Much to the surprise of many energy analysts and environmental groups, President Obama announced a “Comprehensive Strategy for Energy Security” which sets out to expand offshore oil and gas drilling. While my readers know I see great potential in on-shore natural gas development through companies like Mesa Energy, I do not see that announcement as a blow to this strategy for two reasons.

First, I believe for an industry like domestic natural gas, a rising tide lifts all boats. Companies involved in infrastructure and distribution will be ramping up production to meet the needs for the upcoming expansion, which will create a better flow of materials needed for all involved. Also, a more readily available supply of natural gas will further encourage the development of natural gas powered electric plants, the conversion of transportation fleets from diesel to natural gas, and the like. This will create an increasing market for natural gas into the future.

Second, and most importantly, this announcement points towards the administration’s willingness to develop domestic energy sources that may be seen as unpopular in some circles, but have the ability to power our economy and reduce our dependency on foreign oil now. In my mind shale gas can be developed more economically and with less environmental impact than offshore drilling, so there is no question that federal and state policies supporting shale gas production will be set forth in the near future.

Pundits can speculate why Obama thought it politically prudent to announce the expansion of offshore oil now. What is obvious, though, is that the President is taking energy policy seriously, and that there will be more important policy announcements coming in the months ahead.

Comments are closed.