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Oil Company CEOs Officer United Front on Oil Drilling

On Monday, the organization known as Business Roundtable released a detailed brief to the Obama Administration outlining precisely what the broader business community sees as the future of gas and oil utilization in the United States. According to McGraw-Hill Company’s website Platts:

“A national association of CEOs on Monday called on the federal government to ease oil and gas permitting, re-evaluate the impact of regulations on the electricity industry, and gradually eliminate wind power subsidies as part of a broad national energy strategy.

…the Business Roundtable also recommended increased incentives for state-level energy efficiency programs and increased federal funding for ‘pre-commercial’ energy research and development.

‘America is on the threshold of a historic, long-term energy boom, but what is holding us back is the lack of a national strategy for taking advantage of this vast opportunity,’ John Watson, the CEO of Chevron, said during a phone call with reporters.

‘It is vital that the government work with us to develop a policy framework that supports investments by expanding access to public land, onshore and offshore, streamlining approval processes for major energy projects such as the well-known Keystone pipeline, creating regulations based on sound science and thorough cost-benefit analysis and recognizing and respecting the roles of state and federal government, particularly in the area of shale gas development,’ he said.”

However, there was significantly more contention over the idea of exporting natural gas around the world. Reuters reports:

“New technology has already put vast natural gas reserves within reach – unlocking shale deposits and creating a sudden glut of the fuel – but executives stayed silent on whether that bounty should be exported.

Energy interests hope natural gas sales abroad will help their bottom line while some domestic industries fear exports will rob them of cheap fuel that could expand the nation’s manufacturing base.”

Given that these remarks are being released so shortly after President Obama’s most recent State of the Union Address, it appears as though this is the business community’s attempt to put on a fully unified front. It has long been postulated that increased domestic oil drilling would help reduce prices at the pump for the average American. However, if the export of some of these resources has the effect on the economy that some seem to suggest, it is possible Americans could soon find themselves in the opposite situation.

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