Posts tagged with: oil

chevron-ran-clean-up-ecuador-oilIn 2005, religious shareholder activists of various stripes jumped aboard the bandwagon filing resolutions against Chevron for an environmental disaster it allegedly caused. Chevron asserted its innocence, but the activist shareholders put the squeeze on:

Chevron’s Ecuador environmental disaster, considered by experts to be the worst oil-related ecological problem on the planet and currently the subject of a high-stakes law suit estimated to cost the company upwards of $6 billion, will be high on the agenda of the company’s 2006 annual shareholder meeting with the filing of three new resolutions asking Chevron’s management to take various steps to protect human rights, the environment and shareholder interests.

The resolutions were filed by institutional and socially responsible investors, including the New York State Common Retirement Fund, Trillium Asset Management, Amnesty International USA and members of the Interfaith Center on Corporate Responsibility (ICCR), which together own more than $1 billion in Chevron shares. The resolutions increase the pressure on the California-based oil major to address the widespread toxic contamination left by Texaco (now Chevron) in the Ecuadorian Amazon during a 20-year period that began in the early 1970s.

This story has a twist, however. Over at the National Review, Kevin Williamson reports Chevron beat the rap on the $6 billion judgment rendered against it by an Ecuadorean court several years ago. Seems the judge who established the original fine was in cahoots with a cadre of nasty elements. (more…)

[This post was co-authored with Chris Horst, director of development at HOPE International. He is a This is Our City fanboy and is grateful that Christianity Today has given him freedom to write about manufacturers, mattress sellers, and solar product designers, all working for the common good in Denver, where he lives with his family. Chris blogs at Smorgasblurb, and you can connect with him on Twitter at @chrishorst. His first book, Mission Drift, will hit shelves this spring. The views expressed in this essay are his own.]

oil traffic

Oil boom traffic in Watford City, North Dakota

In a marvelous profile for This is Our City, Brandon Rhodes explores how a 25-member church is contributing to its neighborhood through farmer’s markets, block parties, and yarn-bombings. “They made a decision to radically localize how they practice being church with the common good and the gospel in mind,” Rhodes writes. “…They take a ‘nearby-first’ approach to living it out.”

James K.A. Smith responds at Cardus, and though he, too, celebrates the slow-and-artsy, he also emphasizes the importance of the macro-and-dirty. Decrying what he describes as “a sort of vague Anabaptism” among younger evangelicals, Smith challenges “Portlandia Christians” to consider the systemic challenges that either hinder or empower our cities. “We have scaled our expectations and our efforts as if the rejection of triumphalism means a retreat from systemic change,” he writes. “It’s like we’ve decided we should make lovely art not culture war.”

Turning his focus toward Detroit, which he describes as a “colossal disaster of municipal government,” Smith concludes that “farmer’s market’s won’t rescue the city” but “good government will.” Yet as he goes on to note, the solution is not either/or, but both/and: “It’s peach preserves and policy making. Coffee shops and court nominations. Block parties and bills in Congress.” (more…)

Gas prices are beginning to come down, but for many people prices are not falling fast enough.

The pain caused by high gas prices is spread widely, but it is felt intensely on the working poor and the unemployed who are trying to find a job.

A recent story in the Chicago Tribune highlights Alicia Madison, a resident of the Chicago suburbs who is unemployed. Madison is looking for a job, but because of high gas prices she, at times, cannot even afford to go to an interview:

Before a recent job interview, Alicia Madison climbed into her 2001 Ford Explorer and realized her gas tank was empty, just like her bank account.

Unable to afford gas for the 25-mile round trip from her Glen Ellyn home to the Naperville business, Madison was forced to reschedule. She now relies on gas vouchers issued by a nonprofit agency to drive to interviews.

Madison, a certified nursing assistant unemployed three months, is desperate to return to work, but not desperate enough to take a job too far from home with gas prices at record highs.

“I have to be conscious of where I’m looking and how far it’s going to be,” said Madison, 23, a single mother on food stamps. “I don’t want to work just to pay for gas.”

Her dilemma underscores the problem that steep gas prices have created for the unemployed: They need income to fill their tank but can’t afford to take jobs with long commutes.

Some job seekers say they are more selective now, curtailing face-to-face networking and ignoring some opportunities based on the high transportation costs.

As the article also points out, job seekers have to decide if the pay for a potential job is enough for them to make the daily commute. Is it worth working eight or nine hours a day when a good chunk of the earnings goes toward paying for the gas needed to get to work?

