Obama's energy policy and market effect

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Obama's energy policy and market effect

After the “shellacking” of President Obama and the buffeting of his Democrat Party in the November 2010 election in America, which was described by many pundits as a referendum against Obama and his policies, many players in the energy sector have begun to question if the president’s energy policy will be truncated or overhauled.

Obama, the new face of America’s 21st century politics, and a global wonder, in his November 2008 election campaign for the oval office, described himself as a man in a hurry. He reiterated severally that a perilous time like these calls for quick action and delay could be very catastrophic. In his words, “Americans must act quickly and must act boldly to transform their economy – from cars, fuels, factories and buildings”.

Obama believes that with the support of the American people he could change the way things are done in Washington, including the ailing energy policy of the world’s biggest economy and highest energy consumer. With the passing of the stimulus package bill ($789 billion) by the Congress, which President Obama signed into Law on Tuesday 17, 2009 at Denver, amid the overwhelming economic crisis, the new president of the United States garnered much stronger biceps to continue pushing his other agenda such as the healthcare policy (Obamacare) and the promise of making America to become energy self-sufficient.

Obama’s energy policy as was outlined in his manifesto: NEW ENERGY FOR AMERICA is a blueprint that could wean America from dependence on foreign, a situation which several quarters in the American socio-political arena quantifies as dangerous to its national security, and economy. John McCain, who on the platform of the Republican Party contested the November 2008 presidential with Obama, in his speech on energy policy said, “national security depends on energy security, which we cannot achieve if we remain dependent on imported oil from Middle Eastern governments who support or foment by their own inattention and inequities the rise of terrorists or on swaggering demagogues and would be dictators in our hemisphere.”

Obama’s energy policy will diversify U.S. energy sources by acquiring 10% of electricity from renewable energy sources such as solar, wind, geothermal by 2012. However, after the trouncing received by the President’s Party in the recently concluded election and the avalanche of punches he received by critics concerning his policies and the puncturing of his popularity rating which has dropped drastically from the 68% which it was after his election to the current 42%, the president himself is singing a new chorus that he might twist a little bit and restructure some his enacted policies to accommodate all views. With the U.S. economy bouncing back gradually and decrease in the national unemployment rate which is about 9.4%, the popularity of the first black president of America has began to rise again. And Obama’s new strategy towards creating compromise with the new congress which is dominated by Republicans in the House may favor him to have his energy policy the same way they would not fight him much on issues concerning Afghanistan and Iraq. The House Republicans are more interested in repealing Obamacare and prying into the stimulus package.

If Obama’s envisaged energy policy succeeds, United States will definitely shrink its crude oil importation from foreign nations (OPEC & Non-OPEC) by at least 15%. What does it amount to: 15% revenue reduction from sales of crude oil to exporting nations. America gets up to 32% of its crude oil supply from Sub-Saharan African countries mainly: Nigeria, Angola and Equatorial Guinea. The massive production of electric and other hybrid cars by GM and Ford - U.S. auto manufacturing companies, and cities that are remodeling their homes with solar energy panel and wind energy indicates that the energy market from the side of America as a large consumer will experience some changes.