Obama and Clean Energy

President Obama has been stressing on the need for an option to push forward with green energy resources. He hopes to find solutions that could very well determine future energy requirements and at the same time safeguard the nation against the effects of greenhouse gases. This has been a hot topic for some time now and there has been a growing debate among our nation’s leaders as to when such a bill would be passed in Congress. The nation requires bold leadership from Washington in the face of mixed signals at the state level towards clean investments in energy.

If such a bill is passed what would be the future course of action that the fossil fuel developing energy companies have to take? This would also be a defining factor in the event that the cleaner forms of energy resources get stiff resistance from the Senate and/or House. Indeed, senators believe that there could be considerable opposition among the various members. As per Obama’s plan the formation of a committee has been proposed. If created, this committee would be in charge of a clean energy department and would oversee the initiation of clean energy projects. Realistically, this proposal seems to be a very distant and tough goal to achieve.

This could mean a very high chance of senators looking forward to the advantages of a clean energy switch-over and many eyebrows will be raised as to how far the cleaner forms of energy resources will be able to replace the existing fossil fuel usage in the United States of America. Hence it is seen that utilities and other entities in the industry are in the process of floating as per their own wish.  As a result, very dark shadows are already cast on the climate bill that had been proposed in legislation.

Most Congresspeople are already in the process of heated debate on the issues of trade and clean forms of fuel.  The big players in the utility arena strongly believe that, in the event of the Senate being forced to pass the clean energy bill, their business will be badly hit and there could be a total washout of their business establishments. This is following the fears of fossil fuel energy stockowners, that they could very well lose all their profit from oil companies. Further, there could be a reverse flow of money that could occur in the event these utility companies are forced to buy clean forms of energy from the respective supply companies.

This could mean that the utility companies involved in the generation of such cleaner forms of fuel will stand to benefit if such a clean energy bill is passed by the legislation. Hence this would mean that states with the largest production facilities for such clean energy will be making huge profits, by the sale of the utility to the public, for example. They will in turn become the creditors to other states that would buy these utilities. States resisting change will be left behind, while those that lead the way with clean investments in energy have a brighter future. Thus it is to be seen in the coming days as to whether the bill would find its way to become legislation.

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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