The hardships for low income workers are further explained by Greg McBride, Senior Financial Analyst at Bankrate.com. According to McBride, 72 percent of Americans who make less than $50,000 are cutting their discretionary spending. While cutting discretionary spending is what is needed to be a good financial steward when money is tight, McBride explains that higher gas prices hurt economic growth because they cause a decrease in consumer spending.

As Ray Nothstine argues in “High Gas Prices Devastating to Poor”, we should do everything we can to lighten the burden on the poor and lower gas prices. This will aid everyone, but especially those who are the most adversely affected by the high gas prices. One way to lower gas prices is to look no further than the free market, which is articulated again by Nothstine:

While we are bound to labor, 17th century Bible commentator and Presbyterian minister Matthew Henry reminds us, “Let not us, by inordinate care and labor, make our punishment heavier than God has made it; but rather study to lighten our burden.”

Similarly, John Paul II declared, “Besides the earth, man’s principal resource is man himself. His intelligence enables him to discover the earth’s productive potential and the many different ways in which human needs can be satisfied.”

This is good advice. The free market helps to sort out those effective alternatives, encouraging us to drill for oil responsibly at home, and protecting us from costly utopian schemes that drive up energy prices. The market is also our best hope for developing renewable energy technologies that are economically feasible.

In an article appearing on EWTN News, Acton Director of Research, Samuel Gregg, is interviewed on rising food prices and the effect on the developing world. In this article, Dr. Gregg contributed to a broad discussion on the many factors contributing to the rising food prices.

He advocates for a free market economy in agriculture by discussing the effects agricultural subsides in Europe and the United State, and how these market distortions contribute to stifling the growth of agriculture in the developing world. Furthermore, the effects of the oil industry on food prices is also discussed along with Pope Benedict’s call for the need to address the problems of food insecurity in Caritas in Veritate.

Developing world’s food crisis seen as a ripple effect of over-regulation

By Benjamin Mann

The dramatic rise in global food prices was high on the agenda of the 2011 World Economic Forum on Africa, held from May 4–6 in Cape Town, South Africa. According to a leading Catholic economist, excessive government regulations are to blame for the rise in prices.

A complex combination of factors – including natural disasters and higher oil prices, as well as a rising standard of living in countries like China, India and Brazil – have made food less affordable in recent months.

The United Nations’ Food and Agricultural Organization has warned that the “food price shock” could have devastating effects upon the world’s poorest people.

At meetings in Cape Town, South Africa this week, African leaders discussed a “road map” to help the continent cope with rising prices through market-based approaches that would encourage local agriculture.

Some factors behind higher food prices, such as natural disasters, cannot be controlled. But Dr. Samuel Gregg, an economist at Michigan-based Acton Institute for the Study of Religion and Liberty, said other factors – especially agricultural subsidies and the manipulation of oil supplies – were preventing poorer countries from bringing their productive capacities to bear in the global market.

The result, he told EWTN News on May 6, is an under-supply of food, and higher prices.

“All the subsidies that go into agriculture – through things like import taxes and tariffs, as well as direct subsidies – have the paradoxical effect of reducing the incentive for investment in agriculture in developing countries,” Gregg observed.

Without the ability to sell their products at competitive prices on the global market, these countries end up producing less food, and attracting fewer investors.

“They end up saying, ‘We can’t compete because of subsidies in the European Union and the United States.’ Consequently, the supply of food starts to be reduced, because there isn’t the incentive for agricultural investment.”

“This effort to protect American and European farmers has the unintended consequence of reducing the supply of agricultural products from other people.”

He said farm subsidies, going mainly to large corporations rather than individual growers, were a “very good example” of how “a government program can have a completely unintended negative effect” on a critical area of the world economy.

If the barriers to competition were lifted, Gregg said, developing countries could attract more investment and increase their own productive capacities, to cope with global demand and bring food prices down.

But agricultural subsidies have the backing of powerful interest groups, and are often perceived as vital to the national interest.

Gregg also holds oil-exporting nations of OPEC responsible for high fuel prices that translate into more expensive food.

“The energy sector of the economy is not a free market – it’s a cartel,” he stated. “That’s something to keep in mind with all discussion about energy prices. This is why we worry about what OPEC is going to set as the price for gas, or for the production of barrels of oil.”

“It’s not the market that is controlling the price, for the most part. Generally speaking, it’s a cartel – which means that OPEC and other oil-producing countries introduce a whole range of price-distortions into the energy sector, resulting in higher prices.”

Oil prices, he said, “don’t reflect the true state of supply and demand.” Rather, Gregg said, they tend to reflect the will of countries exporting oil, and the inefficiency of frequently nationalized oil production.

