of West Virginia to natural gas wells in the Marcellus Shale as the U.S. moves toward cleaner fuel sources. A clampdown on emissions from coal-fired plants, the largest source of electricity, will force state regulators to determine whether consumers will foot the bill for reducing gases that contribute to climate change.
That last sentence made me laugh. State regulators don’t have to determine anything. Consumers will be paying for everything! It is already determined. There Ain’t No Such Thing As A Free Lunch.
But with that rising cost of energy, other sources will profit like mad while the coal industry is penalized. Bloomberg’s story mentions natural gas along with green energy, but it is really going to be the major winner. The Washington Times is a great deal more accurate:
In dealing a major blow to U.S. coal on Monday, President Obama very well may have tipped the scales in favor of domestic natural gas even more.
Rules put forth by the Environmental Protection Agency on Monday call on states to reduce carbon dioxide emissions by 30 percent over the next 15 years.
To accomplish that goal, the administration is steering the nation toward natural gas and away from coal, which spews much higher levels of carbon, to generate electricity.
Mr. Obama specifically cited natural gas as an option, along with cleaner coal and renewable sources.
So the President has it in his mind. He knows what he is doing.
What are the chances that Obama has received no, and is expecting no, rewards from Natural Gas lobbyists?
This is the problem with portraying the President as “against the energy industry.” The energy industry is not a group of people with the same interests. They are competing with one another. By punishing coal but supporting natural gas Obama has just enlisted a bunch of CEOs and companies to support his agenda.
While Big Government seems opposed to Big Business, once again we find out it is really in bed with Big Business.