The eurozone is in utter chaos.
Many experts who are not normally bearish are extremely concerned about a possible collapse. The eurozone makes up 25 percent of the world’s GDP. If it blows up, the United States will not be immune from the contagion. Amid all the doom and gloom, it is easy to become pessimistic.
However, one of the most important and promising accomplishments was reported by The Wall Street Journal. For the first time in 62 years, the United States is on pace to become a net exporter of petroleum at the end of this year. According to the EIA, the United States will import 690 million barrels, while exporting 753 million barrels of petroleum products.
Six years ago, if someone would have told you this, you would either think they were crazy, or that Iraq had become the 51st state. In 2005, America was importing 900 million barrels more than it exported.
What caused this big change? Firstly, exports have gone up. North Dakota is now being called by many the Saudi Arabia of America. New drilling methods and efficient refineries are also helping drive the boom.
However, not everything is as good as it sounds. Another reason why the United States is becoming a net exporter of petroleum is due to lower domestic demand. The current slow economy has driven down use of gasoline and other types of petroleum products.
President Barack Obama seems to have more job plans than the amount of jobs actually created.
However, there is a good plan that can help the United States continue this trend while improving the economy: end the burdensome regulations and moratoriums.
Petroleum is usually found near natural gas. While many environmentalists in the Obama administration are attempting to stop any natural gas drilling, the United States has huge reserves of natural gas sitting idle.
The United States has enough natural gas to meet domestic demand for the next 75 years.
The United States could not only export more gas, but also create millions of jobs in the process. Petroleum and more natural gas will almost surely be found while exploring and drilling.
Obama can directly help by approving the Keystone XL pipeline, and opening up more off-shore and on-shore locations for gas.
Environmentalists will have to realize that solar and wind would take decades to become a significant source of energy. In the meantime, it is better to produce domestically than buy from Hugo Chavez.
While the news is great, it still paints a glass half full. If the president is serious about American energy independence and creating jobs, all he needs to do is step aside.
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