Elsewhere, government regulations surrounding the refinement of oil into gas also play a role in raising prices, when refining capacity fails to keep pace with crude oil supply.

“There’s plenty of oil,” Gregg stated. “The problem is, there’s a disparity between supply and demand.” Meanwhile, this imbalance in the oil market has a ripple effect. “Just as energy prices go up,” he explained, “so do food costs.”

Another obstacle to meeting rising demand for food may come from ideological opposition to genetically-modified crops.

“There are all sorts of restrictions in place around the world, upon the development of genetically modified food,” Gregg noted. Genetic modification is highly controversial, and skeptics worry such crops could harm local ecosystems or human health.

But Gregg said that these concerns had to be weighed against the world’s urgent food needs, given that genetic modification could enable crops to be grown “in conditions where they might not otherwise be able to be produced.”

Many of these crops are also designed to resist natural occurrences – such as droughts, floods, and disease – that destabilize food prices.

“There’s no question that if more countries were enabled by law to engage in genetically modified agriculture, the supply of food would go up, and prices would come down,” he observed.

Gregg’s advocacy of what he called a “true free market in agriculture,” geared toward attracting investment in the developing world, reflects priorities that Pope Benedict XVI outlined in his 2008 encyclical “Caritas in Veritate.”

In that encyclical, the Pope said that “the problem of food insecurity” had to be addressed by “eliminating the structural causes that give rise to it, and promoting the agricultural development of poorer countries.”

“This can be done,” the Pope wrote, “by investing in rural infrastructures, irrigation systems, transport, organization of markets, and in the development and dissemination of agricultural technology.”

Pope Benedict stated said the developing world’s most urgent need in this area was “a network of economic institutions capable of guaranteeing regular access to sufficient food.”

Gregg believes a general draw-down of government involvement in agriculture, as well as energy, would allow these kinds of economic institutions to develop locally and compete globally.

The result would be a boost in developing countries’ food production capacity, and more affordable food for the world.

“Obviously you need some kind of regulatory framework,” Gregg said. “But if it were a less onerous regulatory framework, and different groups weren’t trying to influence the process for political and ideological reasons, I think you’d find that the price of food – and the price of energy – would fall.”

Read more: http://ewtnnews.com/catholic-news/World.php?id=3153#ixzz1LrqsAFKh

The blame game in Washington is heating up on skyrocketing gas prices. Republicans are criticized as being in the back pocket of the oil industry and partaking in crony capitalism. The Democrat Congressional Campaign Committee is even cashing in by hosting a fundraiser that is based on what has been the House Republicans “decade long relationship of protecting Big Oil taxpayer giveaways, speculations and price gouging…” However blame is also placed on Democrats, with accusations of placing barriers to prohibit domestic drilling. The debate has also centered around how we can be better environmental stewards. We may find ourselves asking questions such as whether green energy promotes environmental stewardship, and if oil drilling results in a dramatic harm to the environment?

An article published by the Washington Examiner contains disturbing numbers that will not be received very positively. Oil production in the Gulf was lower than predicated by the Energy Information Administration (EIA); however, imports were up:

While oil production in the Gulf is down more than 10% from April 2010 estimates, net crude oil imports are up 5%. At $83 dollars a barrel (the approximate average price of oil in the fourth quarter of 2010) that means Obama’s oil drilling permatorium increased American dependence on foreign oil by about $1.8 billion dollars in the fourth quarter of last year alone. The numbers only get worse as Obama’s permitorium further cuts into production. A Wood Mackenzie study predicts that for all of 2011 the permitorium will result in the loss this year of about 375,000 barrels of oil a day.

More imported oil also means higher prices at the pumps. The EIA explains: “Retail gasoline prices tend to be higher the farther it is sold from the source of supply.” It costs more money to transport oil to your gas station from the Persian Gulf than from the Gulf of Mexico.

On April 26th, President Obama wrote a letter to Congress calling for “immediate action to eliminate unwarranted tax breaks for the oil and gas industry, and to use those dollars to invest in clean energy to reduce our dependence on foreign oil.” The tax breaks President Obama is asking to be removed are worth $4 billion per year. This isn’t the president’s first call to action. His 2012 budget proposal also calls for the removal of the “subsidies.” But some have pointed out that the oil industry does not receive direct subsidy payments in the way that some farmers do. The president’s proposal specifically states:

Eliminates Inefficient Fossil Fuel Sub­sidies. Consistent with the Administration’s Government-wide effort to identify areas for sav­ings, the Budget eliminates inefficient fossil fuel subsidies that impede investment in clean energy sources and undermine efforts to address the threat of climate change. Approximately $4 bil­lion per year in tax subsidies to oil, gas, and other fossil fuel producers are proposed for repeal.

Here at the Acton Institute we have spoken in opposition to true subsidies, such as subsidized farming (articles can be found here, here, and here) and health care policy (a related article can be found here). In the past we have articulate the problems with subsidization. The language in President Obama’s budget proposal appears to be vague and does not specify where the oil industry will no longer be, in his words, subsidized. Is it in drilling? Does it affect gas prices? Ray Nothstine notes in his commentary, “High Gas Prices are Devastating to Poor” our moral obligation to the vulnerable and how the high gas prices are affecting them. With gas prices continuing to climb precautions should be taken to prevent even higher prices.

Brian Johnson, the American Petroleum Institute’s senior tax policy advisor, provides insight on the proposal in the president’s 2012 budget. Johnson explains that the president is proposing to remove the intangible drilling cost provision, which is the oil industry’s ability to deduct drilling “costs associated with labor, architecture, design and engineering; basically the building of an oil rig, a platform or any structure that allows the industry to get into the ground and find oil or natural gas.” Johnson claims this process helps in planning for the next stage of development and construction. Furthermore, Johnson claims the oil industry is already paying its fair share in taxes with an income tax rate at 48 percent. Whereas other S&P Industrials average a 24 percent effective tax rate. Stephen Comstock, also from API, responded to President Obama’s State of the Union Address in January, articulating problems with the president’s call to end subsidies for the oil industry.

While the call to end the oil subsidies is being criticized by some, others are supporting such an action. Bill Becker, a Senior Associate with Third Generation Environmentalism and an energy and climate specialist at Natural Capitalism Solutions, argues the subsidies place the United States at a competitive disadvantage to China and India in the competition to champion alternative energy:

If we are looking for ways to chip away at the budget deficit, to keep America competitive and to use market-based mechanisms to build a competitive clean energy economy, then subsidy reform should be near the top of the list.

Think of it this way: Imagine an Olympic marathon in which the U.S. team has to run on a steep and continuous uphill slope, while the teams from China and India run on a level track. That’s what “winning the future” will be like for the United States if we keep our perverse energy policies.  Direct and indirect taxpayer support for fossil energy, which far exceeds government support for emerging green energy technologies, almost certainly makes winning the future a futile race.

Becker also cites a report by the Government Accountability Office that claims “taxpayers are losing tens of billions of dollars in royalty payments in part because the Department of Interior doesn’t have sufficient capacity to monitor oil and gas production on public lands.”

In his letter address to Congress, the president calls to reinvest the $4 billion per year that the oil companies receive in subsidies into clean energy. The problem with current alternative energies is they are inefficient, not cost effective, and cause many unintended consequences (related articles on the inefficiency and unintended consequences of various alternative energies can be found here, here, here, and here).

Yes, we will need to develop good alternatives to oil over the long haul, but spending money on energy sources that are not effective is not a wise investment or a sign of being good financial stewards. If the tax provision and subsidies for the oil companies are to be cut, and taking into account the budget crisis the United States is currently facing, it may better serve the country to not reinvest the money and cut it out of the budget completely.

Now meeting the goal of cutting our dependence depends largely on two things: first, finding and producing more oil at home; second, reducing our overall dependence on oil with cleaner alternative fuels and greater efficiency. This begins by continuing to increase America’s oil supply.

These were the words spoken by President Obama on March 30 in an address he gave at Georgetown University on America’s energy security.  The president also stated in the same speech that “one big area of concern has been the cost and security of our energy,” and “ … our best opportunities to enhance our energy security can be found in our own backyard … ”

Today, Fox News reports that the Environmental Protection Agency (EPA) is forcing the Shell Oil Company to scrap its efforts to drill for oil in the Arctic Ocean,  off the northern coast of Alaska. The move by the EPA is based on the decision that the arctic drilling will be hazardous to those who reside in a small village located 70 miles away from the proposed off-shore drill site.

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling.

The stakes associated with Shell’s proposed drilling site are  high: an estimated 27 billion barrels of oil. Furthermore, oil production on the North Slope of Alaska is currently so low that any more decrease in production will result in the shutdown of the pipeline.  Is that how we reduce dependence on foreign oil?

The problem is the Obama Administration is not walking in step with the president’s most recent speech. Today they scrapped what may have become an important step to increasing more oil produced in America. President Obama stated in his speech, “…producing more oil in America can help lower oil prices, can help create jobs, and can enhance our energy security…”

In the same speech he said:

Right now the [oil] industry holds tens of millions of acres of leases where they’re not producing a single drop. They’re just sitting on supplies of American energy that are ready to be tapped. That’s why part of our plan is to provide new and better incentives to promote rapid, responsible development of these resources.

Again, it doesn’t look like the Obama Administration is following through with its message.

Among other problems, we can see that this latest action by the Obama Administration will do nothing to slow the rapid rise in the price of gasoline.  In a recent commentary, Ray Nothstine articulates many of the problems Americans are seeing by the rising gas prices:

Many individuals and families are already curtailing discretionary spending to save for gas. In turn, more money and jobs exit the U.S. economy for oil exporting countries.

[…]

Some lawmakers from both parties in oil producing states are asking for more domestic drilling, more refineries, and uniform state standards on gasoline mixture requirements. All of these proposals will help lower prices and could add hundreds of thousands of American jobs.

President Obama has responded by saying an increase in domestic drilling “will help some.” He also signaled he may be willing to tap more of the Canadian oil sands, but at the same time, he wants to cut oil imports by one-third.

High prices at the pump can offer a moment to pause too and remember a spiritual truth. The price of gas not only draws attention to the Middle East, but it draws our attention back to the Garden of Eden that tradition places in that oil-rich region.

Oil itself is decayed vegetation and plankton that has seeped into the ground, forming over millions of years. At one time wildlife was abundant and forests were especially lush in the garden. In the creation story we are reminded that after the fall of man, we have to toil for resources (Genesis 3:19).

While we are bound to labor, 17th century Bible commentator and Presbyterian minister Matthew Henry reminds us, “Let not us, by inordinate care and labor, make our punishment heavier than God has made it; but rather study to lighten our burden.”

President Obama’s speech, delivered on March 30, 2011, can be read here.

To read Ray Nothstine’s commentary, “High Gas Prices Devastating to Poor” click here.

Last summer I wrote a commentary titled “Spiritual Labor and the Big Spill.” I made the point that ultimately the kind of spiritual labor that goes on in the Gulf is invaluable. The work done by the fishermen and those working in some other industries along the Gulf is nothing short of a cultural heritage. It is the kind of work that is more than a paycheck and is a superb example of the value of work. I also highlighted the resiliency of the people who work the waters along the Gulf Coast. This from Garden & Gun magazine, taking a look back at the oil spill from one year ago:

The full impact of the spill on the fragile ecosystem of the Gulf has not been determined, but now, a year after the disaster, shrimpers are readying their fleets for another season. “Remarkably there is an optimism and resilience among the people of the Gulf Coast,” says [Jeremy] Craig. “Despite the hardships, they still have a lot of faith in their way of life. Right now, Vegas is getting his boat ready and looking forward to getting back on the water, and that is what gets him up in the morning.”

Here is a highlighted portion of my commentary from July:

Many Americans are proud of where they come from; this is no less true of the people of the Gulf Coast. Human interest stories have gripped viewers and readers following the news about the BP oil spill, which often highlights the locals’ pride in their roots. Sal Sunseri, the owner of P&J Oysters in New Orleans says it well: “The history and culture of the seafood industry in Louisiana is part of the fabric of who we are. The world should not take this lightly.”

Sunseri brings to life an important point about the spiritual and cultural aspect of work that is especially rich on the Gulf Coast. Work in a free economy is an expression of our creativity, virtue, and response to a calling. Christian authors Gerard Berghoef and Lester DeKoster note that “God so arranges work that it develops the soul.”

BP is airing a commercial in which it vows to compensate fishermen and others for the loss of income until the cleanup is completed. This is a good start. But it also serves as a reminder that earnings are secondary to fishermen whose very labor is the preservation of heritage. It is not uncommon to hear fishing crews speaking Cajun French off the coast and in the bayous and marshes of Louisiana. Cajun French, an endangered language, was at one time banned in Louisiana schools. The spill is another threat to communities and a way of life for generations of a proud and sometimes marginalized people.

My commentary this week focuses on the how the rise in prices at the pump is impacting the poor. Currently, in many areas of the country a gallon of gas is now priced over $4. I also argue that we need a more coherent energy policy coming from leaders in Washington. Part of the argument against drilling in ANWR (Arctic Refuge) over a decade ago was that the oil wouldn’t hit the market for 10 years. That’s a very shortsighted way of thinking about meeting our energy needs. We need leaders in Washington to work for us not against us.

Perhaps now a forgotten event, former Senator Jesse Helms in 1982 waged a dramatic battle against a federal gasoline tax hike of five cents. The tax hike had bipartisan support, including the support of President Ronald Reagan. However, Helms fought virtually alone with only a small cadre of tax opponents. He eventually lost on the measure but as he was traveling back to North Carolina he stopped at a rural Hardees restaurant. Truckers recognized Helms and he was greeted with thunderous applause for his efforts. Helms stood up not just for business interests like the trucking industry, but the rural poor, who are hit hardest by increases in gas prices. The current federal tax on a gallon of unleaded gasoline is 18.4 cents per gallon and the mean state tax on a gallon is 26.6 cents. My commentary is printed below:

High Gas Prices Devastating to Poor

by Ray Nothstine

Religious leaders staging a fast over budget cuts on social spending have not offered to fast over higher gas prices, even though the impact on the poor is devastating. In fact, there is very little focus on the rise in energy costs, with political and religious leaders remaining largely silent. Yet, when they speak on the issue, they often do not have your best interests in mind.

At a recent visit to a wind turbine plant, President Obama responded to one questioner’s concern about rising prices by laughing and saying, “If you’re complaining about the price of gas and you’re only getting 8 miles per gallon, you might want to think about a trade-in.” The president didn’t say which vehicle he was talking about. But a 2003 Hummer H2, rated among the worst for gas mileage, scores 10-14 miles per gallon.

But for most people a truck that is getting 8 miles per gallon is the one that delivers their food. This is true too for charitable food banks as delivery costs cut into the number of people they can feed. Food banks also depend on volunteer drivers to deliver meals to shut-ins.

Many individuals and families are already curtailing discretionary spending to save for gas. In turn, more money and jobs exit the U.S. economy for oil exporting countries.

The national average for a gallon of gas is currently $3.79. Some American cities are well over $4 per gallon. The price, up almost a $1 since last year at this time, has some experts forecasting $5 for Memorial Day.

While oil markets can be complex, free market alternatives offer better relief than heavily subsidized “green energies” propped up by government. A new study in the United Kingdom by Stuart Young Consulting and the John Muir Trust again pointed out what previous studies have found: Wind output is often less than anticipated and is an unreliable source of energy.

Likewise, electric cars are rejected by consumers shopping for fuel economy—even though they are subsidized with tax credits. Rachel Slobodien of the Heritage Foundation points out that people are instead buying more affordable super fuel economy cars with traditional engines that get upwards of 50 miles per gallon.

Some lawmakers from both parties in oil producing states are asking for more domestic drilling, more refineries, and uniform state standards on gasoline mixture requirements. All of these proposals will help lower prices and could add hundreds of thousands of American jobs.

President Obama has responded by saying an increase in domestic drilling “will help some.” He also signaled he may be willing to tap more of the Canadian oil sands, but at the same time, he wants to cut oil imports by one-third.

High prices at the pump can offer a moment to pause too and remember a spiritual truth. The price of gas not only draws attention to the Middle East, but it draws our attention back to the Garden of Eden that tradition places in that oil-rich region.

Oil itself is decayed vegetation and plankton that has seeped into the ground, forming over millions of years. At one time wildlife was abundant and forests were especially lush in the garden. In the creation story we are reminded that after the fall of man, we have to toil for resources (Genesis 3:19).

While we are bound to labor, 17th century Bible commentator and Presbyterian minister Matthew Henry reminds us, “Let not us, by inordinate care and labor, make our punishment heavier than God has made it; but rather study to lighten our burden.”

Similarly, John Paul II declared, “Besides the earth, man’s principal resource is man himself. His intelligence enables him to discover the earth’s productive potential and the many different ways in which human needs can be satisfied.”

This is good advice. The free market helps to sort out those effective alternatives, encouraging us to drill for oil responsibly at home, and protecting us from costly utopian schemes that drive up energy prices. The market is also our best hope for developing renewable energy technologies that are economically feasible.

We know too well that leaders in Washington reflect the fall of man, but they are not working to lighten our burden right now. As the price of gas approaches $5 per gallon, perhaps its rise may help us to refocus on new ways to meet the needs of those who have the most to lose from rising fuel costs.

Last week President Obama gave an address outlining his new energy policy. In light of the tragic events in Japan, the speech was much anticipated especially considering the president’s prior commitment to nuclear energy.

As expected President Obama continued advocating for a greener energy policy while continuing to push for the country’s independence from oil. However, the President’s speech, an article by Reuters points out, was “short on details on how to curb U.S. energy demand.”

Furthermore, the President’s call for a path towards greener energy and energy independence will not be easy. The New York Times appropriately states, “The path to that independence — or at least an end to dependence on the Mideast — could well be dirty, expensive and politically explosive.”

President Obama continues to voice his support for alternative fuels and green energy. He argued for energy from wind, solar, natural gas, biofuels, natural gas, and nuclear. However, as I have argued in the past, these alternative fuels have costly subsidies, unintended consequences, are not cost effective, and have proven to be largely inefficient (I address the unintended consequences of ethanol here, here, and here and the unintended consequences with wind turbines here).

The president is calling for more government regulation. He gave a glimpse of a new energy standard he is going to pursue this summer, “This summer, we’re going to propose the first-ever fuel efficiency standards for heavy-duty trucks. And this fall, we’ll announce the next round of fuel standards for cars that build on what we’ve already done” he said. In an economy that is looking to rebound from a recession, businesses do not need another costly government mandate forcing them to change their transportation fleet. Instead, the President should rely on the market. Businesses will upgrade their transportation fleet naturally through the market when it is efficient and more cost effective for them to utilize heavy-duty trucks that are more fuel efficient.

The president also stated that we need to look to other countries, such as Brazil, for oil. However, an article published by Real Clear Markets is very critical of the President’s pursuit of Brazilian oil:

Now, with a seven-year offshore drilling ban in effect off of both coasts, on Alaska’s continental shelf and in much of the Gulf of Mexico – and a de facto moratorium covering the rest – Obama tells the Brazilians:

“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers.”

Obama wants to develop Brazilian offshore oil to help the Brazilian economy create jobs for Brazilian workers while Americans are left unemployed in the face of skyrocketing energy prices by an administration that despises fossil fuels as a threat to the environment and wants to increase our dependency on foreign oil.

Furthermore President Obama’s talk of expediting drilling permits is not wholly accurate. The Obama Administration has not been friendly to offshore domestic drilling since the BP disaster last year. As the above quoted article from Real Clear Markets explains, there has been a seven-year offshore drilling ban on Alaska’s continental shelf and in much of the Gulf of Mexico. That has not changed under the Obama Administration. The Heritage Foundation pointed out in February:

Putting aside calls from some who want to increase domestic exploration to areas in Alaska and elsewhere, President Obama has completely shut down the existing oil drilling infrastructure in the U.S. At least 103 permits are awaiting review by the Bureau of Ocean Energy Management, Regulation and Enforcement. The federal government has not approved a single new exploratory drilling plan in the Gulf of Mexico since Obama “lifted” his deepwater drilling moratorium in October 2010. Obama also reversed an earlier decision by his administration to open access to coastal waters for exploration, instead placing a seven-year ban on drilling in the Atlantic and Pacific Coasts and Eastern Gulf of Mexico as part of the government’s 2012-2017 Outer Continental Shelf Program.

As expected the president’s energy speech is not receiving much praise from the oil industry. Obama claimed that the oil industry is sitting on leases instead of using these for oil production. Ken Cohen, Exxon Mobile Corp.’s vice president of public and government affairs addressed the President’s claims and reflected on his speech in a Wall Street Journal article:

Said Mr. Cohen: “90% of the words sound relatively right in line with what you’d hear us say,” in terms of enhanced use of natural gas, increasing energy efficiency, more research and development and more domestic production. But the speech didn’t address policies that Mr. Cohen said are hampering oil development, such as opening areas that are off limits to the industry, and insisted on uneconomic mandates for renewable fuel. Moreover, the mention that oil companies are hoarding unexploited leases is off the mark, he said.

“The notion that there’s some economic incentive to sit on a lease is wrong,” Mr. Cohen said, particularly when oil prices are above $100 a barrel.

Despite the recent tragic events of Japan’s nuclear power disaster, it was relieving to see the president not call a halt to nuclear energy. While it will most likely take time for nuclear energy to rebound from the catastrophic events, the president looked at the situation pragmatically by continuing to voice support for nuclear energy while requesting a Nuclear Regulator Commission safety review to make sure all existing nuclear energy facilities are safe.

Despite the criticism, it is still important to keep in mind that we are all stewards of the Earth and need to take care of the planet God has given us. We do not get a replacement and we must see that future generations have a planet they can live in without problems created by our generation. The President’s call to not waste energy should be applauded, and advice we should all heed. However, as the United States continues to define its energy policy it is also equally important to keep in mind we are called to not just be environmental stewards, but also financial stewards. Our energy policy should be for the well-being of the planet but also economically feasible without being burdened with costly subsidies and unintended consequence.

Full text from President Obama’s speech can be found here.

The American Enterprise Institute also provides and insightful critique on the President’s speech which can be found here.

My commentary this week touches on the spiritual and cultural significance of the largest U.S. oil spill in history. I was a resident of the Mississippi Gulf Coast for 11 and a half years. I worked in the Gulfport district office of U.S. Congressman Gene Taylor (D-Miss) before leaving for seminary. I was a Katrina evacuee and returned to see unbelievable decimation. It reminded me of the pictures of Hiroshima in textbooks after the dropping of the nuclear bomb. I always think it is fascinating when I hear people observe the Gulf Coast on the news after a tragedy and say how the people should just move. I wonder where they would go when the water is such an integral part of their subsistence and heritage? The people on the Gulf have much more culturally in common with individuals on the Gulf in neighboring states than they do with those living inland in their own state. Louisiana, especially, has one one of the most uniquely diverse cultures in this country. A key theme in my piece is that BP can compensate them economically, but there is an important cultural and spiritual aspect to their labor that is above financial compensation. The text of my piece is also printed below:

Spiritual Labor and the Big Spill

by Ray Nothstine

Many Americans are proud of where they come from; this is no less true of the people of the Gulf Coast. Human interest stories have gripped viewers and readers following the news about the BP oil spill, which often highlights the locals’ pride in their roots. Sal Sunseri, the owner of P&J Oysters in New Orleans says it well: “The history and culture of the seafood industry in Louisiana is part of the fabric of who we are. The world should not take this lightly.”

Sunseri brings to life an important point about the spiritual and cultural aspect of work that is especially rich on the Gulf Coast. Work in a free economy is an expression of our creativity, virtue, and response to a calling. Christian authors Gerard Berghoef and Lester DeKoster note that “God so arranges work that it develops the soul.”

BP is airing a commercial in which it vows to compensate fishermen and others for the loss of income until the cleanup is completed. This is a good start. But it also serves as a reminder that earnings are secondary to fishermen whose very labor is the preservation of heritage. It is not uncommon to hear fishing crews speaking Cajun French off the coast and in the bayous and marshes of Louisiana. Cajun French, an endangered language, was at one time banned in Louisiana schools. The spill is another threat to communities and a way of life for generations of a proud and sometimes marginalized people.

Vietnamese shrimpers, too, proudly work these waters, many of them refugees from communist aggression. They flourish at shrimping, a trade that generations of families practiced in Vietnam. The Vietnamese were among the first communities to rebuild their lives after Hurricane Katrina, often not waiting for government aid. The Washington Post, in a story on the Vietnamese community, echoed this fact and explained how the spill was especially tragic as a resilient community was forced to await assistance.

BP would be wise to continue to hire as many local crews as possible for cleaning up this disaster. Locals have an extra incentive to assist in a thorough effort since they are most tied to the water. BP needs to be concerned not only with repairing its brand; the company has a clear moral obligation to follow promises with action.

The oil industry in the Gulf Coast accounts for almost a third of all U.S. oil production. The oil company’s contribution to the nation’s energy supply is invaluable, but they have been fighting public relations battles for years. Seen largely as a benefit to the community before the spill, they are now being battered by doubts from many in the region who repeat a common line: “We have made a deal with the devil.”

But many residents and local leaders understand that the oil industry is essential to Louisiana’s economic well being. The governor and legislators have fought a bipartisan battle to preserve jobs while the federal government seeks a moratorium on offshore deep-water drilling.

Many in Mississippi and Louisiana are also understandably weary of an often unresponsive federal bureaucracy. United States Congressman Gene Taylor (D-Miss), who represents the seacoast, said of the federal response, “I’m having Katrina flashbacks,” and called the current administration’s efforts “incompetent.” In a particularly harsh quip Florida Senator George Lemieux (R-Fla) added: “It’s not just oil that’s washing ashore Mr. President, it’s failure.” Asked about the biggest frustration with the federal response, Governor Bobby Jindal (R-La) on day 73 of the spill lamented, “There’s just no sense of urgency.”

There is dismay that a nation that once landed men on the moon, liberated nations, and fed and rebuilt its enemies has few answers: the “yes we can” mantra has not materialized for the Gulf. Out of the darkened waters, there is an opening for an oil company to do the right thing and repair trust with an understandably outraged populace.

The men and women of the Gulf Coast who take to the water to practice their trade deserve the opportunity to flourish in the vast wonder of creation. The many Christians among them are keenly aware of the passage from John 21, when the resurrected Christ from afar tells the disciples to cast their net on the right side of the boat and they are rewarded in abundance. The passage is a reminder that Christ has an intimate knowledge of and concern for even the creatures under the sea. It is a source of hope that the cooperation of private enterprise, government, and local ingenuity can bring healing and the rejuvenation of a treasured way of life.